At present, the disclosure time of the annual reports of 42 A-share listed banks has been proposed, and the publication time is concentrated in mid and late March and April. As of February 17, 19 listed banks had disclosed their performance in 2021 through the performance express, accounting for nearly 50%. The profit level of commercial banks remains stable, and the overall growth of the performance of listed banks in 2021 is inevitable.
From the performance of the four joint-stock industries that have disclosed the performance express, the revenue has maintained positive growth, and the net profit has achieved double-digit growth. There are three reasons for the sharp increase in net profit: first, joint-stock banks have increased support for the real economy, expanded credit, and maintained a stable scale of revenue; Second, the reduction of policy interest rate and digital transformation have boosted the reduction of bank capital cost and operating cost, and thickened the net profit space; Third, the gradual recovery of macro-economy supports bank performance.
The asset scale of the four joint-stock banks increased steadily, the asset quality improved, the non-performing loan ratio continued to decline, the provision coverage increased, and the risk resilience was further strengthened. However, the provision coverage of China Citic Bank Corporation Limited(601998) and China Everbright Bank Company Limited Co.Ltd(601818) is still far from 196.91% of that of commercial banks, and the risk resistance needs to be further strengthened.
I. The annual report drama is about to open, and nearly half of the listed banks disclose the performance express
at present, the annual report disclosure time of 42 A-share listed banks has been proposed. the first annual report of listed banks will be unveiled on March 10, which is Ping An Bank Co.Ltd(000001) that has been “leading” in the disclosure of performance reports of listed banks in recent years. The annual reports of all listed banks will be disclosed before April.
from the perspective of the scheduled disclosure time of each bank’s annual report, the disclosure time distribution of each bank is relatively average. the annual reports of all 42 listed banks will appear in mid and late March and April. Among them, the annual reports of 23 listed banks were disclosed in March and the other 19 in April. From the rhythm of annual report disclosure, the disclosure time of state-owned banks and joint-stock banks is relatively advanced as a whole. The annual reports of six state-owned banks will be published in March. Among them, Postal Savings Bank Of China Co.Ltd(601658) annual report will be disclosed on March 25, and ICBC, China Construction Bank and Bank of communications will disclose the annual report on March 26 at the same time; The annual reports of ABC and BOC were disclosed on March 30 and March 31 respectively. Except Hua Xia Bank Co.Limited(600015) and Shanghai Pudong Development Bank Co.Ltd(600000) in the joint-stock bank, the disclosure was completed within March. Regional banks are mainly concentrated in the range from the end of March to the end of April.
as of February 17, 19 listed banks have disclosed their performance in 2021 through the performance express, accounting for nearly 50%. according to the published bank performance express, after experiencing the trough in 2020, the overall recovery trend of the banking industry is obvious in 2021. The net profit of 19 listed banks achieved positive growth year-on-year in 2021; The non-performing loan ratio also decreased to varying degrees year-on-year. At present, among the 19 listed banks that have issued performance letters, there are 4 joint-stock banks ( Industrial Bank Co.Ltd(601166) , China Citic Bank Corporation Limited(601998) , Ping An Bank Co.Ltd(000001) , China Everbright Bank Company Limited Co.Ltd(601818) ), 8 urban commercial banks ( Qilu Bank Co.Ltd(601665) , Xiamen Bank Co.Ltd(601187) , Bank Of Jiangsu Co.Ltd(600919) , Bank Of Qingdao Co.Ltd(002948) , Bank Of Suzhou Co.Ltd(002966) , Bank Of Ningbo Co.Ltd(002142) , Jiangsu Jiangyin Rural Commercial Bank Co.Ltd(002807) , Bank Of Changsha Co.Ltd(601577) ) and 7 rural commercial banks ( Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Jiangsu Jiangyin Rural Commercial Bank Co.Ltd(002807) , Shanghai Rural Commercial Bank Co.Ltd(601825) , Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) , Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) ).
the profit level of commercial banks remains stable, and the overall growth of the performance of listed banks in 2021 is inevitable. According to the data released by the CBRC on February 11, the profit level of commercial banks remained stable in 2021. The data show that in 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. As an excellent representative of China’s commercial banks, the performance of listed banks in 2021 will be improved compared with that in 2020 with the recovery of macro-economy in 2021 and the gradual maturity of epidemic normalization prevention and control means.
two and four joint-stock industries achieved double-digit growth in net profit
According to the performance disclosure of 4 joint-stock industries, the revenue and net profit have maintained positive growth, which is in line with expectations. according to the disclosure of the performance express, in 2021 Ping An Bank Co.Ltd(000001) achieved an operating revenue of 169.383 billion yuan, a year-on-year increase of 10.3%, and a net profit of 36.336 billion yuan, a year-on-year increase of 25.6%. In 2021, the operating revenue reached 204.557 billion yuan, an increase of 5.05% over the previous year; The net profit attributable to shareholders was 55.641 billion yuan, an increase of 13.60% over the previous year. Industrial Bank Co.Ltd(601166) in 2021, the operating revenue was 221.236 billion yuan, a year-on-year increase of 8.91%; The net profit attributable to shareholders was 82.68 billion yuan, a year-on-year increase of 24.10%, and the profitability remained at a good level. China Everbright Bank Company Limited Co.Ltd(601818) in 2021, the operating revenue was 152.753 billion yuan, an increase of 7.14% over the previous year; The net profit was 43.640 billion yuan, an increase of 15.06% over the previous year; The net profit attributable to shareholders was 43.407 billion yuan, an increase of 14.73% over the previous year. The operating income and net profit of the four joint-stock banks maintained positive growth, in line with expectations. At the same time, in terms of growth capacity, Ping An Bank Co.Ltd(000001) and Industrial Bank Co.Ltd(601166) still maintain a high growth rate, ranking equivalent to the performance ranking of the third quarterly report in 2021.
the growth rate of net profit increased by double digits, and the scale of revenue remained stable. according to the historical data of four stock banks, the growth rate of net profit in 2021 not only reached double-digit growth, but also the highest in recent five years. Among them, Ping An Bank Co.Ltd(000001) and Industrial Bank Co.Ltd(601166) net profit growth reached 25.6% and 24.1% respectively. However, from the perspective of revenue scale, the year-on-year growth rate of operating revenue of the four joint-stock banks was not as high as that of net profit, which remained stable compared with that in 2020. There are three factors behind this: first, increase support for the real economy, broaden credit and make steady efforts, maintain stable scale growth of credit assets compared with 2020, and ensure steady growth of revenue; Second, the policy interest rate reduction since 2020 and a series of measures such as the digital transformation of listed banks will help banks reduce capital and management costs and increase profits; Third, the macro economy gradually recovered, the epidemic prevention and control measures were mature, helped the development of the real economy, and the recovery of bank performance was further supported.
III. steady growth of asset scale and further improvement of asset quality
The asset scale of 4 joint-stock banks has increased steadily, and the credit has been extended to support the real economy.
according to the disclosure of the performance express of four joint-stock industries, Ping An Bank Co.Ltd(000001) at the end of 2021, the group’s total assets were 4921.38 billion yuan, an increase of 10.1% over the end of the previous year, of which the total principal of loans and advances was 3063.448 billion yuan, an increase of 14.9% over the end of the previous year. China Citic Bank Corporation Limited(601998) by the end of 2021, the total assets were 8041.418 billion yuan, an increase of 7.06% over the end of the previous year. Industrial Bank Co.Ltd(601166) by the end of 2021, the total assets were 8601.324 billion yuan, an increase of 8.96% over the end of the previous year, including 4428.183 billion yuan of loans in domestic and foreign currencies, an increase of 11.66% over the end of the previous year. China Everbright Bank Company Limited Co.Ltd(601818) by the end of 2021, the total assets were 5902.384 billion yuan, an increase of 9.95% over the end of the previous year.
The asset quality of 4 joint-stock banks improved again, and the non-performing loan ratio continued to decline. according to the disclosure of the performance letters of four joint-stock industries, Ping An Bank Co.Ltd(000001) the non-performing loan ratio at the end of 2021 was 1.02%, down 0.16 percentage points from the end of the previous year. By the end of 2021, China Citic Bank Corporation Limited(601998) NPL ratio was 1.39%, down 0.25 percentage points from the end of 2020. Industrial Bank Co.Ltd(601166) the non-performing loan ratio at the end of 2021 was 1.10%, down 0.15 percentage points from the end of 2020. China Everbright Bank Company Limited Co.Ltd(601818) the non-performing loan ratio at the end of 2021 was 1.25%, down 0.13 percentage points from the end of 2020. Compared with the 1.73% non-performing loan ratio of commercial banks in 2021 issued by the CBRC, the non-performing loan ratios of the four joint-stock banks are far lower than this value, and the asset quality is good. Meanwhile, the non-performing loan ratio of the four joint-stock banks decreased by more than 10 basis points compared with the end of the previous year, and the asset quality was improved again.
provision coverage has been improved and risk resilience has been further strengthened. according to the disclosure of the performance express, Ping An Bank Co.Ltd(000001) the provision coverage at the end of 2021 was 288.42%, an increase of 87.02 percentage points over the end of the previous year; The provision coverage rate of China Citic Bank Corporation Limited(601998) was 182.14%, an increase of 10.46 percentage points over the end of the previous year; The provision coverage rate of Industrial Bank Co.Ltd(601166) was 268.73%, an increase of 49.90 percentage points over the end of the previous year; The provision coverage rate was 187.02%, an increase of 4.31 percentage points over the end of the previous year. According to the relevant data of commercial banks in 2021 released by the CBRC, the provision coverage of China Citic Bank Corporation Limited(601998) and China Everbright Bank Company Limited Co.Ltd(601818) is still far from 196.91% of the provision coverage of commercial banks, and the risk resistance ability needs to be further strengthened.
