Search China Travel News:

State-owned Agricultural Bank of China’s first-half operating profit rose 36.43 percent to 21.83 billion yuan (US$2.64 billion), domestic media said Monday.

Its nonperforming loan ratio fell by 1.44 percentage points in the first six months of 2005 from the end of 2004, or 2.34 billion yuan, the China Securities Journal said, citing a bank official but without providing further details.

Deposits rose by 21.24 billion yuan year on year to 345.2 billion yuan, the newspaper added.

Agricultural Bank is trying to cut its bad loans to prepare for greater foreign competition when the banking industry opens up at the end of next year.

The bank’s nonperforming loan ratio fell 3.9 percentage points in 2004 to 26.7 percent, domestic newspapers said last month.

It posted a 63 percent annual jump in operating profits last year to 32 billion yuan.

Industrial and Commercial Bank of China (ICBC), also one of the big four State banks, won a US$15 billion cash bailout in April to help clean up its balance sheet to prepare for a stock market offering.

ICBC said earlier this month its first-half operating profit climbed 7.2 percent to 41.6 billion yuan and claimed its widely watched restructuring plans were on track.

The government injected a combined US$45 billion into the Bank of China and China Construction Bank in late 2003.

It has yet to announce any plans to bail out Agricultural Bank.