Chinese bank profit growth may fall to single digits in 2013

Profits will be squeezed by lower interest margins and fee income, analysts say.

Chinese bank profit growth may fall to single digits in 2013

The profitable Chinese banks are not immune to the country’s slowing economic growth and their profit growth will drop below 10% in 2013, analysts estimate.

Weighing on their earnings will be a further weakening in credit demand from struggling Chinese companies and the government’s push on interest-rate liberalisation, which will lead to a narrowing of interest margins. At the same time, the efforts by China’s banking regulator to clamp down on excessive commission charges will...

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