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