Many Indicators Of Huizhou Merchants Bank Are Worried About &Nbsp; Listing Of City Commercial Banks Is Hard To Say.

Recently, Huizhou Merchants Bank held the 2010 year.

The outcome of the meeting has not yet been announced, and the head of the board of directors of Huizhou merchants bank told the first financial daily (micro-blog) Daily yesterday that "the outcome of the meeting will be disclosed on the official website at the right time".

City Commercial listing prospects bleak?

In April 16th, at the sixth meeting of the second board of directors of Hui Merchants Bank, the motion was passed on the proposal to consider the listing of Huizhou Merchants Bank.

"Due to the complexity and uncertainty of the listing, it is recommended that the time limit for listing be extended."

The board of directors said in a meeting resolution.

The prudence of the board of directors of Huizhou Merchants Bank is obvious.

At the end of last month, the Bank of Chongqing and Shanghai bank decided to extend the IPO plan in 2010 for a year.

Hu Dongdong, director of the office of the board of directors and supervisors, said: "at present, the market timing is not yet clear because the market access has not yet been thawed."

Whereas

Huizhou Merchants Bank was founded in late 2005. It is the first regional joint-stock commercial bank established by the joint reorganization of city commercial banks and city credit cooperatives.

In October 10th last year, at the third meeting of the second board of directors of the Hui Merchants Bank, the board recommended the establishment of a specialized listing agency to actively launch and promote the listing.

Half a month later, Mao Junhua, executive director of the research department of CICC and Wen Yuan, executive director of investment banking department, came to the headquarters of Hefei Hui Merchants Bank.

In April 2nd this year, Huizhou Merchants Bank successfully issued 4 billion yuan subordinated debt to supplement subsidiary capital and raise capital adequacy ratio.

CICC is the leading underwriter and bookkeeper of this issue.

A number of regulatory indicators are worrying.

The annual report released by Huizhou Merchants Bank showed that as of the end of 2010, the bank's registered capital was 8 billion 175 million yuan, its total assets amounted to 208 billion 976 million yuan, the balance of deposits was 163 billion 632 million yuan, and the balance of loans was 117 billion 34 million yuan.

Last year, net profit was 2 billion 702 million yuan, an increase of 53.96% over the same period, earnings per share of 0.33 yuan and weighted average return on net assets 19.89%.

At the end of last year, the bank had a non-performing loan ratio of 0.60%, a capital adequacy ratio of 12.06%, a core capital adequacy ratio of 11.19%, and a provision coverage rate of 426.97%.

At the end of last year, the total number of shareholders of Huizhou Merchants Bank was 18304.

There are 171 shareholders in China, 234 legal person shares and 17899 individual shareholders.

Although the proportion of individual shares has dropped to 2.81%, the number of shareholders is still far above the standard.

Qiu Zhicheng, chief analyst of Guoxin Securities banking, told our reporter that the prospect of listing of city commercial banks is still hard to say. It is hard to say that the number of shareholders is no more than 200.

Reporters also noted that as at the end of last year, the loan to deposit ratio of Huizhou Merchants Bank was 71.52%, and the single largest customer loan ratio was 9.10%, which was close to 75% and 10% of the regulatory red line. The liquidity ratio of the bank was also not satisfactory. At the end of last year, it was 35.81%, and it had not been over 40% for many years. More importantly, its largest ten customer loan ratio was as high as 58.92%, which exceeded the 50% minimum regulatory requirements for two consecutive years.

However, analysts believe that the "urgency" of these indicators will not have a big impact on the listing.

Wang Xiaogang, an analyst with Orient Securities banking, pointed out: "small and medium-sized banks are small in scale, and the fluctuation of indicators is relatively normal. They are easy to exceed the standard and are easy to make up in time."

Qiu Zhicheng also said: "coordination with major loan customers before going public is not difficult to solve."