Bank of China, the nation's third-largest lender, says profit grew last year even after it set aside provisions for investments related to the troubled US subprime mortgage sector.
The announcement came after its shares tumbled 8.61 per cent yesterday in Hong Kong, while its Shanghai-listed A shares were suspended amid speculation of a substantial write-down that might hurt its earnings.
But in a statement filed with the Hong Kong stock exchange late last night, the company said its after-tax profit last year continued to grow after it '[took] into account the provisions expected to be made and disposal losses' related to its exposure to subprime-related securities.
It did not give its estimate of profit growth or figures for subprime-related provisions or losses.
Concerns about the bank's subprime-related investments are heightening and investors are worried last year's earnings might be seriously eroded by the write-downs.
Its H shares shed 29 HK cents to close at HK$3.08 yesterday, following a 6.39 per cent decline on Monday.
Newswires quoted a bank official as saying the BOC was reviewing its subprime investment portfolio.