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ABC profit gains 14% on loans, lower provisions

(China Daily) Updated: 2012-08-30 11:28

Agricultural Bank of China Ltd, the nation's third-largest lender by market value, posted a 14 percent increase in second-quarter profit as lending and fee-based services income rose and provisions for bad loans dropped. Net income rose to 37 billion yuan ($5.8 billion) from 32.6 billion yuan a year earlier, based on figures published by the Beijing-based lender on Wednesday. That compared with the 38.1 billion-yuan average estimate of 15 analysts surveyed by Bloomberg.

Agricultural Bank's profit growth, the strongest among China's four largest lenders for three straight years, may bolster capital and ease concern the company will need to raise funds as the world's second-largest economy slows.

Bank of China Ltd, the third-largest by assets, last week posted 5.3 percent profit growth, the slowest in three years.

China Daily-Agencies

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