China Everbright Bank recently responded on the Shanghai Stock Exchange's e-interactive platform to rumors that it had hidden nearly 20 billion yuan in bad loans, stating that its operating fundamentals are stable and there are no major risk events that should have been disclosed but were not. In the first quarter, net profit attributable to shareholders of the bank was 11.459 billion yuan, down 8.06 percent year-on-year, while operating income was 31.811 billion yuan, down 3.85 percent. In terms of asset quality, non-performing loans saw a dual increase in the first quarter. At the end of March, the non-performing loan balance was 53.449 billion yuan, an increase of 2.707 billion yuan from the end of the previous year, and the non-performing loan ratio was 1.32 percent, up 0.05 percentage points. The provision coverage ratio was 162.22 percent, down 11.92 percentage points. In its first-quarter report, the bank stated it will adopt proactive provisioning policies, prudently and orderly dispose of risk assets, and strengthen the foundation of asset quality.
China Everbright Bank Co LtdNet profit fell 8.06% YoY, NPLs increased, and provision coverage ratio declined, indicating deteriorating asset quality and earnings.