A slow growth in China’s profit in 2012 was reported by two of the largest Bank in the country. The annual report was already released by the banks and a weak result on the country’s profit growth has surfaced. China is considered to be the world’s second largest economy.
A report coming from the Bank of China reflected that there was an increase of 12.2% in the profit growth in 2012. The recorded growth since 2006 until 2012 has generated an amount of 139.4 Billion Yuan that is equivalent to $22.4 Billion. The main source of profit in the bank is coming from its net interest rate income. There was an increase of 12.7% in the interest rate income.
Another bank in China, the Agricultural Bank of China has also released a record of 19% on a yearly increase in their net profits. The net profit was recorded to reach an amount of 145.1 billion yuan in 2012. This was recorded to be a slow growth according to the filed records from the bank. The bank also released a statement saying they have an interest rate income of up to 341.9 Billion yuan last year. This marked an 11.3% gain on the net interest income. The two banks in the country have placed the blame on the failure of the loans. It is the country’s liberalization on the interest rate that caused the slow growth in profit, according to an analyst of a banking sector. An expansion of the country’s economy was visible in 2012 but was described as a slow pace for almost thirteen years.
