Beijing, China (BBN) – The net profit of China Construction Bank (CCB) has recorded a 25.48 percent growth in 2011 despite of confronting a complex and changing business environment.
The CCB is the world’s second largest bank by market capitalization with Bank of America as one of its shareholders.
Wang Hongzhang, chairman of CCB, has said: “In 2011, confronting a complex and changing business environment, CCB implemented national macro-control policies and regulatory requirements conscientiously, drove structural adjustments and business transformation and redoubled efforts in managing risks and setting up internal control systems. Subsequently, all our different business segments developed steadily and briskly, our operating results were outstanding, our performance in the capital market was stable and our overall strength and brand value were enhanced substantially.”
In 2011, the CCB’s net profit of RMB169.439 billion (US$26.8 billion) and net profit attributable to shareholders of RMB169.258 billion were up respectively by 25.48 percent and 25.52 percent from the previous year.
The CCB chairman also said: “In 2012, the economic and financial situation at home and aboard will still be complicated and competition within the industry will be fierce.
Analysts agree that despite CCB’s earnings growth is likely to slow down in 2012, as the overall economic situation in China also cools.
“CCB’s net profit growth is likely to be in the low teens compared with 25% in 2011,” May Yan, director at Barclays Capital, was quoted by the BBC as saying.
However, Ms Yan thinks CCB is likely to fare better than other banks on the earnings front because of its strong deposit base and overall conservative lending practices.
Demand for housing loans is expected to fall further after the Chinese government raised borrowing costs, making it more expensive for individuals to buy property, in an attempt to cool the over-heating property market, the BBC reported.
BBN/SSR/AD-27Mar12-8:47 am (BST)
