Green transformation has become the trend of global economic and social development and the key point of future growth. It will have a far-reaching impact on relevant industries and commercial banks, and also bring broad development opportunities.
On March 29, Bank Of China Limited(601988) released the annual performance report for 2021. By the end of 2021, the bank’s domestic green credit balance had exceeded 1.4 trillion yuan, an increase of 57% over the beginning of the year. Make full use of the central bank’s refinancing tools to provide financial services for carbon emission reduction and clean and efficient utilization of coal, and support more than 270 projects.
“During the 14th Five Year Plan period, we plan to provide financial support of no less than 1 trillion yuan to the green industry, and at the same time, we will gradually increase the proportion of green credit balance.” On the same day, Liu Jiandong, director of Bank Of China Limited(601988) risk, said when answering questions from China first finance at the performance conference.
has completed the operational carbon inventory of 11000 institutions
As the first large state-owned bank to formulate the 14th five year plan for green finance, BOC will contribute to green development and present new highlights in 2021.
Specifically, it includes integrating ESG concept into operation and management to create the preferred bank for green financial services; Continuously improve the top-level design of green finance, and the board of directors regularly reviews issues related to green finance; Establish a leading group for green finance and industry planning and development with the chairman as the group leader, and a green finance committee with the president as the chairman under the Executive Committee to promote the work of green finance.
“In terms of policy system, we have formulated the action plan for serving the double carbon goal, and put forward the quantitative strategic objectives, key work and supporting measures of the whole group’s green finance from 2021 to 2025.” Liu Jiandong said.
Liu Jiandong introduced that in terms of integration, BOC promoted the integrated development of group equity debt loan insurance and leasing, and provided customers with comprehensive products including green fund, green financial management, green leasing, green insurance and green equity investment, so as to meet the financial needs of low-carbon transformation from multiple angles.
It is reported that BoC has made it clear that from the fourth quarter of 2021, it will no longer provide financing for overseas new coal mining and new coal power projects except for signed projects. More than 620000 Chinese and overseas low-carbon institutions have completed their green operations.
Looking to the future, Liu Jiandong said that we should continue to improve the top-level design, increase policy support for green finance, improve supporting measures for the base, and continuously improve the performance and innovation ability of green finance; Promote better coordination between one body and two wings, give full play to the advantages of BOC in global business layout and comprehensive services of international exchanges and cooperation, organically combine domestic commercial banks, overseas branches and comprehensive operating companies, promote each other, provide customers with all-round green financial services and promote the overall green development of the group.
At the same time, do a good job in risk management, not only do a good job in the bank’s own risk control, but also steadily promote the credit structure adjustment of the industry from the perspective of international people’s livelihood, prevent various secondary risks in the process of transformation, and effectively do a good job in its own operation management.
service entity loan increment hit a record high
According to the annual report, the scale of assets and liabilities of BOC increased steadily during the reporting period. By the end of 2021, the total assets of the group were 26.72 trillion yuan, an increase of 9.51% over the beginning of the year; Total liabilities amounted to 24.37 trillion yuan, an increase of 9.59% over the beginning of the year. The financial benefits increased steadily, the operating revenue increased by 6.71% year-on-year, and the profit before provision increased by 3.87% year-on-year; The after tax profit was 227.3 billion yuan, a year-on-year increase of 10.85%, and the after tax profit attributable to shareholders was 216.6 billion yuan, a year-on-year increase of 12.28%. The main indicators remained within a reasonable range, with an average return on total assets (ROA) of 0.89% and a return on net assets (ROE) of 11.28%, up 0.02 and 0.67 percentage points respectively year-on-year. The net interest margin was 1.75% and the cost income ratio was 28.17%.
At the same time, the asset quality remained stable. By the end of 2021, the group’s non-performing loan balance was 208.8 billion yuan, an increase of 1.519 billion yuan over the beginning of the year; The defect rate was 1.33%, down 0.13 percentage points. The provision coverage rate was 187.05%, an increase of 9.21 percentage points over the beginning of the year. Significant results have been achieved in resolving adverse events, and substantial progress has been made in resolving major project risks. The capital adequacy ratio reached 16.53% and remained at a reasonable adequacy level.
In terms of serving the real economy, during the reporting period, BOC’s domestic RMB loans increased by 1.38 trillion yuan over the beginning of the year, with a record increase. BOC vigorously developed science and technology finance and provided credit support of more than 820 billion yuan to nearly 36000 science and technology enterprises; Loans to strategic emerging industries increased by 299.3 billion yuan, an increase of 135%; New loans to private enterprises amounted to 2.4 trillion yuan, representing an increase of 0.98 percentage points over the previous year; Inclusive small and micro enterprise loans increased by 305.9 billion yuan, a record high; Medium and long-term loans to manufacturing increased by 129.1 billion yuan, an increase of 29%.
