Listed banks see stronger rise in profit in 2010
By Maggie Zhang |
January 20, 2010, Wednesday
|
Print Edition
Print Edition
RIDING on China's economic growth, banks listed on the domestic market are expected to see their profit growing stronger this year, an analyst said yesterday.
The 10 A-share listed banks, including the Industrial and Commercial Bank of China and other smaller lenders, are expected to post a rise of 27 percent in profit this year from an expected 15 percent in 2009, Victor Wang, UBS's financial analyst, said yesterday in Shanghai.
The listed bank are likely to post strong increase in profit and credit this year despite concerns over the quality of capital and assets, Wang said.
"We maintain a positive stance on the public banks in China," he said. "A growing economy needs credit growth to back its momentum."
The driver for the strong growth in profits is expectations the public banks will see a 20 percent rise in aggregate loans.
"Though China is modifying its economic structure, we see no alternative to replace bank loans in the short term as the most important funding source for most corporations."
Analysts expect China's new loans at 7.5 trillion yuan (US$1.1 trillion) to 8 trillion yuan this year after a record of nearly 9.6 trillion yuan in 2009, which beat the 5 trillion yuan target set at the start of 2009.
The 10 A-share listed banks, including the Industrial and Commercial Bank of China and other smaller lenders, are expected to post a rise of 27 percent in profit this year from an expected 15 percent in 2009, Victor Wang, UBS's financial analyst, said yesterday in Shanghai.
The listed bank are likely to post strong increase in profit and credit this year despite concerns over the quality of capital and assets, Wang said.
"We maintain a positive stance on the public banks in China," he said. "A growing economy needs credit growth to back its momentum."
The driver for the strong growth in profits is expectations the public banks will see a 20 percent rise in aggregate loans.
"Though China is modifying its economic structure, we see no alternative to replace bank loans in the short term as the most important funding source for most corporations."
Analysts expect China's new loans at 7.5 trillion yuan (US$1.1 trillion) to 8 trillion yuan this year after a record of nearly 9.6 trillion yuan in 2009, which beat the 5 trillion yuan target set at the start of 2009.
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