Ping An Bank Q Report Release. Oct 2013

Transcription

1 Ping An Bank Q Report Release Oct 2013

2 Content I. Financial Highlights II. Business Operations III. Looking Ahead 1

3 I. Financial Highlights 1. Profit and Scale 2. Asset Quality and Efficiency 3. Income Statement 4. Regulatory Indicators

4 1. Profit and Scale (In RMB 100 million) Jan-Sep 2013 Jan-Sep 2012 YoY Change Change % 1. Net Profit % 30 Sep Dec 2012 YTD Change Change % 2. Total Assets 18,556 16,065 2, % Including: Total Loans 8,326 7,208 1, % Including: Retail Loans (including CC) 3,242 2, % 3. Total Liabilities 17,607 15,217 2, % Including: Total Deposits 12,524 10,211 2, % Including: Corporate Deposits 10,399 8,399 2, % 4. Shareholders Equity % 3

5 2. Asset Quality and Efficiency (In RMB 100 million) 30 Sep Dec 2012 YTD 1. Asset Quality NPL Balance % NPL Ratio 0.96% 0.95% pc point Provision to Loan Ratio 1.79% 1.74% pc point Provision Coverage Ratio % % pc point Jan-Sep 2013 Jan-Sep 2012 YoY 2. Return on Assets Average Return on Total Assets (annualized) 0.90% 1.00% pc point Weighted Average Return on Equity (annualized) 16.93% 17.03% pc point 3. Net Interest Spread 2.07% 2.20% pc point 4. Net Interest Margin 2.23% 2.38% pc point 5. Cost / Income Ratio 39.57% 38.56% pc point Notes: 1. The decrease of ROE was mainly due to the impact of additional provision, and it would have increased YoY if the additional provision had been consistent with that in the same period of The increase of CIR was mainly caused by the raising of strategy investment for supporting the operation transformation and outlets expansion. 4

6 3. Income Statement (In RMB 100 million) Jan-Sep 2013 Amount Proportion Amount Change YoY Amount Change % Proportion Change Operating Income % % Net Interest Income % % -5.37% Net Non-interest Income % % +5.37% Including: Net Fee Income % % +5.79% Expenses % Operating Fees % % +1.01% Less: Asset Impairment Loss % Net Profit % Net Profit Attributable to Parent Company % Basic / Diluted EPS (in RMB) % 5

7 4. Regulatory Indicators Standard Level 30 Sep Dec 2012 Liquidity Ratio (RMB and Foreign Currency) 25% 46.48% 51.99% Loan / Deposit Ratio (including bills, RMB and Foreign Currency) 75% 66.53% 70.64% NPL Ratio 5% 0.96% 0.95% According to Administrative Measures for the Capital of Commercial Banks (Trial) Capital Adequacy Ratio 8.5% 8.91% N/A (note) Tier 1 Capital Adequacy Ratio Core Tier 1 Capital Adequacy Ratio 6.5% 7.43% N/A (note) 5.5% 7.43% N/A (note) Note: The Administrative Measures for the Capital of Commercial Banks (Trial) has been implemented in the Bank since Jan 1st, At the end of the reporting period, the major regulatory indicators of the Bank complied to the regulatory requirements. 6

8 II. Business Operations 1. Rapid Growth of Scale and Profit 2. Remarkable Optimization of Business Structure 3. Fully Improvement of Profitability 4. Robust Growth in New Business and Innovation 5. Smooth Progress of Incentive System 6. Reinforcement of Commissioning and Rrisk Control

9 1. Rapid Growth of Scale and Profit (In RMB 100 million) Corporate Deposits Retail Deposits Total Deposits 30 Sep 2013 YTD Balance Composition Balance Change Composition Balance Change % Change 10, % 2, % +0.7% 2, % % -0.7% 12, % 2, % - The deposits have grown steadily in 2013, in contrast to the decrease in 3Q2012 QoQ, 3Q2013 maintained consistent growth. The deposits at the end of 3Q2013 increased by 22.65% YTD, and ranked in the top among peers. The average deposits balance of the first three quarters was RMB 1,110.7 bn with an increase of 21.79% and RMB bn as compared with the average deposits balance of Quarterly growth trend of deposits in 2013 Quarterly growth trend of deposits in ,000 10,000 10,211 10,645 11,754 12,524 15,000 10,000 8,508 9,148 9,496 9,354 5,000 5, Q2013 2Q2013 3Q Q2012 2Q2012 3Q2012 8

10 1. Rapid Growth of Scale and Profit (Cont.) Remarkable Increase of PPOP During the reporting period, the accumulated PPOP increased by 26% YoY, and the PPOP of each quarters had increased steadily QoQ, which indicated the remarkable growth trend. Robust Growth of Fee Income During the reporting period, the accumulated fee income was RMB 8,289 mn with an increase of 66.71% YoY, and accounted for 22.2% in the operating income with an increase of 5.4 pc points, which indicated the shrinkage of the gap between the leading practice of peers. Rapid Growth of Credit Card and Auto Finance The credit card business has increased rapidly and steadily. During the reporting period, profit before tax has increased of 121% YoY, while fee income has increased of 123%. The total transaction amounted to RMB bn with an increase of 148%, including the continuous rapid growth of online transactions which has increased of 213%. The balance of auto loans was RMB 43.1 bn with an increase of RMB 22 bn YTD; In the third quarter, the market shares of auto finance continued to maintain No. 1 of China, and the superiority had been further increased. 9

11 2. Remarkable Optimization of Business Structure Structure of Assets The high yield businesses of Micro Loans / New One Loan and Auto finance had a rapid growth, the balance of which at the end of 3Q2013 increased by 65% and 104% YTD, while the total balances accounted for 18%; In the total increment of loans during the reporting period, the increment from the high yield businesses of Micro Loans / New One Loan and Auto finance accounted for 50%, while the increment from the low yield businesses of Discounted Bills and Mortgage loans was negative. Structure of Liabilities The structure of liabilities had been optimized obviously with the rapid growth of customer deposits, loan to deposit ratio decreased 9 pc points YoY, and the growth of basic bank liabilities outclassed that of the inter-bank liabilities. Changes of the loan structure in the first three quarters (In RMB 100 million) 30 Sep 2013 Composition Corporate Loans Retail Loans Balance Change Total loans 8,326 1,118 YTD Composition Change General Corporate Loans 5,026 60% 181-7% Discounted Bills 58 1% -46-1% Subtotal 5,084 61% 135-8% General Retail Loans % -79-3% Micro Loans / New One Loan 1,056 13% 416 5% Auto Finance 431 5% 220 2% Credit Card Receivable % 428 4% Subtotal 3,242 39% 983 8% 10

12 3. Fully Improvement of Profitability Increase of Loan Interest Rate The bid management of credit lines has been implemented, and the loan which has been approved by the risk lines with higher pricing had the priority, on the premise no lower than the floor rate; In 3Q2013, customer loan and advances (excluding bills) had the average yield of 6.94% and increased by 25bp QoQ. Improvement of the Spread Deposit-to-Loan Spread: In 3Q2013, it had been increased to 4.57%, i.e. +26bp QoQ; NIS and NIM: In 3Q2013, NIS and NIM increased 10bp QoQ, due to the higher yield of interest rate and compressing the inter-bank assets. Deposit-to-Loan Spread Net Interest Spread Net Interest Margin 4.90% 2.25% 2.45% 4.60% 4.30% 4.14% 4.11% 4.31% 4.57% 2.15% 2.05% 2.13% 2.01% 2.04% 2.14% 2.35% 2.25% 2.30% 2.18% 2.21% 2.31% 4.00% 4Q2012 1Q2013 2Q2013 3Q % 4Q2012 1Q2013 2Q2013 3Q % 4Q2012 1Q2013 2Q2013 3Q

13 3. Fully Improvement of Profitability (Cont.) Higher Yield ROA and ROE had been improved gradually. The yield would have been increased obviously if the impact of the significant increase of the provision had been eliminated. Improvement of Capital Efficiency Enhancement of the quota management for risk assets: The strict weighted quota management for risk assets had been implemented continuously, and the improvement of the level of net return on risk assets had been closely tracked; Enhancement of the management for off-balance risk assets: The requirement of Minimum margin ratio for off-balance risk assets had been set up so as to increase the risk assets efficiency within the entire bank. Average Return on Total Assets (annualized) Weighted Average Return on Equity (annualized) 1.00% 18.00% 0.95% 0.90% 0.85% 0.94% 0.84% 0.88% 0.90% 17.00% 16.00% 16.78% 15.61% 16.40% 16.93% 0.80% 4Q2012 1Q2013 2Q2013 3Q % 4Q2012 1Q2013 2Q2013 3Q

14 4. Robust Growth in New Business and Innovation Investment Banking Business The total amount of investment and financing amounted to RMB bn; the net value of trusteeship amounted to RMB bn and increased RMB bn YTD. The investment banking business contributed the derivative deposit amounted to RMB 26.7 bn. The accumulated fee business income of investment banking business amounted to RMB 1.14 bn; The fee business income of trusteeship amounted to RMB 410 mn with an increase of RMB 250 mn YoY. BU of Industries Rapid growth of assets and liabilities business: within half a year after the establishment of BU of Energy, Real estate, the total deposits broke through RMB 22 bn and the total loan amounted to RMB 31 bn; The fruitful development of fee business: the fee business income from the BU of Energy, Real estate amounted to RMB 340 mn, by gradual enriching of products; The professional operation with obvious superiority of pricing. Treasury and Inter-bank Business The Bank propelled the whole industrial chain of gold and the brand of Ping An Gold had been established, the gold lease business made a new breakthrough and the market influence significantly increased; The income from the bill spreads had improved month by month, while the balance of bills decreased as compared to the end of June, indicating the significant raising of bills turnover of the entire bank. Products Innovation Dai Dai Ping An business card: as the comprehensive finance resolution tailored for SME, it had been successfully and rapidly promoted; Internet finance: The overall business strategy of with open-source in the front and ordinating in the back, to propel and interact with various entities to set up the comprehensive financial service platform had been established. Those businesses of e-government, e-business, Shou yin bao, and Mobile Integrated Terminal for SME made a great progress. 13

15 5. Smooth Progress of Incentive System No pain no gain : the prolificacy had been fully released and the positivity of making a profit of the employees had been mobilized as well, so as to create more value to the Bank and improve the capital efficiency. Overall coverage : the appraisal mechanism had been implemented through out all the segments from the headquarters, branches, sub-branches to customer managers in order to avoid invalid investment; the operating limits had been broken thus the branches and BU could develop the market according to the regional features actively. To balance the Relationship: the service quality of back-office employees had been associated with the marketing performance of frontline to ensure the cooperation and smoothness, so as to sharpen and quicken the market reactions. To provide the competitive salary so as to maintain the teams and keep the attractions of the new bank. To encourage the branches to achieve the targets of deposits growing through assessment and incentive mechanism 14

16 6. Reinforcement of Commissioning and Rrisk Control Reinforcement of Commissioning Control Based on the clearly oriented resource allocation and incentive system, the relevant restriction mechanism had been established and improved, focusing on the commissioning level as well as the implementation and effects of strategy investment, so as to ensure that the resources had been consumed effectively and the strategies of the bank and ideas of operating had been pursued vigorously. Reinforcement of Risk Control In 3Q2013, a greater efforts had been devoted upon credit asset management and recovery works, by fully risk control and management, strictly limiting of new loan risks, enhanced control of stock assets, strengthened post-loan reviewing and reinforced recovery, so as to ensure the active control of NPL. 15

17 III. Looking Ahead

18 Looking Ahead Prepare for the business reserves in next year in advance Enhance the adjustment of business structure continuously Improve the efficiency of resource utilization effectively Reduce the risk of Non-performing assets industriously 17

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20 Thank you! IR Contact