Data:2009-12-12 2:34
Category: Money tips Release Date: 2007-07-07
Shares of listed banks in 2006 to 2008 period of rapid growth of profits, valuation levels decreased rapidly, the recent sharp fluctuations in bank plates to the valuation levels were significantly decreased, now has a great attraction, it is strongly recommended to buy.
2006-2008 year is listed banks high net profit growth. During the medium-sized bank net profit compound growth rate of 40% -60%, and the large banks at 25% -30% or so. Listed banks are able to maintain such a growth, in addition to net interest income and intermediary business revenue growth, the main driving force comes from the provision for spending pressures and the effective tax rate dropped significantly. A high degree of economy makes the listed banks asset quality has improved, while the provision coverage, in addition to medium-sized outside the Shenzhen Development Bank will remain stable, large banks are also gradually increase its coverage of the. Non-performing assets by the provision coverage ratio and the impact of the provisions listed banks spending pressure would be significantly decreased. Shanghai Pudong Development Bank, China Merchants Bank and Shenzhen Development in 2006, after the provision for decline in the proportion of expenditure in 2005 compared with more than 50%.
Two tax merger resulted in a decline in the effective tax rate banks far more than 8 percentage points, but should be within 15 percentage points. Two tax merger is not only a uniform tax rate and its tax base will also be unified, effective tax rate for listed banks mainly due to a large number of high wage costs and expenses can not be set aside pre-tax deduction, in 2008 along with two tax merger, all A Shares listed banks are expected to fully offset the wage; in 2006 after the provision for expenditure on pressure drop, so that provision for the impact caused by increase in the effective tax rate decreased significantly.
A shares listed banks in 2006 to 2008 period of rapid growth of profits, valuation levels decreased rapidly, the recent sharp fluctuations in bank plates to the valuation levels were significantly decreased, now has a great attraction, it is strongly recommended buying, investment will receive the level of profit growth and valuation of the double result of rising earnings, 6-month Bank of room for growth plate will be about 30%.
