OREANDA-NEWS. May 16, 2013. According to the 2012 annual report released d on the website of the China Development Bank (CDB), the bank posted net profit of 63.1 billion yuan, a 38.38% increase from the 45.6 billion yuan recorded in 2011.

Net interest income amounted to 154.4 billion yuan, an increase of 32.53% from 116.5 billion yuan in the previous year. Non-performing loans ratio was 0.3%, further down from the 0.4% in 2011.

CDB Chairman Chen Yuan said in the annual report that the domestic and international economic and financial situation was complex and grim in 2012, the profound impact of the international financial crisis continued to be felt, major developed economies experienced difficulties in recovery, and emerging economies continued to grow but at a slower speed. There has been no change in the long-term positive trend in China's economy, which is making progress amid stability, though the problem of unbalanced, uncoordinated, and unsustainable development remains prominent.

In 2de past year, CDB took the scientific development concept as its guide, resolutely implemented the various guiding principles and policies of the central government, focused on the overall key note of seeking progress amid stability, gave play to its advantages and role in longer-term investment and financing, served the country's major longer-term development strategy, and made new contributions to the economic and social development in China.

Chen Yuan also said that in 2013 the world economy faces complex adjustments along with an increase in factors of instability and uncertainty, but there has been no change in the long-term positive trend for China's development, which is still in a an important period of promising strategic opportunities. CDB will continue to be guided by the scientific development concept, adhere to planning ahead and driving progress with innovation, continually deepen the practice and exploration of development financing, focus on supporting urbanization in China, continue to step up support for major areas and weak links such as key construction in infrastructure, basic industries and pillar industries, the people's livelihood, and international cooperation, forge ahead, tackle and overcome difficulties, and make new contributions to the completion of the building of a well-off society in an all-round way.

According to the changes in CDB directors, supervisors and senior management disclosed by the bank's annual report, after his election as vice chairman of the 12th CPPCC National Committee on 11 March 2013, Chen Yuan no longer served concurrently as CDB chairman of the board and executive director with effect from 15 April. On 22 April 2013, Hu Huaibang was nominated by CDB's second board meeting in 2013 as the bank's executive director and chairman of the board. The nomination was yet to be submitted to the shareholders' meeting for consideration and to the China Banking Regulatory Commission (CBRC) for approval.

In addition, as decided by CDB's fifth board meeting in 2012 and approved by CBRC, Zheng Zhijie became vice chairman and president of the bank; as decided by CDB's 2011 annual shareholders' meeting and approved by CBRC, Chen Xiaochuan became an independent non-executive director of the bank; and Gao Jian, former CDB executive director and vice president, resigned due to his age with effect from 15 August 2012.

CDB President Zheng Zhijie said in his annual report message that, as of the end of 2012, the bank's total assets stood at 7.52 trillion yuan and loan balance at 6.42 trillion yuan. Cumulative loan recovery ratio was 99.7% and non-performing loan ratio 0.3%, which had been kept under 1% for 31 consecutive quarters. The bank posted net profit of 63.1 billion yuan, with higher ROA and ROE from the previous year. With a capital adequacy ratio of 10.92% and loan provision ratio of 2.82%, the bank has further strengthened its ability to sustain development and control risks.

In 2012, CDB recorded an increase of 604.9 billion yuan in new non-personal longer-term loans, representing a share of 39.3% in the banking industry, whereas an increase of 116.6 billion yuan in new lending for welfare housing projects represented a share of over 60% in the industry. As of the end of 2012, the balance of foreign currency lending at the bank stood at USD 224.5 billion with asset quality remaining excellent. During the year the bank did underwriting of 264 bonds with an issuing amount of 652.9 billion yuan, up 150% YoY. After a four-year period of inactivity in credit asset securitization, the bank resumed the business with its first single asset-backed security for 10.2 billion yuan. The bank also launched new products such as supply chain factoring to support the development of the manufacturing industry and the SMEs. The bank recorded full-year intermediary business net income of 9.95 billion yuan, up 47.5% YoY.