Overview Of Bank of Changsha Debt Rate In 1Q21 Period

Overview of company’s profile:

Bank of Changsha Co. Ltd. [601577:CH] is a Chinese based financial company that focuses mainly in the provision of several kinds of banking services. The business of the company involves the offering of deposits, loans, fund settlement, wealth management, investment banking, foreign exchange, online banking and other related banking services. The business activities of the company are been rendered to companies, individuals and groups. The company conducts its business activities within the Chinese domestic regions and no involvement in the oversea market yet. Bank of Changsha was formed and issued a business license in August 1997 while its headquarter is situated at Changsha, China. The executive leader of the company is Yuguo Zhu with up to 7,618 other employees currently working for the company.

Overview of previous annual financial performances:

The financial performance reports of the company for the past six years show some steady and consistent growth in most of the major financial indicators of each of the reports. The steady growth in the financial performances of the company is vastly attributed to the steady increase in the number of customers patronizing the financial firm. One of the factor that propelled the steady growth of customers is the low interest been attached to loan acquisition. The management of the company released the financial performance report of the company targeting the Fy20 period highlighting significant growth in most of the major financial indicators. According to the financial data that was posted by reuters, some of the major financial indicators performed as follows;

Interest income: The financial data that was posted by reuters revealed that the total interest income realized from business significantly improved to CNY29.22 billion which shows that it increased by 10.30% year-on-year when compared and analyzed from the CNY26.21 billion that was reported in the previous year’s (2019) financial result.

Loan loss provision: The financial report of the company for the Fy20 period also revealed that the total amount realized as loan loss provision significantly increased to CNY4.96 billion which shows that it increased by 15.32% year-on-year when compared and analyzed from the CNY4.20 billion that was reported in the previous year’s (2019) financial result.

Debt rate: The financial result for the period in quote also highlighted that the total debt accumulated by the company during that period strongly increased to CNY166.5 billion which shows that it increased by 10.53% year-on-year when compared and analyzed from the CNY148.96 billion that was reported in the previous year’s (2019) financial result.

Overview of 1Q21’s financial result:

The financial result of the first quarter of Fy20 period reveals that the total amount realized as interest income significantly decreased to CNY7.77 billion which shows that it decreased by 9.01% year-on-year when compared and analyzed from the CNY8.54 billion that was reported in the previous quarter’s (4Q20) financial result. The result also showed that the total debt accumulated by the company during that period increased to CNY187.43 billion which shows that it increased by 11.16% year-on-year when compared and analyzed from the CNY166.51 billion that was reported in the previous quarter’s (4Q20) financial result.

Sources:

https://www.marketscreener.com/quote/stock/BANK-OF-CHANGSHA-CO-LTD-50426007/company/

https://www.reuters.com/companies/601577.SS/financials/income-statement-quarterly

https://www.reuters.com/companies/601577.SS/financials/income-statement-annual

https://www.bloomberg.com/profile/company/601577:CH