Shenyang’s Municipal Bank Achieves Double Digit Growth in 2016

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Amidst an increasing challenging environment for the Chinese banking sector, Shenyang-based Shengjing Bank managed to pull-off double-digit revenue growth in 2016.

Shengjing Bank’s full year net profits for 2016 were 6.878 billion yuan, maintaining a growth rate of more than 10%.

Net earnings on interest increased from 11.949 billion yuan in 2015 to 13.218 billion yuan last year, for an expansion of 10.6%.

Shengjing’s operating revenues hit 16.114 billion yuan, for year-onyear growth of 13.6%, while pre-tax profits were 8.707 billion yuan, rising 7.2% compared to 2015.

The bank’s strong performance is all the more impressive given an increasingly challenging environment for Chinese lenders, with industry figures already claiming that the era of the “three highs” (high growth, high interest spreads and high profits) has come to an end.

Shenjing Bank, which had its origins as a municipal bank in the Liaoning province capital of Shenyang, is also primarily responsible for serving China’s north-eastern region, whose economic growth has recently lagged behind other regions of the country.

Diversification of operations has been one of the keys to Shengjing’s strong profit-making capability, abetting its transition from traditional operations to newer forms of business.

In order to shore up profits last year Shengjing vigorously expanded its high-profit, low-risk intermediation operations, further optimising its business revenue and greatly increasing profitability, while also enhancing risk-prevention.

The bank’s net earnings from operating fees and commissions saw a surge last year, leaping nearly 59% year-on-year to reached 1.914 billion yuan, and rising to 11.88% of operating revenue.

 

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