Summary Box: China Construction Bank 1st-half profit up 27 percent on bigger fee business

Summary Box: China Construction Bank profit rises

GROWTH: State-owned China Construction Bank Ltd., the country’s third-largest commercial lender, said its first-half profit rose 27 percent on a surge in fee-based businesses including credit cards and wealth management.

BOTTOM LINE: Profit for the six months ended June 30 rose to 70.8 billion yuan ($10.4 billion) from 55.8 billion yuan a year earlier. The boost was driven by a 44 percent jump in fee and commission business to 33.6 billion yuan ($4.9 billion). Credit card fees rose 60.4 percent.

BACKDROP: China’s banks avoided the credit turmoil that battered Western lenders and have benefited from Beijing’s massive stimulus, in which state companies borrowed heavily to build roads and other stimulus-financed projects. Some analysts suggest Chinese lenders could face a rise in bad loans due to the rapid increase in that lending.