2006 Interim Report－A Share.pdf - 中国银行

Management Discussion & Analysis
Impairment Losses
Half year ended
30 June 2006
Half year ended
30 June 2005
Unit: RMB million
Year ended 31
December 2005
Provision for loan losses 5,062 4,718 10,888
(Write-back of)/Provision for impairment of
foreclosed assets
(Write-back of)/Provision for impairment of
other receivables
Write-back of impairment of fixed assets and
others
(131) 96 133
(55) 206 498
- (444) (534)
Total 4,876 4,576 10,985
In the first half of 2006, the Group's asset impairment losses increased by RMB300 million or 6.56%.
Provision for Interest Receivable and Other Bad Debt Receivables
As provided in the Accounting System for Financial Institutions issued by the Ministry of Finance, financial institutions
should analyze the recoverability of receivables (including fund placement and premium receivable, but not including
interest receivable), forecast bad debt losses, and make provision for bad debt losses that are estimated to occur. When
loan interest receivable or corresponding loan principal is overdue for more than 90 days, the interest receivable should
be transferred off balance sheet, and the interest income and interest receivable that have been recognized should be
reversed. The age of interest receivable is within 90 days.
In the report period, the Group's bad debt provision was detailed as follows:
Unit: RMB million
At 30 June 2006 At 31 December 2005 Increase
Other receivables 17,538 14,275 3,263
Balance of bad debt provision 3,874 3,878 (4)
Income Tax Analysis
In the first half of 2006, the Group's income tax expense was RMB12.362 billion, a year-on-year increase of RMB1.502
billion or 13.83%. The Group's effective tax rate was 36.34%, a year-on-year decrease of 0.38 percentage points.
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