What’s new: Ant Group-backed online lender MYBank won regulatory approval to launch a share placement to bring in an undisclosed amount of new capital.
The China Banking and Insurance Regulatory Commission cleared MYBank’s share placement plan, which shareholders approved in 2021, the commission said Thursday in a statement on its website. No financial details were disclosed.
MYBank’s existing shareholders plan to put up new funds according to their shareholdings, increasing MYBank’s registered capital without changing its shareholding structure, Caixin learned.
The capital injection will help MYBank supplement its tier-1 capital to allow it to further expand its business targeting small and micro enterprises and agricultural clients, analysts said.
The context: The planned placement will be MYBank’s second round of fundraising since its establishment in 2015. The bank increased its registered capital from 4 billion yuan ($596 million) to 6.6 billion yuan after a share placement in late 2019.
Alibaba Group’s Ant is the largest shareholder with nearly 30%, followed by private agricultural conglomerate Wanxiang Sannong Group Co. Ltd. and Ningbo Jinrun Assets Management Co.
MYBank is among the first privately funded internet-only banks set up in China. As of the end of 2021, the bank had 425.8 billion yuan of total assets with 407.9 billion yuan of liabilities. Revenue rose 20.6% to 3.5 billion yuan in the first quarter of 2022, and net profit increased 61% to 630 million yuan.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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