On 28 October 2011, China Construction Bank Corporation (“CCB” or “the Bank”) released the third-quarter results of the Bank and its subsidiaries for 2011. In the third quarter, the Bank continued to maintain a prudent operating strategy, accelerated the pace of changing its development mode and promoted adjustments in its business structure. Meanwhile, all its business lines were sustaining a trend of steady and vigorous development.

As at 30 September 2011, CCB’s total assets exceeded the RMB11 trillion mark and reached RMB11.77233 trillion (unless otherwise specified, the data set forth herein are reported in accordance with the International Financial Reporting Standards). This was an increase of RMB962.013 billion or 8.90% from the end of last year. Total loans and advances to customers were RMB6.341637 trillion, up RMB672.509 billion or 11.86% from the end of last year. Total liabilities increased by RMB883.894 billion or 8.74% from last year end to reach RMB10.993306 trillion. Deposits from customers rose RMB660.211 billion or 7.27% from last year end to RMB9.73558 trillion. Its loan-to-deposit ratio was maintained at a reasonable level at 65.14%. Total shareholders’ equity was RMB779.024 billion, which was an increase of RMB78.119 billion or 11.15% from last year end.

Due to stable rises in the net interest margin and steady growths in net fee and commission income, the Bank was able to register a net profit of RMB139.207 billion in the first three quarters of 2011. The year-on-year increase in net profit was 25.82%. With annualised return on average assets of 1.64% and annualised return on average equity of 24.82%, the Bank continued to command a leading position in the banking sector. In the period, net interest income was up 22.41% on the year to RMB223.01 billion, while the net interest spread of 2.56% and net interest margin of 2.68%, were respectively 0.21 and 0.23 percentage points higher than those of the same period last year.

In the first three quarters, CCB further implemented adjustments in its credit structure and was able to achieve steady growths in its infrastructure loan and personal mortgage loan businesses with rapid development of its emerging strategic businesses such as small enterprise loans. During the period, the Bank strictly controlled new loans extension to local government funding vehicles and timely mitigated local government funding vehicles risks by clearing up and rectifying those loans steadily. It had also paid close attention to the responses to real estate adjustment policies and the trends of realty markets, actively controlled the growth rate of real estate loans, bolstered the closed management of project funds and optimised customer structure continuously.

Simultaneous declines in the balance of non-performing loans and in non-performing loan ratio were achieved. As at 30 September 2011, the balance of non-performing loans was RMB64.642 billion; while the non-performing loan ratio fell 0.12 percentage points from last year end to 1.02%. At the same time, the Bank continued to make even and steady impairment allowances on assets. The allowances to non-performing loans was as high as 248.65% or 27.51 percentage point higher than that of last  year end, thereby further enhancing its risk mitigation capability. In the period, the capital adequacy levels of the Bank remained stable, with the capital adequacy ratio and the core capital adequacy ratio stood at 12.58% and 10.57% respectively.

CCB’s income structure was continuously optimised: net fee and commission income was RMB68.792 billion, which was a growth of 41.31% year-on-year. In particular, not only high incomes growth rates were recorded for key products such as corporate settlement and international settlement, significant income growths were also achieved by emerging-type products such as domestic factoring, wealth management products, credit cards, the “Safe Deal” custodial service and e-banking. At the same time, CCB was able to maintain a relatively low cost-to-income ratio of 32.45%.