(Yicai Global) Aug. 16 -- During a recent interview with Yicai Global, Shao Ping, president of Ping An Bank, said that the bank's operating efficiency had been enhanced in recent years as a result of effective rationalization of its asset-liability structure. Without structural optimization, business expansion in scale alone would be unsustainable.
Talking about earnings results in the first half of 2016, he said, "I'm very satisfied with the improvement in efficiency indicators. Our net interest margin and net interest spread continued to improve, and our cost to income ratio used to be over 40 percent, but has now dropped to below 30 percent after consistent decreases in the past several years."
"Our business structure has been enhanced, and the number of high quality clients has increased. High cost liabilities in general deposits are now effectively controlled," added Shao.
He voiced his belief that its business, revenue and customer structures dictate the sustainability of a bank.
According to the semi-annual report recently released by Ping An, its cost to income ratio was 28.8 percent in the first half, down 12 percentage points from the end of 2013. Despite a first-half 3.5 percentage drop in interest revenues, interest expenses fell over 21 percent points, which contributed considerably to the growth of net interest revenue.