Chinese Systemic Banks Lead Surge in Credit Impairment Losses
Major lenders in China and Europe report rising provisions amid shifting portfolio risks and regulatory requirements.
Chinese systemic lenders saw a broad rise in credit impairment losses during the first quarter of 2026. China Construction Bank (CCB) reported credit impairment losses of RMB61,660 million, a 28.04% increase over the same period last year. Industrial and Commercial Bank of China (ICBC) also saw impairment losses on loans rise by 16.27%.
This trend extended across other major Chinese institutions. Bank of China (BOC) recorded impairment losses of RMB38.286 billion, up 18.73% from 2025. Bank of Communications (BOCOM) saw asset impairment losses climb 12.49% to RMB14.210 billion, driven specifically by a 9.30% increase in credit impairment losses on loans. Agricultural Bank of China (ABC) reported a total of RMB73,719 million in credit impairment losses, an increase of RMB16,659 million compared to the previous year.
European and American banks reported more fragmented results. NatWest Group (NWG) saw its impairment charge rise to £437 million from £282 million in 2024, citing growth in its unsecured book and balances acquired from Sainsbury’s Bank. Barclays (BCS) flagged higher impairment charges stemming from US macroeconomic uncertainty and the acquisition of the GM portfolio.
Some institutions managed to reduce their credit costs. CaixaBank (CABK) saw provisions decrease 40.3% year-over-year as expected credit losses remained stable during the quarter. ANZ Group Holdings (ANZ) reduced its individually assessed credit impairment charge by 12% sequentially, aided by lower impairment flows in the SME Banking portfolio. Commerzbank (CBK) noted that charges from provisions for foreign currency retail mortgage financing at mBank fell significantly compared to the prior-year period.
Regulatory and portfolio adjustments continued to influence reserves. Santander Brasil (BSBR) increased its allowance for loan losses by 8.9% year-over-year to comply with a specific regulatory Resolution. Société Générale (GLE) reported that its stock of stage 2 provisions increased by 4%, representing 3.9% of outstanding stage 2 loans.
Other balance sheet movements included a provision rate increase to 4.7% at Caixa Econômica Federal (CEF), up 50 basis points over March 2025. Goldman Sachs (GS) saw operating expenses drop 46% year-over-year, a result of the write-down of intangible assets and an impairment of goodwill related to the GreenSky loan portfolio. PNC Financial Services (PNC) reported earnings growth in its Asset Management Group supported by higher provision recapture.