By Kosaku Narioka
Bank of Communications said Friday that its first-half net profit rose 4.9% from a year earlier, thanks partly to gains from its trading activities despite a drop in net interest income.
The Chinese bank said net profit increased to 42.52 billion yuan ($5.84 billion) for the six months ended June 30 from CNY40.535 billion a year earlier. That missed the estimate of CNY46.69 billion from a poll of analysts by Visible Alpha.
First-half net interest income dropped 3.1% from a year earlier to CNY82.39 billion, as interest rates in the country have fallen in recent quarters. Net fee and commission income also declined 0.8% to CNY24.58 billion.
Meanwhile, net gains arising from trading activities surged 77% to CNY17.64 billion, thanks partly to the growth of subsidiaries’ equity investments and gain on changes in fair value.
Credit impairment losses declined 1.3% from a year earlier to CNY36.35 billion. The bank’s nonperforming loan ratio was at 1.35%, steady from the end of 2022.
Write to Kosaku Narioka at [email protected]
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