Deep development: Integration into the Nirvana future more wonderful

Shenzhen Development Bank ("deep Development", 000001) announced September 15, the bank's board of directors on September 14 to consider the issue of shares to purchase assets of a number of bills, proposed by China Ping An Insurance (Group) Co., Ltd. ("China Peace" ), with about 7.825 billion shares of Ping An bank (about 90.75% per cent of the total equity of Ping An bank) and the subscription of the cash for sale, subscribe to about 1.638 billion shares of the deep development non-public offering at a price of $17.75 a share. As assessed by the Sino-Union Assets Assessment Limited, the assessment value of Ping An bank on June 30, 2010 as the base day of assessment is about $29.08 billion.　　After the end of the deal, the deep development of total equity increased to 5.124 billion shares, China Ping ' an will hold 52.4% of the deep development stake to become its controlling shareholder. According to statistics, as of June 30, 2010, the total assets of Ping An Bank of 230.62 billion yuan, six months net profit of 912 million, audited book net assets of 15.329 billion yuan, per share of net assets of 1.78 yuan. According to the An Yonghuaming audit of the Ping an Bank in 2010 and 2011 Earnings Forecast report, Ping An bank is expected to increase net profit to 2.3 billion yuan in 2011, operating income will reach 7.824 billion yuan.　　And the deep development of the total assets of 624.4 billion yuan, the additional price of 17.75 yuan per share. After the integration of the deep development of high growth in this transaction from the policy perspective is to avoid competition, in fact, from the company level to play a synergistic effect and improve competitiveness is the point.　　The deal will make the deep development of the integration of Ping An bank possible, the transaction of Ping An bank in the valuation of its net assets of 1.9 times times, which basically and the listed joint-stock small banks of the market net rate is similar.　　The deep development through the non-public offering of Ping An group of China, successfully solved the problem of competition in the same trade, the asset injection of Ping An bank will enhance the network advantage of deep development and reduce the cost of business through the effect of scale economy.　　According to CITIC investment calculation, Ping an bank 09 Eps/bvps respectively for the first half of the 0.13/1.66,10 year Eps/bvps respectively 0.10/1.78, the transaction will make deep development of the net worth of each share thickening. Ping An bank has a distinct feature in retail and credit card business, and the cost-income ratio will gradually decline after its retail business investment period.　　The foundation of the future growth of Ping An bank has been laid, the profit recovery is a big probability event, and the deep development and its integration could be doubled. In short, the integration of deep development will benefit from three aspects. On the one hand is the cross sales brought about by the customer growth. At present, Ping ' an group has 56 million customers and 2 million corporate customers, through the sale of silver-insurance cross-selling can quickly attract customers. The role of cross sales in Ping An bank's credit card growth process has proved the feasibility of this model. Second, the instant growth of network scale. Through integration, the Deep Development Branch will be increased by 5, more than 70 business outlets, sales network will also be effectively expanded. Third, two lines of integration will reduce the business tubeSpending.　　IT system consolidation, headquarters consolidation will achieve cost savings. Deep development into China Ping ' an group, become an important part of Ping an financial holding group, will get synergy, peace in capital and business will give greater support, deep development will receive huge financial resources and huge business opportunities. Moreover, the deep development will rely on China Ping An to promote brand value, to achieve cross sales.　　Future Cross-selling is expected to enhance core customers and core deposits to achieve a successful retail business development model. Overall, the deep development of the business philosophy and operating mechanism is more flexible, and peace of cooperation in the long term conducive to its intermediary business and retail business development.　　Its customer resources and financial resources will continue to enrich the business space to expand greatly, profitability will be continued to improve, showing high growth. According to Richard, the director of deep development, he said that deep development will take advantage of China's ping ' an customer base and sales force to develop the retail business faster, and he believes that using China's ping ' an customer advantage, the development of the retail business will be a big development. At the same time to take full advantage of the deep development of the advantages of business, that is, trade finance.　　This can be connected to the SME client owned by the peace and Security Bank. Richard also points out that the basic strength of bank growth in the next three years will come from the company's business.　　The company's business will also become one of the strong drivers of bank development, he said the deep development of the future emphasis on a wide range of business development.　　If approved, deep development will continue to consolidate the IT and network resources of the two banks within 2 years, which will bring about economies of scale and lower operating costs, and the business and management costs of the two banks have been reduced by the consolidation. Reorganization of the formation of a mutually beneficial pattern reorganization plan to straighten out the relationship between the deep development and peace, conducive to two long-term development. China Ping An successfully won the National joint-stock banking licence, set up a complete structure of insurance, banking and investment, to the integrated Financial services group to take a leapfrog step. After the completion of the transaction, China Ping ' an group held a deep development stake increased to more than 50%, to become the real development of the first major shareholder, its banking business all into the deep development. The potential cooperation between the two will also continue to advance. From the company's business and the structure of the network layout, the company's integration costs are small. The deep development covers 20 cities, the layout of 303 outlets is mainly concentrated in one or two line cities all over the country.　　The one or two-line city is a strong area of China's Ping An insurance business, and the regional intersection of the new bank and insurance business will provide greater possibility and higher efficiency for the synergy effect. The public data show that the deep development as a national joint-stock Commercial Bank, its strategic management network is concentrated in China's relatively developed Pearl River Delta, the Bohai Sea and Yangtze River Delta region, but also vigorously develop China's major cities in the west of the network. In recent years, deep development in the field of trade finance and supply chain finance business progress faster and obtain the corresponding market position. In recent years, Ping An bank has made great strides in capital strength, dot layout, scale growth, characteristic business and asset quality in China's safe arrival: By letterWith cards, SME loans and other advantages of business, from 2007 to 2009, Ping An bank total assets of the annual composite growth rate of 24.8%; 2009 years Ping An bank credit card issuance volume second only to the middle-peasant construction CHUM Recruit, ranked 7th, non-performing loan rate in 2008 and 2009 respectively 0.54% and 0.46 %, are well below the industry average; In recent years, Ping An bank in the investment period, and constantly set up a new branch, while investing heavily in the core banking system and other IT systems, to create a strong operating platform for the future development of a solid foundation.　　Through this transaction, the two banks advantage business can achieve complementarity, full play synergy effect. In addition, the two sides in the distribution of business outlets also have complementary advantages. As of June 30, Ping An bank in 9 cities with branches, including Fuzhou, Xiamen, Quanzhou, Dongguan, Huizhou and other 5 cities have not set up branches, the transaction after the deep development of more than 70 business outlets, to fill vacancies, optimize the role of network layout. And in Shenzhen, Shanghai, Guangzhou, Hangzhou, the 4 branches of the overlapping cities, Ping An bank can also be in the management of costs, technology investment and credit card business expenditure and other aspects of cost savings, improve overall profitability.