On April 26, Industrial Bank (IB) released the performance report for the first quarter of 2012. As indicated in the report, in the first quarter of this year, IB witnessed a good overall business performance, with all businesses keeping fast growth in a coordinated and healthy way. Maintaining stable assets quality, IB registered a new record high in terms of operation benefits and built a solid foundation for the business development of the whole year.
Profit growth was faster than the scale growth and operational efficiency was improved in a stable manner. By the end of the first quarter, the total assets of IB reached RMB 2,629.398 billion, increasing RMB 220.6 billion over the beginning of this year, up by 9.16%; the balance of all loans in both domestic and foreign currencies reached RMB 1,020.597 billion, increasing RMB 37.343 billion over the beginning of this year, up by 3.80%; and the realized net assets which belong to the shareholders of the parent company hit RMB 8.288 billion, increasing RMB 3.067 billion YoY, up by 58.74%. The growth of profits was obviously greater than that of business scale in the same period, creating a new record high for quarterly profits. The weighted mean ROE reached 6.93%, up by 1.41 YoY, and the annua lized ROE was kept at a leading position in the banking industry, hitting 27.72%. The cost/income ratio was kept at a relatively low level, reaching 27.77%, down by 2.88% YoY.
Various assets were allocated in a flexible way and the overall incomes were improved effectively. IB made active adjustment to the loan structure, kept on lending greater support to the real economy, vigorously developed the business of loans for medium-sized enterprises engaging in real economy, small-sized enterprises and individual businesses, and kept a stable loan pricing level. In the first quarter, the net credit margin hit 2.64%, increasing 52 BPs YoY; and the interest spread of deposit and loan reached 4.86%, increasing 78 BPs YoY, registering a new quarterly record high since 2009. Meanwhile, IB brought into full play its conventional advantages in the field of inter-bank business and grasped favorable market opportunities to intensify the allocation of non-credit capital, and the non-credit assets scale and returns kept on increasing steadily.
Risks in key industries were controllable and assets quality was kept stable. According to the latest regulatory requirements, IB further pushed forward the control over risks in loans related to the local government financing platform and real estate. There was no non-performing loans related to the government financing platform, and the quality of loans regarding real estate was kept stable. The risks were controllable as indicated by the pressure test results. By the end of the first quarter, the balance of non-performing loans of IB was RMB 4.037 billion, and the non-performing loan ratio was 0.40%, which was at the lowest level among listed banks of the same type. With the provision coverage hitting 393.01%, up by 7.71% over the beginning of this year, IB further reinforced its resistance to risks.