China Construction Bank Announces 2017 Q3 Results
Core Indicators of Total Assets, Asset Quality and Profitability Achieving Steady Performance
Beijing/Hong Kong, 26 October 2017 – China Construction Bank Corporation (“the Bank” or “CCB”) (A-share stock code: 601939; H-share stock code: 939) released its results for the third quarter of 2017 (the data herein were prepared under the International Financial Reporting Standards on a consolidated basis and expressed in RMB unless otherwise stated). According to the Bank, its core indicators of total assets, asset quality and capital adequacy ratio achieved a steady performance.
As of 30 September 2017, the Bank’s total assets reached RMB22,053.94 billion, an increase of RMB1,090.24 billion, up by 5.20% since the end of 2016. Total loans and advances to customers amounted to RMB12,757.12 billion, increasing by RMB1,000.09 billion, or 8.51%, from the end of 2016. Deposits from customers amounted to RMB16,502.60 billion, increasing by RMB1,099.68 billion, up by 7.14% compared with the end of 2016.
The Bank has been implementing its overall risk management rigorously and effectively, strengthening forward-looking risk management, and improving the efficiency of the disposal of non-performing loans (“NPLs”) to keep the asset quality stable on the whole. As of the end of September 2017, in line with the five-category loan classification, the Bank’s NPLs were RMB190,949 million; the NPL ratio was 1.50%, representing a decrease of 0.02 percentage points from the end of 2016. The provision coverage ratio stood at 162.91%, up by 12.55 percentage points from the end of 2016.
As of the end of September 2017, the Bank reported a net profit of RMB202,273 million, a year-on-year increase of 3.91%, in which net profit attributable to equity shareholders improved by 3.82% year-on-year to RMB201,242 million. Annualised return on average assets and annualised return on average equity were 1.25% and 16.52% respectively. Net interest income amounted to RMB333,324 million while net interest spread and net interest margin were 2.03% and 2.16% respectively.
With the sound development of its deposit and loan services, the Bank saw a solid growth in its fee-based businesses. As of the end of September 2017, net fee and commission income climbed by 1.45% year-on-year to RMB93,649 million. Cards, electronic banking and wealth management products maintained a steady contribution to a sustained growth in income.
As of the end of September 2017, the Bank’s total capital ratio, tier 1 ratio and common equity tier 1 ratio were 14.67%, 12.99% and 12.84% respectively, in line with the regulatory requirements.
In general, the Bank delivered outstanding results as it continued to enhance its comprehensive strength amidst a complex external environment in the third quarter. Moving forward, the Bank will continue to serve the real economy, prevent and control financial risks, and deepen financial reforms. As the Chinese economy shifts its focus from high-speed growth to high-quality growth, the Bank will constantly strengthen its innovation power and competitive edge to realise its full potential and meet the new demands of the economic transformation.