Ningbo Bank ranks No.1
- Details
- Category: Ningbo Business
- Published: Tuesday, 07 August 2012 13:15
On August 3, China Bankers Forum & 2012 Release Conference for China Commercial Bank Competitiveness Evaluation Report was held in Ningbo Shangri-La Hotel. It is learned that ICBC ranks No.1 in all the commercial banks in China in terms of core competitiveness and CCB and BOC rank No.2. While among the comprehensive ranking of all city commercial banks with the assets of over 100 billion yuan in China, Ningbo Bank ranks No.1.
The 2012 competitiveness evaluation report for China commercial banks shows that in the last year, the assets of commercial banks in China reached a record-high 113.3 trillion yuan, up by 18.9% (more than twice of the increase of GDP) over the previous year. The net profit of domestic banking reached 1.25 trillion yuan, an increase of 39.3% compared with the previous year. The net profit of China banking industry in 2011 accounts for 29.3% of that of the global banking industry. Apart from the large commercial banks, over 140 city commercial banks realized a net profit of hundreds of millions yuan.
However, a series of economic changes and structural adjustment of financial system have threatened the outstanding profit capacity of the domestic banking industry. Since the beginning of this year, the increase rate of the domestic banking industry has been on the decline. Presumably, the trend will be more evident in the following years. Besides the impact of the deterioration of the international financial environment and the operating problems of the whole banking industry, the profound revolution of the domestic financial system based on the marketization of interest rates will force the banking industry to change its operating patterns, especially the profit patterns.
ICBC ranks No.1 in the ranking of national commercial banks, and CCB and BOC rank No.2. The assets of the 12 national commercial banks account for 63.5% of the total assets of the banking industry. The phenomenon of high proportion of interest income and low proportion of service charge and commission has been a common feature of the income structure of the domestic commercial banks. In 2011, the interest income rate of most national commercial banks was over 80%. However, compared with that of 2010, the rate has declined comprehensively.
Some experts comment that the marketization of interest rates will have a great impact on the profit pattern of relying too much on interest income. "Recently, the People's Bank has lowered the benchmark interest rates in a successive way, and expanded the floating range between deposit interest rates and loan interest rates. The permission on the moderate increase of deposit interest rates is significant to the marketization of interest rates and even the whole financial revolution." said an expert. Accordingly, the marketization of interest rates will have a profound impact on the profit increase, operating patterns and market competition of domestic banks.
