Bank of China posts weakest net increase in 3 years

Bank of China posted a 5.1 percent rise in second-quarter net profit, its slowest profit growth in over 3 years.

First-half net profit at BoC rose by 7.7. Total loans to customers grew about 6.5 per cent in the first half of the year, while provisions rose only 5.8 percent.

Non-performing loans fell to 0.94 per cent as of the end of June from 0.97 per cent at the end of March, the bank said.

BoC’s January-June net profit rose to 71.6 billion yuan from 66.51 billion yuan a year earlier.

April-June net profit was 34.84 billion yuan from 33.1 billion yuan a year earlier.

Analysts said they expected the results in the next week to show the last set of bumper profits from China’s big banks as weak economic expansion, shrinking deposits and a more competitive interest rate market conspire to limit earnings growth in the future.

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