By Jin Lixin (Financial News)
Updated: 2007-08-20
According to the Interim Report 2007 released today by Industrial Bank, all main business indexes of Industrial Bank hit a historical new high up to the end of June. Total assets, deposit balance, and loan balance stood at 815.6 billion yuan, 435.8 billion yuan, and 378.1 billion yuan with annual average growth of 42%, 19% and 28％ respectively in recent 3 years, achieving a robust profit boom continuously.
Interim Report 2007 shows that Industrial Bank's before-tax profit increased from 2.8 billion yuan to 5 billion yuan with year-on-year growth rate of 26% and 42% during year 2004 to 2006; compared with the same period of last year, the before-tax profit rose by 125% to 5.1 billion yuan at the end of the 1st half year with great momentum boost. Experiencing the “Double Drops” of NPL index, assets quality was further improved. Compared with year 2004, Industrial Bank's balance of NPL dropped by 612 million to 4.464 billion yuan with the NPL ratio falling 1.32 points at 1.18% basing on the Five-category Classification Apporach. Moreover, the brilliant IPO successfully sent the capital fund raising to a 16 billion yuan high, greatly enhancing the caipital competence. At the end of June, the net capital and balance of shareholders' equity reached 46.4 billion yuan and 34.6 billion yuan respectively, growing 51% and 64% annualy in the recent 3 years.
Retail business and new emerging business are increasing significantly. Up to the end of June, the proportion of Industrial Bank's retail credit assets approached 25% among whole credit assets, climbing 16% compared with 2004. The new emerging business, especially the treasury operation business, is growing with strong momentum; assets structure is developing toward variation and the reliance on traditional credit business are declining. From the aspect of income structure, the ratio of investment income and non-interest income are improving steadily; the scale of interest margin income is stepping down. During the first half year, interest on loan contributed 62.4% of total interest income, down 10% from year 2004; bond investment income accounted for 28.5% of total business income, up 15.8% form year 2004; non-interest income proffer 6.8% of total income, growing 5.1% from year 2004; the multi-oriented income structure is improving gradually and the depending on traditional interest margin is phasing down.