China Construction Bank Reports Rising Half-Year Profit

Net profit for the first six months was 70.78 billion yuan while net interest income rose 14.96 percent to 117.8 billion yuan during the same period.

China Construction Bank, the country’s second largest lender on Monday announced its first-half net profit climbed 26.75 percent from a year earlier driven by its businesses expansion.

Net profit for the first six months was 70.78 billion yuan while net interest income rose 14.96 percent to 117.8 billion yuan during the same period. New credit reached 469 billion yuan, an increase of 9.88 percent.

The net interest margin, which measures lending profitability, fell 0.02 percent year-on-year, or rose 6 basis points from the previous month, to 2.32 percent ending June.

"The net interest margin began to pick up at the end of last year and it takes time to rebound," Guo Shuqing, Chairman of China Construction Bank told a press conference, noting that the 30 percent discount on interest rates for first time home buyers last year had affected the resumption of the net interest margin.

According to data disclosed at the press conference, 90 percent of the new individual loans granted in the last half of the year were for housing.

Individual housing loans in the first half increased by 17.6 percent to more than 1 trillion yuan, the lender said. New loans for the second and third-home purchasing have been suspended.

Compared with the same period of last year, China Construction Bank has "improved a lot," said Mr. Guo.