China Construction Bank announces record profits

22 August 2011

Record profits have been announced by China Construction Bank for the first six months of 2011 due to higher loans and fees.

The lender - which is China's second largest bank by market value - saw its profitability aided by an escalating cost of borrowing in the country and posted a profit rise of 31 per cent from the same time last year.

It means the institute's revenue for the first half of the year stood at $14.5 billion (£8.8 billion) and came at a time when the nation's banks find themselves under increasing pressure to limit lending.

The group - which is headquartered in Beijing - stated: "The group was actively engaged in service and product innovation, which boosted the growth in the fee-based businesses. As a result, net fee and commission income rose substantially."

In addition, net interest income at the bank elevated by 23.7 per cent year-on-year after the government increased benchmark interest rates on a number of occasions.

By Asim Shah

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