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Banking & Finance Markets

Bank of China posts 4.8% Q1 profit gain as bad loan levels rise

Bank of China, the second of the four largest Chinese banks to announce its results for last quarter, has posted a 4.8% gain in profit despite a near doubling of non-performing loans, Bloomberg reported. Net income rose to RMB38.5 billion (US$6.2 billion) — slightly higher than analysts’ estimates of RMB36.4 billion — amidst a period of tempered earnings growth brought on by a slowing Chinese economy. Regulators are changing the rules for banks by deregulating interest rates and limiting executive pay as bad loans pile up and credit quality worsens.

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