The world's second biggest bank by market capitalization has posted marked profit increases for 2011.
China Construction Bank (CCB) revealed 25 per cent growth for the 12-month period, rising to 169 billion Chinese Yuan ($26.8 billion) from the 135 billion Chinese Yuan recorded in 2010.
Despite these figures, the lender noted it is currently facing a number of challenges as a result of difficulties posed by both domestic and global economies.
In a new release relayed by the BBC, CCB stated: "Commercial banks face various risks including possible bursting of the real estate bubble [and] increased risks involved in cross-border investment by enterprises."
On top of concerns regarding the possibility of a significant increase in loan defaults, the financial institute also warned a number of businesses may experience operating difficulties as 2012 rolls on.
CCB - which was formed as a joint-stock commercial bank in 2004 - observed a lower fee income and worsening credit quality in the fourth quarter of last year might also pose problems.
By Asim Shah