On March 28, the A-share banking sector performed strongly, with 32 of the 42 banking stocks rising, China Citic Bank Corporation Limited(601998) , Xiamen Bank Co.Ltd(601187) rising by more than 5%. Since March 16, the bank index (CITIC) has increased by nearly 8% and some stocks have increased by more than 10%. Insiders believe that the recent strong trend of the banking sector is related to the higher than expected performance of listed banks in 2021 and the higher dividend ratio. Looking forward to the future, the prosperity of high-quality small banks is high, and investors are advised to seize investment opportunities.
profitability further enhanced
According to the combing of the reporter of China Securities, the reporter of China Securities newspaper has combcombcombcombcombcombby the reporter of China Securities. As of the March 28, as of the March 28, the press of the March 28, there have been 00000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) bothincome and net profit attributable to parent company achieved positive growth Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Ping An Bank Co.Ltd(000001) , Industrial Bank Co.Ltd(601166) , China Merchants Bank Co.Ltd(600036) , Bank Of Qingdao Co.Ltd(002948) net profit attributable to parent company increased by more than 20% year-on-year, exceeding market expectations.
Taking Ping An Bank Co.Ltd(000001) as an example, the annual report shows that the bank achieved an operating revenue of 169383 billion yuan in 2021, a year-on-year increase of 10.3%; The net profit was 36.336 billion yuan, a significant year-on-year increase of 25.6%. Compared with the end of 2020, the amount of non-performing loans and the rate of non-performing loans decreased by 115 million yuan, and the rate of non-performing loans decreased by 0.16 percentage points to 1.02%. The provision coverage rate increased by 87.02 percentage points to 288.42% compared with the end of 2020.
China Merchants Bank Co.Ltd(600036) achieved high growth under a high base, and further enhanced its capital expansion ability and profitability. In 2021, the bank realized a net profit attributable to the parent company of 119922 billion yuan, a year-on-year increase of 23.20%; The average return on total assets attributable to the bank’s shareholders and the average return on net assets attributable to the bank’s common shareholders were 1.36% and 16.96% respectively, with a year-on-year increase of 0.13 and 1.23 percentage points respectively. By the end of 2021, China Merchants Bank Co.Ltd(600036) assets totaled 9249021 billion yuan, an increase of 10.62% over 2020.
multiple funds actively increase positions
At the same time of the disclosure of the annual report, the latest list of the top ten circulating shareholders of many banks was released. The reporter of China Securities Journal found that some bank stocks were increased by public and private funds and asset management of securities companies in the fourth quarter of 2021.
For example, Huatai Bairui dividend ETF added 201306 million shares China Citic Bank Corporation Limited(601998) , which was promoted from the seventh largest circulating shareholder at the end of the third quarter of 2021 to the sixth largest circulating shareholder Citic Securities Company Limited(600030) excellent growth increased its position by 3783100 shares Ping An Bank Co.Ltd(000001) in the fourth quarter of 2021, with the number of shares held at the end of the period reaching 502301 million and the reference market value reaching 828 million yuan.
The data also shows that in the fourth quarter of 2021, Nanfang financial theme C and Nanfang CSI 500etf increased their positions of Bank Of Qingdao Co.Ltd(002948) 18451100 shares and 634200 shares respectively, and pangzeng Jiji No. 25 private securities investment fund also increased its positions of Bank Of Qingdao Co.Ltd(002948) 153600 shares.
However, some institutions choose to reduce their holdings of bank shares. According to the data, e fund blue chip reduced its holdings of 12.001 million shares in the fourth quarter of 2021 Ping An Bank Co.Ltd(000001) . In the fourth quarter of 2021, the universal insurance fund under everyone insurance reduced its holdings of 161 million shares China Merchants Bank Co.Ltd(600036) .
On the whole, listed banks are still one of the preferred sectors for public offering. In the fourth quarter of 2021, Industrial And Commercial Bank Of China Limited(601398) , China Minsheng Banking Corp.Ltd(600016) , Bank Of Ningbo Co.Ltd(002142) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Agricultural Bank Of China Limited(601288) and other public funds increased their positions on a large scale, with the number of positions increased exceeding 50 million shares.
optimistic about high-quality small banks
Guotai Junan Securities Co.Ltd(601211) Securities said that at present, the banking sector is in the transition stage from promoting wide credit (expectation) to realizing economic stabilization (cycle), and the banking sector “can attack and retreat”. From the perspective of the whole year, the prosperity of high-quality small banks is the highest. In terms of stages, urban commercial banks and rural commercial banks are expected to be more dominant in the banking sector in the first half of this year. Looking forward to the second half of the year, if consumption picks up and the economy stabilizes, the prosperity of national banks, especially joint-stock banks, will rebound significantly.
For the first quarter performance of the banking sector, all institutions also hold a positive attitude. On March 28, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) released the performance forecast for the first quarter of 2022, which showed that from January to March 2022, the operating revenue of the bank increased by 19% year-on-year, and the net profit attributable to common shareholders increased by 23% year-on-year. By the end of March 2022, the non-performing loan ratio was 0.81%.
However, some institutions suggest that the risks and opportunities of the banking sector are the same. As of the end of 2021, some banks are still concerned about the rise in the quality of securities, indicating that some banks are still concerned about the rise in the quality of securities by the end of 2021. In addition, the growth rate of asset scale and loan scale of some banks at the end of 2021 was lower than that at the end of September 2021.
