BOC Report: Banking Profit Growth Will Slow This Year.

BOC report: banking sector this year

In its first China Banking Development Report (2010-2011), the Bank of China (601988) Industry Association pointed out that the banking sector in China will remain stable this year. The driving force for profit growth will be flat this year, and the profit growth rate will reach 20%, which is nearly 15 percentage points lower than the 34.5% profit growth rate in 2010.

Slowdown in bank growth

Profits for the banking sector this year

Correspondingly, in 2010, China's banking financial institutions achieved a profit of 899 billion 100 million yuan after tax, an increase of 34.5% over the same period last year.

This means that the profit growth rate of China's banking sector will drop by nearly 15 percentage points.

In view of the slowdown in profit growth, the report analyses that the growth rate of bank assets will decline this year in terms of bank profit driven factors, but it is still the main driving force for profit growth.

The spreads increased further and remained stable. Business pformation promoted faster growth in fee income and slightly increased median business income.

The report predicts that the world economy will continue to recover slowly this year. However, China's economic growth will slow down, structural readjustment will intensify, price inflation pressure will continue to increase, monetary policy will remain stable, and banking supervision will be more scientific and efficient.

Against this background, China's banking industry will remain stable.

Provision "increased"

Restricting profit growth

The report thinks that the growth rate of loans in the banking sector will decrease this year.

Among them, the growth rate of medium and long term loans will also decrease slightly, and loans from various regions and industries will be further balanced.

And this year

The report points out that the growth of payment and settlement and the traditional business of bank card will speed up, and the intermediary business of investment bank and consulting group will have larger market space, and the comprehensive operation of banks will boost the revenue of intermediary business.

The development of intermediary business with high risk will continue to be standardized, and the development of banking intermediary business needs to be changed.

In addition, the report believes that the increase in regulatory requirements this year will further increase loan provision, which will bring certain constraints to profit growth, while cost expenditure will continue to keep pace with revenue growth after continuous compression.

According to the press release of the China Banking Association's official website, the China Banking Industry Development Report (2010-2011) is the first large-scale annual report to systematically describe the banking industry since the establishment of the China Banking Association.

The report is divided into 10 chapters and 37 chapters, from the development environment, asset business, debt business, intermediate business, development pformation, service improvement and performance of social responsibility, corporate governance, risk management, development performance, institutional classification and other aspects of China.