ABC and BOC report slower profit growth

Two of the Big Four banks said economic slowdown crippled loan demand in 2012.

Bank of China said its net profit rose 12.2% from a year earlier to US$22.4 billion in 2012, the slowest growth since 2006. Its net interest income (its main source of profit) rose 12.7% year-on-year to US$41 billion.

Agricultural Bank of China recorded net profits to US$23.3 billion last year, a 19.0% year-on-year increase. Its profit growth was the slowest since 2010.

ABC's net interest income in 2012 improved 11.3% to US$55 billion year-on-year.

The banks blamed China's economic downtrend for depressing loan growth. China's interest rate liberalization also contributed to hammering profit growth.

China's economy expanded 7.8% in 2012, its slowest pace in 13 years, in the face of weakness at home and in key overseas markets.

China's central bank last year expanded the range that banks' deposit and lending rates can float around benchmark levels, a move which could result in narrower net interest margins for banks.