On March 29, China Zheshang Bank Co.Ltd(601916) released the annual performance report for 2021. The report shows that in 2021, the bank (Group caliber, the same below) achieved an operating revenue of 54.471 billion yuan, a year-on-year increase of 14.19%; The net profit attributable to bank shareholders was 12.648 billion yuan, a year-on-year increase of 2.75%; By the end of 2021, the total assets were 2.29 trillion yuan, an increase of 11.64% over the end of the previous year.
asset liability structure optimization
After the total assets exceeded RMB 2 trillion in 2020, the asset scale of China Zheshang Bank Co.Ltd(601916) reached RMB 2.29 trillion at the end of 2021, an increase of 11.64% over the beginning of 2021. From the data, with the adjustment and optimization of business structure, the asset liability structure of the bank has changed better.
On the asset side, China Zheshang Bank Co.Ltd(601916) responded to the call of the policy and injected fresh water into the real economy by building chain finance and “intelligent manufacturing service bank”. By the end of 2021, the total amount of loans and advances issued by the bank was 1.35 trillion, an increase of 12.49%. The total amount of loans and advances accounted for 59% of the total assets, up 6%, 2% and 1% respectively compared with 2018, 2019 and 2020.
On the liability side, by enriching the types of deposit products and improving the service capacity, China Zheshang Bank Co.Ltd(601916) continuously consolidated the basic customer base and optimized the liability structure, and the proportion of various deposits in liabilities continued to increase. The proportion of deposits in liabilities increased from 63.1% in 2018 to 66.8% at the end of 2021. The proportion of interbank integration is 21.11%, which is at an excellent level.
During the reporting period, China Zheshang Bank Co.Ltd(601916) continued to increase credit supply, reduce the cost of liabilities, make the structural layout more reasonable, and also contributed to the double rise of revenue and profit.
In 2021, China Zheshang Bank Co.Ltd(601916) realized net interest income of 41.952 billion yuan; The net non interest income was 12.519 billion yuan, an increase of 13.09% and 18.01% respectively over the previous year; The net profit attributable to bank shareholders was 12.648 billion yuan, reversing the decline of the previous year and increasing by 2.75%.
China Zheshang Bank Co.Ltd(601916) cost control capability also improved significantly in 2021. The financial report shows that with the implementation of the policy requirements of reducing financing costs, China Zheshang Bank Co.Ltd(601916) interest bearing assets yield 4.61%, down 0.07 percentage points from the previous year; The cost ratio of interest bearing liabilities was 2.54%, down 0.15 percentage points from the previous year, effectively promoting the recovery of net interest margin. The annual net interest margin was 2.07% and the net interest rate of return was 2.27%, both of which were 0.08 percentage points higher than that of the previous year.
In terms of asset quality, at the end of the reporting period, China Zheshang Bank Co.Ltd(601916) non-performing loan ratio was 1.53%, loan provision ratio was 2.68%, provision coverage ratio was 174.61%, and capital adequacy ratio was 12.89%, all at a reasonable level. It is reported that China Zheshang Bank Co.Ltd(601916) is promoting the implementation of the share allotment scheme, and the net funds raised will be used to supplement the core Tier-1 capital. At present, the scheme has been approved by the China Banking and Insurance Regulatory Commission.
five business segments go hand in hand
In 2021, China Zheshang Bank Co.Ltd(601916) focused on the main business and continued to invest credit resources in the areas most needed by the entity. Based on the in-depth implementation of the platform service strategy, the five business segments of “large retail, large companies, large investment banks, large asset management and large cross-border” have developed in coordination.
From the annual report data, this goal has achieved phased results.
In the large retail sector, China Zheshang Bank Co.Ltd(601916) realized the overall improvement of retail business in 2021. Among them, the number of individual customers reached 8.3565 million, and the balance of personal loans was 381.5 billion yuan, an increase of 14.53% over the previous year. The total amount of consignment business was 119.1 billion yuan, an increase of 107% over the previous year; The business income was 459 million yuan, an increase of 146%; The ownership of non commodity funds was 18.92 billion yuan, an increase of 224%.
The loan increment of small loan business in all dimensions reached a record high. By the end of 2021, the bank’s loan balance for inclusive small and micro enterprises was 236553 billion yuan, an increase of 17.06% over the previous year, with a non-performing rate of 0.92%, which was at a better level in the industry, and the “golden card” effect was significant.
In the large company sector, China Zheshang Bank Co.Ltd(601916) continues to promote the iteration of platform product and service mode. A new supply chain finance department is established to carry out digital supply chain financing business. At present, it has formed characteristic and differentiated supply chain financial solutions in more than 20 industries such as steel, construction and energy. By the end of 2021, China Zheshang Bank Co.Ltd(601916) had served more than 7600 upstream and downstream customers, of which Pratt & Whitney small and micro enterprises accounted for more than 75%, and the annual investment amount exceeded 40 billion yuan.
In response to the call of the state to accelerate industrial transformation and upgrading, the Bank launched the special action of “spark plan” and the special policy of “specialization and innovation” for the manufacturing industry, and deeply implemented the smooth financing project in Zhejiang Province. The medium and long-term loans of the manufacturing industry increased rapidly, with an increase of 51.15% and the completion rate of regulatory indicators was 467%; In response to the “double carbon” strategy, green loans and carbon neutral loans increased by 32.8% and 55.6% respectively, significantly faster than the growth rate of various loans. Through foreign exchange transactions, Zhejiang Merchants “trading treasure” and other convenient online services for foreign trade enterprises, the international settlement volume increased by 104.3% to US $218.2 billion in 2021.
In addition, in the large investment bank and large asset management sector, it will return to its origin in 2021, strengthen the integrated linkage of “investment, trust, marketing and matching” in the joint financial market, and officially implement the integration of FPA commercial investment bank. In line with the regulatory requirements and the development of asset management industry, the net worth rate of financial management has reached 73.55%, which has a benign interaction with the large retail sector.
2022 is the key year for the implementation of the 14th five year plan. Facing the new situation, new tasks and new challenges, China Zheshang Bank Co.Ltd(601916) will take digital reform as the main line, deeply cultivate Zhejiang as the first priority, promote the coordinated development of five business sectors, enhance the ability of risk prevention and disposal, and comprehensively open a new journey of high-quality development.
