China Construction Bank Corporation (Hong Kong stock code: 939, Shanghai stock code: 601939) (“CCB” or “the Bank”) announced its operating performance for the third quarter of 2013 on 27 October, 2013. The results indicate that CCB maintained stable operations, continued the steady development of all business segments, and ensured solid financial performance and asset quality. In addition, the Bank also optimized its incremental credit loans and strengthened its support for the real economy.

Financial results achieved steady growth

As CCB’s third-quarter earnings report indicates, as of September 30, 2013, the Bank continued its positive development momentum for the first half of 2013. Credit supply maintained a reasonable and balanced growth. CCB’s total assets were up by 1,022,941 million, or 7.32%, from the end of last year to 14,995,769 million; (unless otherwise stated, the data herein are calculated in accordance with International Financial Reporting Standards on a consolidated basis in RMB). Total liabilities grew by 922,874 million, or 7.09%, from the end of last year to 13,946,157 million. The loan-to-deposit ratio remained at an appropriate level of 69.14%.

As of September 30, 2013, CCB’s net profit was up by 11.57% from the same period of last year to 176,867 million. The annualized return on average assets and annualized return on average equity stood at 1.63% and 23.38% respectively. Net interest income grew by 9.76% from the same period of last year to 286,510 million. The net interest spread and net interest margin both decreased by 0.03 percentage point from the same period of last year to 2.54% and 2.71%, respectively. The net fee and commission income increased by 14.54% over the same period of last year to 80,088 million. The Bank’s traditional high-performance business, including project cost advisory services and financial services for housing reform, continued to grow fast. While keeping its income structure optimized, CCB’s cost-to-income ratio fell by 0.22 percentage point from the same period of 2012 to 25.55%.

Asset quality remained stable

In light of the complex economic environment at home and abroad, CCB continued to stabilize the quality of its credit assets by improving their risk management, accelerating risk resolution, and enhancing risk prevention and control in key areas and sectors. CCB’s third-quarter earnings report shows that, according to the Bank’s five-level loan classification method, the balance of non-performing loans stood at 82,087 million, with a non-performing loan ratio of 0.98%, down by 0.01 percentage point from the end of last year. The ratio of allowance to non-performing loans was 267.88%, 3.41 percentage points lower than the end of 2012. The Bank maintains a leading position among domestic commercial banks in terms of asset quality.

Credit structure further optimized

CCB continued to adjust its credit structure and to strength its support for the real economy. As of September 30, 2013, CCB’s total loans and advances to customers reached 8,377,210 million, up by 864,898 million, or 11.51%, from the end of last year. These loans were mainly granted to sectors including infrastructure, indemnificatory houses, small and micro businesses and agriculture-related sectors. While solidifying the Bank’s traditional high-performance business, CCB optimized its incremental credit loans, provided further support to satisfy the credit needs of small businesses and individuals, optimized its client base, and continued to reduce the balance of loans to industries with excess capacity.

In the third quarter of 2013, CCB maintained the positive momentum from the first half of the year by proactively expanding its emerging businesses and accelerating the transformation of its overall business. The Bank’s emerging businesses, such as e-banking, credit cards and underwriting of debt securities all delivered positive performances. CCB also improved its overseas business layout, which helped to enhance its overall market competitiveness.