BOCBOC seessees marginalmarginal growthgrowth inin netnet profitprofit
Lenders face increased ‘risks from slowing economy, rising NPLs’
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 onWednesday.to 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 China.by 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 expenses.is 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.”