Ping An Bank Sees Outlook Raised to Positive by Moody’s

104

Moody’s Investors Services lifted its outlook for Ping An Group’s lending vehicle in anticipation of improvements to asset quality.

In a report issued on 16 August Moody’s said that it had changed its outlook for Ping An Bank to “positive” from “stable,” while maintaining a “stable” outlook for Ping An Overseas Holdings.

Moody’s said that in addition to the solid health of the Chinese banking system, the reasons for upgrading its Ping An Bank outlook included:

  • The bank’s strategic and operational coordination with the group lifting growth prospects, while there is also the possibility of a high level of support from affiliates.
  • Stable pre-provisions profitability and sliding credit costs raising hopes for a restoration in profitability.
  • Ongoing improvements in the quality of Ping An Bank’s retail operations, following growth in retail deposits and comprehensive financial products.

Moody’s anticipates a rebound in Ping An Bank’s asset quality over the next 12 – 18 months, via the adoption of effective measures to dissolve historic non-performing loans (NPL), ongoing improvements to risk assessment and China’s continued economic recovery.

As of 31 March 2021 Ping An Bank’s NPL ratio was 1.1%, while its provisions coverage ratio was 245.16%, both of which mark improvements compared to the end of 2018.

LEAVE A REPLY

Please enter your comment!
Please enter your name here