Chinese banking sector strengthened financial services in 2Q15
(18 August 2015 – China) The China Banking Regulatory Commission (CBRC) released its supervisory statistics for the second quarter recently, showing banking assets and liabilities increased steadily.
By the end of the second quarter of 2015, renminbi (RMB) and foreign currency assets of Chinese banking institutions at home and abroad reached RMB188.5 trillion (A$39.9 trillion), up by 12.75 percent year-on-year.
Assets of large commercial banks registered RMB77.7 trillion, accounting for 41.20 percent of total amount, and up by 9.36 percent year-on-year.
Assets of joint-equity commercial banks reached RMB35.0 trillion, accounting for 18.59 percent of the total, up by 15.07 percent year-on-year.
RMB and foreign currency liabilities of banking institutions at home and abroad reached RMB175.2 trillion, an increase of 12.20 percent year-on-year.
Liabilities of large commercial banks registered RMB72.1 trillion, taking up 41.14 percent of the total amount, and up by 8.68 percent year-on-year.
Liabilities of joint-stock commercial banks were RMB32.9 trillion, accounting for 18.78 percent of the total, up by 14.66 percent year-on-year.
The CBRC said the banking sector strengthened its financial services for key social and economic areas and civil livelihood projects.
The banking sector further improved differentiated credit policies and credit structure, and strengthened financial support for agro-related areas, micro- and small-sized enterprises (MSEs), government-subsidized housing projects.
By the end of the first quarter, agro-related loans (excluding bill financing) balance of banking institutions reached RMB25.1 trillion, up by 11.5 percent year-on-year.
The outstanding balance of loans to MSEs (including MSE loans, individual business loans and MSE owner loans) reached RMB22.0 trillion, up by 15.5 percent year-on-year.
Loans to credit card consumption and government-subsidised housing projects increased by 29.8 percent and 56.9 percent respectively.
The growth rate of these loans all exceeded the average growth rate of banking loans during the same period.
Credit risks were generally under control. By the end of the second quarter, 2015, outstanding balance of non-performing loans (NPLs) of commercial banks was RMB1.0919 trillion, up by RMB109.4 billion compared with the end of the previous quarter.
NPL ratio of commercial banks was 1.50 percent, increased by 0.11 percentage point compared with the end of the previous quarter.
By the end of the second quarter, 2015, outstanding balance of performing loans was RMB71.7 trillion, among which, standard loans balance was RMB69.1 trillion and the balance of special mention loans was RMB2.65 trillion.
The banks maintained adequate loan loss provisions for credit risks and overall risk resilience maintained stable.
By the end of the second quarter, 2015, balance of loan loss provisions of commercial banks reached RMB2.1662 trillion, increased by RMB83.5 billion compared with the end of the previous quarter; the provision coverage ratio was 198.39 percent, down by 13.59 percentage points compared with the end of the previous quarter; and loan provision ratio was 2.98 percent, up by 0.02 percentage point compared with the end of the previous quarter.
By the end of the second quarter, 2015, the accumulated net profit of commercial banks of the year was RMB871.5 billion, the same as that of the previous year.
By the end of the second quarter, 2015, the weighted average core tier 1 capital adequacy ratio (CAR) of commercial banks (excluding branches of foreign banks) was 10.48 percent, down by 0.18 percentage point compared with the end of the previous quarter; weighted average Tier 1 CAR was 10.79 percent, down by 0.15 percentage point compared with the end of the previous quarter; weighted average CAR was 12.95 percent, down by 0.18 percentage point compared with the end of the previous quarter.
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