China Construction Bank (CCB) has announced an impressive increase in its third-quarter profits, largely attributed to a decrease in credit costs. Despite lower market interest rates impacting interest income, the bank managed to achieve a net profit of ¥88.11 billion ($12.04 billion) for the three-month period ending September 30. This exceeded the estimated figure of ¥67.31 billion provided by analysts.
While CCB experienced a 5.6% decline in net interest income compared to the previous year, amounting to ¥156.24 billion, this was offset by a 1.3% decrease in net fee and commission income, which amounted to ¥24.31 billion.
One of the contributing factors to CCB’s robust financial performance was the significant drop in credit impairment losses, which decreased by 24% to ¥29.035 billion. This positive result reflects the ongoing recovery of the Chinese economy following the impact of the pandemic and associated restrictions.
Furthermore, CCB’s nonperforming loan ratio demonstrated a marginal improvement, falling from 1.38% at the end of 2020 to 1.37%. Additionally, gross loans and advances to customers witnessed a substantial increase, reaching ¥23.659 trillion—an impressive 12% rise from the end of 2022.
Overall, China Construction Bank has showcased its resilience and ability to adapt in a challenging economic environment. Moving forward, the bank is well-positioned to capitalize on the recovery of the Chinese market and continue its growth trajectory.
