Bank stocks are finally working!
On January 5, the Shenwan bank index rose 1.76%, ranking first among 31 Shenwan level industries. Industrial Bank Co.Ltd(601166) , Bank Of Chengdu Co.Ltd(601838) , Postal Savings Bank Of China Co.Ltd(601658) , Bank Of Ningbo Co.Ltd(002142) increased by more than 3%.
On the news side, on January 4, China Zheshang Bank Co.Ltd(601916) issued an announcement on the increase of the president’s holdings. Bank Of Chengdu Co.Ltd(601838) issued a performance pre increase announcement, and it is expected that the net profit will increase by 18% – 25% in 2021.
Most people in the industry are optimistic about the trend of bank stocks in 2022. From the historical data, January is a good investment window for bank stocks.
multiple positive news release
On January 4, China Zheshang Bank Co.Ltd(601916) announced that Zhang Rongsen, executive director and President, increased 284100 A-Shares of the bank at the price of 3.52 yuan / share on January 4, with an increase of 1 million yuan. After the increase, Zhang Rongsen held 1022100 China Zheshang Bank Co.Ltd(601916) A shares, accounting for 0.0048% of the total share capital.
Image source: China Zheshang Bank Co.Ltd(601916) announcement
China Zheshang Bank Co.Ltd(601916) executives have increased their holdings of shares for many times. On September 23, 2021, president Zhang Rongsen increased 300000 A-Shares of the bank at the price of 3.55 yuan / share, with an increase of 1.065 million yuan. In September 2021, China Zheshang Bank Co.Ltd(601916) vice president and Secretary of the board of directors Liu long increased 283300 A-Shares of the bank at the price of 3.53 yuan / share, with an increase of 1 million yuan.
On January 4, Bank Of Chengdu Co.Ltd(601838) issued a performance pre increase announcement, which said that according to the preliminary calculation of the financial department, the net profit attributable to the shareholders of the listed company in 2021 is expected to increase by 1.085 billion yuan to 1.507 billion yuan, an increase of 18% to 25% year-on-year compared with the same period of the previous year (statutory disclosure data). In addition, the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses will increase by 1.090 billion yuan to 1.512 billion yuan, an increase of 18% to 25% year-on-year compared with the same period of the previous year (legally disclosed data).
Bank Of Chengdu Co.Ltd(601838) said that the performance pre increase was mainly due to the following reasons: the asset scale increased steadily, the customer deposit funds formed a strong guarantee in supporting the scale growth, and the asset liability structure remained stable; The credit business expanded well, and the proportion of total loans in assets further increased; Cost control measures are effective, and the cost income ratio is maintained at a low level.
Image source: Bank Of Chengdu Co.Ltd(601838) announcement
institutions are optimistic about the performance of bank stocks in 2022
In 2021, the performance of bank stocks was average, and the Shenwan bank index fell by 4.58%. Among the 41 constituent stocks, only 9 stocks such as Bank Of Chengdu Co.Ltd(601838) , Bank Of Nanjing Co.Ltd(601009) , Bank Of Ningbo Co.Ltd(002142) , China Merchants Bank Co.Ltd(600036) rose, and the other 32 fell. Among them, Xiamen Bank Co.Ltd(601187) , Bank Of Chongqing Co.Ltd(601963) , Shanghai Rural Commercial Bank Co.Ltd(601825) , Qilu Bank Co.Ltd(601665) and other new shares decreased by more than 25%.
How will bank stocks perform in 2022?
China International Capital Corporation Limited(601995) said that it is expected that the year-on-year growth rate of net profit of the banking industry in 2022 and 2023 will be 7.2% and 7.7% respectively, mainly due to the steady increase in asset delivery, the stabilization of net interest margin, the steady and slight decrease in credit cost and the continued recovery of handling fee income. Overall, the growth rate of net profit will return to the track of steady growth after experiencing the fluctuation of epidemic impact, and the growth rate is higher than the two-year compound growth rate from 2020 to 2021 (5.2%).
Everbright Securities Company Limited(601788) said that in history, the trend of the banking sector was good in the first quarter of each year. The relative earnings of bank stocks were better in January. The rise ranking of the banking sector was in the top five of all industry sectors, outperforming the Shanghai and Shenzhen 300 index, and the relative earnings performance was better.
(China Securities Journal)
