AgBank's profit records highest gain
Source: Bloomberg News |
April 28, 2011, Thursday
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Print Edition
Print Edition
THE Agricultural Bank of China Ltd, the nation's largest lender by customers, yesterday said first-quarter profit rose 36 percent to the highest in more than a year as fee income and loans increased.
Net income climbed to 34.1 billion yuan (US$5.23 billion) from 25 billion yuan a year earlier, the Beijing-based lender said in a statement to the Hong Kong stock exchange yesterday. That compared with the 33.1 billion yuan median estimate of six analysts surveyed by Bloomberg News.
The profit growth may have exceeded that of its biggest rivals after the world's largest initial public offering last year boosted the AgBank's capital levels and financial strength, according to Credit Suisse Group AG. The bank's lending income climbed as China stepped up efforts to contain inflation by raising interest rates.
The Industrial and Commercial Bank of China Ltd, the world's largest lender by profit, may report today that profit rose 23 percent last quarter, while China Construction Bank Corp is likely to post a 25 percent earnings gain, according to the median estimates in surveys by Bloomberg News.
The AgBank boosted lending by 5 percent in the first quarter to 5.2 trillion yuan even as the central bank raised the ratio banks must set aside as reserves six times in 2010 and four times this year, taking the requirement to the highest in at least two decades to trim funds in the banking system. Its loan-to-deposit ratio fell to 55.7 percent.
Net interest income rose 32 percent to 70.5 billion yuan in the first three months, while income from fee-based services gained 63 percent to 17.7 billion yuan. Net interest margin, a measure of lending profitability, was 2.79 percent.
Non-performing loans decreased from the end of 2010 to 91.7 billion yuan as of March 31, and bad debts as a percentage of the total shrank to 1.76 percent. The bank's capital adequacy ratio shrank to 11.4 percent by the end of March, from 11.59 percent three months earlier. The lender last month won shareholder approval to sell as much as 50 billion yuan of subordinated bonds in two years.
Net income climbed to 34.1 billion yuan (US$5.23 billion) from 25 billion yuan a year earlier, the Beijing-based lender said in a statement to the Hong Kong stock exchange yesterday. That compared with the 33.1 billion yuan median estimate of six analysts surveyed by Bloomberg News.
The profit growth may have exceeded that of its biggest rivals after the world's largest initial public offering last year boosted the AgBank's capital levels and financial strength, according to Credit Suisse Group AG. The bank's lending income climbed as China stepped up efforts to contain inflation by raising interest rates.
The Industrial and Commercial Bank of China Ltd, the world's largest lender by profit, may report today that profit rose 23 percent last quarter, while China Construction Bank Corp is likely to post a 25 percent earnings gain, according to the median estimates in surveys by Bloomberg News.
The AgBank boosted lending by 5 percent in the first quarter to 5.2 trillion yuan even as the central bank raised the ratio banks must set aside as reserves six times in 2010 and four times this year, taking the requirement to the highest in at least two decades to trim funds in the banking system. Its loan-to-deposit ratio fell to 55.7 percent.
Net interest income rose 32 percent to 70.5 billion yuan in the first three months, while income from fee-based services gained 63 percent to 17.7 billion yuan. Net interest margin, a measure of lending profitability, was 2.79 percent.
Non-performing loans decreased from the end of 2010 to 91.7 billion yuan as of March 31, and bad debts as a percentage of the total shrank to 1.76 percent. The bank's capital adequacy ratio shrank to 11.4 percent by the end of March, from 11.59 percent three months earlier. The lender last month won shareholder approval to sell as much as 50 billion yuan of subordinated bonds in two years.
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