So what is the performance in 2018? Securities Times reporter learned that on March 22, Huoshan Rural Commercial Bank 2019shareholderAt the conference, the relevant management revealed that the “Huashan Rural Commercial Bank's 2018 Business Management Work Report” showed that the bank did not increase its revenue in 2018, and realized operating income of 400 million yuan, a year-on-year increase of 7.23%, and total profit of 25.118 million yuan. In the same period of the year, it decreased by 21.386 million yuan; the net profit was 18.36 million yuan, a decrease of about 16 million yuan over the same period of the previous year.
As of the end of 2018, the balance of non-performing loans of Huoshan Rural Commercial Bank was 260 million yuan, and the non-performing loan ratio was 5.7%. The loan provision coverage ratio was 100.62%, a decrease of 59.34 percentage points from the previous year. In February 2018, the relevant documents of the China Insurance Regulatory Commission required commercialbankThe regulatory requirements for provision coverage are 120% to 150%, while the non-performing loan ratio of rural commercial banks needs to be controlled below 5%.
However, Peng Xianhai said that the increase in the non-performing rate is mainly due to the pressure brought by the economic downturn. "There may be some problems in the economic downturn, but this is not only our problem, but many small and medium-sized banking institutions are like this."
Peng Xianhai explained that the industry's average NPL ratio is lower than that of Huoshan Rural Commercial Bank. “Probably because they did not truly reflect the bad situation, and the 5.7% non-performing rate of Huoshan Rural Commercial Bank is a true reflection of the non-performing assets in the five-category loan category. In the first half of the year, bad disposal will be put in place and the risk will gradually decrease."
Peng Xianhai explained that the increase in income and the provision coverage ratio are lower than the regulatory requirements. Peng Xianhai explained that the income is increasing year by year and the net profit is declining because the profits earned are used to digest assets such as non-performing loans, and also cause no more profit extraction. Provisions, "This year we should gradually increase the provision coverage ratio after the profit, and we should be able to meet the regulatory requirements next year."
(Article source: Securities Times)