Bank of Communications Posts Net Profit Growth of 4.81% in First Half

Big state-owned lender Bank of Communications (BOCOM) posted moderate growth in revenue and net profits in the first half of 2022.

According to its mid-year report released on 26 August, BOCOM saw net operating revenues of 143.568 billion yuan in the first half, for year-on-year (YoY) growth of 7.10%.

Net profits attributable to the parent company totalled 44.04 billion yuan, for YoY growth of 4.81%. As of the end of June BOCOM’s total assets were 12.58 trillion yuan, for growth of 7.84% compared to the start of the year.

BOCOM’s asset quality has continued to improve since the start of the year. As of the end of the first half its non-performing loan (NPL) ratio was 1.46%, for a decline of 0.02 percentage points compared to the start of the year. The provisions coverage ratio was 173.10%, for an increase of 6.60 percentage points since the start of 2022.

BOCOM’s capital adequacy ratio was 14.49% as of the end of the first half, while its tier-1 capital adequacy ratio was 12.20% and its core tier-1 capital adequacy ratio was 9.99%.

BOCOM’s company loans increased 415.266 billion in the first half, for a rise of 10.03%. Manufacturing loans increased 20.48%, strategic emerging industry loans increased 71.85%, green loans rose 20.42%, loans to “special new” small and medium-sized enterprises increased 28.4%, while rural-related loans increased 15.8%.

BOCOM’s wealth management vehicle had total assets of 10.871 billion yuan as of the end of June, and 10.540 billion in net assets. In the first half BOCOM Wealth Management saw net profits of 634 million yuan, for a YoY rise of 4.51%.

As the only big state-owned bank headquartered in Shanghai, BOCOM also provided 110 billion yuan in loans for pandemic relief efforts in the city during the first half via its green channel.

Source link

Leave a Reply

Your email address will not be published.