Top Chinese banks post embarrassingly high profits

Seven of China’s leading banks lean on interest income to book record profits.

China Construction Bank, the Agricultural Bank of China, Huaxia Bank, China Minsheng Banking Corporation, Shanghai Pudong Development Bank, the Industrial Bank and Shenzhen Development Bank reported a combined net income of US$62 billion, a jump of 32% from 2010.

"We are embarrassed to announce (the results) as the bank's profit is too high,” said Hong Qi, Minsheng's President.

Analysts said huge increases in net interest income were the major profit driver. Net interest income jumped 28% US$134 billion for the seven in 2011 year-on-year. This total was equivalent to 81% percent of their total operating income last year.

Substantial increases in fees and commission income also contributed to the jump in profits, climbing to US$31 billion last year or a surge of 46%.