On Tuesday, Bank Of China Limited(601988) released the annual report for 2021, which showed that 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 company plans to pay a dividend of 2.21 yuan (before tax) per 10 shares of common stock at the end of 2021.
Bank Of China Limited(601988) president Liu Jin said at the performance conference that the annual average price of Bank Of China Limited(601988) A shares in 2021 was 2.81 yuan, with a dividend of 0.221 yuan per share. Based on this calculation, the dividend yield was 7.86%, an increase of 2.08 percentage points over the previous year. From the perspective of several large banks in China, the dividend ratio of 30% determined by major shareholders has remained unchanged for many years, and investors should have full confidence. Considering all factors, BOC's dividend policy has not changed at present.
Liu Jin also pointed out that from the data observation in recent years, Bank Of China Limited(601988) the dividend yield and dividend yield are not high for institutional investors, but they are also a stable and reliable choice under the current complex situation outside China. For individual customers, as an integral part of the asset portfolio, it is already a good choice. Financial products, fund fixed investment and other investment tools are also good if individual investors can reach this level if they choose by themselves.
"We will continue to maintain such a dividend level and dividend level to repay investors and shareholders." Liu Jin said.
loan increment hit a record high
The annual report shows that in 2021, RMB loans in Bank Of China Limited(601988) China increased by 1.38 trillion yuan over the beginning of the year, with a record increase. Among them, loans for 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%.
Liu Jin revealed that BoC has a strong desire for credit growth, which comes from the needs of business development and profit growth. However, the growth of any scale must match the capital strength. Therefore, it is necessary to constantly formulate and improve the capital emergency plan, and take measures such as optimizing the asset structure and controlling asset risks under the changing external business environment or accelerating the credit operation, To ensure reasonable and sufficient capital.
Bank Of China Limited(601988) executives also said that they would maintain a reasonable growth in corporate loans this year and further optimize the structure of corporate credit. This year, the scale of credit has maintained a stable growth and continued to expand the scale of new loans. It is expected that domestic RMB loans will increase year-on-year, with an increase of no less than 10%. It will continue to increase support for small and micro enterprises, scientific and technological innovation, green development and other key areas, and reasonably control the investment of "two high and one control" credit projects.
In addition, it will steadily increase infrastructure loans, seize business opportunities such as transportation, water conservancy construction, municipal infrastructure and new infrastructure, and help improve the manufacturing industry and enhance the core competitiveness by taking industrial infrastructure reconstruction projects and specialized new giants as the starting point. Support intelligent manufacturing, green manufacturing, high-end equipment manufacturing and service-oriented manufacturing, and promote the credit supply of manufacturing industry. Support green and low-carbon industrial development, promote the efficient and clean utilization of coal, increase the consumption capacity of new energy, steadily promote the low-carbon transformation of energy, and ensure the security of energy supply.
In addition, we will also increase the investment in rural revitalization, create a number of business models serving characteristic Shenzhen Agricultural Products Group Co.Ltd(000061) production and supply and marketing with the help of Inclusive Finance and supply chain finance products, and improve the professional service capacity of agricultural customers.
strengthen risk identification and control in key areas
According to the annual report, the asset quality of BOC remained stable in 2021, 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. Liquidity risk and market risk indicators meet regulatory requirements.
For the risks to be faced this year, Bank Of China Limited(601988) senior management said that in 2022, BOC will continue to organically combine resolving financial risks and serving the real economy, especially continue to strengthen the active prevention and control of various risks, especially the identification and control of risks in key areas.
Bank Of China Limited(601988) risk director Liu Jiandong pointed out that at present, some phased and local risk pressures are relatively prominent. For example, some real estate enterprises are affected by market fluctuations and the capital chain is tightening. Local government debts in some regions are under the pressure of centralized repayment when due, and some vulnerable enterprises in the middle and lower reaches of the industrial chain and traditional energy enterprises are facing difficulties in industrial upgrading and green transformation.
There are also some import and export enterprises with high degree of external dependence facing the problem of insufficient demand caused by the rise of external uncertainties such as epidemic and geopolitics. At the same time, BOC also pays close attention to the economic and financial risks caused by the current financial market fluctuations.
Since last year, the price of bulk commodities has risen rapidly and is still at a high level, squeezing the profits of weak low-end manufacturing, construction and wholesale and retail enterprises in the middle and lower reaches. Some enterprises will incur default risk due to operating difficulties. Recently, multiple factors such as the conflict between Russia and Ukraine and the appreciation of the US dollar have been superimposed. Individual commodity prices have also broken through historical extremes, which has had an impact on the financial market.
"BoC will also pay close attention to the market risks caused by the sharp fluctuations in financial market prices and the impact on customers' capital, liquidity and solvency." Liu Jiandong said.
