Agricultural Bank of China reports faster earnings growth in H1

BEIJING - Agricultural Bank of China (ABC), one of the country's biggest lenders, reported higher earnings growth Wednesday thanks to steady increase of net interest income.

The company's net profit attributable to equity holders rose 3.3 percent year on year to 108.6 billion yuan ($16.4 billion) in the first six months (H1), as calculated under the international financial reporting standards, according to a statement filed on the Hong Kong Stock Exchange.

This was higher than a 0.8-percent rise in the same period of last year.

Net interest income, which accounted for 75.7 percent of the company's total operating income in H1, increased 6.2 percent year on year.

Non-performing loan ratio stood at 2.19 percent by the end of June, lower than the 2.37-percent six months earlier.

The bank's provision coverage ratio, a measure of funds set aside to cover bad loans, rose to 181.8 percent from 173.4 percent at the end of last year.

In H2, the company will continue to focus on risk prevention, building a comprehensive risk management system while strictly controlling the quality of new loans, according to the statement.

ABC shares in Hong Kong rose 0.81 percent on Wednesday while its shares in Shanghai fell 1.28 percent.