CCB trails rivals in Q3 profit growth

Third-quarter profits at China Construction Bank (CCB; 601939.SH, 0939.HKG) grew slower than those of its mainland rivals, with bad debts and fewer sales of investment products in China’s weakening economy weighing on earnings, South Morning China Post reported. China’s second largest lender by assets said that its net profit rose to US$8.3 billion, a 12.4% rise from US$7.4 billion the previous year. Bank of China’s (BoC; 601988.SH, 3988.HKG) profits rose 16.6% while Agricultural Bank of China (ABC; 601288.SH, 1288.HKG) rose 16% for the quarter. CCB made more corporate loans than the other two banks and therefore accrued more bad debt as mainland companies were hit by China’s slowdown, said Louis Tse Ming-kwong, director of VC Brokerage. The bank’s loan loss reserves have increased by 21% to US$1.3 billion for the quarter compared to the same period last year.