Bank Capital Adequacy Declined In The First Quarter

Recently, the CBRC first published the statement of the main regulatory indicators of commercial banks (hereinafter referred to as "situation table"), showing that commercial banks in the first quarter of 2011

Compared with last year, the credit risk indicators and liquidity indicators of commercial banks maintained a stable trend in the first quarter of this year, while the profit oriented indicators increased significantly, especially the proportion of non interest income increased rapidly.

The capital adequacy ratio dropped by 0.4 percentage points from the end of last year.

According to the situation table, compared with the fourth quarter of last year, the bank's capital adequacy level decreased in the first quarter of this year, the capital adequacy ratio was 11.8%, and the core capital adequacy ratio was 9.8%, which was 0.4 and 0.3 percentage points lower than the end of last year, respectively.

A banking analyst at a brokerage firm in Beijing said the bank's capital adequacy ratio was the first quarter.

In addition to the growth of loans, the change in weight of some types of loan risk assets at the beginning of the regulation level has also objectively reduced the capital adequacy ratio of banks.

In a quarterly report, CITIC Bank pointed out that the main reason for the decrease in the capital adequacy ratio of the bank was that the market risk capital was first included in the risk assets according to the regulatory requirements and adjusted the weight of the risk assets of the related businesses of the government financing platform, resulting in the increase of the weighted risk assets balance.

The analysts said that at present, the bank's endogenous capital replenishment capability is still weak. According to the simulation calculation under the given conditions, banks will continue to replenish their capital through refinancing in the next 2~3 years.

According to the new regulatory standards to be implemented in early 2013, the capital adequacy ratio of future systemically important banks and non systemically important banks is no less than 11.5% and 10.5% respectively.

The proportion of non interest income increased by 3.3 percentage points.

In the first quarter, the performance index of commercial banks increased significantly, with a net interest margin of 2.6%, an increase of 0.1 percentage points from the end of last year, and a profit margin of 1.4% for commercial banks and 22.4% for capital gains, up 0.3 and 3.2 percentage points respectively from the end of last year.

It is worth noting that the proportion of non interest income has increased considerably, from 17.5% at the end of last year to 20.8% in the first quarter, increasing by 3.3 percentage points.

According to our correspondent statistics, the average fee and commission income of the 16 listed banks increased by 51% in the first quarter, compared with the deep development of the larger circulation of financial products. The bank's revenue in the first quarter was 35 million yuan, an increase of 337.50% compared with the same period last year, and the total fee income was 544 million yuan, up 48.23% over the same period last year.

Gao Hua Securities report predicts that under the condition of tight liquidity, the strong performance of financial products sales and bond issuance will support the steady growth of fee income.