Industrial Bank (IB) releases the 1Q report of 2014 today. Based on analysis and judgment of macroeconomic situation, the Company slowed down the pace of development, continued reform and transformation, and improved the business structure, witnessing stable and sound development of all businesses and steady rise in return on assets. According to the report, the net profits attributable to the parent company realized in the first quarter hit RMB 13.363 billion, a YoY increase of 21.74%. The basic earnings per share hit RMB 0.70, and the net asset value per share RMB 11.27.
Steady Growth of Business Scale. By the end of the first quarter, the total assets of the Company registered RMB 3,793.145 billion, up by 3.15% over the beginning of the year; the equity belonging to the shareholders of the parent company reached RMB 214.636 billion, up by 7.44%. The balance of deposits both in home and foreign currencies amounted to RMB 2,066.284 billion, down by 4.79% over the beginning of this year; the balance of loans both in home and foreign currencies reached RMB 1,367.244 billion, down by 0.75%, of which the loans in foreign currencies characterized by low proceeds decreased significantly and the loans in RMB kept growing steadily. The loan-deposit ratio remained at a relatively low level. The net capital hit RMB 265.198 billion, and the capital sufficiency and the core Tier 1 capital sufficiency reached 11.06% and 9.01% respectively, each up by 0.23% and 0.33% over the beginning of this year, conforming to the requirements of the new regulatory rules. With a good asset-liability proportion, all main indexes of the Bank reached the regulatory requirements.
Good financial performance on the whole. In the first quarter, the registered operating income hit RMB 28.602 billion, increasing 13.97% YoY. The incomes of handling charges and commissions reached RMB 6.603 billion, increasing 34.13% YoY, and their proportion in the entire operating incomes rose to 23.09%. Specifically, the incomes from settlement and payment, custody and consulting depending on the improvement of service capabilities and emerging businesses, witnessed significant YoY growth. The operating expenditure hit RMB 11.081 billion, increasing 4.82% YoY. Based on reasonable cost control, the cost/income ratio was 21.44%, down by 2.52% YoY, remaining at a low level in the industry. The return on total assets and the weighted rate of return on net assets hit 0.36% and 6.45% respectively, each registering a YoY increase of 0.03% and 0.19%, keeping a good level of return on capital.
Steady asset quality as a whole. Adhering to the risk management thought to be more prospective, systematic and inclusive, the Company managed risks in the perspectives of asset combination, industrial chain and risk infectivity, responding to the rising tendency of non-performing assets and keeping good asset quality in major risk areas. By the end of the first quarter, the non-performing loan balance reached RMB 11.452 billion, up by 10.85% over the beginning of this year, and the non-performing loan ratio hit 0.84%, slightly increasing 0.08% over the beginning of this year. The balance of loan loss provision hit RMB 38.615 billion, with the LLR/loan ratio rising to 2.82% by 0.14% over the beginning of this year and the provision coverage reaching 337.19%.
Considering the whole year, the Company will pay close attention to all changes in the business environment, control business growth speed in a reasonable manner, highlight capital management and return on capital, improve the refined level of risk management, and enhance the level of group-based operation. Meanwhile, IB will follow the general trend of market development proactively, keep accelerating transformation and innovation, and grasp development opportunities with sustained reform in mechanism and system and innovation in business activities.