Category: Money Tips Date: 2006-05-08
After the successful transition of the performance growth
Bridge into the deep development, a comprehensive restructuring of its operations and restructuring, a number of management process has been improved, including strengthening internal controls, risk management, financial management and corporate governance, etc.; also developed new products and services , and sustained attention to providing customers with high quality services, the effect began to appear.
First of all, rebuilding credit approval policies, adjusting the credit approval of personnel, strengthening of non-performing loan management.
Strategic focus is on consumer credit and trade financing. Trade accounts receivable financing has been financing, inventory financing, seven kinds of business models and the establishment of a set of risk-control procedures, the cumulative non-performing rate of less than 0.5% in the first half of assets, provision for loss reserves by nearly 7 billion, representing an The 964 million yuan over the same period in 2005 year on year reduction of about 30%. Qing received intensified, the size of about 8 billion yuan, clear recovery of income is still high. To the end of the third quarter, the company non-performing loans remain at 14.54 billion yuan, respectively, compared with the medium-term and the beginning of a decline of 1.3 billion yuan, 030 million yuan non-performing rate of 8.3%, respectively over the medium-term and the beginning of fall by 0.4 percentage points, a percentage point .
Secondly, through a professional asset-liability management, and promoting rapid loan growth, structural change has become more reasonable.
Deposit and loan spreads increased while the amount of assets, provision for losses year on year decline was mainly driven by the loan structure adjustments. Average daily balance of loans in the first half compared with the beginning of a general increase of 7-8%; while the decrease in the discount growth; long-term loans to maintain a steady growth, while the short-term loans increased rapidly.
Once again, Shenzhen Development in promoting small businesses have a first-mover advantage.
The state is vigorously promote the development of SME loans to play on the deep edge in this area provided a better opportunity. At present, despite other domestic small and medium banks have started planning to enter the business, but in the varieties of sound, wind control, operating platform, and personnel preparation was still in its initial start-up phase. Shenzhen Development in this area more obvious first-mover advantage.
Personal retail banking position clear
In the developed countries (such as: Germany and the United States), mortgage and consumer credit operations accounted for 62% of its GDP and 99%; while in BRIC, as well as Turkey and Mexico, these emerging countries, the household consumption in the GDP share of credit ratio, since the 4-14% range. Of sustained economic growth, legal and financial framework for increasingly sophisticated basis, in the middle class in emerging countries surge in demand for financial services to the hungry, while consumer finance, mortgage loans, and bank-insurance products began to become the future mainstream products. The advantages of domestic banks, especially in the retail financial sector, has incomparable advantages of foreign banks, the precedent of Central and Eastern European countries have fully demonstrated the continued growth in product demand.
Shenzhen Development Bank and the Almighty to give up personal retail banking as a strategic positioning is in tune with this trend, enabling its fast-growing segment in the financial services market leading position. Shenzhen Development Bank's retail business development will be personal finance, consumer credit, bank cards, e-commerce, and so the main value-added VIP.
Shenzhen Development Bank in the first half to further enhance the proportion of non-interest income, retail loans increased by 65%, credit card compared with a year earlier, the effective increase of 81%, trading volume growth of 47%, credit cards, 102% increase in operating expenses, net income, foreign exchange net increase of 67%; the first three quarters, the company net fee and commission, foreign exchange, respectively from a year earlier net income increased by 37% and 52%, intermediate business income accounted for the proportion of operating profit of 14.7%, representing an increase of 2.1 percentage points from a year earlier .
This shows that the cost of capital or the cost of capital is not less business is growing fast and is expected to a certain extent, offset the cost of capital adequacy ratio of more operations are constrained and slower growth or even reduce the negative impact.
We believe that the deep development will further efforts to promote the retail business, including new branches and in the current 18 cities to open new branches outside the plan, but will also introduce innovative products and services, and continuous improvement management skills. Shenzhen Development Bank, including the implementation of some key marketing projects, such as the mortgage market for the continuous introduction of bi-weekly, circulation loan, transfer of mortgage and other products, bringing a lot of business opportunities. Shenzhen Development mortgage product mix and focus more on individual non-trading business, which has brought rapid growth.
General Electric Capital in its market position and experience, choose the right deep into the development of the dual financial and intellectual capital. In particular, we stressed: Shenzhen Development Bank and General Electric financial cooperation is an important component of the overall strategy.
Corporate governance and management team with distinctive characteristics of the internationalization of
Shenzhen Development Bank is now the controlling shareholder is a bridge, holding the ratio of 17.89%. Bridge is a Bank of Korea's largest investors, holding the bridge of the five years, Korean banks from a successful transformation of a troubled bank. In the bridge holding five years, adopted a series of measures to a Bank of Korea has laid a solid foundation for future healthy development. Newbridge's style is not invested by the company's weakening and earn "quick money", but a real way to reverse the situation, allowing companies with sustainable development capacity.
Bridge for the Shenzhen Development Bank was appointed chairman of Newman, former U.S. Deputy Treasury Secretary, in the establishment and implementation of strategies to "strong" known for its main advantage is I know banking, know the management and leadership level, in particular, is difficult for banks to help deal with problems with a success experience.
Shenzhen Development's new general manager of private banking and wealth management center with Xiao Wei Ping, general manager Zhou Weixuan recent official in place, will undoubtedly cast a deep re-development of a strong international exposure. It is learned that before the two joined the United States more than a decade of work experience in the personal finance, wealth management business has a very senior experience. For that they can focus on strategic financial management departments in charge of re-Bit, I believe that with the deep development of an international strategy for not unrelated.
Risk Factors
1. Stock reform of uncertainty on the possible adverse effects of additional capital is still follow-up to the development of larger companies will continue to be subject to a serious shortage of capital in the company's stock changed circumstances have not been completed, the company's refinancing and financing of foreign capital injection plan will continue to be delayed the future development of the company will be entirely dependent on the share reform progresses. As the central bank given the capital adequacy ratio by the end of 2006 compliance deadline approaches, the company as non compliance bank in business next year will definitely face a range of uncertainty.
2. Low non-performing loan provisions may be of future performance and swallowing due to the year 2006 to reduce the amount of provision for loan loss provisions, according to companies to disclose data, the medium and in the third quarter provision for loan loss reserves than in same period last year to reduce the amount of approximately 30%, to 9 at the end, the company a total of 6.98 billion yuan loan loss reserves, loan loss provisions, coverage of 48%, far below the average of nine listed banks (including the ICBC and the Hong Kong equities, medium-term average of 99.7%) .
Secondary market investment advice
2. Investment advice
Compared with the mainland listed banks, deep dynamic book value is still developing the current 06-07 is moderate, while the dynamic price-earnings ratio is significantly lower, taking into account the significant improvement of corporate governance structure, management team, international and retail banking professionals lead, the valuation there are still large room to rise.
