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Bank of China's 1H profit down 2.5 pct

Bank of China's 1H profit down 2.5 pct

Bank of China Ltd., the country's third-largest commercial bank by assets, said Thursday that its first-half profit slipped 2.5 percent as lower interest rates hurt its margins.
Profit fell to 41.1 billion yuan ($6 billion), or 0.16 yuan per share. That compared with a profit of 42.2 billion yuan in the first half of 2008. However, the second quarter saw a 21 percent improvement in net profit compared with the first quarter of the year, the Beijing-based lender said.
All the Chinese banks have been squeezed by the narrowing of the spread between benchmark interest rates and financial market rates following repeated rate cuts by China's central bank to boost economic growth amid the global financial crisis.
Bank of China said its net interest income fell 8.3 percent from a year earlier to 74.7 billion yuan ($10.9 billion). Net fee and commission income edged 2.6 percent higher to 22.95 billion yuan ($3.36 billion), it said.
An increase in government-supported loans aimed at stimulating the flagging economy helped to offset some of the decline in interest income, the bank said.
Bank of China said its total loans rose nearly 31 percent in January-June, while total assets jumped 18 percent in the same period, to 8.2 trillion yuan ($1.2 trillion).
The bank reported a 14.4 percent rise in net profit in 2008, down sharply from a 31 percent rise in 2007.


Updated : 2021-06-25 11:06 GMT+08:00