Giant China banks report rising profits last quarter

China's Industrial and Commercial Bank (ICBC) and the Bank of China both reported third-quarter profit that exceeded analysts' estimates, buoyed by a loan surge and lower provisions for potential losses on loans and investments.

Net income at ICBC rose 19 percent to 33.6 billion yuan (US$4.93 billion), cementing its status as the world's most profitable lender.

Bank of China, China's third-largest lender, staked in a profit of 21.1 billion yuan in the last quarter, a gain of 19 percent from a year earlier, it said. The China Construction Bank, its second-largest bank, posted a decent profit growth last week.

China's three largest lenders advanced 3.3 trillion yuan of new loans in the first nine months to finance a $586 billion government stimulus plan, which has helped drive an economic recovery and will accelerate profit growth at the banks to at least 20 percent in 2010, analysts said.

ICBC, China's largest bank and the biggest in the world based on market value, has risen 49 percent in Hong Kong trading this year. Bank of China has more than doubled while China Construction Bank stock has gained 56 percent this year.

By People's Daily Online