Bank of China’s Profit Rises After Selling Nanyang Commercial Bank

Reuters and

August 30, 2016, 5:22 AM ET

Two pedestrians walk in front of the logo for the Bank of China in Beijing on September 13, 2010. China on September 13 welcomed a major overhaul of global banking rules, as the Asian nation reportedly considers new moves to strengthen banks' balance sheets after an anti-crisis lending spree last year. Top global central bankers and regulators meeting in Switzerland agreed on September 12 on a new set of rules, called Basel III, requiring banks to raise the capital they hold in reserve to prevent a repeat of the world financial crisis. AFP PHOTO / LIU Jin (Photo credit should read LIU JIN/AFP/Getty Images)Liu Jin — AFP/Getty Images

Bank of China (BACHF), the country’s fourth-biggest lender by assets, reported a 2.5% increase in net profit in the first half, helped by the disposal of Nanyang Commercial Bank.

BoC said on Tuesday its net profit for the January-June period was 93.0 billion yuan ($13.93 billion), compared to 90.7 billion yuan in the year-ago period.

The first-half figure implies a net profit of 46.4 billion yuan in the second quarter, up from 44.9 billion yuan in the year-ago period, according to Reuters calculations.

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Three analysts on average had forecast a second-quarter profit of 44.5 billion yuan, according to a Reuters calculation.

BoC’s non-performing loan ratio increased to 1.47% at end-June from 1.43% at end-March.

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