IB Reports Substantial Profit Increase in Q1 2008
On April 25, IB released quarterly performance report for the first quarter of 2008. According to the report, IB achieved substantial profit increase in Q1 through steady overall growth. As of the end of report period, total assets of IB reached RMB 866.169 billion Yuan, owner's equity post RMB 42.02 billion Yuan; Net profit and earnings per share realized in Q1 were reported to be RMB 3.088 billion Yuan and RMB 0.62 Yuan, indicating 119.25% and 106.67% increase respectively when compared to the figures of Q1 2007.
Major reasons for the apparent profit increase in Q1 include steady growth in business scale, growing net interest margin due to repricing on medium and long term loans especially individual mortgage loans, quick growth in non-interest net income, top grade asset quality in the industry and further optimized asset structure, and tax rate drop as the result of tax reform.
It is reported that IB had identified top priorities for 2008 as early as in the working conference held at the beginning of the year, as its response to the changes in macro international and domestic situations. These priorities are: to make full play of the strategic deployment determined in IB's five-year development plan and take all existing situations into consideration so as to maintain a moderate growth through maximized profit and minimized loss; to facilitate business transformation through adjusted and optimized structure; to ensure business safety through deepened management reform and upgraded quality efficiency.
The performance in Q1 reveals a fact that IB was successful in maintaining a positive state of operation with increasing profitability and improved asset quality. Meanwhile, it is observed that IB spared no effort to take new opportunities in accelerating business transformation and boosting structural adjustment. The result was that IB gained rationalized and optimized business structure, revenue structure and customer structure in addition to the constant growth in overall benefit. The quarterly report also shows that IB gained RMB 683 million Yuan from fee and commission charges, marking a 169.22% year-on-year increase. This part accounted for 9.31% of the total operating income in Q1, with a 3.84% increase over the same period of last year.