The Agricultural Bank of China’s first-quarter profit rose 36% to CNY34.1 billion year-on-year. The bank boosted lending by 5% to CNY5.2 trillion. Its loan-to-deposit ratio fell to 55.7%. Net interest income rose 32% to CNY70.5 billion in the first three months, while income from fee-based services gained 63% to CNY17.7 billion. Non-performing loans decreased from the end of 2010 to CNY91.7 billion as of March 31, and bad debts as a percentage of the total shrank to 1.76%. China Minsheng Banking Corp said first-quarter profit rose a more-than-expected 45% to CNY6.21 billion on higher income from loans and fee-based services. Net interest income climbed 33% to CNY13.4 billion from a year earlier and net non-interest income gained 43% to CNY2.95 billion. The Industrial and Commercial Bank of China  (ICBC) reported its net profit rose 29% from a year earlier to CNY53.8 billion, helping it remain as the world’s most profitable lender. China Construction Bank (CCB), the country’s second-biggest bank, posted an annual 34% rise in net profit of CNY47.2 billion. Net income at the Bank of China (BOC)  jumped 28% year on year to CNY33.44 billion, while the Bank of Communications (BoCom) said net earnings rose 27% to CNY13.3 billion. The government’s move to tighten liquidity by raising interest rates four times since October boosted the profits of the banks by increasing their interest margins. The top five banks reported a bad loan ratio of less than 2%. China Minsheng Banking Corp said net income rose 45.5% to CNY6.21 billion. Bank of Ningbo saw first-quarter net income surge 63.6% to CNY815 million, and Shenzhen-listed Shenzhen Development Bank said net income jumped 52% to CNY2.40 billion. “Listed banks’ profits are likely to grow 25% for the full year from 2010,” said Mao Junhua, Analyst with China International Capital Corp (CICC). “Future interest rate hikes are likely to be asymmetric, which would negatively influence net earnings.”