Ping An’s net profit plunges 42.7% in first quarter

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Ping An Insurance (Group) Company of China has reported a 42.7% decrease in net profit for the first quarter of 2020, triggered by the difficult economic climate surrounding the COVID-19 pandemic.

According to the company’s earnings statement, it encountered unfavourable conditions surrounding the coronavirus outbreak, including difficulties in offline operations, rising credit risk, volatile equity markets, and falling interest rates. In response to these, the company adopted measures including a transformation toward online operations to mitigate the impacts of the epidemic.

The economic climate caused investment income to fall sharply, due to greater volatility of fair value gains and losses.

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