China’s banks’ profit growth slows
(23 January 2009 – China) Despite the tough world economic conditions, recent results show that Chinese banks are still managing strong profit growth, however at a lower level than in recent years.
One of Chain’s big four banks, Agricultural Bank of China recorded a 51.1 billion yuan (US$7.48 billion) profit in 2008, up a substantial 19.1 percent from a year earlier.
Deposits are also up while lending is strong. The bank had added 807.8 billion yuan, or 15 percent, in new deposits last year, while lending out 135.3 billion yuan in agriculture-related loans, the bank said.
Meanwhile, a smaller Chinese bank, China's Industrial Bank, a medium-sized bank based in Fujian province, said its net profit jumped 32.3 percent in 2008 to 11.36 billion yuan ($1.66 billion).
The bank’s revenue for 2008 climbed 35.3 percent to 29.85 billion yuan.
Despite the significant growth, the full-year profit growth figure is small in comparison with a 126 percent rise the previous year and 80 percent growth for the first half.
Profit growth slowed sharply at Chinese banks generally in the second half of last year due primary to the economic slowdown, a fall in interest rates and a rise in loan defaults.
Deposits are also up while lending is strong. The bank had added 807.8 billion yuan, or 15 percent, in new deposits last year, while lending out 135.3 billion yuan in agriculture-related loans, the bank said.
Meanwhile, a smaller Chinese bank, China's Industrial Bank, a medium-sized bank based in Fujian province, said its net profit jumped 32.3 percent in 2008 to 11.36 billion yuan ($1.66 billion).
The bank’s revenue for 2008 climbed 35.3 percent to 29.85 billion yuan.
Despite the significant growth, the full-year profit growth figure is small in comparison with a 126 percent rise the previous year and 80 percent growth for the first half.
Profit growth slowed sharply at Chinese banks generally in the second half of last year due primary to the economic slowdown, a fall in interest rates and a rise in loan defaults.
Subscribe