Ministry of Finance Acquires over 5% Stake in China Guangfa Bank

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China’s Ministry of Finance has acquire a sizeable stake in the Guangzhou-headquartered successor institution to the Guangdong Development Bank.

On 27 July the China Banking and Insurance Regulatory Commission (CBIRC) gave its approval to State Grid Yingda International Holdings’ (国网英大国际控股集团有限公司) transfer of 1.137 billion shares in China Guangfa Bank (CGB) to the Ministry of Finance (MOF).

Following the transfer MOF will hold a 5.2178% stake in CGB.

As of the end of 2021 China Life Insurance held 43.686% equity in CGB, making it the lender’s largest shareholder.

State Grid Yingda and CITIC Trust each held 15.647% stakes, while the Jiangxi Province Transit Investment Group (江西省交通投资集团) held an 8.184% stake, making it CGB’s fourth largest shareholder.

As of the end of 2021 CGB had total assets of 3.36 trillion yuan, for year-on-year (YoY) growth of 10.96%. Operating revenues in 2021 were 74.905 billion yuan, while net profits were 17.476 billion yuan, for YoY growth of 26.53%.

CGB’s non-performing loan (NPL) ratio stood at 1.41% at the end of 2021, for a decline of 0.41 percentage points that year, while its provisions coverage ratio was 186.27%, for an increase of 7.95 percentage points.