On March 28, China Everbright Bank Company Limited Co.Ltd(601818) held a 2021 annual performance conference to answer the hot topics concerned by investors, such as narrowing of interest margin, housing related business, asset quality, dividend policy and so on.
China Everbright Bank Company Limited Co.Ltd(601818) president Fu Wanjun said that the downward pressure on the interest rate differential in 2022 is still large and will strive to maintain stability.
China Everbright Bank Company Limited Co.Ltd(601818) vice president and Secretary of the board of directors Zhao Ling said in response to a question from China Securities News · China Securities Taurus reporter that he would fully consider the interests of investors, maintain the continuity and stability of dividend policy, and strive to achieve a high proportion of cash dividends.
China Everbright Bank Company Limited Co.Ltd(601818) 2021 annual report key data list:
The annual operating revenue was 152751 billion yuan, a year-on-year increase of 7.14%;
The net profit attributable to shareholders was 43.407 billion yuan, a year-on-year increase of 14.73%;
The operating income to the public was 59.560 billion yuan, and the non-performing loan ratio to the public decreased for three consecutive years;
Retail revenue was 63.346 billion yuan, an increase of 7.98%, accounting for 41.47% of the bank’s operating revenue;
The total assets of retail customers under management (AUM) reached a new level of 2 trillion yuan, reaching 212467 billion yuan;
The amount of non-performing loans was 41.366 billion yuan, and the non-performing loan ratio was 1.25%, maintaining a “double decline”;
The provision coverage rate was 187.02%, an increase of 4.31 percentage points over the end of the previous year;
In 2021, the investment in science and technology was 5.786 billion yuan, a year-on-year increase of 12.35%, accounting for 3.79% of the operating revenue.
intensify the allocation of credit resources
Fu Wanjun introduced that with the further development of the steady growth policy, the demand for social financing will be gradually released China Everbright Bank Company Limited Co.Ltd(601818) will continue to strengthen the allocation of credit resources. It is expected that the growth rate of general loans and bond financing will reach 11.5% and 15% respectively this year. Through active credit arrangements, serve the national regional development strategy well, and strive to support the development of manufacturing, scientific and technological innovation, inclusive small and micro enterprises, private enterprises and green industries.
At the same time, this year China Everbright Bank Company Limited Co.Ltd(601818) will continue to implement differentiated FTP (internal capital transfer pricing) preferential policies, loan pricing preferential policies and capital charging preferential policies for key fields, key regions, key industries, key customers and key projects, expand the sub authorization of loan pricing for branches and mobilize the enthusiasm of operating institutions at all levels. For inclusive small and micro loans, medium and long-term manufacturing loans and green loans, we will continue to implement preferential pricing and further expand the pricing authorization. At the same time, we will transfer all the preferential capital dividends from the pricing of the central bank’s carbon emission reduction support tools to business units. We will continue to give FTP discount and capital charge preference to loans related to rural revitalization.
interest margin downward pressure is still large
Fu Wanjun judged that the downward pressure on the interest rate differential in 2022 is still large, but we should also see some favorable factors. We will strive to keep the interest rate differential stable compared with last year.
He introduced that on the asset side, on the one hand, it is to increase support and investment in key areas of the economy and stabilize the basic market through effective credit investment this year; On the other hand, increase the proportion of retail credit in credit business, and stabilize the income level of asset side through the optimization of income structure portfolio.
From the debt side, we must practice our internal skills and realize a new path in debt business, that is, deposits. For example, by increasing the flow of FPA (total customer financing), more funds are deposited; Through transaction banking businesses such as supply chain, cash management and trade finance, we can improve the stickiness with small and medium-sized enterprises and obtain more settlement funds. These low-cost funds are conducive to reducing the cost on the liability side and consolidating and supporting the interest margin.
In addition, Fu Wanjun stressed the need to unswervingly promote the transformation of wealth management, increase intermediate business income, especially the development direction of light capital represented by green intermediate business income, and further optimize the income structure.
confident to maintain stable asset quality
“In 2022, the economic situation outside China is complicated, and the asset quality of commercial banks still faces some challenges. However, we are confident that the asset quality will continue to remain stable.” China Everbright Bank Company Limited Co.Ltd(601818) vice president Yang Bingbing said that on the one hand, China has strong institutional advantages and development toughness, which provides a very favorable business environment for the banking industry; On the other hand, China Everbright Bank Company Limited Co.Ltd(601818) in recent years, it has steadily promoted the construction of intelligent risk control, adhered to optimizing the direction of credit investment, strengthened unified credit granting, comprehensively implemented the reform of risk management system and mechanism, and continuously improved its risk control ability.
real estate loan risk is generally controllable
According to Yang Bingbing, from the perspective of China Everbright Bank Company Limited Co.Ltd(601818) real estate loan portfolio, the overall risk is controllable. In 2022, the state will continue to promote the full implementation of the long-term mechanism of the real estate market and promote the steady and healthy development of the real estate market around “stabilizing land prices, house prices and expectations”. The current situation encountered by the real estate market is only short-term fluctuations under the long-term trend, which is expected to gradually stabilize in the future.
He stressed that China Everbright Bank Company Limited Co.Ltd(601818) will actively support the construction and operation of affordable rental housing, actively support urban renewal, reasonably support the real estate M & A of “high-quality subjects + high-quality projects”, support the commercial housing market to better meet the reasonable housing needs of buyers, and promote the healthy development and virtuous circle of the real estate industry due to urban policies.
“Of course, we will also further observe the risk evolution trend of the real estate industry and related fields, pay close attention to the credit risk changes of individual highly leveraged real estate enterprises, dynamically and prudently make credit provisions, and actively respond to all possible adverse situations.” Yang Bingbing said.
A-Shares with dividend yield above 6%
Zhao Ling said that in 2021 China Everbright Bank Company Limited Co.Ltd(601818) based on the capital stock of 54.032 billion shares, a dividend of 2.01 yuan (before tax) was distributed for every 10 shares, and the total cash dividend to be distributed for ordinary shares was 10.86 billion yuan, accounting for 28.13% of the net profit attributable to ordinary shareholders of the bank. The retained earnings will continue to create investment returns for ordinary shareholders.
“It is understood that this proportion is still at a high level among joint-stock banks. At present, the dividend rate of China Everbright Bank Company Limited Co.Ltd(601818) a shares is more than 6% and that of H shares is 8%, which is much higher than the current interest rate of one-year time deposit and the yield of one-year financial products, so it has a good guarantee of investment income.” Zhao Ling said.
Referring to the proportion of cash dividends of the bank in the future, Zhao Ling said that under the current situation of relatively limited external capital supplement, China Everbright Bank Company Limited Co.Ltd(601818) first of all, we should consolidate the business foundation, continuously improve profitability, pay more attention to capital saving, vigorously develop light capital business and enhance the endogenous capital supplement ability. On the basis that the capital adequacy ratio can meet the regulatory requirements and business development needs, China Everbright Bank Company Limited Co.Ltd(601818) will fully consider the interests of investors, maintain the continuity and stability of dividend policy, and strive to achieve a high proportion of cash dividends and create a good return on investment for investors.
