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Construction Bank net proft soars 27% to US$10.4b
By Zhang Fengming |
August 23, 2010, Monday
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Online Edition
Online Edition
CHINA Construction Bank said its net profit rose 27 percent in the first half of this year on higher interest income.
The bank, partly owned by Bank of America, said its net profits increased to 71 billion yuan (US$10.4 billion) as the end of June, according to its filing to the Shanghai Stock Exchange today.
The bank's net interest income increased 15 percent to 117.8 billion yuan.
The lender's fee-based income rose 44 percent to 33.6 billion yuan.
"The bank's performance is up to expectation," said Industrial Bank in a research note today. "The stronger interest-bearing assets, the better cost control and rapid fee-based income growth boost the bank's income."
Industrial Securities rated Construction Bank "buy," which means the company could outperform the broad market by at least 15 percent.
Guotai Jun'an Securities Co has a more conservative view on the bank, rating the bank maintain, which means the bank can rise 5 percent to 15 percent above the broad market.
The bank's outstanding loan rose 11 percent than the beginning of the year to 5.3 trillion yuan.
Home mortgage and real estate loans accounted for 25.8 percent of the bank's total lending. It's a relatively high level among listed banks. Construction Bank has a tradition of heavy involvement in the real estate and home market as it's part of its strength.
The bank has shored up its provision against bad loan losses. Its provision rose to 205 percent as the end of June, up from 176 percent as the end of 2009.
The bank's bad loan dropped by 7 billion yuan to 65.2 billion yuan in the first half. Its non-performing loan ratio decreased by 0.28 percentage points to 1.22 percent as the end of June.
The Beijing-based bank said in April it plans to raise as much as 75 billion yuan via a rights issue in Shanghai and Hong Kong to replenish capital.
The bank ended at 4.79 yuan today in Shanghai, down 0.21 percent. While the benchmark Shanghai Composite Index inched down 0.11 percent to 2,639.4.
The bank, partly owned by Bank of America, said its net profits increased to 71 billion yuan (US$10.4 billion) as the end of June, according to its filing to the Shanghai Stock Exchange today.
The bank's net interest income increased 15 percent to 117.8 billion yuan.
The lender's fee-based income rose 44 percent to 33.6 billion yuan.
"The bank's performance is up to expectation," said Industrial Bank in a research note today. "The stronger interest-bearing assets, the better cost control and rapid fee-based income growth boost the bank's income."
Industrial Securities rated Construction Bank "buy," which means the company could outperform the broad market by at least 15 percent.
Guotai Jun'an Securities Co has a more conservative view on the bank, rating the bank maintain, which means the bank can rise 5 percent to 15 percent above the broad market.
The bank's outstanding loan rose 11 percent than the beginning of the year to 5.3 trillion yuan.
Home mortgage and real estate loans accounted for 25.8 percent of the bank's total lending. It's a relatively high level among listed banks. Construction Bank has a tradition of heavy involvement in the real estate and home market as it's part of its strength.
The bank has shored up its provision against bad loan losses. Its provision rose to 205 percent as the end of June, up from 176 percent as the end of 2009.
The bank's bad loan dropped by 7 billion yuan to 65.2 billion yuan in the first half. Its non-performing loan ratio decreased by 0.28 percentage points to 1.22 percent as the end of June.
The Beijing-based bank said in April it plans to raise as much as 75 billion yuan via a rights issue in Shanghai and Hong Kong to replenish capital.
The bank ended at 4.79 yuan today in Shanghai, down 0.21 percent. While the benchmark Shanghai Composite Index inched down 0.11 percent to 2,639.4.
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