Talk every Monday: Bank annual reports are disclosed one after another to boost confidence
As of this week, five A-share listed banks have disclosed the annual report of 2021, which is mainly analyzed for five listed banks this week.
The net profit attributable to the parent company increased rapidly
In 2021, the revenue growth rate of five banks increased compared with 21q3. The differentiation of individual stocks is large. Specifically, the year-on-year growth rate of China Merchants Bank Co.Ltd(600036) revenue ranks first, reaching 14%, followed by Ping An Bank Co.Ltd(000001) and Industrial Bank Co.Ltd(601166) , with year-on-year growth rates of 10.3% and 8.9% respectively. The year-on-year growth rates of Bank Of Qingdao Co.Ltd(002948) and China Citic Bank Corporation Limited(601998) revenue were relatively low, with 5.6% and 5% respectively.
The growth rate of net profit attributable to the parent of four listed banks in 2021 was higher than that in 21q3, exceeding market expectations. The differentiation of individual stocks is relatively large. Specifically, Ping An Bank Co.Ltd(000001) net profit attributable to parent increased rapidly, reaching 25.6%, mainly driven by the provision for asset impairment. Followed by Industrial Bank Co.Ltd(601166) and China Merchants Bank Co.Ltd(600036) , the year-on-year growth rate of net profit attributable to parent company was 24.1% and 23.2% respectively.
We attribute the performance of five listed banks:
The year-on-year increase in net profit attributable to the parent company was mainly driven by the provision for asset impairment, of which Industrial Bank Co.Ltd(601166) asset impairment provision contributed 22.8% to the net profit attributable to the parent company, and China Merchants Bank Co.Ltd(600036) asset impairment provision contributed the least to the net profit attributable to the parent company, 8.2%.
The net interest margin of the five listed banks decreased year-on-year, and the contribution of the net interest margin to the net profit attributable to the parent was negative. Among them, the China Merchants Bank Co.Ltd(600036) net interest margin decreased by only 1bp year-on-year, and the net interest margin factor only dragged down the net profit attributable to the parent by – 0.3%, mainly due to the strong cost control ability of China Merchants Bank Co.Ltd(600036) liability side.
Analysis of asset liability structure: most of the growth rates of loan scale and deposit scale fell
The growth rate of asset scale and loan scale of the three banks in 2021 decreased compared with that in 21q3. Specifically, only the growth rate of China Merchants Bank Co.Ltd(600036) and Bank Of Qingdao Co.Ltd(002948) asset scale and loan scale increased month on month, while the other three banks declined. The growth rate of liabilities and deposits of the three banks in 2021 decreased compared with that in 21q3. Specifically, only the growth rate of China Merchants Bank Co.Ltd(600036) and Bank Of Qingdao Co.Ltd(002948) liabilities and deposits increased month on month, while the other three banks declined.
Asset quality analysis: provision has room to release profits
Asset quality continues to improve, but there are still structural risks. From the perspective of non-performing loan ratio and provision coverage, the non-performing loan ratio of the five listed urban commercial banks decreased slightly month on month. Except China Citic Bank Corporation Limited(601998) , the provision coverage of the other four listed banks rebounded month on month, indicating that the asset quality has improved and the provision has been more consolidated. From the perspective of the loan ratio as the leading indicator of non-performing loans, except China Citic Bank Corporation Limited(601998) the loan ratio concerned by the other four banks increased by different ranges, indicating that there are still some potential risks in the asset quality of some banks.
Provision has room to release profits. From the perspective of provision provision, the provision of the five banks has driven the positive growth of performance. The recent policies continue to release the tone of maintaining stability, coupled with the marginal fine-tuning of real estate policies, the subsequent banking business environment may continue to improve, the potential risk of asset quality will decline, and the provision has the space to release profits.
Investment strategy: according to the disclosed annual reports of listed banks, the quality of bank assets continues to improve, but there are still structural risks. Subsequently, with the gradual implementation of policies, the expectation of loose real estate policies gradually heats up, the expectation of steady economic growth is strengthened, and the quality of bank assets is expected to continue to improve. It is suggested to pay attention to banks with excellent fundamentals and annual report exceeding expectations, such as Postal Savings Bank Of China Co.Ltd(601658) , China Merchants Bank Co.Ltd(600036) , Ping An Bank Co.Ltd(000001) , Industrial Bank Bank Of Ningbo Co.Ltd(002142) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , etc.
Risk warning: policy risk; The risk of macroeconomic recovery falling short of expectations; Covid-19 is at risk of continued deterioration.
