(Yicai) March 29 -- China Construction Bank logged a slight increase in net profit last year, advancing 2.4 percent mainly thanks to reduced impairment losses, although the lender, which is one of China’s Big Four state-owned banks, posted a dip in earnings from interest-bearing assets.

China Construction Bank raked in CNY332.7 billion (USD46 billion) in net profit in 2023, while revenue tumbled 1.7 percent to CNY769.7 billion (USD106.5 billion), according to the Beijing-based lender’s latest earnings report.

Revenue from interest payments slumped 4.1 percent year on year to CNY617.2 billion (USD85.4 billion) due to the lowering of the benchmark loan prime rate and other factors. But profit was boosted by a 11.4 percent reduction in impairment losses primarily due to the improvement in macroeconomic conditions.

Non-performing loans made up 1.37 percent of China Construction Bank's total loans as of Dec. 31, 2023, a narrowing of 0.01 percentage point from a year ago, the report said. The bad loan ratio of individual mortgages climbed 0.05 percentage point to 0.42 percent.

Loans to the real estate sector soared 10.8 percent over the period to CNY854 billion (USD118 billion). The NPL ratio of these loans was 5.6 percent as of Dec. 31, higher than 4.3 percent a year ago.

Both the net interest spread and net interest margin slumped 31 basis points from a year ago to 1.5 percent and 1.7 percent respectively, as of the end of last year.

China Construction Bank's mainland shares [SHA:601939] were trading up 1.1 percent at CNY6.91 (USD0.96) as of 11.30 a.m. today, while its Hong Kong-traded stock [HKG:0939] closed down 1.6 percent yesterday. Today is a public holiday in Hong Kong.

Editor: Kim Taylor