China's CCB posts 20 percent rise in Q2 net profit

HONG KONG (Reuters) - China Construction Bank (CCB) (0939.HK) (601939.SS), the country's second-biggest lender, posted a 20 percent rise in second-quarter profit on loan expansion and a recovery in interest margins.

CCB, 11 percent owned by Bank of America (BAC.N), earned 35.6 billion yuan ($5.24 billion) during the April-June period, compared with 29.6 billion yuan a year earlier. Second-quarter results were calculated by Reuters using first-half figures published on the Hong Kong stock exchange.

The results beat expectations of seven analysts polled by Reuters, who forecast on average that CCB's quarterly profit would rise 16 percent to 34.3 billion yuan.

CCB's smaller rivals, including China Merchants Bank (600036.SS) (3968.HK), China Minsheng Banking Corp (600016.SS) (1988.HK) and Bank of Communications (BoCom) (3328.HK) (601328.SS), have posted solid profit growth in the first half but the sector's vulnerability to a slowing economy poses risks.

CCB plans to sell 75 billion yuan ($11.1 billion) worth of shares in Shanghai and Hong Kong as early as in the fourth quarter to replenish capital, sources with direct knowledge of the fundraising plan told Reuters this month.

($1=6.79 yuan)

(Writing and additional reporting by Samuel Shen in Shanghai; Editing by Jon Loades-Carter)