Bank of China, the nation's second-biggest lender, said first-quarter underlying profit jumped 59.5 per cent as higher borrowing rates helped to drive up net interest income.
Underlying profit rose to 15.9 billion yuan in the three months to March from the same period last year, the company said yesterday, citing unaudited numbers based on international accounting standards.
Net income rose 17.6 per cent to 11.71 billion yuan or five fen a share from 9.96 billion yuan or five fen a share a year earlier, held back by a revaluation of deferred-tax assets.
Income tax surged 77 per cent to 11.57 billion yuan for the quarter. The tax expense was calculated taking into account state legislation to lower the tax rate for domestic enterprises from 33 per cent to 25 per cent since last month.
Earnings growth was driven by a 31 per cent increase in net interest income to 34.37 billion yuan, boosted by a widening interest margin after the People's Bank of China raised interest rates twice this year.
Loans grew 6.54 per cent to 2.49 trillion yuan while deposits increased 5.14 per cent to 4.3 trillion yuan during the quarter.