BIZCHINA> Markets
BoCom H1 net profit up 81.2%
(Agencies)
Updated: 2008-08-27 16:11

Bank of Communications (BoCom) said its first-half net profit rose 81.2 percent from a year earlier to 15.51 billion yuan ($2.27 billion), driven by strong growth in net interest income, higher fee and commission revenue and widened interest margin.

Net fee and commission income for the six months to June amounted to 4.65 billion yuan, up 50 percent from a year earlier, while net interest income was at 33.097 billion yuan, up 40.6 percent.

Net interest margin expanded to 3.22 percent at end-June from 2.86 at the end of 2007 on the back of loan growth, the mainland lender said.

Loans and advances to customers, before impairment allowances, stood at 1.24 trillion yuan, up more than 12 percent from the year-earlier 1.10 trillion.

Impairment losses on loans and advances for the first half amounted to 3.98 billion yuan, up from 3.08 billion.

For the second quarter to June, the bank's net profit rose to 7.62 billion yuan from 4.76 billion a year earlier, but was down from the 7.89 billion recorded in the first quarter to March.

Looking ahead, the bank said it sees both opportunities and challenges.

"China's economic development is expected to remain stable and rapid...However, factors such as the slowdown in global economic growth, inflation, yuan appreciation and the greater uncertainty over the trend of the global economy will continue to exert a certain degree of pressure on the business development," BoCom said in a statement.

The bank said it will strengthen its operations by accelerating the development of its retail business and fee-based activity in the second half.


(For more biz stories, please visit Industries)