Bank of Beijing net worth in 2024 highlights its strong financial foundation, backed by significant assets and impressive revenue streams.
In this article, Ando Money takes a deep dive into the bank’s performance, from its interest income to asset management strategies, providing valuable insights into one of China’s major financial institutions.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Bank of Beijing |
| Full Name | Bank of Beijing Co., Ltd. |
| Traded as | SHSE: 601169 |
| ISIN | CNE100000734 |
| Founded | January 29, 1996 |
| Founders | Beijing City Commercial Bank |
| Country/Territory | China |
| Headquarters | Beijing, China |
| Chief Executive Officer | N/A |
| Number of Employees | N/A |
| Market Cap | $15.53 Billion |
| Total Assets | CN¥3,945.7B (approx. $540.28 Billion) |
| Total Equity | CN¥339.1B (approx. $46.42 Billion) |
| Revenue | CN¥12.2B (approx. $1.67 Billion) |
| Net Income | CN¥6.72B (approx. $920 Million) |
What is the Net Worth/Market Cap of Bank of Beijing in 2024?
As of September 2024, the market cap of Bank of Beijing stands at $15.53 billion, showcasing its prominent position in China’s financial sector.
While the bank’s net worth may not be explicitly listed, the market cap reflects its valuation in the global banking landscape.
In comparison, other major banks often have a market capitalization significantly higher or lower depending on their global reach and assets under management.
Other banks related to Bank of Beijing include:
- China Construction Bank
- Industrial and Commercial Bank of China
- Agricultural Bank of China
- Bank of China
- China Merchants Bank
- Bank of Communications
For those interested in exploring the largest and most powerful banks, visit our article on the top banking institutions globally.
Financial Performance Overview
Major Contributors to Revenue
One of the core revenue streams for Bank of Beijing is its interest income, specifically its net interest margin of 1.5%.
This figure represents the difference between the interest earned on loans and the interest paid on deposits. As a bank deeply integrated into both the corporate and retail sectors, this margin plays a critical role in driving revenue.
The loan portfolio, valued at CN¥2,284.7B (approx. $312.65 Billion), and deposits of CN¥2,745.4B (approx. $375.49 Billion) illustrate the substantial scale of its operations.
However, the performance of its loan portfolio also comes with certain risks, mitigated by the allowance for bad loans set at 1.2%.
The bank’s sound risk management has helped maintain this relatively low percentage, contributing positively to the bottom line.
Additionally, fee-based income is another crucial contributor, including revenue from service fees, transaction fees, and commissions.
These sources help diversify the bank’s income and provide stability even when interest margins fluctuate.
Meanwhile, the bank’s strong investment income from its cash and short-term investments, which total CN¥302.6B (approx. $41.38 Billion), further boosts revenue.
Shareholders and Ownership Structure
Bank of Beijing has a diverse set of shareholders, with significant stakes held by both domestic and foreign investors. One of the most notable shareholders is ING Bank, which holds a 13.03% stake.
This foreign partnership has had strategic value for the bank as it benefits from ING’s global expertise in banking services.
Additionally, the Beijing Municipal Government plays a vital role in the bank’s governance, holding 8.63% of shares via Beijing State-owned Assets Management.
Foreign involvement is complemented by strong domestic ownership, including shares held by state-owned entities such as Beijing Energy Investment Holdings.
This ownership mix provides stability while allowing for innovation and growth. Furthermore, private companies like Macro-Link Holding also hold significant shares, showing a balance between state and private interests in the bank’s operation.
Asset Management and Investment Strategy
The bank’s total assets stand at CN¥3,945.7B (approx. $540.28 Billion), spread across various categories.
These include traditional loans, real estate investments, and short-term cash holdings, valued at CN¥302.6B (approx. $41.38 Billion).
Managing such a large pool of assets requires a strategic approach to ensure returns without taking on excessive risk.
One of the strategies that Bank of Beijing has employed is focusing on investment income through diversified asset management.
By maintaining a balanced portfolio of investments in both domestic and international markets, the bank can secure stable income even when market conditions are volatile.
This balance helps the bank maintain its profitability while managing exposure to risk.
Profitability and Earnings Analysis
The bank’s profit margin for Q2 2024 stands at 55%, slightly down from 59% in the previous year. This reduction was primarily driven by higher operational expenses, which have slightly impacted overall profitability.
However, the bank remains solid in terms of net income, reporting CN¥6.72B (approx. $920 Million), which is relatively flat compared to last year.
One of the key measures of profitability is the earnings per share (EPS), which for Q2 2024 was CN¥0.29. This is slightly down from CN¥0.30 in Q2 2023, reflecting the pressure on margins.
However, given the bank’s strong asset base and strategic management, it remains a solid investment choice for long-term shareholders.
External Factors and Risks
Bank of Beijing operates in a highly regulated environment, with oversight from entities like the China Banking Regulatory Commission.
Regulatory compliance plays a significant role in shaping the bank’s strategy, particularly regarding its loan provisions and risk management practices.
Furthermore, macroeconomic conditions in China, such as shifts in interest rates and economic growth, have a profound impact on the bank’s financial performance.
In addition to external regulatory challenges, the bank has faced internal governance issues, such as the corruption scandal involving former director Lu Haijun.
While such incidents can damage reputation, the bank has taken steps to rectify these issues, including dismissing and prosecuting involved parties.
Future Growth and Revenue Projections
Looking forward, the bank expects revenue growth of approximately 14% annually over the next three years, outpacing the broader Chinese banking industry average of 12%.
This projected growth is driven by continued expansion into new markets, as well as ongoing efforts to optimize the bank’s loan portfolio and increase fee-based income.
FAQs about Bank of Beijing
What is Bank of Beijing’s market capitalization?
As of September 2024, the market cap stands at $15.53 Billion.
How does it manage its assets?
It manages assets through loans (CN¥2,284.7B, approximately $312.65 Billion), short-term investments (CN¥302.6B, approximately $41.38 Billion), and other investments.
What is its profit margin?
The bank has a profit margin of 55% for Q2 2024.
What is its loan-to-deposit ratio?
It maintains a strong loan-to-deposit ratio, with CN¥2,284.7B in loans and CN¥2,745.4B in deposits.
What scandals have affected the bank?
The bank faced a corruption scandal involving a former director, leading to dismissal and imprisonment.
What is Bank of Beijing’s projected revenue growth?
Its revenue growth is projected at 14% per year, outperforming the industry average of 12%.
Conclusion
Bank of Beijing’s financial performance in 2024 reveals its solid position in the banking industry.
Feel free to leave your thoughts, share this article, or explore more content on andomoney.com for further insights into global banking trends.
