Analysis of China’s top 10 listed banks' performance for the first quarter of 2014
The newsletter presents the financial position and operating performance of the top 10 listed banks in the first quarter of 2014. The total assets of the top 10 listed banks by the end of the first quarter of 2014 accounted for 75.02% of China’s commercial banking sector.
In the first quarter of 2014, the top 10 listed banks' net profit continued to grow, but at a slower pace. That said, the aggregate growth of net profits for the five largest joint-stock banks was faster than that in the same period of 2013.
In the first quarter of 2014, the top 10 listed banks experienced an increase in both the NPL ratio and NPL balance, suggesting the quality of credit assets declined significantly.
The total amount of NPLs as at the end of 2014 Q1 increased by RMB 33.6 billion (7.48%) as compared with the end of 2013. The NPL ratio of the top 10 listed banks up by 0.03 percentage points to 1.02% from the end of 2013.
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Analysis of China's top 10 listed banks' results for 2013
The newsletter presents the financial results and operating performance of the top 10 listed banks in 2013. The total assets and total net profits of the top 10 listed banks for 2013 accounted for 73.16% and 76.62% respectively of China's commercial banking sector. The Top 10 Banks are presented in order of their total assets size as of 31 December 2013.
The top 10 listed banks continued to record solid earnings in 2013, with total net profit of RMB 1.09 trillion, up 12.64% from the previous year. That said, growth was 3.77 percentage points slower than 2012. While return on average assets (ROA) remain broadly stable, weighted average return on equity (ROE) was down compared to that of 2012.
With slower bottom line growth, the cost to income ratio of the top 10 listed banks continue to decline in 2013, suggesting stronger cost control in most banks.The top 10 listed banks' assets and liabilities continued to grow in 2013, but 4 percentage points slower than in 2012 due to the macro-environment. There were structural changes in the top 10 listed banks' investments in 2013, with investments classified as receivables increasing sharply for the five largest JSCBs.
Going forward, uncertainties in the external macro environment remain and financial reform is expected to deepen in 2014. Both opportunities and challenges lie ahead.
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