China

China Construction Bank Posts 4.1% Increase in Net Profit for Q3 2017

Summary:

  • The China Construction Bank (601939.SS/0939.HK) has posted a 4.1% increase in net profit to RMB 62.9 billion for the third quarter, according to caixin.com.
  • Revenue increased 4.6% to RMB 506 billion during the same period.

Why It Matters:

  • The bank’s financial statements indicate that asset quality remained stable during the period. By the end of the third quarter, total assets of the bank had increased 5.2% to RMB 22 trillion and liabilities had increased 5.01% to RMB 20 trillion.
  • The average annualized return on assets (ROA) of the bank was 1.25% with a 16.52% return on equity (ROE). Income from interest was RMB 333.3 billion with a 2.16% net interest margin (NIM).
  • Total non-performing loans (NPLs) were RMB 190.9 billion while the total non-performing loans ratio declined 0.02% to 1.5%. The tier-one capital ratio of the bank currently stands at 12.99%.