Investing.com-- China's major state-owned bank shares climbed on Monday after the lenders reported their fastest quarterly profit growth in several years, supported by stabilising interest margins, lower deposit costs and steady asset quality.
Hong Kong-listed shares of Industrial and Commercial Bank of China (HK:1398), the world's largest lender by assets, rose as much as 3.6% by 02:35 GMT, after the company on Friday reported a 10% increase in third-quarter net profit.
Agricultural Bank of China (HK:1288) shares rose as much as 2% after reporting a profit growth of 10.8%.
Shanghai-listed China Construction Bank (HK:0939) added as much as 2.3% after it recorded a 9.8% profit increase.
Bank of Communications (HK:3328) posted 10.1% profit growth, while Bank of China (SS:601988) reported a more modest 6.4% rise.
The results reflect easing pressure on lenders' net interest margins as banks reprice higher-cost deposits and benefit from monetary support and mortgage interest subsidies. Gains from bond investments also supported earnings.
However, weak credit demand, a slowing economy and emerging risks in technology-sector lending remain challenges for the industry.
Original Article
China big bank shares jump after robust third-quarter earnings
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