HONG KONG/SHANGHAI, Apr 24 (Reuters): Bank of China (BoC) , the country's fourth-largest lender by market value, posted a higher-than-expected 13.9 per cent rise in first-quarter net profits as net interest margins widened and its capital ratio improved.
BoC's higher profit and rising capital adequacy, a measure of financial strength, will give comfort to investors as Chinese lenders brace for an expected rise in bad loans in the country this year as growth slows.
The bank's net profit rose to 45.4 billion yuan ($7.28 billion) in the first quarter, up from 39.8 billion yuan in the same 2013 period, according to the bank's unaudited financial statement posted in Hong Kong on Thursday.
The bank's rise in profits was higher than an average estimate of 41.8 billion yuan calculated from a Thomson Reuters poll of eight analysts.
"Bank of China, unusually among its peers, has been able to increase net interest margins by limiting the amount of high cost deposits it holds," said Raymond Yung, financial services leader for China at PriceWaterhouseCoopers in a media briefing ahead of the results announcement.
BoC boosts Q1 profit
FE Team | Published: April 25, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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