Agricultural Bank posts startling profit rise in 2007

Agricultural Bank of China (ABC), one of the Big Four state-owned banks in China, reported its 2007 profits up a startling 69.6% year-on-year to RMB 14.9 billion, market sources reported.

By the end of December 2007, ABC's loan balance reached a record of RMB 1.02 trillion, with an increase of RMB 138 billion from the previous year.

Leveraging the government insights of increasing farmers' production, the loans were primarily provided to meet the capital demand for grain and cotton purchase. Meanwhile, the bank has also given support to boost the infrastructure construction in rural areas, according to sources.

It is also worth noting that ABC's non-performing loan ratio was 6.29%, down 1.36% from a year earlier by the end of last year.

As an important part of China's financial system, ABC boasts its extensive outlets, principally serving urban and rural areas of China. Its scope of business has developed from the original rural credit and settlement to a wide range of financial products and services both in RMB and foreign currency.