BoCom Second-Quarter Profit Rose 32% on Loans and Fees

Date:2011-08-19wangxin  Text Size:

Bank of Communications Co., (601328.SH)China’s fifth-largest bank, said second-quarter profit jumped 32 percent as economic growth fueled growth in loans and fees.

Net income rose to 13.1 billion yuan ($2.1 billion), or 0.19 yuan a share, from 9.9 billion yuan, or 0.18 yuan, a year earlier, according to a filing to the Hong Kong stock exchange today. First-half profit increased 30 percent to 26.4 billion yuan, and compared with the average 25.5 billion yuan from six estimates compiled by Bloomberg.

Net interest income climbed 22 percent in the quarter to 25.6 billion yuan, the Shanghai-based bank said. Net fee and commission income increased 39 percent to 5.09 billion yuan.

Shares of BoCom, the second-worst performer of the Hang Seng Finance Index over the last 12 months, have dropped 19 percent in Hong Kong this year. The stock fell 1.9 percent to close at HK$5.75 before the earnings announcement.

Chinese banks’ net interest margin, a measure of lending profitability, widened to 2.7 percent in the second quarter from 2.5 percent in the fourth quarter last year, the China Banking Regulatory Commission’s data showed. BoCom’s net interest margin widened 11 basis points in the first-half to 2.54 percent from a year earlier.

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