Bank of Communications, the mainland's fifth-largest lender, yesterday said its third-quarter earnings growth slowed as demand for loans waned.
The results came as analysts warned that the operating environment would become tougher amid a bearish stock market, rising default rates and shrinking interest margins.
Bocom, about 20 per cent owned by HSBC Holdings, said it earned 7.21 billion yuan (HK$8.19 billion) between July and last month, up 21.66 per cent from a year earlier - a stark contrast to the 81.21 per cent year-on-year profit jump seen in the first half.
For the first three quarters, Bocom's profit rose 56.84 per cent to 22.72 billion yuan.
Mainland banks are facing deteriorating asset quality and slowing profit growth as the country grapples with a global economic downturn and weaker domestic market.
Net interest margins are also set to fall as Beijing has cut lending rates three times in a month, and analysts expect it to lower rates further to fuel economic growth.