Maintaining robust growth since its IPO in 2006, Bank of China Limited realized an operating profit ( profit before tax ) of RMB 24,252 million, representing a year-on-year growth of 37.55%.
On 27 April, Bank of China Limited (BOC) announced its unaudited results for the first quarter ended 31 March 2007.
According to the announcement, during the first quarter of 2007, BOC further enhanced its profitability and operational efficiency. Based on International Financial Reporting Standards, BOC recorded an operating income of RMB 42,725 million, a year-on-year rise of 26.69%. Net profit attributable to equity holders advanced 17.62% year-on-year to RMB 11,718 million.
In accordance with International Accounting Standards [No. 12], BOC re-measured its net deferred tax assets of the domestic operations as at the date of pronouncement of the new Income Tax Law effective in 2008 to reflect future realization at the newly enacted tax rate. This one-off adjustment increased the tax expenses by RMB 4,178 million.
Excluding such impact, the Group’s profit after tax would be RMB 17,163 million, and profit attributable to equity holders would be RMB 15,896 million, an increase of 53.05% and 59.55%, respectively, compared to the first quarter of the prior year.
Mr. Wang Zhaowen, spokesman of BOC, explained that the solid results were attributable to the robust growth in net interest income and net fee income, stringent control on credit cost and enhanced operational efficiency.
According to the announcement, first quarter net interest income increased 31.10% year-on-year to RMB 34,373 million, as a result of widened net interest margin and substantial growth of average interest-earning assets.
Meanwhile, driven by the robust growth in fee business including fund distribution, bank card, and credit commitment and guarantee, net fee and commission income surged 64.06% against the first quarter of 2006, to RMB5,168 million. Non-interest income grew 11.29% to RMB 8,352 million which accounted for approximately 19.55% of the operating income. Operating cost remains under effective control.
As at 31 March 2007, total assets of BOC reached RMB 5,598,852 million, an increase of 5.09% against year end of 2006. Net loans and advances to customers grew by 6.54% to RMB 2,490,593 million. Total liabilities amounted to RMB 5,174,291 million, 5.28% more than the previous year. Total deposits swelled by 5.14% to RMB 4,301,240 million.
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