Ping An Bank 2012 Interim Report Release. Aug 2012

Transcription

1 Ping An Bank 212 Interim Report Release Aug 212

2 Agenda Highlights Financial Results Business Achievements Looking Ahead 1

3 Highlights

4 At a Glance Headquartered in Shenzhen, Ping An Bank* was founded in Shenzhen in 1987 and listed on Shenzhen Stock Exchange in 1991 (Stock code: 1). Closing stock price was Yuan as of 3th Jun 212. As of 3th Jun 212, total assets was RMB 1,491 bn, and net profit was RMB 6,87 mn. As of 3th Jun 212, PAB had 44 outlets in 27 major cities across China, providing a broad range of services to commercial, retail, and government customers. Total employees were 24,336 by the end of Jun 212. Up to now, PAG and its related parties hold 52.38% of PAB shares, becoming PAB s controlling shareholder. (RMB mn) 3 th Jun 212* Total Assets 1,49,623 Total Loans 682,96 Total Deposits 949,578 NPL Ratio.73% Jan - Jun 212* Operating Income 19,626 Net Profit 6,87 Annualized ROAA.98% Annualized ROAE 16.89% Note: 1. PAB is a new bank as a result of the original SDB absorbing the original PAB and accomplishing the two-bank integration. And the Bank was renamed as PAB. 2. The bank acquired 9.75% shares of the original PAB through NPO in Jul 211, and formally absorbed the original PAB in Jun 212. The data of 1H212 in this report are the data after the absorption. The YoY data of 211 were the data of the original SDB. The combined net profit of 211 includes the net profits of the original PAB from the date of being acquired to 31st Dec 212. And the data of end 211 are the combined data (incl. equity of minority shareholders). The same with following pages. 3

5 Results Highlights (RMB mn) Jan-Jun 212 Change YoY Operating Income 19,626 62% Net Profit Attributed to Shareholders of Parent Company 6,761 43% Basic EPS (Yuan) % 3 th Jun 212 Change YTD Total Assets 1,49,623 18% Total Deposits 949,578 12% General Loans 647,242 7% Shareholders Equity 79,823 6% NPL Ratio.73% 2bp Provision Coverage Ratio 238% -83 pct points BVPS (Yuan) % 4

6 Financial Results

7 1H212 Income Statement Summary (RMB mn) 1H212 2H211 Change HoH 1H211 Change YoY Operating Income 19,626 17,56 12% 12,137 62% - Net Interest Income 16,157 14,898 8% 1,392 55% - Net Fee Revenue 2,779 2,477 12% 1, % - Other Non Interest Income Expenses (excl. Biz Tax) % % 7,483 7,449 % 4,46 7% Business Tax 1,736 1,553 12% % Profit before Provision 1,47 8,53 22% 6,778 54% Provisions 1,57 1,418 11% % Before Tax Profit 8,879 7,85 25% 6,63 46% Net Profit 6,87 5,659 21% 4,731 45% 6

8 1H212 Income Statement Summary 1H212 1H211 Change YoY Basic EPS (Yuan) % Diluted EPS (Yuan) % Cost Income Ratio (excl. Biz Tax) 38.13% 36.3% 183bp Income Tax Rate 22.62% 21.95% 67bp Annualized ROAA.98% 1.4%* -6bp Annualized ROAE 16.89% 2.32%* -343bp *Note: the figures are actual data of Year

9 Net Interest Income & Margin Net Interest Income (RMB mn) Net Interest Margin Loan Deposit Spread Net Interest Income (RMB mn) Net Interest Margin Loan Deposit Spread 18, 16,157 8% 9, 7,527 7,955 8,22 8% 12, 1,392 6, 4.6% 4.44% 4% 4.42% 4.47% 4.42% 4% 6, 2.63% 2.42% 3, 2.45% 2.47% 2.36% % % 1H211 1H212 4Q211 1Q212 2Q212 Net Interest Margin Loan Deposit Spread Net Interest Margin Loan Deposit Spread 8

10 1H212 Average Daily Balance and Spread AIEA (RMB mn) Yield on AIEA AIBL Cost on AIBL 1,5, 1,, 798,283 1,133,524 1,345,326 12% 8% 1,5, 1,, 756,751 1,68,66 1,268,665 6% 4% 5, 4.94% 5.27% 5.56% 4% 5, 2.44% 2.9% 3.34% 2% % % 1H H212 1H H212 ADB General Loans Loan Yield ADB Deposits Deposits Cost 75, 5, 25, 412, % 576, % 625,25 7.2% 12% 8% 4% 1,2, 8, 4, 584, % 82, % 891, % 6% 4% 2% % % 1H H212 1H H212 9

11 212 Quarterly Average Daily Balance and Spread AIEA (RMB mn) Yield on AIEA AIBL Cost on AIBL 1,5, 1,218,554 1,293,184 1,397,469 12% 1,5, 1,146,473 1,218,21 1,319,121 6% 1,, 8% 1,, 4% 5, 5.61% 5.71% 5.43% 4% 5, 3.36% 3.44% 3.25% 2% % % 4Q211 1Q212 2Q212 4Q211 1Q212 2Q212 ADB General Loans Loan Yield ADB Deposits Deposits Cost 75, 5, 598,9 618, ,899 12% 8% 1,2, 8, 819, , ,665 6% 4% 25, 6.85% 7.2% 7.3% 4% 4, 2.43% 2.55% 2.61% 2% % % 4Q211 1Q212 2Q212 4Q211 1Q212 2Q212 1

12 1H212 Asset Average Daily Balance, Yield 1H212 1H211 Change YoY (RMB mn) ADB Yield ADB Yield ADB Yield General Loans 625,25 7.2% 412, % 52% 19bp - Corporate Loans 424, % 286, % 48% 11bp - Retail Loans 2, % 125, % 59% 129bp Bonds 195,62 4.3% 16,21 3.4% 84% 63bp Placement at Central Bank 174, % 81,89 1.5% 113% 2bp Bill & IB 196, % 179, % 9% 5bp Others 154, % 18, % 72% 276bp AIEA 1,345, % 798, % 69% 62bp 11

13 1H212 Liability Average Daily Balance, Cost 1H212 1H211 Change YoY (RMB mn) ADB Cost ADB Cost ADB Cost Total Deposits 891, % 584, % 52% 71bp - Corporate Deposits - Guarantee Deposits 518, % 34,3 1.9% 53% 67bp 211, % 154, % 37% 74bp - Retail Deposits 161, % 9, % 78% 78bp Bonds 16, % 1, % 5% 6bp IB 312, % 153, % 13% 57bp Others 48, % 7, % 567% 256bp AIBL 1,268, % 756, % 68% 9bp 12

14 2Q212 Asset Average Daily Balance, Yield 2Q212 1H211 Change QoQ (RMB mn) ADB Yield ADB Yield ADB Yield General Loans 631, % 618, % 2% 1bp - Corporate Loans 43, % 419, % 3% bp - Retail Loans 21, % 199,21 7.9% 1% 4bp Bonds 195, % 194, % % -2bp Placement at Central Bank 179,2 1.52% 169, % 6% -1bp Bill & IB 252, % 139,21 6.9% 82% -121bp Others 138, % 171, % -19% -57bp AIEA 1,397, % 1,293, % 8% -28bp 13

15 2Q212 Liability Average Daily Balance, Cost 2Q212 1Q212 Change QoQ (RMB mn) ADB Cost ADB Cost ADB Cost Total Deposits 918, % 864, % 6% 6bp - Corporate Deposits - Guarantee Deposits 533, % 54, % 6% 1bp 219, % 23, % 8% 31bp - Retail Deposits 165, % 156, % 6% -9bp Bonds 16, % 16, % % -2bp IB 35, % 274, % 27% -71bp Others 34, % 63, % -46% -88bp AIBL 1,319, % 1,218, % 8% -19bp 14

16 1H212 Net Fee and Commission Income Realized 134% Growth YoY (RMB mn) 1H212 2H211 Change HoH 1H211 Change YoY Settlement Fee Income WM Fee Income Brokerage & Trust Fee Income Bank Card Fee Income Consultant Fee Income Account Management Fee Income Other Income Total Fee & Commission Expenses Total Net Fee & Commission Income % % % % % % 1, % % % % % % % % % % 2,779 2,477 12% 1, % 15

17 212/6/3 Key Balance Sheet Items (RMB mn) 212/6/3 211/12/31 211/6/3 Change YTD Change YTD % Total Assets 1,49,623 1,258, ,57 232,446 18% Total Loans 682,96 62, ,484 62,264 1% Gen Loans 647,242 62, ,967 44,283 7% Bills 35,664 17,683 16,518 17,981 12% Total Liabilities 1,41,8 1,182, ,95 228,4 19% Total Deposits 949,578 85, ,497 98,733 12% Shareholders Equity 79,823 75,381 38,152 4,442 6% BVPS (Yuan) % 16

18 General Loans & Growth General Loans (excl. CC Receivable) (RMB mn) 9, 6, 578, ,613 3, 425,584 7% 71% 73% 3% 29% 27% 211/6/3 211/12/31 212/6/3 Retail Loans Commercial General Loans 17

19 Deposits & Growth Total Deposits (RMB mn) Total Deposits (Daily Average) (RMB mn) 1,2, 1,2, 8, 4, 632,497 83% 85,845 82% 949,578 81% 8, 4, 584,96 26% 6% 37% 82,74 25% 7% 38% 891,512 24% 6% 42% 17% 18% 19% 211/6/3 211/12/31 212/6/3 3% 31% 28% 1H H212 Retail Deposits Commercial Deposits Demand Deposits Time Deposits (excl Negotiated dep) MOF & Negotiated Deposits Guarrantee Deposits 18

20 Geography Distribution of Loans & Deposits Total Loans Total Deposits North 19% HQ 6% North 18% HQ 7% West 8% South 32% East 35% West 8% South 38% East 29% 1%= 682,96 mn RMB 1%= 949,578 mn RMB 19

21 CAR & CCAR 12% CAR CCAR 8.58% 8.88% 1.19% 11.51% 11.4% 8% 4% 3.7% 3.71% 5.77% 5.77% 5.27% 5.52% 7.1% 8.46% 8.44% 3.71% 3.68% % Dec-4 Dec-5 Dec-6 Dec-7 Dec-8 Dec-9 Dec-1 Dec-11 Dec-12 RWA (RMB mn) Net Core Capital (RMB mn) 9, 6, 794,72 6% 845,914 9, 6, 67,244 6% 71,375 3, 3, 211/12/31 212/6/3 211/12/31 212/6/3 2

22 Asset Quality (RMB mn) 212/6/3 212/3/31 211/12/31 Change YTD Normal 673,11 642, ,937 1% Special Mention 4,924 4,677 4,41 12% Total NPL 4,971 4,448 3,295 51% - Sub Standard 3,388 2,84 1,744 94% - Doubtful % - Loss % NPL Ratio.73%.68%.53% 2bp Loan Provision 11,83 11,269 1,566 12% Provision Coverage Ratio 238% 253% 321% -83 pct points 21

23 Loans by Industries & Credit Quality 212/6/3 NPL ratio 211/12/31 NPL ratio Manufacturing (Light Industry) 21.77% 1.5% 21.62%.78% Commercial 17.98% 1.15% 17.24%.99% Real Estate 5.78%.6% 5.9%.54% Service, Technology, Culture and Sanitary Industries 7.%.31% 8.33%.27% Construction 4.1%.22% 4.44%.9% Other (Retail Loans) 29.59%.47% 31.21%.36% Bills 5.22%.% 2.85%.7% Others* 8.55%.27% 8.41%.22% Note: Others includes: agriculture, husbandry and fisheries, Extraction (Heavy industry), Energy, Transportation, storage and communication. 22

24 1H212 Loan Impairment Provisioning (RMB mn) Asset Provisions at 211/12/31 1,566 + Provisions (including Non-loans Impairment Provisions) + 1,57 - Interest Offset of Impaired Provisions Provisions for Non-loans Collections of Written-offs Loans Write-offs Others + 2 = Ending Asset Provision Balance at 212/6/3 = 11,83 23

25 Asset Quality Corporate Loans 212/6/3 211/12/31 Change YTD (RMB mn) Amount NPL Amount NPL NPL Corporate Loans 485,228.83% 43,72.6% 23bp - General Loans 449,564.9% 413,19.63% 27bp - Bills 35,664.% 17,683.7% -7bp Trade Finance 277,527.29% 233,356 na na 24

26 Asset Quality Retail Loans 212/6/3 211/12/31 Change YTD (RMB mn) Amount NPL Amount NPL NPL Retail Loans (excl. CC Receivable) 167,49.36% 165,227.25% 11bp - Mortgage 7,513.21% 75,373.19% 2bp - Business Loans 48,453.55% 43,353.31% 24bp - Car Loans 14,93.19% 12,75.23% -4bp - Others 33,988.49% 33,796.32% 17bp CC Receivable 3, % 24, % -1bp 25

27 Trend of SM Balance & Percentage by Region SM Loan Balance for East Region (RMB mn) SM % SM Loan Balance for South Region SM % 3, 2,.8%.91% 1.1% 1.2%.8% 3, 2,.79%.83%.64% 1.2%.8% 1, 1,832 2,137 2,632.4% 1, 1,58 1,757 1,44.4%.%.% 4Q211 1Q212 2Q212 4Q211 1Q212 2Q212 SM Loan Balance for West Region SM % SM Loan Balance for North Region SM % 3, 1.2% 3, 1.2% 2,.8% 2,.8% 1,.23%.21%.12% %.% 1,.41%.14%.17% %.% 4Q211 1Q212 2Q212 4Q211 1Q212 2Q212 26

28 Trend of NPL Balance & Percentage by Region NPL Balance for East Region NPL % NPL Balance for South Region NPL % (RMB mn) 3,.91% 1.16% 2, % 3, 1.2% 2,.56% 2,127.8% 2,.46%.49%.47%.8% 1, 1,27 Including: WZ* 57 Including: WZ 1,47 Including: WZ 1,372.4%.% 1, 931 1,23 1,45.4%.% 4Q211 1Q212 2Q212 4Q211 1Q212 2Q212 NPL Balance for West Region NPL % NPL Balance for North Region NPL % 3, 1.2% 3, 1.2% 2,.8% 2,.49%.65%.54%.8% 1,.22%.2%.19%.4% 1,.4% % % 4Q211 1Q212 2Q212 4Q211 1Q212 2Q212 Note: WZ=Wenzhou Branch. 27

29 Change of NPL (by industry) 1.8% 1.5% 1.2% 1.15%.99%.78% NPL Ratio of PAB:.73%.6%.5%.49%.54%.4%.34%.28%.% Manufacturing Commercial Transportation and communication.% agriculture, husbandry and fisheries.6% Real Estate Other (Retail Loans) 211 NPL % 1H212 NPL % 28

30 Business Achievements

31 Corporate Business Highlights Scale Growth Balance of Corporate deposits up 11% vs year beginning; and Balance of Corporate loans up 13% vs year beginning. Trade Finance Balance of TF credit is bn, up 19% vs year beginning; NPL ratio.29%, maintained at relatively low level. Strengthened risk management, optimized customer structure, and proactively exited some customers with relatively high risks. As of Jun 212, Nos. of TF customers were 9,751. Proactively pushed the implementation of the advantageous products of the TF of the original SDB in original PAB outlets, accelerated the online implementation process of supply chain finance, and improved service efficiency and customer experience. Realized cooperation with China Commodity Marketplace, a website, and launched online information inquiry service for commodity prices. Other Businesses E-government affairs business continued robust momentum, our bank was the first bank to launch bank-court express (court fund custody) and has applied in local courts in succession. And with the new bank-custom express approved by General Administration of Customs, our bank has become one of the first JS banks that launched and carried out E-payment for taxes. Balance of international TF is 38.7 bn, up 25% vs year beginning. Accumulated volume of international and offshore settlement increased significantly over same period of last year. Scale of custody net value exceeded 25 bn, doubled vs year beginning. Custody fee income up by 12% YoY. Corporate WM designed and issued two new products, structured deposit product and packaged WM product, and issued about 1,2 valid products, with sales volume of over 9 bn. 3

32 Corporate Business Loans and Deposits General Corporate Loans (RMB mn) Corporate Deposits (RMB mn) 6, 9, 772,967 4, 413,19 449,564 6, 528,76 698, ,995 2, 3, 211/6/3 211/12/31 212/6/3 211/6/3 211/12/31 212/6/3 31

33 Trade Finance Business Total Trade Finance (RMB mn) 45, 3, 277, , ,883 15, Trade Finance (by Geography) North 29% East 25% West South 1% 36% 211/6/3 211/12/31 212/6/3 Client No. of Trade Finance (number) 15, 1, 5, 8,86 +1% YoY Growth -4% YTD Growth 1,125 9,751 International 14% Domestic 86% 211/6/3 211/12/31 212/6/3 32

34 Retail Business Highlights Development strategy Carried out cross-selling business via the integrated finance platform of PAG and consolidated original cross-selling results. Implemented cross-selling and improved settlement saving deposits. Developed abundant WM products and portfolios, expanded the application channels of payment settlement, agency collection and payment business and TP custody and boosted deposit growth. Proactively adjusted the development direction of retail loan business, putting focus on personal credit loans, auto loans and micro business loans which are with relatively high returns, optimized loan structure and improved return level. WM business Proactively expanded the range of WM products and enhanced WM product innovation. In 1H212, issued 5 bn of WM products of the bank and cross-sold over 5 mn of PA Life and 3.6 bn of PA Trust. System building Built a customer-centric lean customer management system and built the mechanism of Consumer Business Synergic Operating so as to ensure no impact on customer experience during 2-bank integration, enhance customer stickiness, increase value customers, and realize conversion of platinum card customers. Enhanced basic platform and unified the IT system structure following 2-bank integration. Pushed the implementation of the basic law for sales staff based on model and productivity, built unified appraisal and incentive standard, and pushed the building of performance culture. 33

35 Retail Business Loans Retail Loans (excl C/C) (RMB mn) Retail Business Loans 24, 16, 125, , ,49 6, 4, 29,656 43,353 48,453 8, 2, 211/6/3 211/12/31 212/6/3 211/6/3 211/12/31 212/6/3 Home Mortgage Loans 9, 6, 66,21 +7% YoY Growth -6% YTD Growth 75,373 7,513 Car Loans 18, 11,523 12, 12,75 14,93 3, 6, 211/6/3 211/12/31 212/6/3 211/6/3 211/12/31 212/6/3 34

36 Treasury Inter-bank Business Scale and channel The A&L scale of Treasury inter-bank business continued fast growth and both scale and revenues of A&L hit a new high, becoming one of the important sources of bank s profits. Achieved breakthrough in inter-bank cooperation institution quantity of TP custody, bank-securities cooperation institution quantity of TP custody guarantee money, and inter-bank cooperation institution quantity of Inter-bank Express. Built product manager teams and achieved fast growth in income of treasury product sales of branches through customer expansion and service improvement by product managers. WM business WM business kept fast growth and quantity of the newly issued WM products in1h ranked the 4th among JS banks across the country. Almost 6 bn of WM products were issued in 1H, up 291% YoY and fee income of WM products reached 3 mn, up 243% YoY. Agency business Fund sales in 1H was 3.6 bn, up 92% over same period of last year. Trust sales was 5.2 bn, up 19% over same period of last year. Incremental gross premium of insurance agency business was 6 mn, and actual fee income from above items was 43 mn. Established stable business cooperation relationship with 13 FIs and Corporate customers and a total of mn custody fee income was achieved in 1H 212, up 12% YoY. Custody net value was bn, up 154% YoY. 35

37 Credit Card & Micro Finance Credit Card Business As of Jun 212, 1.85 mn new cards were issued this year, of which 56% were from cross-selling. Asset quality continues improving and NPL ratio was 1.9%. CC continued enhancing the brand image of safe, economical, and easy to use, launched large and diversified promotion activities, and customer feed-back was good. Credit Card Receivable (RMB mn) No. of Credit Cards in Circulation (k) 45, 15, 3, 24,713 3,629 1, 9,4 9,89 15, 6,383 5, 211/6/3 211/12/31 212/6/3 211/12/31 212/6/3 Micro-Lending Finance The Bank continued to make progress in the establishment the system of Micro Finance. Greater investments were continuously made in institutional structuring, staff deployment, risk control system and ancillary resources. Micro Finance loan balance was 53.5 bn, up 12% vs year beginning and NPL ratio.72%. 22 bn Micro Finance loans was issued in 1H, but since repayment amount of some branches was huge in 1H, the overall loan size didn t grow much. 36

38 Looking Ahead

39 212 Key Initiatives In 2H212, the bank will continue the business concept of being stable and proactive and putting customers first and by making use of the traditional advantage of the bank being the platform for corporate and personal payment settlement and the differentiation advantage of Group integrated finance platform and seizing the opportunity of 2-bank integration, further improve service level, and provide all-round and individualized financial service for customers so as to ensure continuous and stable growth of various business. Meanwhile, in 2H, the bank will still pay high attention to the financing demand of personal consumption and SMEs and meet the capital demand of real economy through professional management, product innovation and business process optimization. Under the premise of controllable risks, further optimize A&L structure so as to ensure continuous, stable, and healthy growth of annual performance and provide long-term and stable returns for shareholders. 38

40 39

41 Thank You! IR Contact : PABIR@pingan.com.cn

42 Appendix: Results Highlights of the Previous PAB ( 人民币百万元 ) 1H211 Operating Income 4,51 - Net Interest Income 3,278 - Net Fee Revenue Other Non Interest Income -21 Expenses (excl. Biz Tax) 1,842 Business Tax 285 Profit before Provision 1,924 Provisions 299 Before Tax Profit 1,629 Net Profit 1,266 Note: in order to facilitate comparison, the table above has been adjusted according to the standard of the bank. 41