China Communications Bank H1 profit up 81 pct
27/8/2008 17:14
Bank of Communications, China's fifth biggest commercial bank, said its
first half profit up 81.21 percent over the same period last year on strong
commission charges and fee income.
Its net profit was 15.51 billion yuan
(US$2.3 billion) in the first six months under international accountant
standard, or 0.32 yuan per share, said the Shanghai-based lender in the
half-year report today.
Commission charges and fee income surged to 4.65
billion yuan, representing an increase of 50 percent over the same period last
year.
The bank's total assets were 2.43 trillion yuan by June, representing
an increase of 15.18 percent from the end of 2007.
Outstanding loan totaled
1.22 trillion yuan during the first six months, up 12.48 percent over the same
period last year, while outstanding deposits amounted to 1.81 trillion yuan, up
16.43 percent.
According to the report, the lender has interest income of
33.1 billion yuan in the first six months, representing an increase of 40.62
percent.
By June, its capital adequacy ratio was 14.06 percent, down from
14.44percent from the end of 2007.
The lender saw its shares fall 0.13
percent to close at 7.47 yuan yesterday.
Jiang Chaoliang, chairman of the
bank said that the profit growth rate had already peaked in the first six months
and would not gain in the second half, because it would be difficult to maintain
the current interest difference between loan and deposit, which analysts with
the China International Capital Corporation considered to be resulted from the
decline of loan-to-deposit ratio.
Besides, the bad debt provision would be
increased for the possible lowering of asset quality in the second half year,
according to Jiang Chaoling.
Xinhua
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