BoC’s profits hit by subprime woes
Bank of China (BoC) said its profits rose 22% year-on-year to US$2.13 billion (RMB15.9 billion) in the third quarter, the slowest pace among the country’s top five banks, the Shanghai Business Journal reported. The bank’s earnings were eroded by its exposure to US$7.9 billion in US subprime loans. BoC draws 35% of its profits from assets held outside the mainland, compared to just 5% for ICBC, which reported a profit surge of 76% year-on-year. BoC held US$7.45 billion in subprime asset-related securities and US$496 million in collateralized debt as of September 30, accounting for 2.86% and 0.19% of its total securities investment respectively.