China Construction Bank (CCB), the country’s third-largest lender, said its net profits increased in the third quarter.
According to a release CCB’s net profits grew 11.95% to RMB25.6 billion ($3.74 billion) from July-September.
Net interest income rose 14% to RMB57.1 billion in the third quarter. Net earnings were RMB0.11 per share, based on domestic accounting standards.
That’s up 10% from the same period last year
At the end of September, the lender held subprime mortgage securities valued at $244 million.
Sadly, it also had $191 million in bonds issued by Lehman Brothers and $1.51 billion issued by Fannie Mae and Freddie Mac.
The government’s latest tax initiatives, which exempt first time property buyers from paying the stamp tax, helped buoy the country’s cooling real estate sector.
China also lowered the down payment from 30 to 20% for first time home buyers which strengthened the property market.
Analysts said these adjustments boosted CCB’s profitability as it is the nation’s leading mortgage lender.
Source: China View