Last updated at: (Beijing Time) Thursday, February 12, 2004
CCB posts 9.25 percent NPL ratio at year end
The China Construction Bank(CCB) said Thursday its non-performing loan (NPL) ratio declined 6.65 percentage points in one year to 9.25 percent at the end of 2003, maintaining the best asset quality among China's "big four" state-owned banks.
The China Construction Bank said Thursday its non-performing loan (NPL) ratio declined 6.65 percentage points in one year to 9.25 percent at the end of 2003, maintaining the best asset quality among China's "big four" state-owned banks.
The bank still reported 193.33 billion yuan (23.29 billion US dollars) of NPLs waiting to be dealt with at the year end, according to a spokesman for the CCB.
China has been steadily increasing foreign access to its banking market over the past years under a commitment to the WorldTrade Organization to open the financial industries to outside competitors by 2006, forcing leading banks like the CCB to grow stronger.
The State Council, China's cabinet, had poured as much as 22.5 billion US dollars -- using its massive forex reserves -- by the end of last year to the Construction Bank to increase its capital in cash and help turn it into a joint-stock company, a prerequisite for a stock market-listed enterprise.
The CCB spokesman said the bank would take this opportunity to build itself into a modern financial enterprise with sufficient capital, strict internal control, safe operation and sound services and profits.
No efforts should be spared to tighten corporate governance, revamp management and internal control, reduce NPLs sharply, builda scientific financial system, upgrade services for customers and provide training for staff, he said.
In 2004, the bank's business profits are set to jump a year-on-year 18 percent from last year's 51.23 billion yuan (6.17 billion dollars).
And its outstanding deposits and loans are projected to grow 12.3 and 12.9 percent respectively in one year.