Bank of China 2011 profit up 18.9 per cent

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Bank of China 2011 profit up 18.9 per cent

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Bank of China stated on Thursday its 2011 profit rose 18.9 percent despite government lending curbs.

29 March,2012 08:55 pm

Profit rose to 124.2 billion yuan ($20 billion) on an 18.7 percent revenue increase to 328.3 billion yuan ($52.9 billion) yuan, the Beijing-based lender said. That included a 17.6 percent rise in interest income and a 21.5 percent gain in fees and other income.Chinas banks benefited from a quick economic rebound following the 2008 global crisis but the government tightened lending curbs to cool inflation and surging housing prices.Chinese banks faced a complex and severe business environment due in part to U.S. and European economic problems, said Bank of China in its annual report. It said the global economy was like to see increased uncertainty and instability this year.Chinas banks are regarded as the worlds strongest, having avoided mortgage-related turmoil that battered their Western counterparts. Analysts warn, however, that they are likely to see a rise in bad loans following a government-directed flood of lending in response to the 2008 global crisis.Bank of China said its level of bad loans fell by one percentage point in 2011 to 1.8 percent of the total outstanding.