China Construction Bank profits up 5.4% to $11.67b in Q1

The lender was able to keep its bad loan ratio flat at 1.49%.

Reuters reports that China Construction Bank opened the year on healthy financial footing as profits rose 5.4% YoY to $11.67b (73.82b yuan) in Q1.

The bank was able to keep its non-performing loan ratio steady at 1.49% in Q1 although volume rose by 4.06b yuan to 196.4b yuan. This comes as Beijing has made considerable headway in denting its distressed debt as a number of high-profile investors are acquiring Chinese NPLs in volumes. 

“The growth in the use of debt for equity swaps, non-performing loan (NPL) securitisation and distressed debt management foreign buyers have been increasingly participating in a market that has seen lower levels of activity since the onset of the financial crisis in 2008,” account firm Deloitte noted in a report as nominal and relative NPL levels within the banking sector are at $254.2b and 1.74% in Q4.

Also read: Chinese banks poised for profit as combined net income to rise 8% in 2018

Net interest margin, which represents the difference between interest paid and earned, also rose 2.35% at the end of March.

Here’s more from Reuters.