China's Bank of Communications Co Ltd (BoCom), the country's fifth-largest listed bank, reported slowing profit growth in the second quarter and a rise in bad loans, mainly from businesses in export-focused regions. BoCom on Thursday reported a net profit of 18.08 billion yuan in the second quarter, according to a Reuters calculation from company figures, up 5.6 percent from the same year ago period and in line with analysts' expectations.
The increase, however, was much slower than the 13 percent second-quarter profit growth the bank reported in 2013. The Shanghai-based lender saw its ratio of bad loans rise from 1.09 percent at the end of March to 1.13 percent in the second quarter. "The bank's asset quality was affected by the spreading of risks from steel trade businesses and privately-owned SMEs, mainly located in Jiangsu and Zhejiang regions," BoCom said in its earnings statement.
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