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BIZCHINA / News |
Chinese banks expect profit rise in first half(Xinhua)
Updated: 2007-07-17 09:23 Chinese banks are expected to gain strong earnings in the first half of this year, according to interim earning projections. Reports by five banks show first-half profits would rise from 50 percent to more than 100 percent over the same period last year. The Industrial and Commercial Bank of China (ICBC), China's largest bank, said its net profits would rise about 50 percent to 37.6 billion yuan (US$4.94 billion). The ICBC attributed the profit growth to benefits from loans and investment as well as intermediate services. The China Merchants Bank forecast 100 percent rise of net profits to 5.6 billion yuan in the first half as income from services other than interest grew fast. The Industrial Bank expected a profit growth of more than 90 percent due to rapid increase in sales incomes and effective control of costs. China Citic Bank said its interim profits would rise 80 percent and China Minsheng Banking Corp. expected a rise of 60 percent in net profits to 2.77 billion yuan. Analysts said that the banks' interim earnings projections either met previous expectations or were much stronger. The government took a series of measures to tighten liquidity this year. The central bank raised the reserve requirement ratio five times and interest rates twice this year. The market had worried that the policies might affect the performance of banks in the first six months.
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