AgBank to resume property lending
By Richard Fu |
August 31, 2010, Tuesday
|
Print Edition
Print Edition
THE Agricultural Bank of China, the nation's third-largest lender by assets, will resume loans to property developers from tomorrow after it halted lending to the firms for slightly over a week.
The bank suspended lending to developers temporarily from August 24 to avoid excessive loan growth at month's end based on its own needs, rather than at the request of regulators, President Zhang Yun said yesterday in Hong Kong.
The Chinese government has in recent months taken steps to cool the domestic property market in response to rising home prices, and other lenders have reportedly cut back or halted lending to developers.
AgBank has the lowest property loan balance among rival lenders and the loan risks in the property sector are manageable for the bank, Chairman Xiang Junbo said.
AgBank had 1.17 trillion yuan (US$172 billion) in outstanding real estate loans and its non-performing loan ratio for property lending stood at 1.29 percent at the end of June.
AgBank earlier said its first-half profit rose 40 percent to 45.8 billion yuan on loan growth and lower credit costs - its first results since completing the world's largest initial public offering.
In its listing document, AgBank has forecast 2010 net profit of at least 82.9 billion yuan. Xiang said profit growth in the current second six months will exceed that in the first half and full-year net earnings are expected to beat forecasts.
AgBank "has relatively more room for earnings to improve given its much higher starting base for the cost-to-income ratio and credit costs," a Citigroup report said.
The bank suspended lending to developers temporarily from August 24 to avoid excessive loan growth at month's end based on its own needs, rather than at the request of regulators, President Zhang Yun said yesterday in Hong Kong.
The Chinese government has in recent months taken steps to cool the domestic property market in response to rising home prices, and other lenders have reportedly cut back or halted lending to developers.
AgBank has the lowest property loan balance among rival lenders and the loan risks in the property sector are manageable for the bank, Chairman Xiang Junbo said.
AgBank had 1.17 trillion yuan (US$172 billion) in outstanding real estate loans and its non-performing loan ratio for property lending stood at 1.29 percent at the end of June.
AgBank earlier said its first-half profit rose 40 percent to 45.8 billion yuan on loan growth and lower credit costs - its first results since completing the world's largest initial public offering.
In its listing document, AgBank has forecast 2010 net profit of at least 82.9 billion yuan. Xiang said profit growth in the current second six months will exceed that in the first half and full-year net earnings are expected to beat forecasts.
AgBank "has relatively more room for earnings to improve given its much higher starting base for the cost-to-income ratio and credit costs," a Citigroup report said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
