Zhangjiagang Agricultural And Commercial Bank Successfully Entered The IPO Textile Industry, The Bad Rate Increased By More Than 10 Times In 3 Years.

Zhangjiagang rural commercial bank is one of the 3 IPO agricultural businesses in Suzhou, Jiangsu, and is currently the 5 one.

In the agricultural and commercial bank, it will be the last one.

By the end of 2015, the bank's total assets were 82 billion 354 million yuan, and the balance of deposits and loans was 56 billion 387 million yuan and 38 billion 504 million yuan respectively.

Reporters noted that

It is the high incidence area of bad loans in the bank.

Industry is the hardest hit area.

Data show that as of the end of 2015, the non-performing loan ratio of the textile industry was 3.96%, and at the end of 2013, its non-performing loan ratio was 0.27%.

In just three years, the non-performing loan ratio of the textile industry increased by 13.67 times.

In addition, the deterioration of the repayment ability of enterprises has also made Zhangjiagang a plaintiff in many litigation or arbitration cases.

Prospectus shows that as of December 31, 2015, Zhangjiagang agricultural commercial bank as a plaintiff's lawsuit involving the amount of 1 billion 477 million yuan.

Among them, there were 15 outstanding cases with a total of more than 10 million yuan, totaling 366 million yuan.

Jiangsu sainty shipping Limited by Share Ltd, China Science and Technology International Trust and Investment Co., Ltd., China Science and technology Securities Co., Ltd. are all listed in the defendant.

Local market deposit and loan second

Founded in November 2001, the Zhangjiagang rural commercial bank was developed by the Zhangjiagang Rural Credit Cooperatives Union. It is the first local joint-stock commercial bank established by the rural credit cooperatives in China.

At present, the top three shareholders are Zhangjiagang directly owned Assets Management Limited company, Shagang Group, and Cathay Thai group, with the shareholding ratio of 9.0965%, 9.0873% and 8.9674% respectively.

However, in the bank's shareholders, the reporter found that the 14 million 568 thousand and 660 group of the bank (total share capital 0.8956%) of the walrun group has entered the bankruptcy liquidation process in December 31, 2015.

It is worth noting that the Zhangjiagang rural commercial bank is one of the first batch of rural commercial banks to set up different branches in the country.

The total number of outlets in the country is 96, including 27 branches in Zhangjiagang, 1 business departments, 11 branches in different places, 57 branches, and at the same time, it has set up 2 holding village banks, shares 5 rural financial institutions, and set up R & D centers in Shanghai.

Zhangjiagang agricultural merchants, like Changshu agricultural firms and Wujiang agricultural Merchants Bank, are located in South of Jiangsu, Jiangsu, where their main businesses and networks are also concentrated.

By the end of 2015, the bank's total foreign currency deposits and loans ranked second in Zhangjiagang's banking financial institutions.

It is understood that Zhangjiagang is a new port industrial city at the intersection of the two major economic development zones along the Yangtze River and the Yangtze River. The port has 65 berths of 10000 tons or more, and is the first county port in the country with the first cargo throughput of over 100 million tons.

In recent years, among the top ten counties in the country, 4 cities and counties in Suzhou, Jiangsu Province, including Zhangjiagang, are basically among them.

Bond investment income increased by 45.83%

Like other banks, net interest income is the main source of income for Zhangjiagang agricultural and commercial bank.

In 2013, 2014 and 2015, net interest income accounted for 87.27%, 88.75% and 83.12% respectively.

Prospectus shows that as of the end of 2015, the company's loans accounted for 82.38% of the loan balance, of which the balance of loans for small and micro enterprises (excluding discounts) was 26 billion 729 million yuan, accounting for 94.07% of the company's loans (excluding discounts).

Data show that at the end of 2015, the loans of small and medium micro companies in the Suzhou area were higher than the benchmark interest rate, accounting for 88.42% of loans, of which 68.56% accounted for more than 30% of the benchmark interest rate.

By the end of 2015, the bank's bond investment surplus was 20 billion 264 million yuan, of which 15 billion 895 million yuan was invested in government bonds, 843 million yuan in government bonds, 566 million yuan in financial bonds and 2 billion 960 million yuan in corporate bonds.

The resulting interest income was 706 million yuan, an increase of 45.83% over the same period last year.

However, Zhangjiagang agricultural and commercial bank said, "corporate bond investment accounted for 14.61%. Relatively speaking, corporate bond investment has some risks. Although the main issuers of corporate bonds are mostly strong and reputable large and medium-sized enterprises, they can not completely exclude the possibility of losses arising from the investment in bond investments due to changes in the solvency of the bond subjects."

In addition, the fees and commission income is an important part of the bank's non interest income.

In 2015, the bank achieved a net income of 92 million 222 thousand and 400 yuan in fees and commission, an increase of 88.08% over the same period last year.

In this regard, the Zhangjiagang agricultural business bank believes that the increase in the scale of financial services in 2015 is due to the increase in non guaranteed financial pactions.

The bad loan rate of textile industry is 3.96%.

In 2013, 2014 and 2015, the total profit of the bank was 1 billion 208 million yuan, 814 million yuan and 713 million yuan respectively.

Meanwhile, by the end of 2013, at the end of 2014 and the end of 2015, the balance of non-performing loans of the bank was 392 million yuan, 577 million yuan and 782 million yuan respectively, and the non-performing loan rates were 1.08%, 1.51% and 1.96% respectively.

Prospectus shows that as of the end of 2015, the company's loans to the top three industries were manufacturing, wholesale and retail, leasing and business services, and the proportion of loans related to the company loans was 43.43%, 16.43% and 9.41%, respectively, totaling 69.27%.

Among them, the manufacturing industry accounted for the highest proportion of textile industry, metal products industry and ferrous metal smelting and calendering processing industry accounted for the largest proportion, accounting for 14.29%, 13.01% and 7.56% of manufacturing loans respectively.

"The proportion of loans to the manufacturing industry is relatively high, which is closely related to the regional economic structure of our bank.

Zhangjiagang's manufacturing industry is well-developed, not only with a large number of powerful manufacturing enterprises, but also emerging small and medium-sized manufacturing enterprises with strong profitability, good growth and standardized operation.

Zhangjiagang agricultural and commercial bank said.

Manufacturing industry is also the high incidence area of bad loans in the bank. By the end of 2015, its bad rate was 3.02%.

In the textile industry alone, the non-performing loan ratio of the textile industry was 3.96% at the end of 2015, and its NPL ratio was only 0.27% at the end of 2013.

That is to say, in just three years, the non-performing loan ratio of the textile industry has increased 13.67 times.

In this regard, the bank said that the textile industry loans accounted for a relatively low proportion of manufacturing loans, while the proportion of manufacturing loans accounted for 16.49%, 14.04% and 14.29% in the past three years.