Huaxia Bank: the future risk is difficult to raise the loan rate
Huaxia Bank Annual Report 2008 presentations that the realization of interest wages 13.492 billion yuan, an advance of 20%; mesh yield of 3.071 billion yuan, an advance of 46.15%, 0.7 yuan per share. Non-performing rate of 1.82 out of 100 at the end than the mid-2008 carried on to descent 24 foundation points.
Provision substantially the fourth quarter of 2008 so that the actual loss
Growth in 2008 the company structure, effective tax rate of income tax factors that contributed to the decline in the proportion of 89%; interest factors in non-interest income and net income reached a level of 39% and 12%; as a result of the cost of provision and increase the contribution rate to the performance of — -28.54% and 34.77%.
Income levy rate is the major cause for the presentation of considerable development, interest earnings development than the 07, only 20%.
Since the mid-2008 the company set aside only 126 percent coverage, which is lower than the average level of joint-stock banks, the company in the third and fourth quarter provision to increase the rate provision, the amount of new loans set aside 2.505 billion yuan, accounting for 08 assets in the second half of the proportion of impairment losses of 90%, resulting in a net profit of the actual loss of the fourth quarter.
Company loans in 2008, Central than the fourth quarter increased by 3.12%, so that the annual growth rate of only 15.78 percent of loans, which is lower than in 2007 and 17.63% of the level of other joint-stock banks.
As the fourth quarter of the company’s loan growth has not significantly increased, with the narrowing of spreads in space, so that interest on the fourth quarter and year-on-year net income fell more than Central.
08 the end of the company’s mean interest rate of 7% over the mid-2008 down turn of 17 cornerstone points; one long-term lending rate by 6.8%, down 46 cornerstone points, a bigger decrease. (08 end of the year as a outcome of short-term devices encompassed in the discount lending rate, with the mid-2008 caliber inconsistent facts and numbers, it is tough to compare).
Decline in borrowing value in the second half 08
08 financial gatherings over the end of horrid advances carried on to descent in mid-2008 a 24 foundation points to 1.82, a greater diminish, a diminish of the undesirable balance of close to 390 million yuan.
08 the second half of the loan provision in substantially the same time provision for an increase of efforts to write off non-performing loans, new loans to write off 1.35 billion, so the whole year to write off non-performing loans amounted to 2.054 billion yuan, the amount written off over 07 in an increase of 37%.
08 the end of the year, the financial gathering gave advances up to 151 out of 100 reporting to arrive at the prerequisites of regulatory authorities; the worth of provision for the advance in the fraction of portfolio provision in the second half of 2008 went up to 37.83 out of 100 from 55.97 out of 100, but still to some extent worse than the complete stage of the banking industry.
In 2008, the company of non-performing loans rate of all sectors of the public more than the average ratio of non-performing loans (1.94%) are mainly agriculture, forestry, animal husbandry and fishery 6.49 percent, to serve the local residents and 6.37 percent other services, information transmission, computer services and software industry, 5.52 percent, the Housing 3.68% real estate, renting and business services sector, 3.65%, 3.39% wholesale and retail trades, education 3.04%. As a result of the wholesale and retail trade, leasing and business services, real estate loans accounted for on the high proportion of 14.21%, respectively, 6.74% and 6.5%, it is the main source of non-performing loans.
The proportion of time deposits increased significantly rise in the cost of its liabilities
The mean balance of down payments in the business, the higher the percentage of time down payments, the mean balance of time down payments in 2008 expanded somewhat to 67.28 per hundred, up 0.36 percentage points.
A regular basis in 2008 and savings companies, respectively, time deposit rates over the medium term in 2008 increased by 13 and 24 basis points rise rapidly, more than demand reduction.
Fee and charge earnings proceeded to augment
Due to the slow development of intermediary enterprise, the end of the year 2008 the financial gathering realised mesh wages of payments and assignments 822 million yuan, an advance of 82%; the fraction of profits accounted for only 4.67% higher than in 2007 advanced by 1.51 percentage points, the fraction of the low. Intermediary enterprise because of the worse foundation, the downward spiral in capital markets and other elements act on the slighter, quite unwavering growth.
Although 08 non-performing rate of the second half of the financial gathering carried on to descent and poor balance, but to draft off horrid advances, taking into account the elements, the real get higher of non-performing loans; the financial gathering noteworthy time bank deposits and demand bank deposits than slow expansion, with the fraction of high interest cost of high, in order that mesh interest margin is still low; better is the financial gathering set digression 150 out of 100 reporting stage, aggregated to make provision for advanced provision of higher worth coverage; financing capital adequacy ratio, after getting higher lending space larger.
Combination of these factors, the Yangtze River is expected to securities companies EPS0.79 million in 2009, the risk of future growth is difficult to raise loans, high interest costs, as well as additional non-performing larger amount of pressure on companies to be neutral rating.
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