Business / Companies

ABC posts slight profit growth

(Xinhua) Updated: 2016-08-29 11:07

BEIJING - The Agricultural Bank of China (ABC), the country's fourth-largest lender, has reported a slight increase in net profits in the first half.

Net profits hit 105.05 billion yuan ($15.9 billion), up 0.5 percent year on year, according to a statement filed to the Shanghai Stock Exchange.

Revenue dropped 5 percent to 260.4 billion yuan. The lender attributed its falling revenue to lower net interest incomes.

Net interest incomes, revenue from borrowers minus interest paid to depositors, stood at 198.96 billion yuan, down 9.4 percent year on year.

The lender's capital adequacy ratio was 12.81 percent at the end of June.

"Lenders are in a tough period due to a slowdown in China's economic growth," said ABC President Zhou Mubing, adding that fierce competition from internet finance and stricter regulation also added more pressure.

Outstanding non-performing loans reached 225.39 billion yuan at the end of June, up 5.88 percent from the end of last year.

During the second half, the lender will give more financial support to major national projects, personal consumption and small businesses, and slash loans to energy-consuming and high-polluting industries as well as "zombie companies," the statement said.

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