ICBC, CCB see 3Q profit growth slow

Two mainland banks saw their third quarter profit growth slow dramatically in what analysts believe will set the tone for the rest of the earnings season, the Financial Times reported. Industrial and Commercial Bank of China on Friday said its net profit grew by 25.5% to US$4.1 billion in the third quarter, sharply down from a 57% increase seen in the first half and a 77% increase in the second quarter. China Construction Bank, on Friday said its net profit grew by 12.1% in the third quarter to US$3.7 billion. "We are witnessing a very quick deceleration in profit growth in the banking sector as the Chinese economy decelerates," Dorris Chen, an analyst with BNP Paribas, was quoted as saying. "The slowdown will be very similar for other banks." The slowdown in growth is partly due to the high base set during the third quarter of 2007, when credit growth, stock and property prices were all at their peak.