Industrywide, China's bank assets rose to 178.8 trillion yuan (US$28.84 trillion) at the end of Q1, 2015.
Hong Kong (PRWEB) July 28, 2015
Announced today, SNL Financial has released a new report investigating the state of China’s banking sector. Using the latest financial data, the report contains a ranking of the top 15 Chinese banks by assets, an economic and industry overview, risk profile of the sector, shadow banking, free trade zones, branch network information, M&A, regulation and a summary of common stock offerings.
- Industrywide, bank assets grew 13.84% to 172.3 trillion Chinese yuan (US$28.55 trillion) at the end of 2014 from 151.35 trillion yuan (US$25 trillion) a year earlier. The figure rose to 178.8 trillion yuan (US$28.84 trillion) at the end of first quarter of 2015.
- China’s largest bank, Industrial & Commercial Bank of China Ltd., held 20.61 trillion Chinese yuan (US$3.32 trillion) in assets at the end of 2014. China Construction Bank Corp. was the country’s second-largest bank with 16.74 trillion yuan (US$2.70 trillion) in assets.
- The banking industry’s weighted-average Tier 1 capital ratio rose 112 basis points year over year to 10.97% at the end of 2014, though that is still lower than most of Asia-Pacific nations, such as Japan, Indonesia, Malaysia and Australia. China, on the other hand, has a higher credit-to-GDP ratio than the four countries.
- The weighted-average nonperforming loan ratio climbed to 1.22% at the end of 2014 from 0.95% at the end of 2013 and 0.92% at the end of 2012. Growing NPLs are a concern for the Chinese economy.
- Credit default swaps on five-year sovereign bonds dropped to 90.62 basis points as of April 27, 2015, down from the mid-2013 peak of 145.91 basis points.
- Shares in four of the five largest Chinese banks have outperformed an SNL Financial index for large-cap Asian banks since 2013. Between Jan.1, 2013, and April 27, 2015, shares in Bank of China Ltd. and Bank of Communications Co. Ltd. jumped 74.33% and 46.72%, respectively, while the SNL Large Cap Asia-Pacific Bank index rose 33.28%. Only Agricultural Bank of China Ltd.’s stock rose less than the index.
- There have been six announced acquisitions of stakes in Chinese banks since the start of 2014. The most recent deal is the Feb. 13, 2015, purchase of a 5% stake in Industrial bank Co., worth US$2.04 billion, by a group of undisclosed institutional investors.
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