CITIC Bank says no equity financing plans

Updated: 2012-04-05 10:33

By Hao Yan (chinadaily.com.cn)

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China CITIC Bank Corp Ltd has a financing plan of 20 billion yuan in subordinated debt this year, but no equity or other financing plan, the bank's deputy governor Cao Tong said.

In 2011, the bank's earnings per share reached 0.71 yuan in 2011, 0.18 yuan more than that in 2010; its net profits of shareholders rose by 43.28 percent to 30.82 billion yuan; and the return on average equity?reached 20.92 percent, up by 1.63 percentage points over the previous year.

CITIC Bank says no equity financing plans

Chen Xiaoxian, bank governor of?China CITIC Bank Corp, speaks on March 31, 2012,?at an annual report news conference. [Photo/chinadaily.com.cn]

Regarding CITIC Bank's 3 percent net interest margin, bank governor Chen Xiaoxian said on March 31 at an annual report news conference that "the net interest margin was higher last year, but it was not sustainable." He also estimated the banking industry's profit this year to be lower than that in 2011.

"China's banks will have to tackle more difficulties this year to realize a speedy profit growth, as the new capital management regulation is applied," Chen said.

Premier Wen Jiabao said on April 4 during a visit to Fujian province that "it was easy for banks to make profit" and the central government is set to break the monopoly in the banking industry. The private loan business will be put to trial in Wenzhou on March 28.

CITIC Bank actively guarded against loan risks, and maintained a low level in the balance and the ratio of non-performing loans. As of Dec 31, 2011, the bank's non-performing loan balance was 8.54 billion, with a ratio of 0.6 percent, 0.07 percentage point lower than the previous year.

"The bank will further construct the comprehensive risk management system this year," said Chen.

The bank's foreign exchange transaction amount rose 31 percent to 1.11 trillion yuan in the capital and monetary markets. Foreign exchange paid and received in international business (trade and non-trade business inclusive) increased 26.97 percent to 213.83 billion in 2011, 4.5 percent higher than the country's foreign trade growth.