On March 24, Industrial Bank Co.Ltd(601166) released the performance report for 2021, which showed that by the end of the reporting period, the bank's total assets had reached 8.60 trillion yuan, an increase of 8.98% over the beginning of the year; The operating revenue was 221236 billion yuan, a year-on-year increase of 8.91%; The net profit was 82.68 billion yuan, a year-on-year increase of 24.10%; The non-performing rate continued to decline by 0.15 percentage points to 1.10% compared with the beginning of the year.
It is understood that the bank's current deposits and loans account for 54.51% and 51.47% respectively. The asset liability structure is more stable, effectively stabilizing and improving the interest margin. While consolidating the basic sector of traditional advantages, we accelerated the layout of new tracks. The growth rate of green loans, Pratt & Whitney small and micro enterprises and medium and long-term manufacturing loans exceeded 40%, accounting for 61% of the scale of new loans.
NPL ratio and NPL balance are regarded as the core indicators of bank credit risk Industrial Bank Co.Ltd(601166) annual report data showed that the bank's non-performing loan ratio and non-performing loan balance continued to "double drop", in which the non-performing loan ratio decreased by 0.15 percentage points to 1.10% compared with the beginning of the year, and the non-performing loan balance decreased by 942 million yuan to 48.714 billion yuan compared with the beginning of the year.
The loan allocation ratio and provision coverage ratio are "double rising". The decline of non-performing rate was superimposed with the increase of loan allocation ratio. The provision coverage rate and loan allocation ratio increased by 49.90 percentage points to 268.73% and 0.22 percentage points to 2.96% respectively compared with the beginning of the year, and the risk resistance ability was further improved.
In terms of the business risks of real estate and local financing platforms that have attracted much attention from the market, Industrial Bank Co.Ltd(601166) took the initiative to disclose relevant information for the first time in the annual report, so that investors can know the root and have more confidence.
In terms of real estate business, Industrial Bank Co.Ltd(601166) strictly abides by the policy of "housing without speculation" and continues to optimize the business organization. At present, the real estate business is mainly self operated assets, and the business is mainly distributed in the economically developed first and second tier cities or central cities with a GDP of trillion, and the probability of default and loss of breach of contract are generally small.
According to the data, at the end of 2021, the balance of the bank's domestic self operated loans, bonds, non-standard and other businesses invested in the real estate field was 1.65 trillion yuan, with a non-performing rate of 1.34%. In terms of structure, personal real estate mortgage loans accounted for 67.82%, and the balance of corporate financing business was 532089 billion yuan, accounting for 32.18%. Moreover, the provision coverage rate of the bank for public real estate financing business was 305.14%, higher than the average provision coverage rate, and the risk loss offset ability was strong. Meanwhile, the bank's off balance sheet businesses that do not bear credit risk amount to 130051 billion yuan, which is small in scale, and all assets under financial management are normal, so as to avoid the infection of real estate market risks to financial management business and other stakeholder products and effectively control the risk boundary.
In terms of local government financing platforms, by the end of 2021, Industrial Bank Co.Ltd(601166) full caliber local government financing platform had a debt balance of 307715 billion yuan, a decrease of 69.293 billion yuan over the beginning of the year, of which the loan balance of domestic local government financing platform was 209316 billion yuan, a decrease of 30.38 billion yuan over the beginning of the year, accounting for 4.73% of the bank's total loans and advances, a decrease of 1.31 percentage points over the beginning of the year. Particularly important, the debt non-performing asset ratio of local government financing platforms is 1.97%, but the scale of non-performing assets is only 6.062 billion yuan, which has little impact on asset quality.
