Profits 'on the up' at China banks

26 August 2011

Five of the largest banks in China have reported hefty profits for the first six months of the year that were markedly greater than the total posted by their main European and US competitors.

While Bank of America and Royal Bank of Scotland Group - which was founded in 1727 - revealed losses for the first half of the year, Industrial and Commercial Bank of China said its net income climbed by 20 per cent across the period, Bloomberg reports.

It meant the lender's profits rose to a record $17 billion while the combined revenue of China's banks jumped to $57 billion.

Ronald Wan, managing director at China Merchants Securities, said: "Shares of Chinese lenders are in a better position to rebound than US banks. In the second half, the market will still be concerned about asset quality and fund-raising issues."

China's banks appear to have benefitted thanks partly to the country's economy enjoying sustained growth of more than nine per cent.

By Asim Shah

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