Chinese Banks Report Leap in Profits

From the Financial Times:

China’s three largest banks reported huge profit jumps in the first quarter in what may mark a peak in earnings this year as government measures to curb loan growth and tackle inflation start to bite.

Industrial and Commercial Bank of China, the country’s largest lender, lifted net profit by 77 per cent in the first quarter from a year earlier to Rmb33.1bn ($4.7bn) while Bank of China reported an 85 per cent increase to Rmb21.7bn.

China Construction Bank, the other state-owned bank listed on the Hong Kong and Shanghai stock markets, said profit in the first quarter reached Rmb32.1bn. It did not report first-quarter earnings last year and did not provide a comparison. All three banks benefited from a reduction in the country’s corporate tax rate from 33 per cent to 25 per cent that came into effect on January 1.

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