The Banking and Strategy Initiative

Chillin' out till it needs to be funded

China’s banks pull in claws: ICBC still head and shoulders above the rest in 2011

ICBC results a minute ago, would have beaten CCB profits by 38 bln yuan or nearly 23% and AgBank by 86 bln Yuan for a 2011 total of CnY 208 bln in profits or $33 bln with a Q4 Net Income of $7 bln being the first one to report ahead of expectations even as the bank seems to have vindicated shareholders’ trust for having been up 41% since October 2011. Net Income in Q4 was just a whisker down from its Q3 score of $8.5 bln

It was the closest to the big T in 2011 with 998 bln Yuan in new credit, loan assets still 39.3% higher at RMB 7.78 tln than AgBank which is set to coast in 20122 on the rural mandate while CCB looks back at property loans with the other three in the Top4 incl ICBC and AgBank.  BOCOM reported much higher growth with a low 0.34% NPLs (NPAs) but ICBC was the best in the Top 4 with a NPL ratio for the bank at 0.94% though the LGFV portfolio could have taken it higher.

Net Interest income grew from 271 bln to 363 bln in the last quarter for 2011 or another $15 bln in Q4 to $57 bln for the year. Fee income for the year was $16. 1 bln adding a higher $5.1 bln in Q4 itself than the  rest of the year

A Shanghai branch of Industrial and Commercial...

A Shanghai branch of Industrial and Commercial Bank of China, largest in the world. (Photo credit: Wikipedia)

A CAR of 13.2 % makes the bank better placed than the rest as the Big $ will likely have a target CAR of 11.5% and higher by 2013. However Core Capital Adequacy at 10.07% makes it likely that investors would be on edge waiting for a large capital raising program from the bank. NIMs were better for the complete year at 2.61% from a low 2.44% in 2010

The bank is looking at a 1.2% NPL target for 2012 The bank’s Financial leasing NBFC subsidiary has also been ordering nearly 300 Boeing aircraft and its size twice that of JP Morgan and the rest from Wall Street makes it ideal as a vehicle for Chinese corporate expansion overseas in trade and in Corporate investments




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