Go Finance Reporting in BEIJING - China Construction Bank (CCB) said that corporate profits rose 26 percent from a year ago on the back of higher interest income and commissions.
As reported by AFP on Monday (03/28/2011) earnings growth as much as two-fold increase at 15 percent in 2009 which showed that CCB business back on a good momentum after the global financial crisis.
Nevertheless, the bank said loan growth would slow this year as Beijing steps attempt to cool the economy and fight inflation.
This red plates bank said that net income for 2010 increased 134.84 billion yuan from the previous year is 106.76 billion yuan.
Net interest income rose 19 percent to 251.50 billion yuan, while net fee and commission income jumped 38 percent to 66.13 billion yuan.
Looking ahead, the bank said China's economic base shifts from investment and exports aim of increasing consumption will provide opportunities and challenges.
"On the positive side, China relaxed restrictions in the face of the bank is to provide comprehensive operations excellent opportunities for banks to develop new business," he said.
According to him, is to accelerate the liberalization of interest rates and exchange rates will also give banks greater freedom to financial innovation. On the negative side, expansion of liability become more difficult due to tight liquidity and capital market stable.
China Construction Bank is the country's biggest lenders to home buyers, in addition, China Construction Bank also targets credit growth in the domestic market this year could reach 13 percent.
For your information, China has raised interest rates three times in recent months and repeatedly raise the amount of money banks as permanent reserves in an effort to control soaring prices, which feared leaders can generate social unrest.
In addition, loans to real estate industry grew 12 percent last year compared with in 2009 that is equal to 19 percent. Total nonperforming loan ratio fell to 1.14 percent from 1.50 percent the previous year.
"In addition, the bank continues to increase its subscriber base, with new loans mainly target the key customers with solid financial strength and high qualifications in areas where property prices are stable," he concluded.
The Government has implemented several measures to keep the red hot property market, including prohibition of purchases of second homes in several towns and property tax session in Shanghai and mega-southwest Chongqing Municipality. (GoFinance)
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