China’s fifth-largest bank turns in higher Q3 profit

The Star Malaysia - StarBiz - - Foreign News -

SHANG­HAI: Bank of Com­mu­ni­ca­tions Co Ltd, China’s fifth-largest listed bank by as­sets, posted a 3.5% rise in third-quar­ter net profit as mar­gins and bad loans held steady.

China’s largest state-owned lenders have re­ported an uptick in profit growth this year and sta­bil­is­ing bal­ance sheets, after suc­ces­sive quar­ters of shrink­ing mar­gins and ris­ing bad loans.

The re­sults follow Bei­jing’s at­tempts to ease the bur­den of banks with a slew of mea­sures, in­clud­ing debt-for-eq­uity swaps for strug­gling bor­row­ers.

BoCom posted a net profit of 15.44 bil­lion yuan (US$2.32bil) for the July-Septem­ber pe­riod, up slightly from 14.92 bil­lion yuan a year ear­lier.

This is slightly below the 4% av­er­age rise in third quar­ter net profit es­ti­mated by four an­a­lysts sur­veyed by Reuters.

BoCom’s net in­ter­est mar­gin was 1.57%at end-Septem­ber, up 1 ba­sis point com­pared with that in the sec­ond quar­ter.

Al­though net in­ter­est mar­gin inched up slightly, BoCom re­ported that net in­ter­est in­come - the money it made from loans - fell around 6% in the first nine months from the year-ear­lier pe­riod to 94.8 bil­lion yuan. — Reuters

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