On the rise

Bank’s pres­i­dent looks ahead to the lender’s fur­ther ex­pan­sion in the global mar­ket

China Daily (USA) - - FRONT PAGE - By JIANG XUE­QING jiangx­ue­qing@chi­nadaily.com.cn

Bank of China recorded 2.52 per­cent year-on-year growth in profit, largely due to con­tin­ued devel­op­ment of over­seas busi­ness and de­ploy­ment in key re­gions.

Bank of China Ltd recorded 2.52 per­cent year-on-year growth in profit at­trib­ut­able to eq­uity hold­ers of 93.04 bil­lion yuan ($14 bil­lion), largely due to the con­tin­ued devel­op­ment of its over­seas busi­ness and strate­gic de­ploy­ment in key re­gions.

In the first half of this year, the bank’s over­seas in­sti­tu­tions re­al­ized profit be­fore tax of $8.57 bil­lion, up 84 per­cent from the pre­vi­ous year and rep­re­sent­ing 43 per­cent of its to­tal profit be­fore tax, ac­cord­ing to its 2016 in­terim re­sults an­nounce­ment.

Chen Siqing, pres­i­dent of BOC, said on Tues­day: “We’ll in­crease our over­seas as­sets to 30 per­cent of the to­tal. This tar­get will be re­al­ized soon. Next, we are look­ing to fur­ther in­crease our over­seas as­sets to 40 per­cent and even­tu­ally half of the to­tal in the long run.”

The glob­al­iza­tion of BOC has been mov­ing for­ward with deep­ened open­ing-up of China, the in­ter­na­tion­al­iza­tion of the ren­minbi and im­ple­men­ta­tion of the Belt and Road Ini­tia­tive, which pro­motes con­nec­tiv­ity among Asia, Africa and Europe, he said.

Dur­ing the last three years, the bank’s over­seas as­sets grew by more than $80 bil­lion per year on av­er­age with deeper in­te­gra­tion in over­seas mar­kets. Now, lo­cal clients ac­count for 72 per­cent of its clients over­seas.

The bank’s cross-bor­der ren­minbi set­tle­ment vol­ume reached 2.04 tril­lion yuan and its cross-bor­der ren­minbi clear­ing vol­ume reached 150 tril­lion yuan, main­tain­ing first place among peers in terms of mar­ket share.

Apart from push­ing for­ward its glob­al­iza­tion strat­egy, the bank also in­creased its sup­port to key re­gions in­clud­ing the Bei­jing-Tian­jin-He­bei re­gion, the Yangtze River Delta re­gion and Guang­dong-Hong Kong-Ma­cao area. In the first half, the key re­gions recorded a profit af­ter tax of 74.9 bil­lion yuan, ac­count­ing for al­most 70 per­cent of the bank’s to­tal profit af­ter tax.

As of June 30, the bank’s non­per­form­ing loan bal­ance rose 9.2 per­cent from the end of last year to 142.94 bil­lion yuan. Its NPL ra­tio in­creased 4 ba­sis points to 1.47 per­cent.

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