Lihui interpretation of real estate loan loans a rise and fall "stress"

August 27, the Bank of China announced that, in accordance with international Financial reporting standards, the first half of the bank's shareholders should enjoy after-tax profit of 52.022 billion yuan, an increase of 26.87% per share earnings increased by 0.04 to 0.20 yuan, the average ROE of 19.79%, up 2.4% year-on-year. Recently reported that a large bank to suspend the development of loans, BOC President Lihui August 27, BOC is also continuing to issue development loans, actively expand the business.　　He hopes to complete the A+h allotment plan in the four quarter of this year, and revealed that in the near future will be issued in Hong Kong no more than 5 billion yuan bonds, the final issue will be based on market conditions to determine the amount.　　Foreign currency business dragged down the net interest rate of the first half of the bank's profits to achieve a significant increase, mainly thanks to both net income and non-interest income growth faster. In the first half, BOC net interest income increased 22.94% to 91.864 billion yuan Year-on-year, but net interest margin is only 2.04%, Year-on-year and the chain are flat. "The net spread of the renminbi reached 2.23% per cent, with an increase of 5 basic points over the year, adding 2 basic points to the annual level." But the net interest margin of domestic foreign currency business shrank by 0.45%, only 1.15%. The proportion of foreign currency assets is 28%, so narrowing the net interest rate of foreign currency has a certain impact on the overall net income margin.　　"Lihui said. He also pointed out that the increase in the renminbi's asset ratio and the expansion of interest-bearing assets were the main reasons for the growth of net income. At the end of June, BOC's assets accounted for 96.61% of the total assets, up 0.12% from the end of last year. Among them, the proportion of loan in the average balance of interest-bearing assets increased by 7.31% to 57.84%.　　RMB assets accounted for 74.75% of total assets, up 2.3% from the end of last year.　　At the end of June, BOC's renminbi loans increased 3,840 to 1.7 billion yuan, up 10.89% from the end of last year, and renminbi deposits increased by 5,459 to 8.9 billion yuan, up 10.21% from the end of last year. 14 billion in the first half of the BOC assets, non-interest income grew by 23.84% to 41.015 billion yuan, and non-interest income increased by 0.16% to 30.87% in the same period, but 31.7% narrowed by 0.83% at the end of last year.　　The total Fee and commission income of non-interest income increased by 23.32% to 28 billion yuan, which accounted for 21.3% of operating income. Lihui said that the first half of the bank's financial services in the rapid development of intermediary business contribution to the larger.　　Regarding the newly promulgated silver Letter cooperation business stipulation, he said, BOC Bank letter cooperation financing business total is 68 billion yuan, the credit asset class is 41.4 billion yuan, accounts for 61%, and the period is not too long, by the end of 2011 transfers from the table to the table's credit assets only 14 billion yuan. With faster growth, credit costs rose 0.07% to 0.44% in the first half of BOC. However, the line continues to be solidBad double drop, non-performing loan rate of 1.2%, down 0.32% from the end of last year, non-performing loans allocation coverage 188.44%, compared to the end of last year increased by 37.27%.　　At the same time, core capital adequacy ratios rose 0.26% to 9.33% per cent year-on-year, and capital adequacy ratios rose by 0.59% to 11.73%. The negative growth of platform loans in the overall loan continued to maintain a modest increase, while Bank of China's local government financing platform loans for the first half of the negative, the loan balance from the end of last year's 424.3 billion yuan to the end of June 419.7 billion yuan, in the corporate loans accounted for 12.28%,　　1.08% lower than the beginning of the year, non-performing loans balance 301 million yuan, compared to the beginning of 44 million yuan, non-performing rate of 0.07%, with the end of last year flat. "In the first half of the year we have extracted 6.02 billion yuan from the local government financing platform in accordance with the credit portfolio management, which is 20 times times that of non-performing loans that are now clearly defined, so we think the current asset risk is manageable."　　"Lihui said.　　He also said that the BOC provinces and cities two of local government financing platform loans accounted for 90%, county-level platform accounted for only 10%, in the county-level platform for 41 billion of the loans, China's hundred counties accounted for 75%, there are mortgages and a variety of security accounted for 95%, of which there is a pledge 65%.　　As for the cash flow of these financing platforms, Lihui pointed out that 100% of cash flow coverage accounted for 50%, some of the cash flow coverage accounted for 12%, cash flow coverage ratio of only 30% or below 30% of 38%, in this 38% portion, there is a pledge and other guarantees accounted for 90%. Real Estate loan non-performing rate 0.72% but BOC real estate loan still has growth in the first half. "As at the end of June this year, BOC's real estate loan balance was 288.3 billion yuan, and real estate loans accounted for 8.43% of the company's loans, up 0.81% from the start."　　"Lihui said. By the end of June, BOC's non-performing rate for real estate loans was 0.72%, down 0.78% per cent year-on-year. "The ratio of loans to collateral is kept at around 50%, so we think that real estate loans are a good quality and a relatively adequate mortgage, and the Bank of China does not have a moratorium on this kind of business at the moment."　　"Lihui said. BOC is still conducting a new round of mortgage stress tests, as required by regulators, but the results have not yet come out. Chen Shiqing, vice president of BOC, said: "In the second half of the loan delivery, BOC will be more prudent, first, the choice of the loan client standards will be higher; second, the capital requirements will be more stringent; third, the object of the loan, manufacturing products must meet the small type, in line with the entire housing, low-cost housing construction and other requirements. ”