On February 11, the China Banking and Insurance Regulatory Commission released the data of the main regulatory indicators of the banking and insurance industry in the fourth quarter of 2021, which showed that the profits of commercial banks remained stable and the risk offset ability was strong. In the whole year of 2021, commercial banks achieved a cumulative net profit of 2.2 trillion yuan, a year-on-year increase of 12.6%; The average capital profit margin was 9.64%, down 0.46 percentage points from the end of the previous quarter; The average asset profit margin was 0.79%, down 0.03 percentage points from the end of the previous quarter.
Data show that the total assets of the banking and insurance industries grew steadily. By the end of the fourth quarter of 2021, Bank Of China Limited(601988) financial institutions had domestic and foreign currency assets of 344.8 trillion yuan, a year-on-year increase of 7.8%; The total assets of insurance companies were 24.9 trillion yuan, an increase of 2.6 trillion yuan over the beginning of the year, an increase of 11.5% over the beginning of the year.
At the same time, the banking and insurance industries continued to strengthen financial services. By the end of the fourth quarter of 2021, the loan balance of banking financial institutions for small and micro enterprises was 50.0 trillion yuan, including 19.1 trillion yuan for inclusive small and micro enterprises with a total credit of 10 million yuan or less, with a year-on-year growth rate of 24.9%; The balance of loans for affordable housing projects was 6.3 trillion yuan. In 2021, the original insurance premium income of insurance companies was 4.5 trillion yuan, a year-on-year increase of 4.1%. Compensation and payment expenditure was 1.6 trillion yuan, a year-on-year increase of 14.1%. In 2021, 48.9 billion new insurance policies were added.
In terms of asset quality, by the end of the fourth quarter of 2021, the quality of credit assets of commercial banks had been basically stable. The balance of non-performing loans of commercial banks (corporate caliber, the same below) was 2.8 trillion yuan, an increase of 13.5 billion yuan over the end of the previous quarter; The non-performing loan ratio of commercial banks was 1.73%, down 0.02 percentage points from the end of last quarter.
In terms of solvency of the insurance industry, by the end of the third quarter of 2021, the average comprehensive solvency adequacy ratio of insurance companies included in the statistical scope was 240%, and the average core solvency adequacy ratio was 227.3%; The comprehensive risk rating of 88 insurance companies was rated as class A, 78 insurance companies as class B, 10 insurance companies as class C and 2 insurance companies as class D.
With regard to the operating fundamentals of the banking industry in the coming period, China Galaxy Securities Co.Ltd(601881) securities analyst Zhang Yiwei believes that taking into account multiple factors such as the widening of the policy environment, the gradual clearing of non-performing risks and the full provision, the banking fundamentals are expected to remain stable and the risks are controllable. The improvement of credit environment is a high probability event, which is conducive to the recovery of the banking industry. In addition, the marginal improvement of real estate policy promotes risk resolution and weakens the impact on bank asset quality.
Tianfeng Securities Co.Ltd(601162) Guo Qiwei believes that the social finance data in January can basically end the dispute over whether the credit extension can be realized in the first quarter. For the banking sector, the fundamentals are often "one quarter for the whole year". The implementation of wide credit in the first quarter helps to realize the "early delivery and early return" of loans. Even if the credit is tightened in the future, it will have little impact on banks; It means that the real estate bank will be in the scope of active and rectification of credit risk, which means that the bank will not be in the scope of active and rectification of credit risk; Banks are expected to benefit from this round of loose credit.
