CCB reports profits of US$2.1 billion in first quarter 2005

China Construction Bank (CCB) announced Thursday that they achieved profits of 17.29 billion yuan (2.1 billion US dollars) in the first quarter of 2005.

The bank's pre-tax profits are 8.64 billion yuan (1.04 billion US dollars) more than the same period of last year, covering 32 percent of its estimated profits for the year. Its ratio of non-performing loans has been reduced to 3.47 percent.

Guo Shuqing, chairman of the bank who took office at the end of March, has required that both the bank's head office and its branches speed up reform and improve management.

The topic of reform and management improvement is also the theme of the directorate meeting of the CCB held recently in North China's Tianjin Municipality.

In a report to the meeting, Guo admitted there are some problems in the directorate. "Lacking experience and proper knowledge of the new structure of a joint-stock company, the directorate has not successfully played its role as the decision-making organ of the CCB, and its relationship with upper management needs to improve," said Guo.

Guo pointed out seven key points of this year's work of the directorate: establishing a modern enterprise system and strengthening corporate governance structure; strengthening instruction and supervision of professional commissions on system buildings and reforms; building inner risk control system; establishing super-manager responsibility system; improving creation both in products and service; promoting public listing; and improving the efficiency of the directorate.

As a part of the ambitious reform move on the financial system of China initiated at the end of 2003, the CCB has become a joint-stock bank aiming for stock market debuts.