China Everbright Plans Direct Bank, IT Subsidiaries on Back of Profit Gain


China Everbright Bank has posted a modest gain in net profits for 2016.

The 2016 annual report for China Everbright indicates that the bank saw a 2.74% year-on-year gain in net profits, which hit 30.388 billion yuan last year.

Operating revenue in 2016 reached 94.037 billion yuan for year-on-year growth of 0.94%. The marketisation of interest rates in China has put a squeeze on interest-derived revenues, which fell 1.171 billion yuan year-on-year to 65.288 billion yuan.

Everbright’s non-performing loan balance saw a slight fall of 0.01 percentage points to 1.6%, for a total of 28.702 billion yuan.

The bank’s provision coverage ratio last year was 150.02%.

With the marketization of interest rates putting pressure on revenue and intensifying competition amongst Chinese banks, China Everbright hopes to set itself apart from its peers with a change operating model that focuses on “a “comprehensive, light-model” and being “smart and green.”

As part of the move towards more integrated banking, Everbright has established a major asset management committee, responsible for overall combination of traditional bank loan, asset management, interbank, investment banking and fund operations.

The scope of major asset operations grew by over 260 billion yuan last year to reach 2.74 trillion yuan,.