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Ping An Insurance H1 net profit rises 27.9%

(Xinhua)
Updated: 2010-08-25 02:28

In future, Ping An said it would pursue on the restructuring and integration of Shenzhen Development Bank and Ping An Bank, aiming at a "win-win" situation for different parties.

Ping An said in June it was mulling over merging Ping An Bank and Shenzhen Development Bank as part of its long-term ambition to become "a leading international integrated financial services provider" with equal strength in banking, asset management and insurance.

Regarding securities business, Ping An said its net income of its brokerage unit more than doubled to 828 million yuan from 367 million yuan for the same period of 2009.

Strong results from its insurance, securities and banking businesses more than offset Ping An's weak performance in equity investments.

The company said as total investment income declined by 25.6 percent to 10,365 million yuan in the first half of this year, total investment yield fell to 3.7 percent from 4.8 percent, which was mainly due to the significant reduction in net realized and unrealized gains as a result of the depressed and volatile domestic stock market.

As the equity market remained volatile, Ping An shifted more funds to fixed maturity investments. As at June 30, the percentage of fixed-income products increased to 79.3 percent of total investments from 76 percent as at the end of last year, while the equity investments decreased from 10.8 percent to 8.1 percent.

Related readings:  Ping An approved for its HK unit capital raising plan  Ping An, SDB discuss banks tie-up  Insurers' Jan-April premium income up 36.58%  Ping An 2009 net profit up more than 8 folds

According to the statement, Ping An again made Fortune's Global 500 list this year and was ranked top among the non-state owned enterprises in China's mainland. It occupied the 383rd position in the overall list.

In the first half, Ma said the world's financial markets were preoccupied with fears on Europe's sovereign debt crisis and concerns of a setback in the global economic recovery, while the Chinese economy continued its robust and steady growth.

Challenges remained, however, said Ma. In the second half this year, the Chinese economy would be facing challenges caused by the fade out of stimulus monetary policies and economic structural adjustments.

"As market expectations on the timing and magnitude of interest rates increase ease, it is possible that the bond yields will remain at a relatively low level. Together with the volatile stock market, all these will put pressure on our second half year results," he said.

Ma said Ping An would accelerate development of banking and investment businesses and take measures to reinforce foundations of the integrated platform of financial services and to fully support enhanced cross-selling in the second half this year.