Net profit growth in first half 34% Li Hong deposits
KeywordsNet profit first half second half
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Pudong Development Bank recently released the report, the first half to achieve the profit before the 13.343 billion yuan, an increase of 22.37%, the net profit attributable to the parent company is 9.081 billion yuan, an increase of 33.92%. From the report, the main source of profit is the expansion of asset size and spreads rebound driven by the amount of price-rise. In addition, it is worth noting that the middle business income has risen sharply, becoming the new bright spot of the bank with the traditional interest income as the main focus. But by capital constraints, the first half of the growth rate slower than the same industry, net profit is still lower than China Merchants Bank, Citic Bank. However, the problem of imprisoning the development of Pu FA will soon be solved. Pu FA Bank also announced that the mobile directional issuance program has been approved by the SFC, China Mobile executives were nominated as candidates for the board. Capital will be help for its development. Chichicheng, an analyst with credit Securities, predicts that the bank's core capital adequacy and capital adequacy ratios will be raised to 12.4% and 9.7% respectively by the end of 2010, supporting the company's business development over the next 3-5 years. Intermediate business income increased by 71% in the first half of 2010, Pudong Development Bank to achieve interest net income of 20.367 billion yuan, an increase of 34.55%. Like most banks, the drive to support PUFA performance is mainly the expansion of asset size and the rise in spreads. As at the end of the reporting period, the balance of foreign currency deposits was 1,444,693,000,000 yuan, an increase of 11.53% per cent from late 2009 and a deposit balance in the upstream level of joint-stock banks. At the end of the semester, the ratio of RMB to foreign currency was 73.06% and 65.15%. NET spreads widened 38 bp to 2.44% Year-on-year. Guotai Analysis report pointed out that the rapid recovery of spreads is mainly three reasons, one is the lag effect of deposit pricing, the high cost of interbank debt accounted for a 2.4% decline in the chain, third, the bank's bargaining power. At the same time, the first half of the Pudong Development Bank achieved non-interest income of 2.239 billion yuan, a significant increase of 58.7% per cent, and the ratio of non-interest income to operating net income was 9.9%, up 1.94 points from the beginning of the year. Intermediate business income growth rate, the first half of the implementation fees and commission net income of 1.825 billion yuan, a significant increase of 71.32%. "The big increase in intermediary business income is mainly due to the growth of public finance, exchange earnings, bond underwriting and financial advisor income." At the same time personal wealth management products sales also increased by more than twice times. Said a person at Pudong Bank. This is precisely the direction of PUFA efforts. Jianhua, governor of the Pudong Bank, said that Pufa's personal banking business in 2009 had increased from 14% to 17% per cent, but that other banks had a 30% per cent interest-rate income. Pufa has always been the company's business accounted for a relatively high interest income, in recent years the business transformation has not improved. In the first half of the year, Pu issued a loan accelerated growth, higher than the average growth rate of loans, promoting personal business accounted for the increase of about 1% to 17.8%, although the level is still slightly lower than the average share-holding banks, but the structural optimization trend showsThe company's long-term and highly dependent state of Shing has been gradually improving. At the end of the first half of the bank's non-performing loans to achieve double drop. The balance of non-performing loans was $6.465 billion, which was reduced by 995 million yuan at the beginning of the year, and the adverse rate was 0.62%, which decreased by 0.18%. At the end of June, the reserve coverage rate of Pudong FA Bank increased by 56.33% to 302.26%, which increased substantially, and also provided a possibility for future feedback. Major liabilities in the second half of the year, however, the first half of the Pudong development also encountered many challenges, especially the slow growth of deposits. At the end of June, its deposits grew by only 11.5% from the beginning of the year. First-quarter deposits increased by only 0.9% per cent, leading to lower deposits than loans in the first half. In the second quarter, the bank increased its absorption, with deposits at the end of June rising by 10.54% from the end of March. The bank said in the newspaper that the second half of the year will increase the strength of the debt. At the same time, the first half of the cost of income ratio also to a certain extent drag the performance. In the first half of the year, the cost of income rose by about 34%, mainly in the first half of the month, the staff wages and bonuses were increased by nearly twice times over the same period last year, from 1.47 billion yuan to 4.38 billion yuan in the same period. According to Guotai analysis, the total assets of Pudong Development Bank increased by only 9.8% in the first half of the year, below the average of 14.7% in joint-stock banks. In fact, the Pudong bank insiders told reporters that under the capital constraints, there was a period of time Pu issued a tight control of the loan, internally encouraged to do less capital consumption of business. The PUFA loan structure bucked the trend, and the discount ratio picked up, rising from 4.34% in late 2009 to 5.02%. "We analyze this with the company trying to reduce the overall risk asset weight by raising the bill ratio, thus reducing the capital consumption, which is still affected by capital constraints." "China Securities analysis points out.
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