Shang­hai’s for­eign banks more prof­itable in 2014

China Daily (Canada) - - FRONT PAGE - By LI YANG in Shang­hai

The gross value of as­sets of for­eign banks in Shang­hai hit 1.32 tril­lion yuan ($220 bil­lion) by the end of last De­cem­ber, up 11.1 per­cent year-on-year, ac­cord­ing to the Shang­hai bank­ing reg­u­la­tory bureau.

By the end of last year, the to­tal loan bal­ance of for­eign banks in Shang­hai was 455.11 bil­lion yuan, up 3.3 per­cent year-on-year; out­stand­ing de­posits were 606.94 bil­lion yuan, up 2.6 per­cent year-on-year; the non-per­form­ing loan ra­tio was 0.38 per­cent; the pro­vi­sion cov­er­age ra­tio was 515.61 per­cent; and the ac­cu­mu­lated to­tal net profit was 12.3 bil­lion yuan, 4.6 bil­lion yuan more than 2013.

The bureau said that as China fur­ther opens up its bank­ing in­dus­try, for­eign banks are ex­pand­ing their busi­ness in China, and im­prov­ing their abil­ity to serve cus­tomers. The as­set size of for­eign banks in Shang­hai in­creased to more than 1 tril­lion yuan last year from 196.2 bil­lion yuan in 2001, grow­ing at a rate of 16 per­cent av­er­age com­pound each year.

Ac­cord­ing to the bureau, for­eign banks ac­counts for about 11.7 per­cent of Shang­hai’s bank­ing mar­ket at the end of last year, 10 per­cent­age points higher than the na­tional av­er­age.

More than half of the for­eign-funded banks and branches of for­eign banks op­er­at­ing in China are reg­is­tered in Shang­hai. The as­set size of for­eign banks in Shang­hai ac­counts for 47.3 per­cent of the for­eign banks’ to­tal as­set size in China.

The bu­reaus said for­eign banks show strong con­fi­dence in the Chi­nese mar­ket, and have be­come an im­por­tant com­po­nent of China’s bank­ing in­dus­try, con­tribut­ing to the ma­tur­ing of the bank­ing in­dus­try and mar­ket in China.

Now, the for­eign banks in Shang­hai are start­ing to serve Chi­nese en­ter­prises and cit­i­zens. As China up­grades its industrial struc­ture, the for­eign banks are ready to serve the coun­try’s quickly de­vel­op­ing ser­vice in­dus­try.

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