With the continuous disclosure of performance express, the good profitability of listed banks continued to show last year.
Compared with the business indicators of commercial banks in the fourth quarter of 2021 newly disclosed by the China Banking and Insurance Regulatory Commission, the reporter of Securities Daily found that the growth rate of net profit and asset quality of listed banks exceeded the average level of commercial banks last year, showing a better strength and worthy of the title of top student of commercial banks.
increase in net profit of listed banks
exceeds the average of commercial banks
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%. Du Yang of the Bank Of China Limited(601988) Research Institute told the Securities Daily that the profitability of the Bank Of China Limited(601988) industry will achieve restorative growth in 2021, thanks to the improvement of the real economy, the effective control of the covid-19 epidemic, the consideration of continuity and foresight in monetary policy and the protection of navigation by regulatory policies. While achieving double-digit net profit growth, commercial banks should reduce their dependence on the growth model of “volume plus price” and increase the proportion of non interest income, so as to improve the sustainability of profit growth.
The profit growth performance of listed banks is obviously more eye-catching than that of commercial banks. As of February 14, 19 of the 41 listed banks have disclosed their performance in 2021 in the form of performance letters. The performance express shows that in terms of net profit growth, the average net profit growth rate of 19 listed banks last year was as high as 19.74%, much higher than the level of 12.6% of commercial banks in the same period. From the perspective of the net profit growth of a single listed bank, except Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) , the other 18 banks outperformed the average net profit growth of commercial banks last year.
In addition to excellent profit performance, the performance of listed banks is also better than the average level of commercial banks in terms of asset quality.
By the end of the fourth quarter of last year, the average non-performing loan ratio of commercial banks was 73.02%, down by 73.1% from the end of the fourth quarter of last year. The average non-performing loan ratio of listed banks in the same period was only 1.11%, down 0.03 percentage points from the end of the third quarter of last year. It is worth noting that the non-performing loan ratio of 19 listed banks as of the end of last year was lower than the average value of 1.73% of commercial banks. Du Yang believes that this is due to the recovery of the real economy and the improvement of customers’ repayment ability and willingness, and the overall quality of commercial assets is improving. In addition, the bank has strengthened the disposal of non-performing loans and strengthened the new intelligent risk control means. Although the balance of non-performing loans increased slightly at the end of last year, it has not changed the overall downward trend of the non-performing rate of the banking industry.
“The net profit of listed banks is higher than the average value of commercial banks, which is the result of listing screening, because the listing of enterprises has a strict screening mechanism, which can effectively check the quality of banks that want to land in the A-share market.” He Yanlin, a professor at the school of finance of the University of international business and economics, said in an interview with the Securities Daily.
nearly 50% of listed banks
performance “pre disclosure”
As of February 14, 19 listed banks have announced last year’s performance in the form of performance letters, accounting for nearly 50%. According to the published bank performance express, after experiencing the trough in 2020, the overall recovery trend of the performance of listed banks after 2021 is obvious. The net profit of 19 listed banks in 2021 achieved positive growth year-on-year. Among them, the net profit attributable to the parent of 12 listed banks has increased by more than 20% year-on-year. Bank Of Jiangsu Co.Ltd(600919) the net profit attributable to the parent increased by 30.72% year-on-year, which is the highest among the listed banks that have disclosed the performance express.
As of the end of 2021, the non-performing loan ratio of 19 banks that have disclosed the performance express has decreased to varying degrees compared with the beginning of 2021. The non-performing loan ratio of 6 listed banks, including Bank Of Ningbo Co.Ltd(002142) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , China Merchants Bank Co.Ltd(600036) , Xiamen Bank Co.Ltd(601187) , Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) and Shanghai Rural Commercial Bank Co.Ltd(601825) , is lower than 1%.
He Yanlin believes that from the disclosed performance letters of nearly 20 listed banks, the overall performance growth of listed banks in 2021 has become inevitable. The steady growth of bank profits last year is basically consistent with the overall situation of China’s macro economy. The good performance of listed banks will also strongly support the valuation of the banking sector, which is also an important reason for the good overall performance of the banking sector since 2022.
