Big Four China banks post double-digit gains in loan income

Shanghai

CHINA'S largest banks posted double-digit increases in lending income in the third quarter, validating some of the earnings optimism that has fuelled a rally in their shares this year.

Industrial & Commercial Bank of China Ltd (ICBC), Bank of China Ltd and Agricultural Bank of China Ltd (AgBank) on Monday reported average net interest income gains of 15 per cent. The figures come after China Construction Bank Corp (CCB) reported a 10 per cent rise last week.

For the most part, the four banks' results reflected improvements in interest margins and asset quality, though Bank of China's figures were marred by a jump in impairment losses. Its shares slumped 3 per cent in Hong Kong - the most in two months - as at 10.24 am local time, while ICBC dropped 1.7 per cent and CCB lost 0.8 per ce…