The financial problems of Bank of Jinzhou Co. Ltd. were revealed last week as the lender, which was bailed out by three state-owned investors in July, finally produced its long-delayed annual report for 2018, reported Caixin.
The embattled regional bank swung to a RMB 4.54 billion ($632.6 million) net loss in 2018 from a RMB 9.1 billion profit the previous year as it took a RMB 23.7 billion charge related to a decrease in the value of its assets, mostly comprising soured loans and write downs it was required to make following a change in accounting rules.
The bank’s non-performing loan (NPL) ratio surged to 4.99% from 1.04% a year earlier and its total capital adequacy ratio (CAR), a measure of how well it can absorb losses, slumped to 9.12% from 11.67%, according to a stock exchange filing on Friday.