A-share listed banks ushered in the second annual report.
On March 18, China Merchants Bank Co.Ltd(600036) disclosed the annual report of 2021. The annual report shows that in 2021, China Merchants Bank Co.Ltd(600036) achieved an operating revenue of 331253 billion yuan, a year-on-year increase of 14.04%; The net profit attributable to the parent company was 119922 billion yuan, a year-on-year increase of 23.20%, a new high in recent six years, equivalent to a net profit of 320 million yuan per day.
It is worth mentioning that 2021 is the first year when China Merchants Bank Co.Ltd(600036) proposed to build a “great wealth management value cycle chain”. Today, the bank’s big wealth management business model has achieved initial results. The annual revenue of its big wealth management business reached 52.130 billion yuan, an increase of 33.91%, accounting for nearly 16% of the net operating revenue.
On the other hand, the asset quality of the bank continued to be optimized. During the reporting period, China Merchants Bank Co.Ltd(600036) achieved “non-performing” double reduction, its non-performing loan ratio returned to less than 1% every seven years, and the provision coverage increased again.
With regard to the continuously improving asset quality, China Merchants Bank Co.Ltd(600036) relevant persons told the reporter of Huaxia times that over the years, commercial banks have been committed to building a balance sheet based on accounting rules and performing the art of management between “risk capital business” balance. However, only by changing from operating the “bank balance sheet” to operating the “customer balance sheet” at the same time, can we achieve self height and quality development only in the process of creating value for customers.
retail finance report card
According to the disclosure of the annual report, China Merchants Bank Co.Ltd(600036) main business segments include retail financial business and wholesale financial business. During the reporting period, the bank’s retail financial business revenue accounted for more than half. The pre tax profit of retail financial business was 77.709 billion yuan, accounting for 52.44% of the bank’s pre tax profit; The operating revenue was 179015 billion yuan, accounting for 54.04% of the bank’s operating revenue.
Such a brilliant performance in 2021, which is full of challenges, is inseparable from the continuous breakthrough of this old retail bank in business. The reporter learned that China Merchants Bank Co.Ltd(600036) proposed and implemented the strategic transformation of “light bank” since 2014. In 2018, the transformation of “light bank” entered the second half, and China Merchants Bank began to explore the 3.0 model in the digital era. By 2021, the bank proposed to build a 3.0 model of “big wealth management business model + digital operation model + open and integrated organization model”.
According to the notes of the annual report, the annual big wealth management income includes big wealth management income, including wealth management, asset management and custody business fees and commissions.
From the financial report data, the big wealth management business model of China Merchants Bank has achieved initial results. By the end of the reporting period, the number of retail customers and the total asset balance of managed retail customers of China Merchants Bank had maintained a rapid growth trend. According to the data, by the end of 2021, the bank had 173 million retail customers (including debit card and credit card customers), an increase of 9.49% over the end of the previous year; The total asset balance of retail management customers reached 10.76 trillion yuan, an increase of 20.33% over the end of the previous year, and the growth rate reached a new high in recent six years.
At the same time, the bank’s asset management business has also made new breakthroughs. By the end of 2021, the total scale of CMB’s asset management business had reached 4.31 trillion yuan, an increase of 14.92% over the end of the previous year. The balance of custody assets was 19.46 trillion yuan, an increase of 21.25% over the end of the previous year. The balance remained the second in China’s custody industry, and the increment ranked first in China’s custody industry.
It is worth mentioning that the number of private banking customers of the bank (referring to retail customers whose average monthly and daily total assets in RMB are 10 million or more) reached nearly 122100, an increase of 22.09% over the end of the previous year; The total assets of private bank customers under management were 3.39 trillion yuan, an increase of 22.32% over the end of the previous year, and the scale ranked first in the industry.
CMB introduced to our reporter that relying on its own resource endowment, the bank continued to deepen the transformation and upgrading of private banking business, further strengthened the business linkage between various departments in the bank, strengthened the business cooperation with subsidiaries and third-party cooperative institutions, guided the continuous promotion of integrated customer acquisition development of public and private resources, and built a more open product platform on the basis of steadily promoting chain customer acquisition, Meet the comprehensive and diversified financial needs of customers.
NPL ratio hit a new low
In addition to retail finance, China Merchants Bank Co.Ltd(600036) also has a solid performance in terms of assets. By the end of the reporting period, China Merchants Bank Co.Ltd(600036) total assets had exceeded the 9 trillion mark, reaching 9249021 billion yuan, an increase of 10.62% over the end of the previous year; Loans and advances totaled 5570034 billion yuan, an increase of 10.76% over the end of the previous year; Total liabilities amounted to 838334 billion yuan, an increase of 9.86% over the end of the previous year; The total amount of customer deposits was 6347078 billion yuan, an increase of 12.77% over the end of the previous year.
In addition, China Merchants Bank Co.Ltd(600036) ‘s NPL balance and NPL ratio have both decreased. As of the end of the reporting period, the bank’s total non-performing loans amounted to 50.862 billion yuan, a decrease of 2.753 billion yuan compared with the end of the previous year; The non-performing loan ratio decreased by 0.16% to 0.91% year-on-year, and returned to less than 1% after seven years. Meanwhile, China Merchants Bank Co.Ltd(600036) the provision coverage remained at a high level, with a year-on-year increase of 46.19% to 483.87%; The loan provision ratio decreased by 0.25% to 4.42% year-on-year.
China Merchants Bank Co.Ltd(600036) disclosed that the bank continued to adhere to the steady and prudent provision policy last year and strengthened the disposal of non-performing loans. Last year, the credit impairment was 6.69 billion yuan, a year-on-year increase of 6.069 billion yuan. The credit impairment loss of loans and advances was 37.020 billion yuan.
In addition, considering the global epidemic, the uncertain and unstable economic situation outside China, China Merchants Bank Co.Ltd(600036) increased the provision for losses, and the credit impairment losses of other categories of assets totaled 28.942 billion yuan. In terms of disposal of non-performing assets, the bank disposed a total of 50.034 billion yuan in the whole year, including 23.58 billion yuan of routine write off and 13.163 billion yuan of clearing.
In this regard, Citic Securities Company Limited(600030) pointed out that China Merchants Bank had excellent performance in 2021, and its asset quality and risk offset ability remained the industry leader. The company has obvious advantages in asset negative management. Under the guidance of “great wealth management value cycle chain”, all businesses are closely integrated and coordinated, and the performance is expected to be stable and good, maintaining the “buy” rating.
For the real estate business operation of banks concerned by the market, China Merchants Bank also disclosed the real estate business operation in detail in its annual report.
As of the end of the reporting period, the balance of real and contingent credit, proprietary bond investment, proprietary non-standard investment and other businesses bearing credit risk related to real estate of China Merchants Bank totaled 511489 billion yuan, an increase of 3.48% over the end of the previous year, of which the balance of loans to public real estate was 355977 billion yuan, an increase of 13.657 billion yuan over the end of the previous year, accounting for 6.78% of the total loans and advances, a decrease of 0.46 percentage points over the end of the previous year.
China Merchants Bank Co.Ltd(600036) said that it would continue to resolutely implement the relevant national policies on the real estate industry, strengthen the appropriateness management of investors, disclose the key risk information of products and earnestly perform the corresponding supervision responsibilities in accordance with the regulatory requirements. The group will closely follow the macro policies of the real estate industry and strengthen the study and judgment of the real estate risk situation. It is expected that under the current macro environment and industrial policies, the asset quality of the real estate field of the bank will remain generally stable.
