China's state banks cut 2013 profit forecasts

Four of the five state-run Chinese banks have cut their 2013 profit forecasts, amid continued banking reform and a tightening of credit flows, Caixin reported. The Bank of China (3988.HKG, 601988.SH), China Construction Bank (0939.HKG, 601939.SH), Industrial and Commercial Bank of China (1398.HKG, 601398.SH) and the Bank of Communications (3328.HKG, 601328.SH), all expected profit growth rate to fall to under 10% in 2013 from an estimated high of up to 14% last year. Agricultural Bank of China (1288.HKG, 601288.SH) is the only state-run bank to predict profit growth at the same rates as preceding years as it has fewer clients, said representatives from the banks in a recent industry meeting. The cautious outlook reflects bank concerns about the central bank’s approach to 2013’s credit supply, as sources with knowledge of the matter said it would be capped at RMB9 trillion this year.