Shanghai banks expect steady profit

SHANGHAI: Over 70 percent of the banks in Shanghai said their profits will not slide in 2009, according to a survey.

About 30 percent of the banks surveyed said they expected their business performance for 2009 "will move on a sound track" with rising profits, while another 40 percent said their profitability "will maintain the same level as 2008", said the survey on Shanghai banks' Q4, 2008 performance, unveiled by the Shanghai Bureau of China Banking Regulatory Commission (CBRC) over the weekend.

For banks, premium on interest rates between borrowing and lending still remains the biggest contributor for their future profit rise, followed by intermediary businesses and portfolio securities investment. And over 70 percent of the Chinese banks and 60 percent of foreign banks said they expect interest rate premium to be the major source for their 2009 profit rise.