China ICBC profit up 15pc

HONG KONG

Industrial and Commercial Bank of China Ltd (ICBC), the world’s biggest bank, reported a 15 per cent rise in quarterly net profit, beating estimates, as interest margins widened due to increased demand for credit. Net profit rose to 62.44 billion yuan ($10 billion) in July-September from 54.4 billion yuan a year earlier, ICBC said on Tuesday. That compares with an average estimate of 59.9 billion yuan in a Reuters poll of 12 analysts.

ICBC, the last of the socalled “Big Four” Chinese banks to post third-quarter earnings, joined rivals Bank of China Ltd , China Construction Bank Corp and Agricultural Bank of China Ltd in reporting better-thanexpected income.

The July-September period marked the first full quarter since the central bank allowed lenders to set their own loan rates in a landmark move to liberalise the country’s interest rate regime. The central bank in June allowed banks to set loan rates up to 20 per cent above its benchmark rate, and in July raised the ceiling to 30 per cent.