BOC profit up 22.7% after sub-prime loss

Bank of China<601988><3988>, one of the Big Four banks in China, has posted net profit of RMB 15.9 billion in the third quarter this year, up 22.7% over the same period last year, said the bank in its third quarter report.

The bank's net profit has reached RMB 45.5 billion in the first 3 quarters this year, up 40.10% year-on-year. Earning per share was RMB 0.18 in the first 9 months, up 28.57% year-on-year, while the figure in the third quarter alone stood RMB 0.06, up 20%.

By the end of September this year, total assets of the bank has exceeded RMB 6 trillion, up 12.91% over the end of 2006. Assets per share has topped to RMB 1.64 by the end of September, up 8.66% over the end of 2006.

It holds US$7.45 billion (about RMB 58.8 billion) in sub-prime asset-backed securities and US$496 million (about RMB 3.7 billion) in collateralized debt obligations by the end of September, which accounts for 2.86% and 0.19% of its total investment securities separately.

The bank's growth rate is the lowest among the nation' five top banks, after the loss on sub-prime mortgage investments in U.S.. But it got about 35% of profit from overseas investments, while Industrial and Commercial Bank of China<601398><1398>, reporting a 76% increase in net profit in the first 9 months, only gained less than 5% from foreign investments.