CCB posts 11% profit growth in 2013

China Construction Bank (0939.HKG, 601939.SHA) net profits grew by 11% in 2013 to US$34.6 billion (RMB214.7 billion), bolstered by rising interest margins, Bloomberg reported, citing the company’s annual earnings report. Net income increased 9% during the first quarter of 2014, beating analysts’ expectations. But, even so, analysts say the bank’s results weren’t particularly outstanding, suggesting the margins only grew because liquidity was tight in 2013. CCB’s earnings are likely to fall as a slowing economy weakens loan demand and asset quality. The bank also faces stricter capital requirements enacted last year, forcing it to raise funds to shore up its balance sheets.