China Banking Industry Report - H1, 2013

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China Banking Industry Report - H1, 2013

Commercial banking in China is entering a new phase that is characterized by slower growth rates amid complex global economic environment. In 2012, total assets of the Chinese banking industry recorded 17.9% annual growth to RMB 133.6tn. Eastern China accounted for nearly 60% of the industry’s total assets.

There were a total of 3,747 financial institutions and 202,000 banking locations by the end of 2012. China Development Bank was the country’s largest lender of social housing projects and extended RMB 116.6bn in 2012. Foreign banks saw their net profits drop marginally while non-performing loans increased.

The central bank liberalized the country’s lending and saving rates in mid-2012, allowing a minimum net interest margin of 90 basis points for banks. Total lending rose to RMB 62.99tn and new lending expanded by RMB 8.2tn. Local government financing vehicles are considered a major source of risk due to extensive borrowings.

China’s systemically important financial institutions (SIFIs) and non-SIFIs need to meet the required capital adequacy ratios of 9.5% and 8.5%, respectively, by end-2013. PBC has opened up the capital market further through a technical guideline in May 2013 for Renminbi Qualified Foreign Institutional Investor or RQFII.

Key Points:

• China Banking Regulatory Commission announced a five-year plan for local banks to meet their counter-cyclical buffer in phases.

• China is planning the issuance of Basel III-structured bonds that carry a write-down to zero features.

• The country’s four largest lenders decreased lending in May 2013 due to lower demand and cautious lending policies


Table of Contents

1. Industry Profile
1.1 Industry Overview
1.2 Economic Growth
1.3 Inflation
1.4 Policy Banks
1.5 Foreign Banks

2. Market Trends and Outlook
2.1 New Loan
2.2 Non-Performing Loan
2.3 Reserve Requirement
2.4 Basel III
2.5 Internationalization of RMB

3. Leading Players and Comparative Matrix
3.1 Leading Players
3.1.1 Industrial and Commercial Bank of China Ltd.
3.1.2 China Construction Bank Corp.
3.1.3 Agricultural Bank of China Ltd.
3.1.4 Bank of China Ltd.
3.1.5 Bank of Communications Co. Ltd.
3.1.6 China Merchants Bank Co. Ltd.
3.2 Comparative Matrix
3.3 SWOT Analysis

4. Tables and Charts

Table 1: Number of Foreign Banks in China
Table 2: New Loan Growth of the Banking Sector
Table 3: ICBC Financial Highlights
Table 4: CCB Financial Highlights
Table 5: ABC Financial Highlights
Table 6: BOC Financial Highlights
Table 7: BOCOM Financial Highlights
Table 8: CMB Financial Highlights
Table 9: Selected Peer Comparison of Key Financial Ratios

Chart 1: Number of Banking Institutions
Chart 2: Total Assets of Banking Sector
Chart 3: Banking Assets by Region
Chart 4: Banking Locations by Region
Chart 5: China GDP Y-o-T Growth
Chart 6: Consumer Price Index (Year-on-Year)
Chart 7: 1-Year Short-Term Nominal Lending Rates
Chart 8: Total Loan Amount of the Banking Sector
Chart 9: Non-Performing Loan of Commercial Banks
Chart 10: Non-Performing Loan by Type of Bank 2012
Chart 11: Reserve Requirement Ratios
Chart 12: ICBC Segment Revenue 2012
Chart 13: CCB Segment Revenue 2012
Chart 14: ABC Segment Revenue 2012
Chart 15: BOC Segment Revenue 2012
Chart 16: BOCOM Segment Revenue 2012
Chart 17: CMB Segment Revenue 2012

Number of pages: 32
Release Date: Fri, 28 Jun 2013