Ping An iden­ti­fies 5 ar­eas for back­ing

Health­care, ed­u­ca­tion and tourism among ben­e­fi­cia­ries

China Daily (Hong Kong) - - BUSINESS - By ZHOU MO in Shen­zhen sally@chi­nadai­lyhk.com

Ping An Bank said it will al­lo­cate more re­sources to sup­port busi­nesses in five key in­dus­tries as the fi­nan­cial in­sti­tu­tion makes ef­forts to im­prove the qual­ity of its as­sets and con­trol risks.

The in­dus­tries are health­care, elec­tronic in­for­ma­tion, high-end equip­ment man­u­fac­tur­ing, tourism and ed­u­ca­tion.

“Those sec­tors are closely linked to peo­ple’s lives and are highly re­lated to our busi­ness,” said Xie Yonglin, chair­man of the Shen­zhen-based bank, which is listed on the Shen­zhen Stock Ex­change. “We will al­lo­cate more re­sources to sup­port them in the fu­ture.”

Xie made the re­marks in Shen­zhen at a Fri­day news con­fer­ence.

The non-per­form­ing loan ra­tio of the bank rose 0.02 per­cent­age points to 1.76 per­cent in the first half of 2017 per­cent com­pared with the end of last year.

The ra­tio for cor­po­rate lend­ing grew 0.22 per­cent­age points to 2.09 per­cent over the same pe­riod.

In the first six months of this year, the bank re­cov­ered 4.4 bil­lion yuan ($660 mil­lion) worth of non-per­form­ing as­sets, in­creas­ing 67 per­cent year-on-year.

Ping An Bank still faces pres­sure on im­prov­ing its as­sets qual­ity and the com­pany will take ac­tive mea­sures to con­trol the risk, Xie said.

The lender said it will also pro­mote fi­nan­cial in­no­va­tions to sup­port the real econ­omy.

Hu Yue­fei, pres­i­dent of the bank, said the com­pany has been mak­ing fi­nan­cial in­no­va­tions to of­fer di­verse ser­vices to its cus­tomers, in­clud­ing those in­volved in man­u­fac­tur­ing and trade, by tak­ing ad­van­tage of such ad­vanced tech­nolo­gies as big data and ar­ti­fi­cial in­tel­li­gence.

Ap­prox­i­mately 1.2 bil­lion yuan were poured into tech­no­log­i­cal de­vel­op­ment over the first half of this year, rep­re­sent­ing 20 per­cent of an­nual growth.

Liu Guo­hong, di­rec­tor of the Fi­nance and Mod­ern In­dus­try Re­search Cen­ter of the Shen­zhen-based think tank China De­vel­op­ment In­sti­tute, said it is sen­si­ble for Ping An Bank to aban­don its ex­ten­sive de­vel­op­ment mode to fo­cus on spe­cific in­dus­tries.

“By do­ing so, the bank will be able to con­trol its non­per­form­ing loan ra­tio ac­tively, rather than deal­ing with the is­sue pas­sively,” Liu said.

It will also help the bank be­come more pro­fes­sional, thereby in­creas­ing its com­pet­i­tive­ness, he added.

Ping An Bank gen­er­ated over 54.07 bil­lion yuan in op­er­at­ing rev­enue in the first half of 2017, down 1.27 per­cent from a year ear­lier.

Net profit of the com­pany was 12.56 bil­lion yuan over the same pe­riod, grow­ing 2.13 per­cent year-on-year.

Re­tail busi­ness saw ro­bust growth, ac­count­ing for 40 per­cent of the com­pany’s to­tal op­er­at­ing rev­enue and 64 per­cent of its profit.

Ping An’s NPL ra­tio in H1

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