China Construction Bank spent the year doing what it does best under the leadership of chairman Tian Guoli: lending to other big state enterprises, watching the income roll in, and keeping its non-performing loan ratio low.
It might be boring – but boring can be good.
The Beijing-based lender posted a net profit of Rmb223 billion ($36.5 billion) in the first three quarters of the year, up 12.3% year on year. Revenues rose 9.3% over the same period, to Rmb624 billion, with fee income up 6.2%.
Net income in the third quarter came in at Rmb78.9 billion, up 15.7% over the previous year: driven, Nomura said in a research note dated October 31, by strong trading income and lower impairment losses.
Trading income leapt 554% in the third quarter year on year, and now makes up 6% of total operating income.
Asset quality continues to improve, with the bank’s NPL ratio declining to 1.51% at the end of the third quarter, against 1.56%
