News >Bizchina

    Minsheng's financing plan awaiting approval

    2011-08-24 10:10

    BEIJING - Senior executives of China Minsheng Banking Corp (CMBC), a major private lender in domestic market, said on Tuesday that its financing plan released in February will cover the bank's capital requirements for the next two and a half years.

    "We are awaiting regulators' final approval to replenish capital," Zhao Pinzhang, vice-president of CMBC, said at a news conference held in Beijing.

    According to the financing plan, the bank hopes to raise about 29 billion yuan ($4.53 billion) by selling 20 billion yuan in convertible notes on the A-share market and selling 9 billion yuan in shares on the Hong Kong stock market.

    Zhang Changlin, director of asset and liability management at CMBC, said that even if the government rejects the financing plan, the bank's current capital level will still meet operational needs for this year.

    By the end of June, CMBC's capital adequacy ratio increased from the beginning of the year by 0.29 percentage point to 10.73 percent, but its core capital adequacy ratio declined by 0.32 percentage point to 7.75 percent, below the 8 percent minimum set by the China Banking Regulatory Commission (CBRC), according to the lender's half-year report, which was released on Aug 17.

    Zhao said the bank is trying to reduce costs and is focusing on developing its intermediary business, which contributed 23 percent to total income in the first half, to reduce tied-up capital and increase efficiency.

    At present, the bank's loan-to-deposit ratio stands at 73.26 percent, close to the 75 percent limit set by the CBRC.

    "We are concerned about the bank's high cost to raise and use capital, especially given the slowdown of its retail deposit growth and smaller proportion of demand deposits," said Sun Peng, an analyst at BOC International (China) Ltd.

    CMBC reported net profit of 13.9 billion yuan for the first half of the year, a year-on-year rise of nearly 57 percent. Its performance leads those of other banks that have already published half-year reports.

    CMBC's total assets rose to more than 2.16 trillion yuan by the end of June, and revenue increased by nearly 49 percent to 12.8 billion yuan. The lender attributed the results to substantial improvement of income from loans and fees.

    In the first half, its interest income -revenue from lending minus payments to depositors - rose by nearly 40 percent year-on-year while fees and commission revenue increased 75.6 percent from last year, which contributed to more than 20 percent of total income, said the bank.

    The net interest margin, a measure of lending profitability, widened to 3 percent from 2.92 percent a year ago due to increased interest rates and credit demand.

    Ye Yunyan, a banking analyst at China Galaxy Securities Co, Ltd, said the solid improvement in profit is largely attributable to the bank's 2009 strategy shift to increase lending to small and medium-sized enterprises, which allowed CMBC to lend at higher interest rates but exposed it to a higher risk of non-performing loans.

    By the end of June, its non-performing loan ratio narrowed by 0.06 percentage point from the beginning of the year to 0.63 percent, while the provision coverage ratio increased by 63.85 percentage points to 334.3 percent of non-performing loans during the same period.

    CMBC has 172 billion yuan in outstanding loans to local governments through financing vehicles and none of the loans are regarded as non-performing, said Wang Fang, deputy director of the lender's credit assessment department.

    Tang Yayun, an analyst at Northeast Securities Co Ltd, predicted the bank will realize an increase in net profit of more than 35 percent year-on-year for the whole year and maintain profit growth of 25 percent in 2012.

    Related News:

    精品人妻中文字幕有码在线| 日韩综合无码一区二区| 最近中文字幕2019高清免费| 人妻无码αv中文字幕久久| 日韩中文字幕视频| 亚洲AV永久无码精品一区二区| 自拍中文精品无码| 在线精品自拍无码| 无码精品日韩中文字幕| 中文字幕不卡亚洲| 亚洲AV中文无码乱人伦下载| 国产真人无码作爱免费视频| 日韩精品专区AV无码| 超清无码熟妇人妻AV在线电影| 亚洲中文字幕在线乱码| 人妻无码一区二区不卡无码av| 中文字幕一区二区三区永久| 人妻无码αv中文字幕久久| 亚洲?v无码国产在丝袜线观看 | 无码免费又爽又高潮喷水的视频| 红桃AV一区二区三区在线无码AV | 精品亚洲欧美中文字幕在线看| 无码毛片一区二区三区中文字幕| 国产在线拍偷自揄拍无码| 亚洲AV无码成人精品区蜜桃 | 日韩精品人妻系列无码专区| 2014AV天堂无码一区| 综合久久久久久中文字幕亚洲国产国产综合一区首 | 亚洲中文字幕无码不卡电影| 亚洲美日韩Av中文字幕无码久久久妻妇| 中文字幕无码av激情不卡久久 | 国产成A人亚洲精V品无码性色| 亚洲中文字幕无码一区二区三区| 中文字幕精品久久久久人妻| 在线中文字幕精品第5页| 在线看片福利无码网址| 日韩人妻无码精品系列| 国产AV无码专区亚洲AV漫画| 亚洲级αV无码毛片久久精品| 亚洲AV无码一区二区三区性色| 无码精品人妻一区二区三区免费看 |