On March 29, the first annual report performance conference of the four major state-owned banks was held. BOC took the lead in announcing the “report card”, and China Construction Bank Corporation(601939) also announced the performance of 2021 that night.
As the first performance report of the four major state-owned banks in 2021, BOC’s operating performance last year was brilliant, which was closely related to the overall good macroeconomic performance last year. Last year, the operating revenue of BOC exceeded 600 billion yuan for the first time, reaching 605.56 billion yuan, a year-on-year increase of 7.08%. On the same day, the 2021 performance announced by China Construction Bank Corporation(601939) also showed a steady increase in profits. Last year, CCB achieved a revenue of 824.25 billion yuan, a year-on-year increase of 9.05%; The net profit was 303928 billion yuan, an increase of 11.09% over the previous year.
With regard to the dividend distribution concerned by the market, BOC announced on the same day that it plans to distribute the cash dividend of ordinary shares at 2.21 yuan (before tax) per 10 shares. The distribution time of A-share dividend is expected to be July 15, 2022 and H-share dividend is expected to be August 10, 2022. The profit distribution plan needs to be submitted to the bank’s 2021 annual general meeting for deliberation and approval. The board of directors of CCB proposed to pay an annual cash dividend of RMB 0.364 per share (including tax).
“Whether the dividend level is 30% or the dividend rate is nearly 7.8%, for institutional investors, although this income level is not high, it is a stable and reliable investment choice under the current complex situation and environment; for individual investors, BOC shares, as a part of the asset portfolio, is already a good choice, and BoC will continue to maintain the current dividend level.” Bank of China President Liu Jin said.
Data show that the scale of assets and liabilities of BOC increased steadily last year. 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%. 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 is 1.75%, and the cost income ratio (China regulatory caliber) is 28.17%.
The annual report of CCB shows that the growth of assets and liabilities is good, and the key indicators are stable and balanced. At the end of 2021, China Construction Bank Corporation(601939) total assets reached 30.25 trillion yuan, an increase of 7.54%; Total liabilities amounted to 27.64 trillion yuan, an increase of 7.37%. Profitability performance is good. The net profit reached 303928 billion yuan, an increase of 11.09% over the previous year; Net interest income increased by 5.12%, and net fee and commission income increased by 6.03%. The return on net interest is 2.13%, the average return on assets is 1.04%, the weighted average return on net assets is 12.55%, and the capital adequacy ratio is 17.85%.
In terms of asset quality, CCB continuously optimized the credit structure last year, consolidated the management foundation, kept the bottom line of risk, and maintained stable asset quality. At the end of 2021, the balance of non-performing loans was 266071 billion yuan, an increase of 5.342 billion yuan over the previous year; The non-performing loan ratio was 1.42%, down 0.14 percentage points from the previous year; Concern loans accounted for 2.69%, down 0.26 percentage points from the previous year. The capital adequacy ratio is 17.85%, the Tier-1 capital adequacy ratio is 14.14%, and the core Tier-1 capital adequacy ratio is 13.59%, all of which meet the regulatory requirements.
BOC said that last year, BOC optimized the comprehensive risk management system, improved the management structure, straightened out the management process, accelerated the digital transformation of risk management, and continuously improved the initiative, foresight and effectiveness of risk management. Improve the compliance management level of anti money laundering and sanctions, and promote the construction of long-term compliance mechanism. The asset quality remained stable, with the group’s non-performing loan balance of 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.
