China’s big banks reported hefty profits in the first half of this year, but signs of strain are showing from their massive lending binges and as they struggle to meet tougher capital requirements. (Wall Street Journal)

Agricultural Bank of China beat market estimates and reported a 45.2 per cent rise in first-half net profit to 66.68bn yuan from a year ago, thanks to robust net interest and fee income. (The Standard)

Since China’s vice-premier Li Keqiang and People’s Bank of China governor Zhou Xiaochuan unveiled new measures to encourage offshore renminbi bond issuance last week, mainland banks have been lobbying for their portion of the Rmb50bn dim sum bond quota set for the rest of 2011. (Financial Asia)

Warren Buffett’s US$5bn lifeline for Bank of America has earned the Sage of Omaha a paper profit of US$280m in just 24 hours. (The Telegrapgh)

Hopes for the world economy darkened as two more investment banks slashed their growth forecasts amid fears about the damaging impact of the chaos in the financial system. Citigroup and UBS joined Morgan Stanley in lowering their outlook for economic expansion, with the euro-zone turmoil featuring high on their list of concerns. (The Australian)

US investment banking firm Goldman Sachs is cutting the pay of hundreds of its London bankers. The bank, which ratcheted up basic pay in 2009 to avoid the UK government’s bank bonuses tax, has invoked a clause in its investment bankers’ contracts to bring it back down. (Guardian)

ASX Ltd this morning confirmed the appointment of Elmer Funke Kupper as its new chief executive on a A$4m package, replacing Rob Elstone. (The Australian)

Perpetual has announced a 31 per cent fall in full-year profits, citing subdued investment sentiment and significant market volatility triggered by global credit concerns. (Sydney Morning Herald)