Mar 26 - Agricultural Bank: Net Profit Rises 28.5%, PPOP up 36% in 2011

 Source: Agricultural Bank of China, ChinaScope Financial (Data)

+       On March 23, Agricultural Bank of China Ltd. (601288.SH, 1288.HK) publicized its 2011 performance report, which shows that the bank’s net profit increased 28.5% year-on-year to CNY 121.96 billion, pre-provision operating profit (PPOP) increased 36% year-on-year, and net profit decreased by 7.5 percentage points, driven down by higher credit cost.

+       The NPL ratio decreased 48 basis points, while provision coverage increased 95.1% year-on-year. Due to the significant increase in provision coverage at the end of 2011, the year-on-year net profit growth fell from 43.59% for Q1-3 to 28.5% for Q1-4.

+       The Shanghai Pudong Development Bank Co., Ltd. (600000.SH) also lowered its non-performing loan ratio by 7 basis points year-on-year and provision coverage soared by 119% to 499.6%, the highest in the banking sector. This year, with large amounts of local government loans and real estate development loans due to mature, provision coverage is expected to be raised to protect against non-performing loans risk.

ABC increased the provision of impairment loans and pushed provision-to-loans ratio up to 4.08% in 2011.

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Other News Headlines:

n Agricultural Bank: Net Profit Rises 28.5%, PPOP up 36% in 2011

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