The Agricultural Bank of China (ABC), the country's largest rural lender, said Friday that its net profit in the first half year jumped 40.2 percent on the expansion of rural business.

Net profits hit 45.86 billion yuan (US$6.77 billion) in the first half year, according to its statement delivered to the Shanghai Stock Exchange.

Also, its non-performing loans decreased 13.16 billion yuan in the first half-year compared with the end of last year, according to the statement.

The non-performing credit rate fell to 2.32 percent, 0.59 percentage points lower than the 2009 figure.

The company attributed its growth in profits to robust growth of loans in rural areas due to its upgrading of services.

The Beijing-based company launched its Initial public offering (IPO) at the Shanghai bourse and the Hong Kong bourse in July this year.

(Xinhua News Agency August 28, 2010)