Big banks' profitability on the mend

The profitability prospects of China's big banks have improved in the first quarter of this year after the country's economy picked up steam during the period while smaller banks will see greater capital and liquidity pressure amid tightened regulation, analysts said.

Industrial and Commercial Bank of China Ltd, the world's largest lender by assets, reported net profit of 75.8 billion yuan ($11 billion) in the first quarter, up by 1.5 percent year-on-year, according to the bank's stock exchange filings. It was the bank's strongest quarterly profit growth in two years.

The ICBC's domestic rival Agricultural Bank of China Ltd reported 1.87 percent profit growth while China Construction Bank Ltd saw 3.03 percent profit growth in the first quarter.