Monday, September 7, 2015

China's 10 Largest Banks 2014 Total Audited Earnings of RMB 1.162 Trillion Comprised 80% of the Total Audited 2014 Earnings of China's 15 Largest Companies ..... These 10 Chinese Banks Reported 70 Consecutive Year-Over-Year Increases in Audited Earnings from 2007 to 2014 ..... And Elizabeth Warren Thinks There's Something Strange About US Big Banks?

From a review of the superb Google Finance Website, I broke out below the 15 Companies headquartered in China which had the largest stock market caps on the Shanghai Stock Exchange.

I excluded the newly formed CRRC Corp Ltd because financial statements of it weren't available and the two bullet train manufacturers merged into it had very little in the way of past earnings.

Of these 15 largest Chinese Companies, an amazingly high 10 of them were Banks.  And from a review of financial statements at their investor relations websites, these 10 Banks comprised an off-the-charts 80% of the Total 2014 Audited Earnings of the 15 largest Chinese Companies.

I could only find three other China headquartered Companies whose stocks didn't trade on the Shanghai Stock Exchange ..... Alibaba Group, Tencent Holdings and Baidu ..... which had stock market caps that would be in the top 15.  All three of them are great companies but their Total 2014 Audited Earnings were only 5% of the Total 2014 Audited Earnings of the 10 largest Chinese Banks.

When 80% of the Earnings of a Country are in its Banks and another 5.5% are in its Insurance Companies, there is no way you can have a robust, broad-based economy.

And when these 10 largest Banks report 70 consecutive year-over-year increases in audited earnings for all years from 2007 through 2014, I suggest that that is mathematically impossible in real economic terms.

I used the Consolidated Net Profit amounts for all years for the four largest Chinese Banks.  And I used Net Profits Attributable to Owners for all years for the six somewhat smaller Chinese Banks because it was much easier to find these numbers in the many voluminous annual reports reviewed.  If I would have used Consolidated Profit amounts for all 10 Banks, the Total 2014 Audited Earnings of these 10 largest Chinese Banks would have been north of RMB 1.2 trillion.  The RMB is worth about 16 cents in US$ terms.

Below here are the reported Audited Earnings for each of  these 15 largest Chinese Companies for all years from 2007 through 2014:


2014 2014 2013 2012 2011 2010 2009 2008 2007

Most Audited Audited Audited Audited Audited Audited Audited Audited
Google Finance Website City Recent Net Net Net Net Net Net Net Net
Largest China Companies HQs FYE Profit Profit Profit Profit Profit Profit Profit Profit



 mil RMBs   mil RMBs   mil RMBs   mil RMBs   mil RMBs   mil RMBs   mil RMBs   mil RMBs 
Banks









Industrial and Commercial Bank of China Beijing  Dec14      276,286     262,965     238,691     208,445     166,025     129,396     111,226       82,254
China Construction Bank Beijing  Dec14      228,247     215,122     193,602     169,439     135,031     106,836       92,642       69,142
Agricultural Bank of China Ltd Beijing  Dec14      179,510     166,211     145,131     121,956       94,907       65,002       51,453       43,787
Bank of China Limited Beijing  Dec14      177,198     163,741     145,746     130,848     110,111       85,349       65,573       62,017
Bank of Communications Co Ltd Shanghai  Dec14        65,850       62,295       58,369       50,735       39,042       30,118       28,524       20,323
China Merchants Bank Co Ltd Shenzhen  Dec14        55,911       51,743       45,268       36,129       25,769       18,235       21,077       15,243
Industrial Bank Co Ltd Fuzhou  Dec14        47,138       41,211       34,718       25,505       18,521       13,282       11,385         8,586
Shanghai Pudong Development Bank Co Ltd Shanghai  Dec14        47,026       40,922       34,186       27,286       19,177       13,217       12,516         5,499
China Minsheng Banking Corp Ltd Beijing  Dec14        44,546       42,278       37,563       27,920       17,581       12,104         7,885         6,335
China CITIC Bank Corporation Limited Beijing  Dec14        40,692       39,175       31,032       30,819       21,509       14,320       13,296         8,322











Total all 10 Banks

 1,162,404  1,085,663     964,306     829,082     647,673     487,859     415,577     321,508











Total Bank Earnings % Increase:









….. 2014 Over 2013

7%






….. 2014 Over 2012

21%






….. 2014 Over 2011

40%






….. 2014 Over 2010

79%






….. 2014 Over 2009

138%






….. 2014 Over 2008

180%






….. 2014 Over 2007

262%

















Insurance Companies









Ping An Insurance Group of China Shenzhen  Dec14        47,930       36,014       26,750       22,582       17,938       14,482         1,635       19,219
China Life Insurance Co Ltd Beijing  Dec14        32,514       25,008       11,272       18,491       33,811       33,036       19,274       39,060











Oil & Gas Companies









PetroChina Co Ltd Beijing  Dec14      119,028     142,274     130,620     145,959     150,792     106,559     126,802     155,337
Chicago Petroleum & Chemical Corp Beijing  Dec14        46,466       66,132       63,879       73,225       71,782       63,129       31,180       56,150











Coal Company









China Shenhua Energy Co Ltd Beijing  Dec14        48,383       55,224       57,896       53,802       44,619       37,110       29,899       24,037











Total all 15

 1,456,732  1,410,315  1,254,723  1,143,141     966,615     742,175     624,367     615,311