Bank of China earnings up 141 percent
(Hong Kong) - A steep fall in bad debt charges has helped the Hong Kong listed arm of the Bank of China (BOC) post a 141 percent surge in net profit to HK$6.67 billion (US$855 million) for 2002.
The result, the bank's first result since last July's share market listing, was fuelled by a 62 percent plunge in bad debt charges and better bad loan recovery which cut the bank's non-performing loan ratio from 11 percent to 8 percent.
The BOC also wrote down the value of its Hong Kong property portfolio by HK$977 million, a move that sent shudders through the territory's real estate market.
Despite the result, however, analysts are concerned about the BOC's further growth prospects, and the consensus forecast for next year's earning has been adjusted downwards to 8 percent from 11 percent in the light of the result.
The BOC also wrote down the value of its Hong Kong property portfolio by HK$977 million, a move that sent shudders through the territory's real estate market.
Despite the result, however, analysts are concerned about the BOC's further growth prospects, and the consensus forecast for next year's earning has been adjusted downwards to 8 percent from 11 percent in the light of the result.
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