Time deposits drive Chongqing Rural Commercial Bank end-1H14 deposits to RMB 395.1bn

But loan growths were stable.

Chongqing Rural Commercial Bank's total deposits at end-1H14 amounted to RMB 395.1bn, +2.9% in 2Q14 (+10.4% in 1Q14), driven by time deposits (+4.6% in 2Q14) while demand deposits dropped (-1% in 2Q14).

According to a research note from Barclays, as management mentioned before, the bank’s new deposits in 1Q normally count for around 40-50% of the full year new deposits.

Total loans recorded stable growth of 10.4% in 1H14 or 5.4% in 2Q14 (vs. +4.8% in 1Q14), mainly driven by retail and wholesale (+RMB 3.3bn or +36% in 1H14) personal business loans (+RMB 4.4bn or +15% in 1H) and manufacturing (+RMB 5bn or +14% in 1H).

Meanwhile, net loan is seen to drop in utility sector (-RMB 2.7bn or -12% in 1H), mortgage (-RMB 0.5bn or -1% in 1H) and developer loan (-RMB 0.4bn or -3% in 1H).

Here's more from Barclays:

Under our calculations, CRCB’s NIM was largely stable, -1bp q/q to 3.38% in 2Q14, after a drop of 5bps in 1Q14. We believe the positive effect of the higher loan-to-deposit ratio (+1.4ppts q/q to 57.4% as end-2Q14) could have been offset by higher deposit costs in 2Q14 (time deposit +4.6% q/q).

On an h/h basis, bank’s NIM narrowed by 5bps h/h to 3.38% in 1H14. Loan pricing slightly dropped by 2bps h/h in 1H14, mainly driven by lower personal loan yield (-14bps h/h vs. +14bps h/h in 2H13), despite better yield on discounted bills (+188bps h/h vs. -130bps h/h in 2H13) and corporate loans (+1bp h/h vs. -12bps h/h in 2H13).

Interbank asset yield saw continued increase of 26bps in 1H14 (vs. +46bps h/h in 2H13).

Deposits cost went up by 7bps h/h in 1H14 (vs. +2bps h/h in 2H13), driven by both higher corporate deposit cost (+15bps h/h) and personal deposit cost (+2bp h/h).

The total WMP balance was RMB 61.4bn as of end-1H14 (+113% ytd).

Reverse repos -2% in 1H14 to RMB 69.3bn (or -7% in 2Q14).

Looking at the breakdown, trust beneficial rights declined by 3% in 1H14 to RMB 54.4bn at end-June 2014, reverse repo collateralized by bills slightly grew by 2% to RMB 14.9bn at end-1H14.