Industrial Bank 2011 Earnings Up 37.7%


Industrial Bank (601166) posted a 37.71 percent year-on-year rise in 2011 net profit to 25.51 billion yuan on revenue of 59.87 billion yuan and operating profit of 33.53 billion yuan, reports National Business Daily, citing a bank filing. Earnings per share hit 2.36 yuan.

The Fujian-based lender attributed the higher earnings to the rapid growth recorded by its various business units, the relatively high growth in the scale of its total assets and intermediary business, and to a low cost-revenue ratio.

Interest income increased 63.21 percent, or 42 billion yuan, from a year ago to 108.45 billion yuan, while interest expense surged 103.11 percent from 2010 to 57.71 billion yuan.

Through the end of 2011, the bank had total assets of 2.41 trillion yuan, up 30.23 percent from the beginning of the year.

The deposit balance was up 18.76 percent to 1.35 trillion yuan, while the loan balance rose 15.09 percent from the beginning of 2011 to 983.26 billion yuan.

Credit assets accounted for 40.8 percent of total assets, and this was mainly due to the bank’s strong intermediary business, said an analyst. Net assets per share hit 10.68 yuan.

The scale of the bank’s business of buying back financial assets increased 40.90 percent from the beginning of 2011 to 526.98 billion yuan, as the lender capitalized on its traditional strengths in the interbank business to boost income from the non-credit sectors.

Non-interest income rose 68.44 percent from 2010 to 9.14 billion yuan, accounting for 15.26 percent of total revenue.

Revenue from its intermediary business increased 82.41 percent year-on-year to 9.64 billion yuan, accounting for 16.09 percent of total revenue.

Industrial Bank reported cost-revenue ratio of 31.95 percent in 2011, down 0.96 percentage point from the 32.91 percent recorded in 2010.

The non-performing loan (NPL) balance increased 99 million yuan from the beginning of 2011 to 3.72 billion yuan at the end of last year, while the NPL ratio was 0.38 percent, down 0.04 percentage point.

The bank’s capital adequacy ratio and core capital adequacy ratio hit 11.04 percent and 8.20 percent, down from the 11.29 percent and 8.79 percent recorded in 2010.

The provision coverage ratio rose 58.79 percentage points from the beginning of 2011 to 385.3 percent at the end of last year.

Industrial Bank plans to increase the scale of its total assets by 16.2 percent from 2011 to 2.8 trillion yuan in 2012, and announced cash dividends of 3.7 yuan (including tax) for every 10 shares held.


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