China Construction Bank, one of the four major state-owned commercial banks, has cut its pre-tax profit for 2001 from Yn9.2bn to Yn5.2bn after increasing its provision for bad debts. The figure of Yn9.2bn was widely reported n the Chinese media in January and a bank spokesman said that the cut was due to increasing provision for non-performing loans and writing off debts. The central bank has said that the four state-owned banks set aside just 1 per cent of their assets each year for bad loans, far less than foreign banks.
The newly appointed president of China Construction Bank, Zhang Enzhao, said that the bank plans to cut its non-performing loans by Yn9.3bn this year.
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