On March 25, Bank Of Communications Co.Ltd(601328) released the annual performance of 2021 and held a press conference.
According to the annual report, last year’s Bank Of Communications Co.Ltd(601328) operating revenue was 269390 billion yuan, a year-on-year increase of 9.42%, net profit (attributable to shareholders of the parent company) was 87.581 billion yuan, a year-on-year increase of 11.89%, and total assets were 11.67 trillion yuan, an increase of 9.05% over the end of the previous year.
At the performance meeting, the management of BOCOM responded one by one to the problems concerned by the market, such as asset quality, credit supply, real estate loans, wealth management and so on.
achieved 9 the highest level of profit growth in recent years
According to the financial report, in 2021, Bank Of Communications Co.Ltd(601328) achieved an operating revenue of 269390 billion yuan, a year-on-year increase of 9.42%; The net profit (attributable to the shareholders of the parent company) was 87.581 billion yuan, a year-on-year increase of 11.89%. By the end of 2021, the total assets of the group had reached 11.67 trillion yuan, an increase of 9.05% over the end of the previous year.
It is worth noting that this is the highest level of profit growth of BOCOM in the past nine years.
During the reporting period, the net operating income was 269748 billion yuan, a year-on-year increase of 9.33%; Net interest income was 161693 billion yuan, a year-on-year increase of 5.45%; The net income from handling fees and commissions was 47.573 billion yuan, a year-on-year increase of 5.52%. The group’s net interest rate of return was 1.56%, a year-on-year decrease of 0.01 percentage points. The average return on assets was 0.80%, with a year-on-year increase of 0.03 percentage points; The weighted average return on net assets was 10.76%, up 0.41 percentage points year-on-year.
In terms of asset quality, by the end of 2021, the balance of non-performing loans of BOCOM 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, and the balance and proportion of overdue loans decreased “both”; The provision coverage rate was 166.50%, an increase of 22.63 percentage points over the end of the previous year.
The board of directors proposed to distribute cash dividend of RMB 0.355 per share (including tax) to ordinary shareholders in 2021, with a cash dividend rate of 32.16%
So, can the performance of BOCOM maintain such a good situation this year?
In this regard, Liu Jun, President of Bank of communications, said that the overall situation this year is indeed particularly complex. It is difficult for Bank of communications to continue to hand over a satisfactory answer to the capital market and investors in 2022, but there are still optimistic factors. For example, macro policies have created a good environment for the rational and stable operation of the economy. There is a huge space for policy advantages, consumption and investment have been gradually repaired and restored, and the export growth trend has not changed.
Liu Jun concluded that China’s economy is still the stabilizer and main engine of global economic growth this year. Such a conclusive judgment shows that financial institutions will have great potential in it.
adhere to retail transformation, increase real estate credit
What are the changes in the credit supply of BOCOM this year?
Guo Mang, vice president of BOCOM, said that bocom will implement the policy requirements of expanding the scale of new loans, further strengthen its service to the real economy and continue to promote the optimization of credit asset structure. In terms of total amount, the preliminary arrangement of RMB loans is higher than that in 2021, with an increase of about 11.5%, which is roughly the same as that of last year. At the same time, it is moderately adjusted according to the requirements of the central bank.
Since the beginning of this year, the RMB loans of BOCOM have maintained a rapid growth. At the end of February, the RMB loans increased by 4.38% compared with the beginning of the year, an increase of 77.8 billion yuan year-on-year, of which the corporate substantive loans increased by 70 billion yuan year-on-year.
Guo mang further revealed the direction of credit structure adjustment: first, continue to support credit growth in key areas such as inclusive small and micro enterprises, scientific and technological innovation, green credit, manufacturing, specialization and innovation, and Rural Revitalization. Second, adhere to the guidance of retail transformation, maintain the stable investment of personal housing mortgage loans, and promote the development of personal consumer loans and credit card loans. The increment of retail loans planned to be allocated in 2022 accounts for about 46%, 3 percentage points higher than last year. Third, from a regional perspective, we will actively connect with the national strategy, increase credit support for the Yangtze River Delta, Beijing Tianjin Hebei, Guangdong, Hong Kong and Macao Bay area and other regions, and also implement the coordinated development strategy of various regions.
At the same time, the Bank of communications increased the real estate credit.
Hao Cheng, vice president of BOCOM, said that BOCOM has always adhered to the principle of housing without speculation, earnestly implemented the requirements of stabilizing land price, house price and expectation, and actively met the reasonable capital needs of the real estate market. Especially since the fourth quarter of last year, the investment has increased.
By the end of 2021, the balance of Bank of Communications’ loans to public real estate was 419.8 billion yuan, an increase of 20.57% over the beginning of the year, accounting for 6.4%, an increase of 0.45 percentage points over the beginning of the year. In the first two months of this year, the balance of real estate development loans of BOCOM domestic branches increased by 29.5 billion yuan compared with the beginning of the year, which is equivalent to 7% of the real estate balance at the end of last year. At the same time, the reserves of subsequent projects are relatively rich.
Since this year, BOCOM has taken the initiative to meet the M & A needs of real estate enterprises, especially the needs of high-quality projects of real estate enterprises with difficulties in M & A, and promote real estate M & a financial services. Up to now, BOCOM and Midea real estate have signed a strategic cooperation agreement on M & A financing of 9 billion yuan. At the same time, it is negotiating and signing the strategic cooperation agreement on M & A financing with other high-quality real estate enterprises.
at at the end of the financialproducts have been tested
Since this year, affected by multiple factors such as the global environment, the capital market has fluctuated violently, and bank financial products have also encountered a lot of tests, and many products have fallen below the initial net value.
In response, Bank Of Communications Co.Ltd(601328) Business Director (interbank and market business) Tu Hong said that since this year, due to the conflict between Russia and Ukraine, the expectation of the Federal Reserve to raise interest rates, the covid-19 epidemic and other multiple factors, as well as the changes in China’s economic and financial situation, there has been a short-term adjustment in the stock and bond market, especially the obvious decline in the stock market. In this extreme market situation, it is difficult for market participants to be alone, and the financial products of BOCOM have also retreated to a certain extent.
The asset allocation of most of our financial products has been relatively stable due to the volatility of the underlying asset structure. However, from the perspective of the recent market, the equity ratio of our financial products has been relatively low. Although the asset allocation of most of our products has been stable in the short-term market, we can wait for the equity ratio of our financial products to increase. From the perspective of the historical market, the equity ratio of our products has been relatively low.
”Tu Hong said.
In Tu Hong’s view, under the background of basically good economic orientation, with the force of a series of policies and measures, it is believed that the pessimism of synchronous decline in the short-term stock and bond market will be gradually released.
Under such circumstances, the growth target of the official account of the Bank of China will be no less than 10%, including four major measures: first, to strengthen the construction of the customer service system, optimize the functions of various online platforms, do well the operation and maintenance of online platforms such as the Bank of communications financial portal, WeChat public number, and establish a customer service team to provide the accompanying services for investors.
Second, strengthen the fine management of products, continuously improve the product shelves, continue to innovate in product strategies and product features, promote the products that implement the national strategy, such as pension finance, and strengthen product R & D.
Third, improve the investment management ability, strengthen the construction of investment and research ability, improve the large category asset allocation system, form an effective connection mechanism from strategic asset allocation to tactical asset allocation and from large category asset allocation to specific investment target allocation, and optimize the allocation proportion of high volatility assets and stable income assets.
Fourth, increase the construction of channels. This year, we will continue to build an open all channel system and further expand the inter-bank financial consignment channels.
At the same time, in addition to bocom wealth management, Bank Of Communications Co.Ltd(601328) currently has a wealth management sub company Schroder bocom wealth management. The positioning of the two financial companies is also the focus of attention.
Tu Hong said that Schroder Bank of communications financial management will form a differentiated development with the existing businesses of the two shareholders. In terms of investment positioning, on the basis of direct investment in equity and bonds, it will integrate diversified assets such as fof portfolio, REITs, green diversified assets, alternative and private equity. In terms of product positioning, it is differentiated from the financial product system dominated by low-risk fixed income of BOCOM financial management and the product system dominated by high-risk rights and interests of Schroder domestic companies.
