Analysts expect China’s banks’ profitability to suffer from a government cuts to interest rates introduced earlier this week and down payment requirements for mortgages, as they face a narrowing interest spread, state media reported. "The impact of an interest income cut is more direct and swift to banks," said Li Shanshan, a China Merchants Securities analyst. Securities research house China International Capital Corp expects banks to post an average of a 3%-15% drop in profitability next year. China’s banks posted strong first-half profits this year, with Industrial and Commercial Bank of China reporting more than 50% year-on-year growth and the largest profit of any bank globally during the period. However, analysts previously said those earnings growth rates "will not be sustainable into next year."