Bank of China Ltd., one of the China's four lading state-based commercial banks, announced that its profit during the first half increased by 27 percent owing to growth in interest income following a lending boom in 2009.

The Beijing-based bank added that profit in the first half, which ended on June 2010 was 52 billion yuan ($7.6 billion), or 0.2 yuan per share, from 41 billion yuan during the same period of 2009.

Chinese lenders profited from Beijing's massive economic stimulus, which comprised an increase in lending by state-owned institutions to help spending on building highways as well as other public works.

Further, in January-June period, bank’s interest income zoomed 23 percent as compared to 2009 to 91.8 billion yuan ($13.4 billion). Credit-card fees and other non-interest income increased by 24 percent to 41 billion yuan ($6 billion).

In a statement, Bank of China said, “It is tightening risk control, especially focusing on credit to real estate and local government investment agencies, which the World Bank and others have warned might pose a risk to banks if they cannot repay billions of dollars in loans.”

The state-owned bank also added that its net assets climbed by11 percent from the end of 2009 to 9.7 trillion yuan ($1.4 trillion).