On the afternoon of March 27, the Industrial and Commercial Bank of China, Bank of Communications announced the respective 2012 Annual Report. According to the disclosure, net profit of ICBC and Bank of Communications in 2012 reached 238.691 billion and 58.373 billion, the respective growth rate are 14.5% and 15.1% year on year. At present, all the five major state owned banks in China, ICBC, China Construction Bank, Agricultural Bank of China, Bank of China, Bank of Communications have announced their annual reports.
In 2012, the five major banks earned a total net profit of RMB 774.6 billion($123.9 billion), the same digit in 2011 was RMB 674.5 ($107.92 billion), thus the earnings growth rate is 14.9% in 2012. This growth rate exceeded market expectations. The market had expected that the net profit will be around 750 billion for the five major state-owned banks.
While the banks’ financial performance is still gorgeous, the slowdown of the net profit increase is obvious. In the top five banks, Agricultural Bank’s net profit is up by 19%, leading the five banks in term of growth rate. But the growth rate was 28.52 percent in 2011, thus the growth has slowed down considerably. The growth performance of the Industrial and Commercial Bank which is China’s most profitable bank has also been its lowest level since 2006. China Construction Bank’s net profit increase of 14.13% is considered as the worst in 6 years.