GROUP

4
My name is Shan..Weijian Shan

ego, Alexa, Fabio & Paras

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Would SDBs image from being labelled as worst bank in China can be transformed to a shining
4 star by Newbridges magic touch?

2002 Where & When Who What

The banking sector in SDB (joint-stock 4 state-owned

China has grown bank) & sellers of SDB signed
an agreement
rapidly
Asian banks loans
Newbridge
Dominated by 4 state Acquire 18% of
CAGR grew at owned banks (91%) SDB at 1.6 times
9.6%, while Chinese China Banking
book value
banks grew at Regulatory
Commission de- 8 of 15 board seats
14.9% regulation & 5 grade May 2003, SDB
Up rise of corporate announced that
classification
financing & consumer Newbridges transitional
SDB was first one to
loan market committee had been
Private Mortgage listed
be
loan market is small dissolved
Auto loans and Credit
Foreign banks
Q1 Cards were restricted
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4 Risks Mitigations
SDBs credit
risk Lower the risk of poor
credit management
management system,
as systematic credit policy Strong corporate
governance
non-existent
has been
Implementation of an
Ineffective credit adequate monitoring
monitoring and slow
system
responsiveness to market Experienced
conditions
State-owned and conflicts of management
interests team
Poor quality of Leveraging Govt.
SDBs assets, the supported capital
11.6% NPL ratio & LLR/NPL
ratio is 33.2%
Banks ROAA and ROAE have
underperformed
Q2 Equity-to-asset ratio
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4

Now to - Leana, Karen, Fulu, Megan, Paschal