Focus:
This week, CITIC, Societe Generale, Everbright, communications and Bank Of Qingdao Co.Ltd(002948) 5 banks successively released 2021 annual reports. At present, a total of 7 banks have disclosed their annual reports, and the growth rate of revenue and net profit attributable to the parent company in the same caliber is + 9.86% / + 19.39% respectively.
Industry and company dynamics
1) on March 21, the national standing committee pointed out the need to increase the support of prudent monetary policy to the real economy and maintain policy stability. 2) On March 23, the CBRC released the list of legal persons of banking financial institutions. By the end of 2021, there were 4602 banking financial institutions in China, 6 and 2 fewer than that in the medium term and 2020 respectively. 3) On March 22, Puyi standard released the ranking report of bank financial management ability in 2021. 4) On March 23, the China Banking and Insurance Regulatory Commission released green credit data. The balance of green credit of 21 major banks in China reached 15.1 trillion yuan. 5) This week, Bank Of Ningbo Co.Ltd(002142) appointed former vice president Zhuang Lingjun as vice chairman and President, and Industrial Bank Co.Ltd(601166) the largest shareholder was changed from Fujian finance department to Fujian financial investment Postal Savings Bank Of China Co.Ltd(601658) fully redeem 20 billion yuan of 10-year tier 2 capital bonds; Next week, there will be five major banks of industry, construction, agriculture, China and postal savings, as well as China Minsheng Banking Corp.Ltd(600016) and other banks to disclose their annual reports.
Data tracking
This week, the A-share bank index fell by 0.12%, outperforming the CSI 300 index by 2.02 percentage points, ranking 10 / 30 in the rise and fall of the sector, among which Bank Of Ningbo Co.Ltd(002142) (+ 4.70%), Bank Of Jiangsu Co.Ltd(600919) (+ 3.39%) and Bank Of Nanjing Co.Ltd(601009) (+ 2.67%) led the rise.
Open market operation: a total of 140 billion yuan of reverse repo expired in the open market of the central bank this week. This week, the central bank conducted a total of 190 billion yuan of reverse repo, with a net investment of 50 billion yuan. 190 billion yuan of reverse repo will expire next week.
Shibor: this week, the trend of Bank Of Shanghai Co.Ltd(601229) inter-bank lending rate rose slightly, the overnight Shibor interest rate was basically stable at 2.00%, and the seven-day Shibor interest rate rose 14bp to 2.20%.
LPR: the price of LPR in March was the same as before, with 1-year LPR reporting 3.70% and 5-year LPR reporting 4.60%.
Investment suggestions:
This week, listed banks successively disclosed their annual reports, and the performance expectations were fulfilled and implemented. From the annual report, retail business and credit costs form a stronger support for performance. This week, the policy level continues to maintain the stability of economic expectations, which is conducive to the market’s confidence in the economy. At present, the performance and dividend yield of the banking sector are stable and high, and the static Pb of 0.62x has a high cost performance. We maintain the “recommended” rating of the industry, and continue to recommend at the individual stock level: China Merchants, Ping An, Societe Generale, Ningbo, Chengdu, Hangzhou, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) etc.
Risk tips:
1) the downward pressure on the economy continues to increase, and the credit cost has increased significantly;
2) business differentiation of small and medium-sized banks, major business risks of individual banks, etc.
