China’s two largest banks post slowest profit growthMarch 26, 2013 - 19:22 AMT PanARMENIAN.Net - Two of China's biggest state-owned banks reported their slowest profit growth in years amid an economic downturn and interest rate reforms, The Associated Press reports. Bank of China said Tuesday that profit grew 12 percent to 139.4 billion yuan ($22.4 billion). Agricultural Bank of China's earnings rose 19 percent to 145 billion yuan. They were the slowest growth rates for either bank since they went public. Bank of China listed in 2006 while Agricultural Bank of China's IPO was in 2010. Profit growth slowed as the world's second-largest economy underwent a painful slowdown in 2012. Growth has also been hurt by the government's easing of interest rate controls. Chinese banks have in the past benefited from a margin between lending and deposit rates of more than 3 percentage points, among the world's largest. China's central bank in June cut the minimum rate banks are allowed to charge commercial borrowers to 0.8 times the government's benchmark rate from the previous level of 0.9 percent. It also said banks would be allowed for the first time to pay depositors up to 1.1 times the state-set rate. Bank of China said volatile global financial markets and low interest rate polices at central banks in other countries hurt returns in its foreign currency business. Bank of China said net interest income rose 13 percent to 257 billion yuan. Agricultural Bank of China said it rose about 10 percent to 342 billion yuan. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Armenia Security Council chief traveling to Qatar Secretary of the Security Council of Armenia Armen Grigoryan will travel on a working visit to Qatar. Pillars installed in Armenian border village of Kirants In the Armenian village of Kirants, three border markers have been installed, and border guards stand next to them. Armenian Foreign Minister regrets “tragic loss” of Iranian counterpart The Armenian Foreign Ministry has expressed shock over the death of the Iranian President and the Minister of Foreign Affairs. Armenian PM sends condolences to Iran Prime Minister Nikol Pashinyan sent a message of condolence to the Supreme Leader Seyyed Ali Khamenei. |