ICBC denies stopping development loan after first half after-tax profit 85 billion

August 26 Night, ICBC (601398. sh;1398. HK) released the 2010 interim operating results.　　In accordance with international Financial Reporting standards, ICBC realized after-tax profit of 85 billion yuan in the first half of the year, an increase of 27.3%, earnings per share rose to 0.25 yuan.　　This means that ICBC has surpassed PetroChina and Sinopec to become the most profitable company in the country.　　At the news conference held at the same day, ICBC president Kaisheng said that by the end of next year, ICBC will have a maximum of 80 billion financing type of silver letter cooperative financial products from the table into the table, which has little impact on the performance of the bank. ICBC Chairman Jiang Jianqing also told reporters that because the convertible bonds in China is still a scarce investment varieties, Huijin and the Ministry of Finance do not participate in preferential placements, which to some extent, in favor of other investors.　　But he believes Huijin will be involved in other forms of refinancing. Silver letter into the table of up to 80 billion "80 billion compared to nearly a trillion total loan size, is acceptable to us."　　"With regard to the concern of the bank letter cooperation, Kaisheng said that the first half of this year, ICBC's private financial products sales amounted to 2 trillion yuan, and the regulation of the new regulation of financial products involved in the financing of products. By the end of June, the bank's financial products balance of 440 billion, of which 235 billion are financing products, 235 billion of which more than 100 billion will expire in the year and next year naturally.　　According to ICBC statistics, two years after the real need to be included in the table, roughly 80 billion yuan.　　Kaisheng that it would be acceptable to include the 80 billion term in ICBC's annual business plan, compared with the more than 1 trillion credit launch in 2009 and the more than 900 billion credit plan this year. "I believe that 80 billion cannot be fully integrated into the table. Financial products and bank credit funds are different, money can be invested in capital, and credit funds can not. It would not be reasonable to simply include both in the table.　　"Kaisheng said. He believes that ICBC's financing products are risk-controllable. "From the legal theory, the financial products to invest in which products, banks do not have to bear the responsibility, but ICBC has long not abandoned the investment object audit and check."　　He cited, for example, financing products before sales, ICBC will be on each investment project "imitation credit" checks, so that the exchange of thinking: if it is ICBC, will give credit to these projects. Kaisheng also said that the income of financial products accounted for 5% to 7% of intermediary business income, while intermediary business income accounted for 20% of total income.　　Therefore, the Silver Letter cooperative financial products, strict control, will not give ICBC's profits have a great impact. According to the report, in the first half of the year, ICBC realized the fees and commissions net income of 36.9 billion yuan, an increase of 33%, accounting for the proportion of operating income of 20.39%, compared with the end of 2009 increased by 2.57%. Among them, the investment banking business to the bank's intermediary business revenue contribution to further increase, the first half of the total income 86.66Billion, an increase of 21.3% year-on-year.　　Wealth management business growth of 43%, which on the public finance business income year-on-year increase of 87.1%. Huijin will participate in ICBC refinancing on the day before the report, August 25, ICBC announced its a-share 25 billion convertible notes.　　From August 31 onwards, the transfer of debt will be accepted online and net investors purchase.　　However, like the issuance of convertible bonds, large shareholder Huijin company is not involved. In this respect, Jiang said that ICBC refinancing, including convertible bonds and allotment, although Huijin does not participate in the shares of the first sale of convertible bonds, but it is believed that Huijin will certainly participate in other refinancing activities of ICBC.　　Huijin does not participate in preferential placements in favour of other investors. ICBC has statistics, if Huijin and the Ministry of Finance to participate in preferential placements, all 25 billion of the amount will be only 1.45 billion yuan for other investors to subscribe.　　At present, the convertible bonds in a a-share market is a scarce variety, in addition to ICBC, to issue the convertible bond is only 45 billion yuan, the rate is very low.　　According to ICBC a-share convertible bond issuance plan, the convertible bonds for ICBC in addition to the holding shareholder Huijin Company and the Treasury outside the original a-share shareholder, placing 0.51 yuan per share of convertible bonds of the proportion of priority placements.　　At the end of June, ICBC had a capital adequacy ratio of 11.34% and a core capital adequacy ratio of 9.41%, which fell 0.54% and 0.17% respectively from the end of March this year, the report showed. At the end of June, ICBC's non-performing loan rate dropped to 1.26%, down 0.28% from the end of 2009. At the same time, the bank's provision coverage has risen sharply to 189.81% per cent, up from the end of 2009 by 25.4%, while the cash allocation balance has been nearly 1.9 times times the total non-performing loan balance.　　This is ICBC non-performing loan balance and non-performing rate for the 11th consecutive year to achieve "double drop". Denying the development of loans to the current four pending moratorium on the development of loans, Jiang Jianqing flatly denied: "This is not the thing." Kaisheng said that for the development of loans, ICBC's credit policy is consistent, the implementation of the list system management, that is, only qualified enterprises to obtain loans.　　In addition, ICBC also stressed that the repayment schedule must be consistent with the sales progress and so on. In the first half of this year, ICBC unveiled two new policies on real estate loans, he said.　　The first is to properly control development loans for higher-priced areas, and to invest appropriately in two or three-line cities with moderate prices and modest growth in housing prices, and in the Midwest and North-east regions.　　In the first half of the year, ICBC's development loans to the Central, Western and north-east regions grew more than the average level of 1.37%, 3.23% and 19.5%, while the development of the Yangtze River Delta and the Pearl River Delta region was lower than the average level of 1.68% and 6.5%.　　Another new policy is that ICBC introduced the first half of the shanty towns and villages in the reform of the credit policy, which in the domestic industry is still the number one. According to the data provided by ICBC, all the public rooms of the bankReal estate loans, including development loans, commercial housing loans, land reserve loans and so on, accounted for the overall total loan proportion of only 8.4%, good quality.　　The non-performing rate on public real estate loans dropped from 1.08% at the beginning of this year to 0.8% at the end of June. In addition, in the local government financing platform loans, most of ICBC's such loans to the provincial and municipal financing platform and quality urban infrastructure construction projects, the current non-performing rate is only 0.02%.