Bank of China profits up 85%

by Richard Kilner

Story link: Bank of China profits up 85%

The Bank of China has seen its first quarter profits soar by 85%.

The bank attributes the impressive increase to strong growth in fee and interest income coupled with a lower rate of tax.

Over the course of the first quarter an increase in net interest income of 18.7% was recorded, hitting 40.8bn yuan.

Fees and commissions rose by an even greater margin both domestically and overseas.

Domestic fee and commission income more than doubled, surging by 115.6% on a year on year comparison, with foreign fee and commission income increasing strongly, up 82.9% on a similar basis.

Depositors continue to be sought by the bank, which is aiming to enlarge its base for low cost funding.

Risk management has been improved, leading to a falling impaired loans balance and impaired loans ratio.