-- Industrial Bank released Its 3Q Report of 2012
On October 31, Industrial Bank (IB) released its third quarter report in 2012. According to the report, in the first three quarters of this year, IB responded to the profound changes in the operating environment in an effective way, arranged its business rhythm in a reasonable way, and pushed forward business transformation, reform and innovation, and management improvement unswervingly. It improved its professional operation competence and internal growth power steadily, kept increasing its scale and benefits in a fast and stable way, maintained excellent asset quality, and gained desired business results.
Business Scale Maintained Steady Growth. By the end of the third quarter, the total assets of IB reached RMB 2.96 trillion, up by 23.08% or RMB 555.888 billion over the beginning of this year; the balance of various loans both in home and foreign currencies hit RMB 1.14 trillion, up by 16.07% or RMB 158.040 billion over the beginning of this year; the balance of various deposits both in home and foreign currencies hit RMB 1.66 trillion, up by 23.32% or RMB 313.745 billion over the beginning of this year. The bank ranked front among the listed banks in terms of the growth rate. The net assets belonging to the shareholders of the parent company reached RMB 137.887 billion, up by 19.68% over the beginning of this year; the net capital hit RMB 178.290 billion, up by 19.89%; the capital sufficiency reached 11.12%, up by 0.08%. With a concerted and matched asset-liability structure, all main indexes of the bank reached the regulatory requirements.
The profit structure witnessed sustained improvement. In the first three quarters, the net profits belonging to the parent company hit RMB 26.341 billion, up by 40.20% YoY, and the profits grew as a faster rate compared with the business scale in the same period. Against the background of keeping increasing the provision and accrual, the third quarter witnessed net profits of RMB 9.239 billion, up by 4.82%, an increase of RMB 425 million compared with the second quarter. Specifically, the intermediate business incomes of the company showed desirable sustainability. Thanks to good control of operating costs, IB's cost/income ratio was 24.52%, down by 5.26% YoY. The weighted mean return on equity (ROE) reached 20.78%, increasing 1.91% YoY. The bank's level of capital return remained ahead in the banking industry.
The asset quality remained steady. By strictly controlling the admittance standard for customers and projects, the company attached great importance to verifying the demands of enterprises for normal business operation to prevent credit risks regarding excessive credit extension and guarantee, and kept strengthening risk control over major industries and improving the refined level of risk management. By the end of the third quarter, the overall asset quality remained steady, and the non-performing loan ratio was 0.45%, remaining to be the lowest level among all listed banks. In the first three quarters, the provision and accrual of IB reached RMB 8.903 billion, up by 663.55% YoY, an increase of RMB 7.737 billion. With the provision coverage reaching 430.75% at the end of the third quarter, up by 45.45% over the beginning of this year, further reinforced its resistance to risks.
Professional services became more distinctive. Grasping the market opportunities in the process of financial disintermediation and market-oriented interest rates, the company has vigorously pushed forward business and product innovation, and actively engaged in such emerging business fields as wealth management, investment banking, and assets management, building competitive edges in such fields as green finance, bank-bank platform, precious metal agency trading, Renminbi market trading, assets custody and trust. Moreover, it has met the demands of the real economy for diversified and differentiated financial services with a variety of professional service measures including supply chain finance, cash management, financial leasing, and private banking, further improving its brand reputation and market influence.
By the end of the third quarter, in the field of investment banking business, IB has greatly pushed forward the underwriting of debt financing tools and has issued RMB 147.017 billion accumulatively in this year, up by 87.38% YoY, a scale ranking No.1 among similar banks. The balance of green finance based financing loans has surpassed RMB 100 billion, hitting RMB 106.381 billion, up by 42.71% over the beginning of this year. The company ranked first among all banks in the green credit ranking released by the Ministry of Environmental Protection. In the field of assets custody, the number of custody products online has reached 4302, with a custody scale hitting RMB 1,263.753 billion, up by 102.84% over the beginning of this year; the incomes of custody handling charges have reached RMB 969 million, up by 231.80% YoY. The above three key indexes all ranked No. 1 among similar banks. China Industrial International Trust Limited (Industrial Trust) has increased its trust business scale to RMB 224.639 billion, up by 47.20% over the beginning of this year, ranking top 10 in the Chinese trust industry. The newly-increased trust scale in the first three quarters ranked front in the sector.
In the fourth quarter, IB will endeavor to keep the desired momentum of business development in the first three quarters, further the professional reform of business lines actively in a stable way, and improve the asset-liability structure. The bank will insist on sinking its “service focus”, accelerate business innovation, and continue solidifying and improving its competitive edges in the banking market.