Higher interest income boosts Construction Bank's H1 net
By Zhang Fengming |
August 24, 2010, Tuesday
|
Print Edition
Print Edition
CHINA Construction Bank said its net profit rose 27 percent in the first half of this year due to higher interest income.
The bank, partly owned by Bank of America, said its net earnings jumped to 71 billion yuan (US$10.4 billion) at the end of June, according to its filing to the Shanghai Stock Exchange yesterday.
The bank's net interest income rose 15 percent to 117.8 billion yuan. Its fee-based income rose 44 percent to 33.6 billion yuan.
"The bank's performance is up to expectations," said the Industrial Bank in a note yesterday. "The stronger interest-bearing assets, the better cost control and rapid fee-based income growth boosted the bank's income."
Its sterling performance prompted Industrial Securities to rate Construction Bank as a "buy," which means the company could outperform the broad market by at least 15 percent. But Guotai Jun'an Securities Co was more conservative, rating the bank "maintain," which means the lender can rise 5 percent to 15 percent above the broad market.
The bank's outstanding loans rose 11 percent from the beginning of the year to 5.3 trillion yuan.
Mortgages and real estate loans accounted for 25.8 percent of the bank's total lending - relatively high among listed banks.
The bank's bad loans fell by 7 billion yuan to 65.2 billion yuan in the first half. Its non-performing loan ratio dipped by 0.28 percentage point to 1.22 percent at the end of June.
It has, however, shored up its provision against bad loan losses. Its provision increased to 205 percent at the end of June, up from 176 percent at the end of 2009.
The bank, partly owned by Bank of America, said its net earnings jumped to 71 billion yuan (US$10.4 billion) at the end of June, according to its filing to the Shanghai Stock Exchange yesterday.
The bank's net interest income rose 15 percent to 117.8 billion yuan. Its fee-based income rose 44 percent to 33.6 billion yuan.
"The bank's performance is up to expectations," said the Industrial Bank in a note yesterday. "The stronger interest-bearing assets, the better cost control and rapid fee-based income growth boosted the bank's income."
Its sterling performance prompted Industrial Securities to rate Construction Bank as a "buy," which means the company could outperform the broad market by at least 15 percent. But Guotai Jun'an Securities Co was more conservative, rating the bank "maintain," which means the lender can rise 5 percent to 15 percent above the broad market.
The bank's outstanding loans rose 11 percent from the beginning of the year to 5.3 trillion yuan.
Mortgages and real estate loans accounted for 25.8 percent of the bank's total lending - relatively high among listed banks.
The bank's bad loans fell by 7 billion yuan to 65.2 billion yuan in the first half. Its non-performing loan ratio dipped by 0.28 percentage point to 1.22 percent at the end of June.
It has, however, shored up its provision against bad loan losses. Its provision increased to 205 percent at the end of June, up from 176 percent at the end of 2009.
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