Bank of Communications sees Q1 net profit hit RMB 7.94 bln

Apr. 29, 2009 (China Knowledge) - Bank of Communications Co Ltd (BoComm)<601328><3328>, the fifth-largest bank in China, posted a net profit of RMB 7.94 billion (US$1.16 billion) in the first quarter of this year, slightly up 0.53% year on year, due to reduced interest margins, according to the quarterly financial report it released on Tuesday.

Based on International Financial Reporting Standards, the report said that profit represented a 39.87% surge over the fourth quarter of last year.

In the first three months, the lender's net interest income shrank 12% to RMB 14.58 billion, compared with RMB 16.51 billion in the same period of 2008, while its loan balance hit RMB 1.61 trillion, up 20.91% from the beginning of this year, the highest growth on record.

BoComm, which is 18.6% held by HSBC Holdings PLC<0005><HBC>, saw its total assets reach RMB 3.04 trillion at the end of March, up 13.29% from the beginning of this year.

The Chinese lender reported a 40.05% year-on-year increase in net profits, which amounted to RMB 28.39 billion in 2008, according to an earlier report from China Knowledge.