China Construction Bank Q4 profit rises 8.8%

CHINA Construction Bank (CCB), the first of the country’s Big Five lenders to report annual results this week, posted an 8.8 per cent rise in fourth-quarter net profit on Wednesday (Mar 29).

China’s second-biggest lender by assets saw profits rise to 76.6 billion yuan (S$14.8 billion) in the October to December period, compared with 70.4 billion yuan a year earlier, the bank said in a filing.

Despite the steady results, the lender warned the country’s economic recovery is not yet on solid ground.

“Mounting pressures of risk prevention and control in key areas have raised higher requirements for commercial banks,” said CCB in the filing.

CCB said interest rate hikes in developed economies continue to have a spillover effect and turmoil in international financial markets has intensified, adding that it has no exposure to battered Silicon Valley Bank and Credit Suisse.

Profit for the full year increased 7.06 per cent to 323.9 billion yuan, compared with a Refinitiv estimate of 314.5 billion yuan drawn from 21 analyst.

The non-performing loan ratio at CCB fell to 1.38 per cent at year-end compared with 1.4 per cent three months ago. The net interest margin, a key gauge of bank profitability, narrowed to 2.02 per cent from 2.05 per cent at end-Sep. REUTERS