The Bank of China has posted a 40% rise in nine-month profit but has set-aside funds to account for losses in the US sub-prime market.
The country’s flagship foreign exchange lender booked $322 million for the third quarter to account for its exposure to the mortgage backed bonds, Reuters reports. According to the bank it holds the value of its investment in the sub-prime ABS and sub-prime CDOs at $7.9 billion.
Nine-month net profit in the bank reached a total of $6 billion, a big increase from the year before. Shares in the bank has grown by 18% since it reported the exposure to the sub-prime crisis while shares in rivals Industrial and Commercial Bank of China and China Construction Bank have risen by about 48% and 41 % over the same period.
In an effort to calm China’s red hot economy, Beijing is imposing tightening measures.