China Banks’ Profit Growth May Slow to 7% in 2013, BoCom

Chinese banks’ profit growth may slow to between 7 and 8 percent in 2013 from an estimated 17 percent increase this year, as non-performing loans climb amid a slowing economy and more borrowers resort to bond financing, according to Bank of Communications Co.

Banks may extend 9 trillion yuan ($1.4 trillion) of new loans next year, compared with a forecast of 8.4 to 8.5 trillion yuan this year, the Shanghai-based Bank of Communications, the nation’s fifth largest, said in a research note yesterday. Aggregate social financing, which includes loans, bond and equity offerings as well as trusts, may be between 16.5 and 17.5 trillion yuan, according to the note.