BOCBOC seessees marginal­marginal growth­growth inin net­net prof­it­profit

Lenders face in­creased ‘risks from slow­ing econ­omy, ris­ing NPLs’

China Daily (Canada) - - LIFE - By JIANG XUEQING jiangx­ue­qing@ By chi­ XUEQING jiangx­ue­qing@chi­ cn

BankofChina Ltd, the coun­try’s fourth-largest com­mer­cial Bank lenderof Chin­aby as­sets,Ltd, the post­ed­coun­try’s 0.74 fourth-largest­per­cent growth com­mer­cialin net lender­profit at­tributableby as­sets, post­edto share­hold­ers 0.74 per­cent of growththe par­entin net com­pa­nyprofit at­tributablein 2015 onWed­nes­ share­hold­ers of the Chen par­ent Siqing, com­pany pres­i­dentin 2015 on of Wed­nes­day.BOC, said: “Com­mer­cial banks Chen have Siqing, reached pres­i­dent­the end of BOC,the era said: when “Com­mer­cialthey had dou­bledig­it­banks have reached­profit growththe end andof the have era when en­tered they the hadage of dou­ble-digit sin­gle-digit profit growth. growth and have en­tered the “Bu­tage of this sin­gle-digi­tis quite nor­mal growth. as banks “But this are is fac­ingquite nor­mal pres­sureas banks­from are slow­ing­fac­ing pres­sure eco­nomicfrom slow­ing­growth eco­nom­i­cand in­creas­ing growth risks.and in­creas­ingAt the same risks. time, At they the have same to time, shoul­der they the have re­spon­si­bil­i­tyto shoul­der the to re­spon­si­bil­i­ty­sup­port the to real sup­port econ­o­mythe real by econ­o­my­low­er­ing in­ter­estby low­er­ing rates.” in­ter­est rates.” The bank’s net in­ter­est mar­gin The fell bank’s13 ba­sis net points in­ter­est year-onyear­mar­gin fell to 13 2.12 ba­sis per­cent points in year-onyear 2015, which to was 2.12 in per­cent­part causedin 2015, by whichthe low­er­ing­was in partof in­ter­est­caused by rates the low­er­ing­five times of last in­ter­estyear by rat­es­the Peo­ple’s five times Ban­klast yearof the Chen Peo­ple’ssaid Bankhe ex­pectedof China.the bank’sChen said NIM he to ex­pected­drop fur­therthe bank’sin 2016, NIM butto drop the de­crease will be smaller.

“Our profit growth will re­main­fur­ther in sta­ble 2016, but this the year de­crease­and will be hope­fullysmaller. re­main at last year’s “Our level,” prof­ithe said. growth will re­main In­order sta­bleto achievethis year that and goal, will BOCwill hope­fully try re­mainto in­creaseat last prof­its year’s from level,” he its said. overseas op­er­a­tions, in­creaseIn or­der its to in­ter­me­di­ary­achieve that busi­ness goal, BOC will in­come,try to and in­crease ex­pand prof­it­sits per­son­al­from its over­seas­fi­nance op­er­a­tions,and global fi­nan­cial­in­crease its mar­ket in­ter­me­di­ary busi­nesses, busi­ness gain in­come,more prof­it­sand ex­pand­from re­solvin­gits per­sonal of finance non­per­formin­gand global loans, fi­nan­cial and mar­ket­more tightly busi­nesses, con­trol gainits ex­penses.more prof­its from re­solv­ing of non­per­form­ingHe said the bank loans, will and more­seize op­por­tu­ni­ti­es­tightly con­trol it­sas China ex­ mov­ing He for­ward­said the with bank the will im­ple­men­ta­tion seize op­por­tu­ni­ties of as ma­jor China na­tion­alis mov­ing de­vel­op­ment­for­ward with strate­gies.the im­ple­men­ta­tion It willof ma­jor adapt na­tion­alto the trend de­vel­op­mentof the yuan’s strate­gies. in­ter­na­tion­al­iza­tion by It in­creas­ing­will adapt it­sto the ef­forts trend in of busi­ness the yuan’s and in­ter­na­tion­al­iza­tion­prod­uct in­no­va­tion, by ac­cel­er­ate the con­struc­tion of a fi­nan­cial pipeline along the routes in­creasin­gof the its Belt ef­forts andRoad­Ini­tia­tive,in busi­ness and pro­duc­tand in­sist in­no­va­tion,on the ac­cel­er­atepar­al­lel the devel­op­ment con­struc­tion of of In­ter­neta fi­nan­cial finance, pipelin­eas well alon­gas the the net­work­ingroutes of the Beltof and fi­nan­cial Road Ini­tia­tive,ser­vices, andhe said. in­sist on the par­al­lel devel­op­ment Oth­erof In­ter­net­large com­mer­cial­fi­nance, as lenders well as the that net­work­ing an­nouncedof fi­nan­cialtheir an­nual ser­vices, re­sult­she said. saw the same trend Other of large flat com­mer­cial­profit growth. lenders In­dus­tri­althat an­nouncedand Com­mer­cialtheir an­nual Bank re­sults of saw China the Ltd same posted trend 0.48 of per­cent­flat profit growth growth. in In­dus­tri­al­net profit and at­trib­ut­able Com­mer­cial to Bank share­hold­er­sof China Ltdof the posted par­ent 0.48 com­pany,per­cent growth­while the in fig­urenet profit forBankofCom­mu­ni­ca­tion­sat­tributable to share­hold­ers Co of Ltd the was par­ent1.03 per­cent. com­pany, while China the Mer­chants­fig­ure for Se­cu­ri­tiesBank of said: Com­mu­ni­ca­tions“BOC has provedCo Ltd to wasbe more1.03 per­cent. re­silient than its peers amid China the Mer­chantscur­rent op­er­at­ing Se­cu­ri­ties en­vi­ron­ment­said: “BOC thankshas provedto its to larg­erbe more overseas re­silient ex­po­sure.”than its peers amid The the bank’s cur­rent overseas op­er­atin­gas­sets ac­counted en­vi­ron­ment for thanks27 per­centto its of larg­erthe to­tal overseas last ex­po­sure.”year, and its overseas pre­taxThe bank’sprofit overseas ac­counted as­sets­for 23.64 ac­counted per­cent­for 27of its per­cent en­tire of pre­tax the to­tal profit.last year, and its overseas pre­tax Com­mer­cial­profit ac­count­ed­banks’ bad for loans 23.64 saw per­cent dou­ble-dig­itof its en­tire growth pre­tax last profit. year. BOC’s out­stand­ing non­per­form­ingCom­mer­cial banks’ loans bad grew loansby 30 saw per­cent dou­ble-digitto 130.9 growth bil­lion last yuanyear. ($20 BOC’s bil­lion), out­standin­gand it­sNPL non­per­form­ing ra­tio in­creased loans by grew25 by ba­sis 30 points per­cent to to 1.43 130.9 per­cent. bil­lion yuan ($20 bil­lion), and its NPL ra­tio in­creased by 25 ba­sis points to 1.43 per­cent.

Our profit growth Our profit growth will re­main sta­ble will re­main sta­ble this year and will this year and will hope­fully re­main hope­fully re­main at at last year’s level.” last year’s level.”

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