Huaxia Bank: the future risk is arduous to hoist the advance rate
Apr 28th, 2009 by Professional editor working for himfr.
Huaxia Bank Annual Report 2008 presentations that the realization of interest wages 13.492 billion yuan, an advance of 20%; mesh yield of 3.071 billion yuan, an advance of 46.15%, 0.7 yuan per share. Non-performing rate of 1.82 out of 100 at the end than the mid-2008 carried on to descent 24 foundation points.
Provision considerably the fourth quarter of 2008 in order that the genuine decrease
Growth in 2008 the financial gathering structure, effectual duty rate of wages duty elements that augmented to the descent in the fraction of 89%; interest elements in non-interest wages and mesh wages arrived at a stage of 39% and 12%; as a effect of the cost of provision and advance the addition rate to the recital of — -28.54% and 34.77%.
Income levy rate is the major cause for the presentation of considerable development, interest earnings development than the 07, only 20%.
Since the mid-2008 the company set aside only 126 percent coverage, which is lower than the average level of joint-stock banks, the company in the third and fourth quarter provision to increase the rate provision, the amount of new loans set aside 2.505 billion yuan, accounting for 08 assets in the second half of the proportion of impairment losses of 90%, resulting in a net profit of the actual loss of the fourth quarter.
Company loans in 2008, Central than the fourth quarter increased by 3.12%, so that the annual growth rate of only 15.78 percent of loans, which is lower than in 2007 and 17.63% of the level of other joint-stock banks.
As the fourth quarter of the company’s lend development has not considerably expanded, with the constricting of disperses in space, in order that interest on the fourth quarter and year-on-year snare earnings dropped more than Central.
08 the end of the company’s midpoint interest rate of 7% over the mid-2008 descent of 17 foundation points; one long-term lending rate by 6.8%, down 46 foundation points, a greater decrease. (08 end of the year as a effect of short-term tools embraced in the discount lending rate, with the mid-2008 caliber inconsistent written knowledge, it is arduous to compare).
Decline in borrowing value in the second half 08
08 companies over the end of bad loans continued to decline in mid-2008 a 24 basis points to 1.82, a larger decrease, a decrease of the adverse balance of nearly 390 million yuan.
08 the second half of the loan provision in substantially the same time provision for an increase of efforts to write off non-performing loans, new loans to write off 1.35 billion, so the whole year to write off non-performing loans amounted to 2.054 billion yuan, the amount written off over 07 in an increase of 37%.
08 the end of the year, the financial gathering gave advances up to 151 out of 100 reporting to arrive at the prerequisites of regulatory authorities; the worth of provision for the advance in the fraction of portfolio provision in the second half of 2008 went up to 37.83 out of 100 from 55.97 out of 100, but still to some extent worse than the complete stage of the banking industry.
In 2008, the financial gathering of non-performing advances rate of all subdivisions of the public more than the midpoint ratio of non-performing advances (1.94%) are chiefly agriculture, forestry, animal husbandry and fishery 6.49 out of 100, to perform the restricted occupants and 6.37 out of 100 other services, knowledge transmission, computer services and programs development, 5.52 out of 100, the Housing 3.68% actual property area, hiring and enterprise services subdivision, 3.65%, 3.39% wholesale and retail exchanges, training 3.04%. As a effect of the wholesale and retail trade, leasing and enterprise services, actual property area advances accounted for on the high fraction of 14.21%, respectively, 6.74% and 6.5%, it is the principle source of non-performing loans.
The percentage of time down payments expanded considerably increase in the cost of its liabilities
The mean balance of down payments in the business, the higher the percentage of time down payments, the mean balance of time down payments in 2008 expanded somewhat to 67.28 per hundred, up 0.36 percentage points.
A regular basis in 2008 and savings companies, respectively, time deposit rates over the medium term in 2008 increased by 13 and 24 basis points rise rapidly, more than demand reduction.
Fee and commission income continued to grow
Due to the slow development of intermediary enterprise, the end of the year 2008 the financial gathering realised mesh wages of payments and assignments 822 million yuan, an advance of 82%; the fraction of profits accounted for only 4.67% higher than in 2007 advanced by 1.51 percentage points, the fraction of the low. Intermediary enterprise because of the worse foundation, the downward spiral in capital markets and other elements act on the slighter, quite unwavering growth.
Although 08 non-performing rate of the second half of the business proceeded to down turn and poor balance, but to compose off awful borrowings, taking into account the components, the genuine increase of non-performing loans; the business important time down payments and demand down payments than slow development, with the percentage of high interest cost of high, in order that snare interest margin is still low; better is the business set apart 150 per hundred treatment grade, blended to make provision for expanded provision of higher value coverage; financing capital adequacy ratio, after increasing lending space larger.
Combination of these elements, the Yangtze River is looked frontwards to to securities financial gatherings EPS0.79 million in 2009, the risk of future expansion is arduous to hoist advances, high interest charges, as well as supplemental non-performing greater allotment of insist on financial gatherings to be neutral rating.
