CMBC Earns a Net Profit of RMB 2.8 Bill in the First Half of This Year

2007-8-31

CHINA BUSINESS TIMES

CMBC made its mid-term report today, from which we can see that the indexes of CMBC had good performance, its business growing quickly and stably in the first half of this year, earning a net profit of RMB 2.821 billion Yuan, the yield per share being RMB 0.23 Yuan, its profit growth mainly based on the expansion of asset scale, adjustment of asset structure, and the quick growth of procedural fees and net income of commissions.  
 
It is reported that by the end of June the total assets of CMBC reached RMB 852.1 billion, increased RMB 127.013 billion than the end of last year, that is17.52% up. In the first half of 2007, CMBC realized business revenue of RMB 11.290 billion, increased RMB 3.632 billion than the same period of last year, that is 47.42% up; net profit RMB 2.821 billion, increased RMB 1.120 billion than the previous year, that is 65.81% up.

In the first of 2007, CMBC was successful in its private placement, breaking the bottleneck for its development, improving its capital size significantly, further enhancing its core competitiveness, laying a solid foundation for the sustainable improving of its business management. After the private placement, two large insurance corporations – China Life and Ping An came into the list of CMBC’s Top 10 shareholders, which is conducive to the improvement and business development of its corporate governance.

It is reported that in the latter half of this year, CMBC will focus on accelerating professional reform of its business system, improving its financial business reform, promoting the rating system for business departments, implementing classified management; innovating the authorizing and crediting system, perfecting evaluation coordination; establishing liability financing department, managing the liability business; establishing industry financing department directly under the head office, enhancing in-depth development of advantageous industries; Promote the reform of the retail financing business, forming a dedicated working team, and enhancing retail financing reform; Promote the operational model at the sub-branches and offices, and establish the long-term effective growth mechanism for retail banking.

At the same time, intermediate and back-office management reform will also be the focus for the latter half of this year. CMBC will establish process banking and promote compliance management, according to the requirements of flattened organizational structure, vertical business management, and integrated decision-making to promote the construction of process banking and perfect the compliance management system. Enhance product innovation, promote new business piloting, actively and steadily boost new business piloting for SME financing business, derivative products, funds and leasing etc, actively enhance innovating the products such as wealth management, credit card, electronic banking, bills, trade financing, trusteeship, and pension etc, improve business and income structure, promote growth of intermediate business, and boost the diversified and comprehensive development of the company.

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