China Citic Bank profit grows 2.8 percent to 36.5 billion yuan

China Citic Bank (0998) posted a 2.8 percent increase in half-year net profit to 36.5 billion yuan (HK$39.7 billion), and proposed an interim dividend of 18.8 fen. 

Operating income for the six months dipped by nearly 3 percent to 105.4 billion, of which, net interest income fell by 2 percent to 71.2 billion yuan. Net interest margin. Net interest margin declined 14 basis points to 1.63 percent. 

Non-interest net income was 34.225 billion yuan, a year-on-year decrease of 5 percent.

The lender accrued credit impairment losses and other asset impairment losses of 29.586 billion yuan, a decrease of 14 percent. 

Bad loans inched up nearly 1 percent to 67.1 billion yuan, but the bad loan ratio remained flat at 1.16 percent. The allowance coverage ratio was 207.53 percent, down by 1.9 percentage points from the end of the previous year but up by 0.42 percentage points compared with the end of the first quarter.