20% jump in quarterly earnings of China Construction Bank
Posted by admin | Under business opportunity, calculation, information, marketing, work Sunday Aug 22, 2010China Construction Bank (CCB) has risen higher than expected quarterly profit, while the second largest bank in the world in terms of market capitalization will raise about 8.5 billion euros at year end.
CWB has achieved during the second quarter ended June net profit of 35.6 billion yuan (4 billion euros), against 29.6 billion yuan for the same period a year earlier.
This 20% increase in quarterly earnings of the bank is higher than anticipated by analysts to Reuters, who on average expected a profit up 16% to 34.3 billion yuan.
"The growth is higher than I expected," said Jin Lin, an analyst at Orient Securities."The development of credit will be the main driver of profit growth for banks in the future and the annual growth will average about 15% for the sector."
In contrast, the increase of group profits has slowed from the first quarter, as the period from January to March, CCB has posted a 34% increase in net profit, which presage the challenges ahead for the establishment in the second semester.
"On one side (…) environment for international operations was relaxed, with excellent opportunities to develop new business," said the bank 11% owned by Bank of America, in a statement.
"On the other hand, given the difficult situation of market liquidity and volatility of financial markets, development of sites will be more difficult and the pressures associated with control of regulators and competition will increasing requirements of managerial skills. "
For the first six months of the year, earnings of CCB increased by 27%, far less than the 60% increase recorded for the same period by China Merchants Bank and the doubling of profit Everbright Bank.
Earlier this month, sources familiar with direct knowledge of the case have told Reuters that CCB had accelerated its plans to increase capital by 75 billion yuan in Shanghai and Hong Kong early in the fourth quarter.