On March 25, Bank Of Communications Co.Ltd(601328) ( Bank Of Communications Co.Ltd(601328) . SH), the first national state-owned joint-stock commercial bank in China, handed over the performance Reply of 2021 with the fastest year-on-year growth in recent years.
According to the announcement data, Bank Of Communications Co.Ltd(601328) 2021 achieved an operating revenue of 269390 billion yuan, a year-on-year increase of 9.42%; The net profit attributable to the parent company was 87.581 billion yuan, with a year-on-year increase of 11.89%, which was the most eye-catching year of performance growth of the company in recent years. The company also plans to distribute a cash dividend of RMB 0.355 per share (including tax) to ordinary shareholders, with a total distribution of RMB 26.363 billion, accounting for 32.16% of the net profit attributable to ordinary shareholders of the parent company.
At the same time, the company held an online presentation of 2021 annual performance in the panoramic roadshow from 17:00 to 18:30 on the release day Bank Of Communications Co.Ltd(601328) vice chairman, executive director and President Liu Jun led eight senior executives to attend the meeting and conducted in-depth communication and exchange on a series of key issues concerned by investors, such as “performance growth driving force”, “strategic goal promotion”, “wealth management bank construction”, “credit asset delivery”, “asset quality risk control”.
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“world class bank” strategic objective
is steadily advancing
The strategic goal of Bank Of Communications Co.Ltd(601328) “building a world-class bank with wealth management characteristics and global competitiveness” has been steadily promoted by giving full play to the advantages of “Shanghai home”, building a digital new bank of communications and creating four business characteristics.
As the first year of the 14th five year plan, in 2021, BOCOM served the high-quality integrated development of the Yangtze River Delta from point to area through the demonstration and leading role of “Shanghai home”, and achieved good results.
In 2021, the average growth rate of all kinds of AUM loans for wealth management enterprises in the Yangtze River Delta was higher than that of AUM in the whole quarter, and the average growth rate of AUM loans for wealth management enterprises in the Yangtze River Delta was lower than that of AUM in the whole quarter. In 2021, the total profit of the Yangtze River Delta region was 45.781 billion yuan, accounting for 48.72% of the group’s profit, with a year-on-year increase of 4.01 percentage points.
At the same time, the company has created a number of innovative benchmarks such as “bocom e-service”, digital RMB and mobile banking 6.0, and further strengthened the digital construction achievements of BOCOM. At present, the company has also made phased progress in the fields of new generation cloud platform, data middle platform, multi-party secure computing platform, stable production and network security operation, and continuously enhanced the driving force of data and technology.
According to the data, the investment in financial technology increased significantly by 23.60% year-on-year in 2021, and the proportion of talents with financial technology professional background recruited by the bank increased from 32% in 2019 to 55% in 2021.
In terms of four business features, the company’s “benefiting the people for medical treatment” has been launched in 29 cities, with more than 250 cooperative hospitals. The loan balance of Pratt & Whitney small and micro enterprises also increased by 49.23% compared with the end of the previous year, the balance of “Pratt & Whitney e-Loan” increased by 94% compared with the end of the previous year, and the pay bar and mobile banking app de duplication Mau increased by 17.56% compared with the end of the previous year, promoting products and services such as bocom E-PASS and CIPS standard transceiver.
In 2021, the amount of domestic bank trade financing of the company increased by 31.28% year-on-year. By the end of 2021, the company’s strategic emerging industry loans had increased by more than 90% compared with the end of the previous year. The launch of the “Bank of communications pension” brand and the establishment of “five enjoyment services” of personal pension finance enriched the shelves of wealth management products. At the end of 2021, the personal financial assets (AUM) managed by domestic banks of the company also increased by 9.26% compared with the end of the previous year.
Under the background of comprehensive optimization of BOCOM’s operation, the company ushered in the most brilliant moment of performance growth in recent years.
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business in full swing
led the profit growth of BOCOM to reach the peak in recent years
The revenue of BOCOM consists of corporate financial business, personal financial business, capital business and other businesses. Among them, corporate financial business and personal financial business each contribute about 45% of the total revenue, which are the two most important businesses of the companyp align=”center” style=”text-align:center;”> Operating performance by business segment p align = “center” style = “text align: Center;” Figure / source company annual report
First, in terms of corporate financial business, the balance of corporate loans increased by 11.63% year-on-year to 4138582 billion yuan, the balance of corporate deposits increased by 4.8% year-on-year to 455002 billion yuan, promoted the revenue of corporate financial business increased by 9.87% year-on-year to 120444 billion yuan, and contributed a total profit of 32.95 billion yuan.
It is worth noting that in order to serve the real economy, the company increased the financial supply in key areas and weak links. The growth rates of domestic green credit, agriculture related loans and related loans invested in manufacturing industry were 31.37%, 14.13% and 16.16% respectively, all exceeding the average growth rate of group loans.
At the same time, support the development of key regions and serve the national strategy. At the end of 2021, the loan balance of the three regions of the triangle, Beijing Tianjin Hebei, Guangdong, Hong Kong and Macao Greater Bay increased by 15.30% over the end of the previous year, 3.13 percentage points higher than the average increase of the group’s loans; The balance of loans in the three regions accounted for 52.15%, an increase of 1.42 percentage points over the end of the previous year.
In addition, BOCOM, which grasped the new development pattern of double cycle and the opportunity of industrial upgrading, increased the amount of trade financing by 31.16% year-on-year, and the proportion of balance in corporate loans increased by 1.37 percentage points; There were 23000 technology finance credit customers, and the loans to strategic emerging industries increased significantly by 142 billion yuan, an increase of 90.90%, accounting for 3.29 percentage points of corporate loans, and the development of trade finance and technology finance was significantly accelerated.
In terms of personal financial business, thanks to the “financial assets + data assets” to improve the expansion and operation ability of retail customers, the number of medium and high-end customers of BOCOM in 2021 increased by 15.29% compared with the end of the previous year, the proportion of online customers of debit card increased by 7.3 percentage points compared with the end of the previous year, and the proportion of online customers of credit card exceeded 50%.
Driven by wealth financial business, the net income of handling fees and commissions of BOCOM increased rapidly. In 2021, the scale of personal financial assets (AUM) managed by domestic banks of the company was 425638 billion yuan, an increase of 9.26% over the end of the previous year, and the income from selling personal wealth management products on a commission basis by domestic banks increased by 28.37% year-on-year.
At the same time, through the development of consumer finance business, the contribution of personal business is also continuously improving.
In 2021, the balance of personal loans of BOCOM increased by 15.36% year-on-year to 2285096 billion yuan, the cumulative consumption of debit cards increased by 32.02% year-on-year to 2603405 billion yuan, and the cumulative consumption of credit cards increased by 3.83% year-on-year to 3015569 billion yuan. In this context, the revenue of personal financial business increased by 8.96% year-on-year to 124095 billion yuan, contributing a total profit of 43.138 billion yuan.
In addition, the capital business and other businesses also achieved year-on-year growth, which finally led to the year-on-year growth of the operating revenue of Bank of communications by 9.42% to 269390 billion yuan, the year-on-year growth of the net profit attributable to the parent company by 11.89% to 87.581 billion yuan, the year-on-year increase of the average return on assets by 0.03 percentage points to 0.80%, and the year-on-year increase of the weighted average return on net assets by 0.41 percentage points to 10.76%. At the same time, the profitability was significantly improved The growth rate also reached a new high in recent years.
Behind the brilliant performance, the asset quality of BOCOM has been further consolidated.
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asset quality further stabilized
anti risk ability has been continuously improved
The balance and proportion of non-performing loans and overdue loans have been “double reduced”, significant results have been achieved in tackling key asset quality problems, and the ability to cope with risks in complex environments has been further strengthened.
According to the annual report, thanks to strengthening risk identification, accelerating risk disposal and strict asset quality classification standards, the balance of non-performing loans of BOCOM at the end of 2021 was 96.796 billion yuan, with a non-performing loan ratio of 1.48%, a decrease of 902 million yuan and 0.19 percentage points respectively compared with the end of the previous year.
Meanwhile, the company’s provision coverage rate was 166.50%, an increase of 22.63 percentage points over the end of the previous year; The overdue loan ratio was 1.33%, down 0.21 percentage points from the end of the previous year, and the asset quality was comprehensively optimized.
Yin Jiuyong, vice president of BOCOM, also clearly mentioned at the performance conference: “bocom will do a solid job in credit risk management and strive to fight a tough battle against non-performing assets.” Downtown pressure on the economy is also clear. In the complex environment of the downward pressure of the economy and the continuing impact of the epidemic, the company will strengthen forward-looking judgement on all kinds of risks, continue to adjust and optimize the structure in the development, and consolidate the foundation of risk prevention and control. Further promote the reform of risk credit and anti money laundering, and strengthen the risk measurement and monitoring system by using technologies such as big data, artificial intelligence and knowledge map. We will continue to fight for the disposal of strong assets and increase the risk of non-performing assets.
Liu Jun, President of Bank of communications, admitted that 2021 was the most complicated year in his nearly three decades of employment. First, covid-19 epidemic, as a huge variable, has been embedded in the current economic equation. Whether this public health incident can be solved has become a prerequisite for whether the economy can return to normal. So far, no effective solution has been found.
At the same time, the downward pressure on the future economy is actually diversified. Previously, there have been problems in the supply chain, especially exacerbated by geopolitical factors, which has led to the continuous rise of commodity prices and made inflation a “difficult monster”. This means that it is not particularly easy to find the answer to the current economic problems from an economic perspective. Looking back, the same is true of China’s economic situation. Facing the triple pressure of shrinking demand, supply shock and weakening expectation, it is bound to be solved by multiple equations.
However, from an optimistic point of view, the current macro policy has created a relatively good environment. According to the existing data, it can be seen that the current consumption is being moderately repaired, and many investments are gradually recovering. Theme investments such as advanced manufacturing and new infrastructure can be carried out, and banks can effectively connect these industries.
China’s economy set a GDP growth target of 5.5 in 2022, and China remains the stabilizer and main engine of global economic growth this year. “If there is such a conclusive judgment, it means that financial institutions will do a lot in it,” Liu Jun said
Bocom will firmly serve the real economy, practice financial inclusion, strengthen scientific and technological empowerment, and guard the risk gate. It hopes to lay a foundation for effectively preventing, resolving and pre managing financial risks through the improvement of its own systematic ability.
