On March 25, China Everbright Bank Company Limited Co.Ltd(601818) released its annual report for 2021. During the reporting period, it achieved operating revenue of 152751 billion yuan and net profit of 43.639 billion yuan, an increase of 7.14% and 15.06% respectively over 2020.
It is worth noting that in 2021, China Everbright Bank Company Limited Co.Ltd(601818) retail business jumped to a new level, with retail operating revenue of 63.346 billion yuan, accounting for 41.47% of the bank’s operating revenue, a new high in recent three years, and played an important pillar role in the bank’s transformation and development.
At the same time, in 2021, China Everbright Bank Company Limited Co.Ltd(601818) managed total retail customer assets (AUM) jumped to 2 trillion yuan; The scale of financial management exceeded 1 trillion yuan.
financial management scale exceeded 1 trillion yuan
In recent years, with the rapid growth of China’s economy and the continuous accumulation of residents’ income and wealth, wealth management business has a very broad space for development.
At the beginning of 2018, China Everbright Bank Company Limited Co.Ltd(601818) established the strategic vision of “building a first-class wealth management bank”, aiming to lighten the balance sheet and make the profit model less cyclical. In the following three years, the bank’s retail business grew rapidly and the characteristics of wealth management gradually became prominent.
China Everbright Bank Company Limited Co.Ltd(601818) retail business played an important pillar role in the transformation and development of the bank, and its profit contribution continued to increase. In 2021, the bank’s retail revenue was 63.346 billion yuan, an increase of 7.98%, accounting for 41.47% of the bank’s operating revenue, a new high in recent three years.
At the performance press conference in the first half of 2021, Fu Wanjun, President of China Everbright Bank Company Limited Co.Ltd(601818) bank, once said: “in this year, we will strive to exceed 50000 private bank customers and 1.05 million wealth customers.”
According to the annual report, China Everbright Bank Company Limited Co.Ltd(601818) continuously deepened the business model of retail customers in layers and groups. The total number of customers exceeded 140 million, and the total increment remained at the forefront of joint-stock commercial banks, and the number of private customers exceeded 50000, an increase of 24.70% over the end of the previous year, continuing to maintain high-speed growth.
By the end of 2021, China Everbright Bank Company Limited Co.Ltd(601818) managed total retail customer assets (AUM) had reached a new level of 2 trillion yuan, reaching 212467 billion yuan, an increase of 10.68% over the end of the previous year; The scale of financial management exceeded 1 trillion yuan, reaching 1067709 billion yuan, an increase of 27.67% over the end of the previous year.
Fee income is an important symbol of wealth management banks. In 2021, the net income from China Everbright Bank Company Limited Co.Ltd(601818) fees and commissions was 27.314 billion yuan, an increase of 11.90% year-on-year. Among them, the handling fee income of financial services was 3.976 billion yuan, a year-on-year increase of 57.90%.
Dongxing Securities Corporation Limited(601198) banking analyst Lin Jinlu once mentioned that China Everbright Bank Company Limited Co.Ltd(601818) has continuously optimized the system and mechanism and adhered to product innovation since the transformation of wealth management strategy.
Lin Jinlu said that the bank’s brand advantages such as sunshine financial management and cloud payment have been gradually strengthened; The number of retail customers and AUM have achieved rapid growth, the revenue contribution of wealth management business has increased year by year, and the characteristics of wealth management have gradually become prominent. At the same time, backed by the group’s full financial license and multi industry advantages, the company focuses on building a wealth e-sbu ecosystem, significantly improves the group’s coordination and linkage, and is optimistic about the wealth management business space under the group’s efficient coordination.
In recent years, China Everbright Bank Company Limited Co.Ltd(601818) insists on building open wealth management platform and digital convenience service platform, focusing on building “cloud payment” open payment platform.
In 2021, China Everbright Bank Company Limited Co.Ltd(601818) mobile banking, sunshine life and cloud payment app had more than 50 million monthly live users, an increase of 32.97% over the end of last year; Especially the cloud payment platform, in 2021, the payment amount exceeded 550 billion yuan, the number of payments exceeded 2 billion, and the number of active users reached 565 million.
“We believe that China Everbright Bank Company Limited Co.Ltd(601818) as the leader of the 25 trillion payment market, it has significantly benefited from the rapid increase of market share and the activation of the mechanism. There is a wide space for payment users to explore the value of bank customers. The cloud payment of the bank has formed a scale effect, the market share of the platform has increased rapidly, and it is difficult for other competitors to quickly imitate and surpass.” Zheshang Securities Co.Ltd(601878) researchers Liang Fengjie and Qiu Guanhua proposed in the published research report.
China Everbright Bank Company Limited Co.Ltd(601818) introduces that in 2021, China Everbright Bank Company Limited Co.Ltd(601818) retail finance will firmly promote the transformation of wealth management, speed up the construction of digitization, and comprehensively build an integrated retail customer business system of “stratification and clustering, data-driven, channel coordination and transaction transformation”, which is enabled by five aspects: customer, channel, scene, technology and coordination, Build a whole chain of big wealth management ecology covering “wealth management, asset management and asset custody” as the core, and significantly improve the value creation ability and high-quality development ability of retail finance.
defective rate reaches the best level since 2015
Last year, China Everbright Bank Company Limited Co.Ltd(601818) the annual revenue growth slowed down, the profit growth was stable, and the revenue profit structure was further optimized
The annual report shows that in 2021, the bank achieved an operating revenue of 152751 billion yuan, a year-on-year increase of 7.14%; The net profit was 43.639 billion yuan, a year-on-year increase of 15.06%.
When analyzing the performance express released by China Everbright Bank Company Limited Co.Ltd(601818) before, the Research Report of Minsheng Securities pointed out that the growth of the bank’s revenue slowed down in 2021, and the profit growth was still relatively prosperous, but there may be the impact of low base effect China Everbright Bank Company Limited Co.Ltd(601818) 2021 – 0.1 percentage points year on year and – 2.1 percentage points month on month; Under the low base effect, the growth rate of net profit attributable to the parent company was + 13.5 percentage points year-on-year and – 3.8 percentage points month on month.
Overall, China Everbright Bank Company Limited Co.Ltd(601818) operating revenue structure continued to improve. On the one hand, the bank’s total interest income remained stable in 2021, with a net interest income of 112155 billion yuan, a year-on-year increase of 1.32%. On the other hand, the income structure of the bank’s intermediary business is more optimized.
In 2021, China Everbright Bank Company Limited Co.Ltd(601818) achieved intermediate business revenue of 27.314 billion yuan, an increase of 11.90% year-on-year China Everbright Bank Company Limited Co.Ltd(601818) in terms of introduction, the green medium income of asset management, agency and trusteeship amounted to 10.871 billion yuan, with a year-on-year increase of 25.69%, which has become an important driving factor of medium income growth. The characteristics of wealth management and light transformation have achieved remarkable results.
In addition, the bank achieved rapid growth in other income throughout the year, accelerated asset circulation, enhanced investment capacity, and promoted the transformation of trading banks. In the whole year, the bank achieved other income such as investment income and valuation profit and loss of RMB 13.282 billion, a year-on-year increase of 77.90%.
In terms of asset quality, the non-performing index of China Everbright Bank Company Limited Co.Ltd(601818) has decreased twice for two consecutive years. In 2021, the asset quality of the bank continued to improve and the provision coverage increased slightly.
By the end of 2021, China Everbright Bank Company Limited Co.Ltd(601818) NPL balance was 41.366 billion yuan, 300 million yuan less than that at the end of the previous year; The non-performing loan ratio was 1.25%, down 0.13 percentage points from 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, and the asset quality was further improved.
“In 2021, the China Everbright Bank Company Limited Co.Ltd(601818) non-performing rate increased from – 13bp to 1.25% (Mom – 9bp), maintaining a rapid pressure drop rate and reaching the best level since 2015.” Yu Jinxin, an analyst at Minsheng securities, said.
At the same time, he mentioned that the bank’s non-performing loan balance decreased by 0.72% year-on-year, the stock risk was further cleared, and the asset quality was substantially improved. The provision coverage ratio increased from + 4.31pct to 187.02% year-on-year, and the asset safety margin continued to be thickened.
