OREANDA-NEWS. May 10, 2012. Shenzhen Development Bank (SDB, SZSE 000001) submitted 2012 Q1 performance report to SZSE. Please refer to www.sdb.com.cn or www.cninfo.com.cn for the whole text. This press release gives a summary view of the consolidated financial data of SDB and its controlled subsidiary Ping An Bank for 2012 Q1, reported the press-centre of Shenzhen Development Bank.

In face of economic transformation, growth slowdown and increasingly fierce competitions in financial markets in China, the Q1 of 2012 saw sound progress in implementing business development strategy, active development of deposits and various competitive businesses taking the opportunity of the 2-bank integration, continuous advancement in cross-selling demonstrating advantages of integrated finance, continuously enhanced portfolio management with improved asset and liability management level, and well-developed risk management mechanism that put various risks under effective control.

Highlights are as below:

2012 Q1 saw consolidated net profit RMB3.429bn attributable to parent company, up 43% YoY; operating income RMB9.724bn, up 67% YoY.

Consolidated total assets increased 9% over year beginning to 1,368bn by end Q1 of 2012.

Consolidated total deposits grew 8% over year beginning to 914.8bn and total loans grew 5% over year beginning to 651.4bn, by end Q1 of 2012.

In 2012 Q1 Consolidated NIM was 2.47% and consolidated net fee/ commission income saw a sharp increase of 200% YoY.

2012 Q1 saw consolidated cost to income ratio 38%, down 1.81% vs end of last year.

NPL ratio and provision coverage were 0.68% and 253% respectively where NPL ratio remains relatively low vs the industry. Provision/loan ratio further improved with the consolidated ratio being 1.73% and that of SDB 1.91%.
 
By end Q1, consolidated CAR and CCAR were 11.63% and 8.63% respectively, in line with regulatory requirements.

In Q1, cross-selling paid off on a consolidated basis with 900,000 new credit cards issued.