China Construction Bank 1Q profit up 34 pct

AP News
Posted: Apr 28, 2011 11:07 PM

State-owned China Construction Bank Ltd., the country's third-biggest commercial lender, says its first quarter profit rose 34 percent from a year earlier, buoyed by higher income from fees and interest.

The Beijing-based bank reported late Thursday that profit for January-March was 47.2 billion yuan ($7.3 billion), or 0.19 yuan (3 U.S. cents) a share. Profit for the same period a year earlier was 35.2 billion yuan.

Like other Chinese lenders, the bank has benefitted from rising interest rates and from a surge in lending to support construction and other stimulus projects.

Net interest income rose 25.3 percent over a year earlier in the first three months of the year to 71.6 billion yuan ($11 billion) while non-interest income such as fees and commissions surged 37.3 percent to 23.2 billion ($3.6 billion), the bank said.

Construction Bank said it was taking steps to reduce exposure to risky sectors by tightly controlling new loans to real estate projects.