Minsheng Bank 2011 Earnings Up 58.8%


 China Minsheng Banking Corporation (600016,1988.HK) posted a 58.81 percent year-on-year rise in 2011 net profit attributable to shareholders to 27.92 billion yuan, with earnings per share of 1.05 yuan, up 0.39 yuan, reports China Business News, citing a company filing.

Operating revenue increased 50.39 percent year-on-year to 82.37 billion yuan.

The cost-revenue ratio fell from 39.48 percent in 2010 to 35.61 percent as Minsheng Bank benefited from the optimization of revenue sources and higher operating efficiency.

The bank extended 147.7 billion yuan worth of new loans last year, up 13.96 percent from 2010. Deposit growth was up 16 percent to 226.9 billion yuan.

The balance of loans and advances totaled 1.2 trillion yuan at the end of last year, while the deposit balance totaled 1.6 trillion yuan.

The loan-to-deposit ratio rose from 72.78 percent at the end of 2010 to 72.85 percent at the end of last year.

Total assets and total liabilities at end 2011 hit 2.2 trillion yuan and 2.1 trillion yuan, respectively.

Net interest income increased 41 percent from 2010 to 64.8 billion yuan, while non-interest income surged 97 percent to 17.5 billion yuan.

According to Minsheng Bank, the increase in the net interest income was due to the higher net interest margin and the increase in the scale of interest-bearing assets. The higher net interest margin contributed 10.4 billion yuan to net interest income, while the the greater scale of interest-bearing assets accounted for 8.5 billion yuan.

Revenue from commissions and fees totaled 15.10 billion yuan, accounting for 18.33 percent of total revenue, up 3.2 percentage points from 2010.

According to Minsheng Bank, the wealth management, consulting, credit card, and trade financing businesses contributed to the rapid growth in non-interest income.

The lender recorded net interest margin of 3.14 percent in 2011, up 20 basis points from 2010, due mainly to the adjustment in its business structure and to the several rounds of rate hikes by the central bank.

Minsheng Bank, which has greater bargaining power among micro firms and small and medium-sized enterprises with higher credit risks, recorded 46.24 percent and 32.3 percent year-on-year increases in the loan balances to such enterprises to 232.5 billion yuan and 105.2 billion yuan, respectively.

The non-performing loan (NPL) balance of Minsheng Bank at end 2011 totaled 7.54 billion yuan, with a NPL ratio of 0.63 percent, while the provision coverage ratio rose 86.84 percentage points to 357.29 percent.

The capital adequacy ratio was up 0.42 percentage points year-on-year to 10.86 percent at the end of 2011, while core capital adequacy ratio decreased 0.2 percentage point to 7.87 percent.


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