China Construction Bank : First-Half Net Profit Fell 11% Due to Higher Impairments

By Martin Mou

China Construction Bank Corp.'s first-half net profit fell 11% compared with the same period a year earlier as impairment losses surged amid the Covid-19 pandemic.

Net profit was 137.63 billion yuan ($20.05 billion), the Chinese lender said late Sunday.

The bank's operating income rose 4.5% to CNY359.92 billion, helped by higher net interest income, which grew 6.4% to CNY266.49 billion.

The state-owned bank's non-performing loan ratio was 1.49% as of June 30, up from 1.42% at the end of 2019.

China Construction Bank said it increased provisions for impairment losses on loans and advances to enhance its ability to withstand risks amid the pandemic. Impairment losses rose 49% on year to CNY111.57 billion.

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