Reported by: Eric CRWE Newswire Middle East correspondent
China Construction Bank Corp announced a 27 percent increase in its net profit to 70.74 billion yuan equivalent to $10.41 billion for the first half of 2010 as compared to 55.81 billion yuan for the same period last year.
The China Construction Bank is the second largest bank in China and the Chinese government holds the major stake in its ownership, however 10 percent of total outstanding shares are held by Bank of America Corp (BAC)
Despite credit tightening measures by the Chinese government the bank’s lending activating and assets increased by 11 percent in the first half of 2010 but the figure was lower than the growth rate of 20 percent for the same period last year. CCB matched analysts forecasts for the first half of 2010 as its revenue proceeds from net fee and commission income increased 44 percent to 33.64 billion yuan for the first six months as compared to 23.42 billion yuan for the same period last year.
According to CCB their net interest income surged by 15 percent to 117.80 billion yuan whereas net interest margin for the quarter ended June improved to 2.41 percent as compared to 2.39 percent for the quarter ended March, 2010.
As per financial results ending June 30th the bank maintains the capital adequacy ratio of 11.68 percent which slightly fell from 11.70 percent last year. As per regulation large banks in China should maintain capital adequacy ratio of minimum 11.5 percent.
The banks non performing assets ratio also declined to 1.22 percent as per balance sheet ended June 30th 2010 as compared to 1.50 percent as on December 30th, 2009.
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