Bank of China International Institute of Yuan Lin said that from the disclosure of the situation, the bank interest margins have risen, mainly due to the restructuring of assets and deposits of re-pricing and demand, while fee income from wealth management business, agency business also driven by strong growth.
But the mid-year report also reflects a number of disadvantages. Such as rapid consumption of capital, some banks will still consider financing next year; future space narrowing interest margins continue to expand, and the growth rate may drop charges. Therefore, long-term profitability of banks rely mainly on expansion of the restructuring of assets, such as SME lending and non-residential loans to increase in proportion, but the restructuring will often bring increased risk.
Yuan Lin believes that the future of the most important factor affecting bank is inflation, the monetary policy, especially interest rate policy will be extremely important. If it is symmetrical and the current interest rate interest rates unchanged, then the expected net profit in 2010 increased by 3.7%, under asymmetric interest rate will drop in 2010 net profit of 1.8%.