In the evening of August 29th, IB announced the semiannual performance report 2016. The report showed that during the first half year of 2016, IB adhered to the basic guideline of "control risks reinforce the basis, stabilize the development”, continued to speed up business restructuring and transformation and upgrade and maintained a steady growth in all businesses. The overall operation met expectations. By the end of June, IB’s total asset have reached RMB 5.71 trillion, up by 7.75% compared with the beginning of the year; the net profit attributing to the parent company was RMB 29.441 billion with a YOY growth of 6.12%; the total ROA and net ROA were respectively 0.54% and 9.46%, remaining excellent in the industry.
Asset business maintained steady growth and capital basis was further consolidated
In the first half year, guided by the rate of return on weighted risk assets, IB timely adjusted the relevant asset liability policy and further motivated all sections of the Bank. The overall asset businesses maintained steady growth. Total asset in the end of the period stood RMB 5.71 trillion, up by 7.75% over the beginning; loan balance increased by 9.54% over the beginning; investment balance increased by 14.03% over the beginning.
At the same time, IB attached great importance to strengthening the management of liquidity and interest rates risk, made accurate judgments of the trend of interest rates and grasped favorable opportunities to channel more efforts into expanding active liability. Its standardized liability products continued to maintain a leading position in the market. It gave a priority to issuance window and completed the issuance of Tier 2 capital bonds of RMB 30 billion, with capital adequacy ratio increasing to 12.16% from 11.19% at the beginning; it maintained ability of endogenous capital, and adequacy ratio of Tier 1 core capital rose to 8.49%, with an increase of 0.06 percentage point over 8.43% at the beginning of the year.
Overall asset quality was stable and provision coverage ratio increased to 218.78%
In the first half year, IB’s accumulative operation income totaled RMB 80.870 billion with a YOY growth of 11.92%, of which net income from interest was RMB 58.878 billion with a YOY growth of 6.82%. The scale of commission charges increased steadily with a YOY growth of 14.75%. In terms of operation expenditure, IB continued its reasonable control on costs. The business and management fee saw a YOY growth of 2.56%, 9.36 percentage points lower than that of operation income; the cost-income ratio was 18.82%, down by 1.94 percentage points on a YOY basis.
It continued to channel more efforts into provision and accrual and total accrual asset devaluation loss reached RMB 25.155 billion with a YOY growth of 58.75%. Overall asset quality was stable. The balance of bad loan was RMB 31.850 billion, up by RMB 5.867 billion compared with the beginning of the period; rate of bad loan was 1.63%, up by 0.17 percentage point compared with the beginning of the period. Provision and accrual was adequate. Provision of loan at the end of the period increased to 3.57%, up by 0.50 percentage point compared with the beginning of the year and provision coverage ratio increased to 218.78%, up by 8.70 percentage points compared with the beginning of the year, all remaining a higher status in the industry. Intensive and professional operation and disposal ability of bad loan saw a stable growth. Cash collection and restructuring occupied a larger proportion in the total amount of bad loan than that of same period last year.
Operation Transformation Achieved Remarkable Results and Comprehensive and International Transformation was Stably Propelled
It pressed ahead with construction of transaction banks. Corporate cash management products mainly including “Three Fast Tracks” of payment, financing and wealth management, fund pool and bill custody were optimized. The number of clients and the amount involved in transactions rose steadily.
"Big investment bank, big capital management and big wealth" business layout was further strengthened. Businesses of investment banking and bond underwriting remained a leading position in the market. It underwrote debt financing tools of RMB 236.783 billion, up by 67% on a YOY basis. Meanwhile, innovative business maintained the surge. Fresh breakthroughs were made in some businesses like standard debt underwriting, capital financing and asset securitization. The scale of custody business reached RMB 8.05 trillion, up by 11.57% compared with the beginning of the year and was in the forefront among banks of the same type. The scale of asset management kept stable. Daily average balance of wealth management products during the reporting period was RMB 1365.099 billion, up by 12.29% on a YOY basis.
The market influence of interbank platform further improved. The number of clients reached 784, up by 20%. And the number of inter-bank settlements was 25.4129 million counts with a YOY growth of 30%. It continued to develop Internet financial service. The number of clients of “Money Manager” reached 6.54 million, up by 92% compared with the beginning of the year; the scale of financial products sold to terminal clients during the reporting period reached RMB 238.809 billion.
The strategies of group transformation, comprehensive transformation and international transformation were stably propelled. All subsidiaries saw rapid and sound development of businesses. Asset scale and profitability of Hong Kong Branch increased significantly on a YOY basis. International operation began to serve as a bridgehead in IB’s development.