Industrial Bank Co.Ltd(601166) ( Industrial Bank Co.Ltd(601166) . SH) published the 2021 transcript.
On March 24, the 2021 annual report released by Industrial Bank Co.Ltd(601166) ( Industrial Bank Co.Ltd(601166) . SH) showed that the bank achieved an operating revenue of 221236 billion yuan last year, an increase of 8.91% year-on-year; The net profit attributable to shareholders of the parent company was 82.68 billion yuan, a year-on-year increase of 24.1%; The weighted average return on net assets was 13.94%, up 1.32 percentage points year-on-year.
During the reporting period, Industrial Bank Co.Ltd(601166) net interest margin was 2.02%, a year-on-year decrease of 0.09 percentage points; The company's net interest margin was 2.29%, a year-on-year decrease of 0.07 percentage points The yield margin of the emerging economy has declined due to the increase of the strategic transformation of the bank.
In terms of revenue, the growth rate of non interest net income of Industrial Bank Co.Ltd(601166) is much greater than that of interest net income Industrial Bank Co.Ltd(601166) said that under the main line of light bank construction, the dependence of operating income growth on capital consumption business continued to decline.
In 2021, Industrial Bank Co.Ltd(601166) net interest income was 145679 billion yuan, a year-on-year increase of 1.51%; Net non interest income was 75.557 billion yuan, a year-on-year increase of 26.73%. During the reporting period, the net income from handling fees and commissions was 42.680 billion yuan, a year-on-year increase of 13.18%; Other non interest net income was 32.877 billion yuan, a year-on-year increase of 50.04%. Among them, the overall profit and loss after the merger of investment profit and loss, profit and loss from changes in fair value and exchange profit and loss was 31.657 billion yuan, an increase of 10.957 billion yuan year-on-year Industrial Bank Co.Ltd(601166) said that the reason for the increase was that the bank seized the opportunity of periodic changes in market interest rates and increased the return on trading financial assets related to bonds.
In terms of asset quality, by the end of 2021, Industrial Bank Co.Ltd(601166) non-performing loans had achieved "double reduction". Among them, the non-performing loan ratio decreased by 0.15 percentage points to 1.10% compared with the end of 2020, and the balance of non-performing loans decreased by 942 million yuan to 48.714 billion yuan compared with the end of 2020; The provision coverage ratio increased by 49.9 percentage points to 268.73% compared with the end of 2020, the loan allocation increased by 0.22 percentage points to 2.96% compared with the end of 2020, and the cash recovery of recorded assets was 12.645 billion yuan, a year-on-year increase of 25.12%.
Looking specifically at the asset quality of key areas, as of the end of the reporting period, Industrial Bank Co.Ltd(601166) credit card loan balance was 436483 billion yuan, with a non-performing rate of 2.29%, an increase of 0.13 percentage points over the end of the previous year Industrial Bank Co.Ltd(601166) said that at the end of the reporting period, the bank's concern and overdue indicators increased slightly compared with the end of the previous year. The main reason is that the bank, in accordance with the regulatory requirements, tightened the recognition standards for overdue credit card loans in the fourth quarter. The time point of overdue recognition is earlier than the original rules, and increased some overdue and key loans, but most of them are temporary overdue. After collection and prompt, customers can repay the loans without further migration to non-performing loans.
In terms of risk control of real estate business, during the reporting period, Industrial Bank Co.Ltd(601166) has disposed of 6.2 billion yuan of risky assets in the real estate industry through Project M & A before the regulatory authorities issued the guidance on M & a business. By the end of 2021, Industrial Bank Co.Ltd(601166) domestic self operated loans, bonds, non-standard and other businesses invested in the real estate sector had a business balance of 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.
In terms of credit risk control of local government financing platform, Industrial Bank Co.Ltd(601166) local government financing platform has a debt non-performing asset ratio of 1.97%, and the scale of non-performing assets is 6.062 billion yuan Industrial Bank Co.Ltd(601166) said that the overall impact on asset quality is very small, mainly due to the lack of awareness of performance by local governments in some regions. The bank has achieved remarkable results by adjusting the classification and urging local governments to take practical measures to resolve risks.
In terms of bank financial management, the balance of Industrial Bank Co.Ltd(601166) financial products last year was 1.79 trillion yuan, an increase of 21% over the beginning of the year. Among them, net worth products that comply with the new regulations on asset management account for 94.13%; The scale of financial products including equity was 326.96 billion yuan, an increase of 77.64% over the beginning of the year.
