Ernst & Young Withdraws Nonperforming Loan Report
LONDON, May 12 /PRNewswire/ --
The Nonperforming Loan (NPL) Report that was issued on 3 May 2006 reported that the NPL exposure for China was estimated at US$911 billion. Throughout the report this amount was identified as a potential future amount that includes NPLs totaling approximately US$358 billion for the big four commercial banks. Upon further research, Ernst & Young Global finds that this number cannot be supported, and believes it to be factually erroneous.
The NPL Report did not go through our normal internal review and approval process before it was released to the public and, as it contains errors, we are withdrawing the report.
The official level of NPLs of US$133 billion for the big four commercial banks in China is computed on a regulatory and accounting standard based on objective evidence of impairment. Ernst & Young China serves as auditors for one of those four commercial banks and their audit, performed under international standards of auditing in order to form an opinion on the bank's state of affairs in accordance with International Financial Reporting Standards, supports the bank's contribution to the total of US$133 billion for all four of the commercial banks.
We apologize that this erroneous report was issued. We sincerely regret any misleading views that the report conveyed.
About Ernst & Young
Ernst & Young, a global leader in professional services, is committed to restoring the public's trust in professional services firms and in the quality of financial reporting. Its 107,000 people in 140 countries pursue the highest levels of integrity, quality, and professionalism in providing a range of sophisticated services centered on our core competencies of auditing, accounting, tax, and transactions. Further information about Ernst & Young and its approach to a variety of business issues can be found at http://www.ey.com/perspectives. Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited does not provide services to clients.
This press release has been issued by EYGM Limited, a member of the global Ernst & Young organization.
Web site: http://www.ey.com
SOURCE Ernst & Young
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