Bank of Communications, China's fifth biggest commercial bank, said its first half profit up 81.21 percent over the same period last year on strong commission charges and fee income.
Its net profit was 15.51 billion yuan (2.3 billion US dollars) in the first six months under international accountant standard, or 0.32 yuan per share, said the Shanghai-based lender in the half-year report on Wednesday.
Commission charges and fee income surged to 4.65 billion yuan, representing an increase of 50 percent over the same period last year.
The bank's total assets were 2.43 trillion yuan by June, representing an increase of 15.18 percent from the end of 2007.
Outstanding loan totaled 1.22 trillion yuan during the first six months, up 12.48 percent over the same period last year, while outstanding deposits amounted to 1.81 trillion yuan, up 16.43 percent.
According to the report, the lender has interest income of 33.1 billion yuan in the first six months, representing an increase of 40.62 percent.
By June, its capital adequacy ratio was 14.06 percent, down from 14.44 percent from the end of 2007.
The lender saw its shares fall 0.13 percent to close at 7.47 yuan on Tuesday.
Jiang Chaoliang, chairman of the bank said that the profit growth rate had already peaked in the first six months and would not gain in the second half, because it would be difficult to maintain the current interest difference between loan and deposit, which analysts with the China International Capital Corporation considered to be resulted from the decline of loan-to-deposit ratio.
Besides, the bad debt provision would be increased for the possible lowering of asset quality in the second half year, according to Jiang Chaoling.
(Xinhua News Agency August 27, 2008)
