Bank profit woes: trying to cover bad loans
Dong Ximiao said the high bad Loan Bank performance report, thereby affecting the Bank's investors and market expectations, so the banks will do everything possible to "hold" rate, which should have been classified as special mention loans into bad loans.
now from the Bank profit growth in the single digits a few times seems to be a little bit away.
2014 years disclosed so far of Huaxia Bank, ping an Bank, Shanghai Pudong Development Bank, Bank of China, growth in net profit in the first half, 16.87%, 18.77%, and 11.15%, respectively.
analysis of the industry, mainly due to the bank restructuring, with intermediate business. But under the influence of slowing Chinese economic growth, banks are faced with bad double sharp position.
fast growth of non-interest income
GF securities Banking Analyst Mu China in accept first financial (micro-Bo) daily interview Shi analysis, above several bank profit performance good of reasons is many of, which and Bank net card poor performance about, currently disclosure in the reported of Bank net card poor are has must degree of rose, main reasons is first half of Bank guide interest rate down, deposits cost pressure get must degree of improved, like bank outside card poor improved.
"market-oriented interest rate after achieving a result banks spreads declined, but in the process of marketization of interest rate, interest rates are actually elevated. "Chongyang, Renmin University Institute of Finance of Dong Ximiao, a researcher at the China business news said.
to ping an Bank net profit growth's most significant, for example, by the end of June, the Bank's bad loan, net interest margin and net interest margin up 76 per cent, respectively, 29, and 31 basis points to 4.96%, 2.32%, 2.5%.
However, analysis of Mu-hua, another important factor is that the provision did not mention the ping an Bank itself very well. Displayed in the Bank loans than 1.83%, this year went up by 0.04%; 198.18% coverage of loan provisions, this year reduced slightly to 2.88%.
in the net interest margin of healthy at the same time, disclosure of banks ' non-interest income, especially in intermediate business income growth is particularly significant. State-owned bank first half of non-interest income of 78.197 billion yuan, an increase of 13.39%, or 33.29% the proportion of revenues, continues to maintain a high level of net fees and commissions payments rose 14.62%.
first half of 2014, Shanghai Pudong Development Bank net profit 22.656 billion yuan, an increase of 3.27 billion yuan over the previous year, an increase of 16.87%. Among them, the net interest income 46.489 billion yuan, was 78.75% per cent, down 5.65% over the previous year, while non-interest income 12.545 billion yuan, an increase of 5.289 billion yuan, an increase of 72.89%. In this regard, Shanghai Pudong Development Bank said the company's steady growth in interest-bearing assets, intermediate business income significantly increased, effective cost control is the primary driver of earnings growth.
non-interest income growth and ping an Bank. First half of 2014, the Bank's non-interest income 10.179 billion yuan, an increase of 107.82%. Than in non-interest income operating income jumped from 20.91% in the same period a year earlier to 29.31%.
Huaxia Bank intermediate business income of 4.144 billion yuan, an increase of 836 million Yuan, an increase of 25.27%. Chinese banks reported, one is an asset management business managed to reach 970.356 billion yuan, an increase of 92.41%, to implement managed fee income of 505 million, an increase of 117.99%; the second is international business to maintain a good momentum of growth, international settlement volume and the increase in revenue from international business operations are more than 15%; the third is financial related business fee income 873 million Yuan, due financial products are all scheduled to honour.
these data indicate that the business contribution to the Bank's net profit. MU said, in response to the interest rate liberalization, banking intermediary business in force, overall business is growing rapidly. From the perspective of banks ' income structure, the main income comes from interest income, just as fast, driving increase in non-interest income, at the same time, which is what banks in transition effects to show.