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Bank of China quarterly profit surges 23% as bad loans curbed

[SHANGHAI] Bank of China, the nation's fourth-largest lender, posted a 23 per cent surge in second-quarter profit after curbing bad loans and expanding its lending margin.

Net income for the three months through June rose to 57.04 billion yuan (S$11.697 billion) from 46.42 billion yuan a year earlier, according to quarterly figures derived from first-half earnings Bank of China reported to Hong Kong's exchange on Wednesday.

That was well above the 48.05 billion yuan average of four analyst estimates compiled by Bloomberg.

China's economic recovery has helped fuel loan growth at the four biggest banks, which together control about a third of the nation's US$36 trillion of banking assets.

As lenders into the interbank market, the Big Four's interest margins have also benefited from the government's campaign against financial leverage, which has driven up the rates that banks pay to borrow from each other.

BLOOMBERG

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