China Construction Bank Reports 0.1% Gain in Full-Year ProfitBloomberg News
China Construction Bank Corp., the nation’s second-largest lender, posted a 0.1 percent gain in 2015 profit.
Net income rose to 228.1 billion yuan ($35 billion) last year from 227.8 billion yuan in 2014, the bank reported to the Hong Kong stock exchange on Wednesday. That about matched the 228.6 billion yuan average of analyst estimates compiled by Bloomberg.
Earlier on Wednesday, CCB’s largest rival, Industrial & Commercial Bank of China Ltd. reported 0.5 percent increase in 2015 net income to 277.1 billion yuan. Within minutes of ICBC’s release, Bank of China Ltd. posted a 0.7 percent profit gain.
Slowing economic growth and record levels of corporate debt have driven Chinese banks’ bad loans to a decade high, prompting the government to consider measures such as the debt-to-equity swaps that were used to clean up balance sheets following a banking crisis in 1999. Rising provisions for soured credit has put at risk more than a decade of profit gains at China’s largest banks and threatens their ability to maintain dividend payouts.
— With assistance by Jun Luo