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Bank of Communications FY'15 net profit up 1% YOY; green bonds issue planned

Bank ofCommunications Co. Ltd. on March 29 said net profit for 2015 inchedup 1% year over year amid a challenging macro environment in China.

Net profit attributable to shareholders increased to 66.53 billionyuan from 65.85 billion yuan in 2014. EPS also rose year over year to 90 fenfrom 89 fen.

Net interest income for 2015 rose to 144.17 billion yuanfrom 134.78 billion yuan in 2014, while net fee and commission income climbedyear over year to 35.03 billion yuan from 29.60 billion yuan.

The group's net interest margin declined by 14 basis pointsto 2.22% due to the gradual acceleration of interest rate liberalization.

As of the end of 2015, the group's impaired loan ratio was1.51%, up from 1.25% in 2014.

The core Tier 1 capital adequacy ratio dipped to 11.14% in2015 from 11.30% in 2014, while Tier 1 capital adequacy ratio rose to 11.46%from 11.30%. The group's capital adequacy ratio declined to 13.49% as of Dec.31, 2015, from 14.04% in the prior-year period.

The board also recommended a final cash dividend of 27 fenper share for 2015, the same as in 2014.

Further, the bank announced plans to issue up to 70 billionyuan of green bonds in the interbank bond market. The bonds will have a tenorof up to five years and could be issued in multiple tranches during the periodthrough Dec. 31, 2017. Interest on the bonds will also be determined based onmarket conditions.

The issuance is subject to relevant regulatory approvals.

As of March 28, US$1was equivalent to 6.48 Chinese yuan.