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China Minsheng Banking posts YOY increase in FY'17 profit on lower impairments

China Minsheng Banking Corp. Ltd.'s net profit for the year ended Dec. 31, 2017, increased year over year on the back of lower impairment losses.

The bank said March 29 that net profit attributable to its equity shareholders rose to 49.81 billion yuan, or 1.35 yuan per share, from 47.84 billion yuan, or 1.31 yuan per share, for the prior year.

The S&P Capital IQ consensus GAAP and normalized EPS estimates for the bank's Hong Kong- and Shanghai-listed shares were both 1.33 yuan.

The bank's net interest income fell to 86.55 billion yuan from 94.68 billion yuan. Net interest margin for 2017 came in at 1.50%, down from 1.86% in 2016. Net fee and commission income decreased to 47.74 billion yuan from 52.26 billion yuan.

Meanwhile, impairment losses on assets fell year over year to 34.14 billion yuan from 41.38 billion yuan. Operating expenses dropped to 47.25 billion yuan from 52.42 billion yuan.

The bank's nonperforming loan ratio as of Dec. 31, 2017, was 1.71%, compared to 1.68% in the year-ago period.

As of Dec. 31, 2017, the bank's capital adequacy ratio was 11.85%, up from 11.73% a year ago. Its core Tier 1 and Tier 1 capital adequacy ratios stood at 8.63% and 8.88%, respectively, compared to 8.95% and 9.22% at the end of 2016.

In addition, China Minsheng Banking's approved a plan for the bank to pay out a cash-and-stock dividend for the second half of 2017. For every 10 shares, shareholders will receive 30 fen in cash and 2 bonus shares. The dividend is subject to shareholders' approval.

Together with the interim dividend of 12 fen per share, the bank's total cash dividend for 2017 amounted to 15 fen per share, down from a total cash dividend of 28 fen per share for 2016. The bank did not declare a stock dividend for 2016.

As of March 29, US$1 was equivalent to 6.29 Chinese yuan.