One of China’s leading commercial banks has posted a strong performance in the first quarter of 2020 despite the severely adverse impacts of the COVID-19 pandemic.
Ping An Bank’s ( 000001,SZ) first quarter results released on 20 April indicate that as of the end of March its total assets were 4.1323 trillion yuan, breaching the four trillion yuan threshold for the first time ever.
Its deposit balance was 2.566857 trillion yuan, for an increase of 5.3% compared to the end of last year, while its total loans and advanced principal (including discounts) was 2.444176 trillion yuan, for an increase of 5.2%.
YoY growth in Ping An Bank’s operating revenues and net profits also breached a three-year high in the first quarter.
The lender saw 37.926 billion yuan in operating revenues in the first quarter, for a YoY rise of 16.8%, while net profits attributable to company shareholders were 8.548 billion yuan, for a YoY rise of 14.8%.
Ping An Bank’s impressive performance came despite the Chinese economy posting a 6.8% GDP contraction in the first quarter as a result of intensive lockdown measures imposed by Beijing.
Net interest revenues in the first quarter totalled 24.77 billion, for an increase of 3.996 billion yuan, or 19.2%, compared to the same period of 2019.
The average daily balance of total loans and principal advanced (not including discounting) was 2.261743 trillion yuan, for a YoY rise of 15.0%.
The net interest rate spread increased by 7 basis points YoY to reach 2.60% in the first quarter, yet declined 2 basis points compared to the preceding quarter.