OREANDA-NEWS. May 10, 2012. Bank of China Limited (“BOC”: Hong Kong Stock Exchange stock code: 3988; Shanghai Stock Exchange stock code: 601988) announced its 2012 first quarter results. According to International Financial Reporting Standards (“IFRS”), BOC has achieved profit after tax of RMB38.447 billion,anincrease of 9.82%compared with the same period of the previous year, reported the press-centre of Bank of China.

Since 2012, BOC continued to adopt the scientific outlook on development, inherit and develop its excellent traditions. The Bank earnestly implemented its strategic development plans and actively promoted its innovative, transformative and cross-border development. In 2012, all business lines achieved steady improvement in profitability and efficiency.

Sound key financial indicators
In the first quarter of 2012, BOC’s return on average total assets (ROA) and return on average equity (ROE) were 1.24% and 19.81% respectively. Earnings per share reached RMB0.13.Non-performing loan ratio dropped by 0.03 percentage point to 0.97% as compared with the prior year-end,while NPL coverage ratio increased by 5.92 percentage points from the prior year-end to 226.67%. Credit cost decreased by 0.01 percentage point compared with the same period of 2011 to 0.34%. Cost-to-income ratio was 27.79%, maintaining at a low level.

Balanced growth in deposits and loans
In the first quarter of 2012, BOC continued to strengthen its marketing activities, expand customer base, enhance outlet efficiency and achieved stable growth in customer deposits. As at 31 March 2012, total deposits from customers amounted to RMB9,517.098 billion, an increase of RMB699.137 billion or 7.93% from the prior year-end. Domestic RMB-denominated deposits amounted to RMB7,553.196 billion, an increase of RMB533.492 billion or 7.60% from the prior year-end.

In 2012, the Bank continued to implement the prudent monetary policy and the requirement of macro-economic adjustment, and supported a reasonable credit supply, promoting the steady and balanced development of its loan business. As at 31 March 2012, the Bank’s total customer loans rose by RMB247.006 billion or 3.89% to RMB6,589.820 billion compared with the prior year-end. Domestic RMB-denominated loans amounted to RMB4,842.033 billion, an increase of RMB207.118 billion or 4.47% compared with the prior year-end.

Stable growth in net interest income and non-interest income
In the first quarter of 2012, BOC recorded net interest income of RMB60.598 billion, an increase of RMB7.062 billion or 13.19% compared with the same period of 2011. In the first quarter of 2012, non-interest income of BOC reported an increase of RMB4.306 billion or 14.34% to RMB34.330 billion, in which, net fee and commission income amounted to RMB21.152 billion, an increase of 13.83% compared with the same period of 2011.

Asset quality maintained stable
Since 2012, the Bank continued to push forward the integration, refinement and specialization of its risk management function, and enhance proactive risk management. The Bank further strengthened liquidation and resolution on non-performing assets, and maintained stable in asset quality. As at 31 March 2012, the balance ofnon-performing loans was RMB63.939 billion, and the ratio of non-performing loans to total loans was 0.97%, a decrease of 0.03 percentage point from the prior year-end. In the first quarter, impairment on loans provided by the Group was RMB5.575 billion, an increase of RMB507 million as compared with the same period of the prior year. The impairment allowance on loans at the end of the first quarter was RMB144.928 billion, and the ratio of allowance for loan impairment losses to non-performing loans was 226.67%, up by 5.92 percentage points from the prior year-end.

In the first quarter, BOC continued to reduce the high risk position in bonds issued by European countries. As at the end of 31 March 2012, the total carrying value of debt securities issued by European governments and institutions held by the Group was RMB66.365 billion, of which the total carrying value of debt securities issued by the UK, Germany, Netherlands, France and Switzerland accounted for 96.63%. The Group did not hold any debt securities issued by Greece, Portugal, Ireland, Italy or Spain. Due to market recovery, the reversal of impairment losses on debt securities amounted to RMB95 million.

BOC has achieved balanced performance in all business lines in the first quarter, providing a solid base for the healthy business development for the full year. BOC has celebrated the 100th year anniversary in early 2012. Standing at the new historic starting point, the Bank will step up its efforts to establish a leading international banking group and continuously create value for shareholders.