China Construction Bank is the first of the country’s big four state-owned lenders to release its 2018 third quarter financial results.
CCB saw net profits attributable to shareholders of 214.108 billion yuan for the first three quarters of 2018, for YoY growth of 6.39%.
Operating revenues for the first nine months of 2018 were 500.047 billion yuan, for a YoY rise of 5.94%, while net interest income was 365.725 billion yuan, for an increase of 9.72% compared to the same period last year.
As of the end of September CCB’s annualised rate of return on average assets was 1.26%, while its annualised weighted average rate of return on equity was 16.08%.
The bank’s total assets were 23.35 trillion yuan, for an increase of 5.56% compared to the end of last year, while its total liabilities were 21.42 trillion yuan, for an increase of 5.35% compared to the end of 2017.
Total loans and advances to customers were 13.77 trillion yuan, for an increase of 6.68% compared to the end of last year, while customer deposits were 17.23 trillion yuan, for an increase of 5.28%.
CCB has emerged as the leading financially inclusive lender in China’s banking sector in 2018, with the first three quarters seeing an increase in its financial inclusion loans of 160 billion yuan, including 130 billion yuan in loans to small and micro-enterprises, as well as an increase in small and micro-enterprise borrowers of 155,000.
As of the end of September CCB’s non-performing loan (NPL) balance was 201.821 billion yuan, while its NPL ratio was 1.47%, for a decline of 0.02 percentage points compared to the end of last year.
Its provision coverage ratio was 195.16%, for an increase of 24.08 percentage points compared to the end of last year.
CCB’s capital adequacy ratio was 16.23%, while its tier 1 capital adequacy ratio and its core tier 1 capital adequacy ratio were 13.92% and 13.34% respectively, all of which fall within regulatory requirements.