Bank of China profit up 19 pct on economic rebound

Bank of China says quarterly profit up 18.8 percent on higher interest income amid stimulus

• On 6:32 am EDT, Thursday October 29, 2009

BEIJING (AP) -- Bank of China Ltd., the country's third-largest commercial lender, said Thursday its third-quarter profit surged 18.8 percent amid a stimulus-fueled economic rebound.

Profit for the three months ending Sept. 30 was 21.1 billion yuan ($3.1 billion), or 0.09 yuan (1 U.S. cent) per share, the Beijing-based bank said. That compared with 17.8 billion yuan or 0.07 yuan per share a year earlier.

Interest income rose 8 percent in the third quarter from a year earlier to 40.8 billion yuan ($5.9 billion) amid a surge in lending. Bank of China lent 1.4 trillion yuan ($205 billion) in the first nine months of the year to support the government's stimulus.

China's state-owned banks have benefited from the rebound that boosted third-quarter growth to 8.9 percent over a year earlier. They are isolated from global financial flows and largely avoided the credit turmoil that battered Western lenders.

Bank of China said its deposits were up 25.5 percent from the start of the year at 6.4 trillion yuan ($938 billion) as of Sept. 30. Assets were up 19.9 percent at 8.3 trillion yuan ($1.2 trillion).

Bank of China Ltd.: http://www.boc.cn