January 19, China International Capital Corporation Ltd. (CICC) posted a 70% decline in profits in 2011, surprising the market, the official Shanghai Securities News reported on Thursday.
CICC, the country’s biggest investment bank, reported net profit of RMB 270 million ($42.8 million) for last year, down 70.3% from RMB 910 million in 2010, while operating profit fell 72% year-on-year to RMB 333 million, the paper said, citing the company’s unaudited annual report, which was released on Wednesday.
Falling revenue pushed profits down. Revenue fell 41% y-o-y to RMB 3.29 billion in 2011. Revenue from charging commission was RMB 2.81 billion, down 45.4%; revenue from interest was still negative, and the loss increased 67.4% y-o-y. Revenue from investment was around RMB 550 million, down 2.65% from a year earlier.
The annual report didn’t detail revenue generated from underwriting activities, the paper said, but data compiled by Shanghai-based ShangHai Gildata Inc. showed CICC’s total underwriting scale fell 70% from a year earlier to RMB 31.9 billion.
