According to Chinese accounting standards, as at September 30th 2007, CCB’s operating situation highlights are as follows:
- Total assets reached RMB6,406,041 million yuan, representing an increase of RMB957,530 million yuan or 17.57% from the end of last year. It total liabilities was RMB6,016,119 million yuan, which was an increase of RMB897,812 million yuan or 17.54% over the end of last year.
- Loans and advances to customers were RMB3,173,102 million yuan, representing an increase of RMB377,219 million yuan or 13.49% from the end of last year. Deposits from customers totalled RMB5,193,800 million yuan, an increase of RMB472,544 million yuan or 10.01% over the end of last year.
- Total equity was RMB389,933 million yuan, which was an increase of RMB59,718 million yuan or 18.09% over last year end.
- Non-performing loans (NPL) amounted to RMB92,444 million yuan, NPL ratio was 2.83% and provision coverage ratio was 97.01%.
- Core capital adequacy ratio was 10.60% and capital adequacy ratio was 12.53%.
From July to September 2007, CCB’s operational situation highlights are as follows:
- Net interest income was RMB50,087 million yuan, while net fee and commission income was RMB10,266 million yuan.
- Net profit was RMB22,846 million yuan, of which net profit attributable to shareholders of the Bank was RMB22,806 million yuan.
- Net interest margin was 3.21%.
On October 26th, China Construction Bank Corporation (CCB) released its report on operating results for the third quarter of 2007. It was CCB’s first quarterly report since its A share listing in September. This quarterly report revealed that, in the third quarter, CCB’s assets and liabilities had continued to grow, its profitability had continued to improved, its loan structure was further optimised, both the amount of its NPL and its NPL ratio had decreased and all of its main financial indicators were favourable. This demonstrated that CCB’s efforts in deepening its reform and driving for operational restructuring and its strategic adjustment of business structure had continued to bear results.
Steady growth in asset size and continuous improvement in loan structure. According to Chinese accounting standards, CCB’s total assets were RMB6,406,041 million yuan as at September 30th, representing an increase of RMB957,530 million yuan or 17.57% over the end of last year. Its total liabilities were RMB6,016,119 million yuan, an increase of RMB897,812 million yuan or 17.54% over the end of last year. The net amount of its loans and advances to customers was RMB3,173,102 million yuan, increasing by RMB377,219 million yuan or 13.49% over the end of last year.
In the last three quarters, CCB had continued to adopt national macroeconomic control measures; focussed on the simultaneous emphasis in the speed and quality of development as well as in operating benefits; and had reasonably controlled the volume and rate of increase of credit amount to achieve further optimisation of its loan structure. In the area of corporate loans, infrastructure loans, as a product line given priority development status, had a higher than average rate of growth than other corporate loans. On the other hand, increase in real estate development loans was under effective control and recorded the lowest rate of growth among all loans. And lending to industries with over capacities, high pollution or high energy consumption had continued to drop. Thus it was evident that adjustment in loan structure was effective. <Lending to corporate customers with an A rating continued to make a greater share of all corporate non-discount loans, whereas loans to industries with over-capacity or high pollution and high energy consumption had decreased by 0.18% and 0.02% respectively compared to the beginning of this year. There had been a slow down in personal loans in the third quarter. In terms of loan structure, personal consumer loans had been justifiably compressed while residential mortgage loans was given development priority.
Incomes from intermediary business surged rapidly, while profitability continued to grow robustly. As at the end of September, CCB had achieved a net profit of RMB57,101 million yuan, net interest income of RMB139,300 million yuan, fee and commission income of RMB22,926 million yuan, and the corresponding figures for the third quarter were respectively RMB22,846 million, 50,087 million and 10,266 million yuan. It was noted that non interest income as a share of operational income had continued to rise. In the last three quarters, CCB had taken advantage of a vibrant capital market by actively developing its agency business. As a result, fee and commission income was able to maintain a rapidly expanding momentum. As an area for driving integration of operations and for diversifying income sources, CCB’s investment banking business saw active development in areas such as financial management, consultancy services, trust management, asset securitisation, underwriting of short-term financing bills, etc. Among incomes from intermediary business, the share of agency business income continued to grow, while those from bank cards, settlement and consultancy followed closely. As at the end of September, there were 21 intermediary businesses with incomes exceeding 100 million yuan. Among them, incomes from fund agency sales, investment products, CTS, trust custody, electronic banking and acceptance business were all doubled. Concurrent with the rapid increase in income from all areas, CCB was able to keep its expenses under good control, with its growth in operating expenses significantly lower than the growth in main business income in the same period.
An enhancement in risk control level and a further improvement in asset quality. As at September 30th, CCB had a core capital adequacy ratio of 10.60% and a capital adequacy ratio of 12.53%, indicating further improvements in its asset strength. On the other hand, with an NPL amount of RMB92,444 million yuan, its NPL ratio had dropped to 2.83%. CCB had continued to entrench the reform of its risk management system and further strengthened integrative management within the framework of comprehensive risk management. It did so by paying close attention to ensure the accuracy of its credit asset classification, by improving the management of its economic capitals and by linking economic capitals to risks. It had continued to implement such qualitative and quantitative risk management measures as 12-grade classification, internal grading system, quantification of economic capitals and reserve fund system. It was innovative in terms of tools and methods of risk management in that it had accelerated the pace of optimising its corporate credit rating system, adopting the use of retail rating cards, implementing monitoring of portfolio management and pledge asset management, etc. As well, it had implemented risk quota management by setting stringent limitation of quota for lending to high pollution and high energy consumption industries which had high risks and higher utilisation rates for economic capitals and to over-invested industries which are restricted by national policies. For restricted industries which deserved to be encouraged, CCB had customised green channels to give these industries supports. Finally, it had comprehensively assessed and reengineered all its main business processes from the standpoint of customers. By adopting unified systems and by streamlining its internal operations, CCB was able to provide convenience to customers and control risks at the same time.
While quickening up its own development, CCB had conscientiously untaken its corporate social responsibilities. In the last three quarters, CCB had launched a number of charity programmes. These include the “Construction of Futures—CCB Sponsorship Programme for Impoverished High School Students” in which CCB donated RMB120 million for the establishment of a special fund—the largest single sum donation from a Chinese bank so far. In a bid to help improve
The good operating results of CCB in the third quarters had consolidated the achievements it had obtained in the first half of the year, and provided a strong guaranty for its meeting annual targets. Industrial pundits had opined that, with the successful listing of it’s A and H shares, CCB was in possession of favourable conditions to further its reforms and implement scientific development. With a multi-level financing platform, its ability to withstand various forms of risks will be further enhanced and its corporate governance and internal control will be further improved. This will provide a solid foundation for it to further expand its business and to continue to optimise its structure in realising integrative operations.
About China Construction Bank:
China Construction Bank Corporation (”The Bank”) has a long history of operating in China. Its former self, People’s Construction Bank of China, was established in 1954 and was renamed China Construction Bank in 1996. The Bank was separated from China Construction Bank in September 2004 by inheriting the commercial banking business and related assets and liabilities of the latter. With its headquarters in Beijing, The Bank has a network of 13,000 branches and sub-branches in mainland China as at the end of September 2007, and maintains overseas branches in Hong Kong, Singapore, Frankfort, Johannesburg, Tokyo and Seoul, while having representative offices in London and New York. The Bank holds a 100% interest in China Construction Bank (Asia) Corporation Limited, a 75.1% interest in Sino-German Bausparkasse, and a 65% interest in CCB Principal Asset Management Co. Ltd. It has a staff count of around 300,000.
CCB began trading its H shares on the Stock Exchange of Hong Kong Limited on October 27th 2005 (stock code: 0939). Its A shares started trading on the Shanghai Stock Exchange on September 25th 2007 (stock code: 601939).
Business Scope
l Corporate banking: Providing numerous financial products and services to corporate customers, government institutions and financial institutions, including corporate loans, trade financing, deposit taking, agency services, advisory and consultancy services, cash management, remittance and settlement, custodian services, guaranties, etc.
l Personal banking: Providing numerous financial products and services to individual customers such as personal loans, deposit taking, bank cards, personal investments services, remittances as well as securities agency services, etc.
l Financial market business: This include money market business including interbank loan transactions and repurchase transactions; investment portfolios, including possession of securities for trading and investment purposes; carrying out of transactions in foreign currencies and derivative instruments.
Forward-looking Statement:
This press release includes certain forward-looking statements with respect to the financial position, operating results and business development of the Group. Forward-looking statements include beliefs and expectations of the Group on future events and involve known, unknown and unclear factors. Readers are cautioned that a number of factors could cause actual results to differ, in some instances materially, from those anticipated or implied in any forward-looking statement. Statements with words such as “potential”, “expectation” and similar expressions can all be regarded as forward-looking.
Print This Page
Share To