CITIC Bank Net Profit Growth Of Over 50% Last Year

CITIC Bank's 1 person disclosed that the project of the A+H issue of the CITIC Bank is progressing smoothly, and the plan will be completed by the end of June, and there will be no need to refinance for a period of time.

According to the 2010 performance report released by CITIC Bank, as at the end of the reporting period, the net profit of CITIC Bank belonging to shareholders amounted to 21 billion 510 million yuan, an increase of 50.2%, and the total assets scale spanned 2 trillion, reaching 20813 billion yuan.

No dividend in 2010

At the performance briefing held on 1, the Secretary of the board of directors of CITIC Bank, Luo Yan, explained that China CITIC Bank has consistently adhered to the principle of dividend payment. However, the A+ H-share rights allocation plan is currently being promoted. According to the relevant provisions of the SFC, the listed companies should postpone the dividend scheme during the rights issue period, so the board of directors of CITIC Bank decided not to pay dividends in 2010.

While increasing endogenous capital accumulation, the refinancing scheme of commercial banks is highly concerned by the market.

Data show that at the end of last year, CITIC Bank had a capital adequacy ratio of 11.31% and a core capital adequacy ratio of 8.45%.

At present, CITIC Bank has announced a 26 billion yuan A+ H-share allotment plan.

Chen Xiaoxian, President of the bank, pointed out that CITIC Bank's core capital is higher after completion. If there is another financing plan in the future, the company will consider adopting a non equity financing scheme for subordinated debt.

The loan to loan ratio is 1.44%.

The annual report shows that at the end of last year, the loan ratio of CITIC Bank was 1.44%, far below the 2.5% of the regulatory requirements, and there was some pressure on the provision.

Cao Guoqiang, deputy governor of CITIC Bank, said that if the bank was identified as a systemically important bank in China, it would be necessary to set aside about 4 billion yuan a year to meet the regulatory standards in accordance with the current lending ratio.

The provision of 40 to 5 billion yuan accounts for about 1/5 of CITIC Bank's profit this year.

"CITIC Bank needs to further improve its pricing power in the future to eliminate the impact of increased provision on performance."

He said.

Up to the end of the reporting period, the balance of CITIC Bank's government platform loans was 118 billion 400 million yuan, accounting for less than 10% of loans, of which 34 billion 600 million yuan was compressed by platform loans last year.

Zhao Xiaofan, vice president of the bank, said there was no problem in the quality of such loans.

Among them, platform loans accounted for 78% of the total cash flow coverage, accounting for 13% of basic coverage, 2% of half coverage, and 7% of non coverage.

Last year, normal loans accounted for 99% of platform loans, and less than 1% of loans were concerned. The rate of return on principal and interest of platform loans was 100% last year.