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FCDU System Expands 11.8 Percent in 2010


The total resources of the foreign currency deposit unit (FCDU) as of end-2010 reached $29.7 billion, 11.8 percent or $3.1 billion higher from $26.5 billion in 2009. The growth in total resources was supported by the 12.5 percent expansion in the FCDUs of universal and commercial banks (UKBs) to $28.5 billion while rural banks (RBs) grew by 45.8 percent to less than half of $0.1 billion. However, the FCDUs of thrift banks (TBs) declined by 1.6 percent to $1.2 billion.

In terms of asset share, the FCDUs of UKBs continue to hold the bulk at 96.0 percent, while TBs and RBs account for 4.0 percent share and less than one percent share, respectively.

Loan portfolio declined by $0.9 billion (8.0 percent) to $9.9 billion from $10.8 billion in 2009 on the back of the $1.6 billion or 29.7 percent decline in interbank lending to $3.8 billion from $5.5 billion. Excluding interbank loans, loan portfolio would have grown by 14.2 percent ($0.8 billion) to $6.1 billion from $5.3 billion in 2009.

The non-performing loans (NPL) ratio improved to 0.7 percent from previous year's 2.0 percent, while non-performing assets (NPA) ratio eased to 0.1 percent from 0.4 percent. Furthermore, the NPL and NPA coverage ratios more than doubled to 276.3 percent and 275.3 percent, respectively, from 133.4 percent and 125.2 percent ratios in 2009.

Deposit liabilities, which made up 84.0 percent of the total FCDU funding, grew by 10.3 percent ($2.3 billion) to $24.9 billion from $22.6 billion last year.  The bulk of the deposit liabilities still came from resident depositors at 97.8 percent while the remaining 2.2 percent was contributed by non-resident depositors.

Net profit for 2010 rose by 30.7 percent to $1,035 million from previous year's $792 million. The improvement was brought mainly by the substantial enhancement in non-interest income which rose by $155 million or 42.8 percent to $519 million from last year's $364 million. Net interest income also grew by $36 million or 5.6 percent to $665 million from $630 million. However, the increase in total income was partly reduced by the $15 million (or 14.0 percent) increment in non-interest expenses to $122 million from $107 million.

The substantial increase in net profit improved the return-on-assets (ROA) ratio to 3.7 percent from 3.1 percent. By industry, the UKBs accounted for 96.7 percent ($1.0 billion) of net profit while TBs contributed the remaining 3.3 percent (less than half of $0.1 billion).

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