RPT-UPDATE 1-Bank of China Q3 net profit rises 19 pct

(Repeats to add graphic)

* Q3 net profit 21.11 bln yuan vs 20.32 bln analysts' fcast

* Nine-month loans up 42.63 percent

* Net interest margin was 2.03 pct during first nine months (Adds details, company and analyst comment)

By Samuel Shen and Alison Leung

SHANGHAI, Oct 29 (Reuters) - Bank of China (601988.SS) (3988.HK), the country's biggest foreign exchange lender, posted a 19 percent rise in third-quarter profit, boosted by a lending boom as a huge government stimulus measures helped China lift the global economy out of recession.

China's banks extended a record 8.67 trillion yuan ($1,270 billion) in new loans in January-September, well ahead of this year's minimum target for 5 trillion yuan, as the government adopted ultra-loose monetary policies to stimulate the world's No.3 economy.

But bank margins have felt the squeeze after a string of rate cuts late last year, and lenders face tighter capital rules as regulators rein in loan growth that has helped jolt the economy back into robust growth of nearly 9 percent.

Beijing-based BOC reported July-September earnings of 21.11 billion yuan ($3.1 billion), compared with 17.8 billion yuan a year earlier. The result is in line with expectations of seven analysts polled by Reuters, who had forecast a third-quarter profit of 20.32 billion yuan.

For a graphic on Bank of China's earnings, click on: here

Bank of China's loans and advances to customers totolled 4.7 trillion yuan at the end of September, up 42.63 percent from the end of 2008, as the lender took advantage of the government's stimulus plans.

However, Bank of China joins rivals including China Construction Bank (0939.HK)(601939.SS) and Bank of Communications (3328.HK)(601328.SS) in reporting a slowdown in loan growth in the third quarter, while net interest margins stabilise. [ID:nSHA292778] [ID:nHKG251036]

Bank of China President Li Lihui said on Aug. 27 that the pace of lending would slow by "a relatively big amount" in the second half as Beijing moves to stem a surge in liquidity that has fuelled worries over asset price bubbles and inflation.

China's new loans may fall next year to 7 trillion yuan from an expected 10 trillion yuan in 2009, but bank interest margins have bottomed and will improve as the economy recovers, according to Citic Securities.

Bank of China's net interest margin was 2.03 percent during the first nine months, 0.65 percentage point lower than the same period of last year.

For full earnings report, click here (US$1=6.832 Yuan)