China Minsheng Banking Corp.Ltd(600016) handed over the 2021 annual report after the storm, and its performance is commendable.
According to the 2021 annual report data recently released by China Minsheng Banking Corp.Ltd(600016) government, although the bank achieved an operating revenue of 168804 billion yuan, a year-on-year decrease of 16.147 billion yuan or 8.73%, the net profit attributable to shareholders was 34.381 billion yuan, a year-on-year increase of 72 million yuan or 0.21%.
In terms of asset quality, as of the end of the reporting period, the total amount of non-performing loans was 72.338 billion yuan, an increase of 2.289 billion yuan over the end of the previous year; The non-performing rate decreased by 0.03 percentage points to 1.79%; The provision coverage rate was 145.30%, an increase of 5.92 percentage points over the end of the previous year.
“We not only face up to difficulties, but also strengthen our confidence.” Gao Yingxin, chairman of the board, said that this year China Minsheng Banking Corp.Ltd(600016) will take the initiative to adjust and optimize the structure, which will bring certain pressure on the operating performance in the short term. However, early adjustment and early initiative will also make the future development more stable and sustainable.
revenue decreased by 8.73% year on year
In terms of asset scale, by the end of 2021, China Minsheng Banking Corp.Ltd(600016) assets totaled 6.95 trillion yuan, an increase of 0.04% over the end of the previous year; The operating revenue was 168804 billion yuan, a year-on-year decrease of 8.73%.
As for the main reason for the decline in operating income, China Minsheng Banking Corp.Ltd(600016) vice president Li Bin said at the performance conference that in 2021, the bank actively implemented the regulatory requirements and significantly reduced the daily average scale of non-standard investments such as trust and asset management plans and financial products by 245.9 billion yuan year-on-year, and the corresponding interest income and non-interest income decreased by 5.5 billion yuan and 6.5 billion yuan respectively year-on-year, with a total decrease of 12 billion yuan, The pressure drop of related assets has a great impact on operating income.
In order to optimize the structure of loan customers and implement the national policy of reducing fees and transferring profits, China Minsheng Banking Corp.Ltd(600016) the average rate of return on loans and advances decreased by 0.39 percentage points year-on-year, and the loan interest income decreased by 3.1 billion yuan year-on-year.
“Last year China Minsheng Banking Corp.Ltd(600016) adjusted the loan structure and increased the credit supply to high rated customers, which had a certain impact on the loan income and reduced the credit risk.” Li Bin said that in 2021, public real estate loans decreased by 78.8 billion compared with the end of the previous year, accounting for 8.9% of all loans, down 2.5 percentage points compared with the end of the previous year. The decline of this part of high-yield loans had an impact on interest income.
In addition, with regard to the adjustment of bond investment structure, Li Bin introduced that China Minsheng Banking Corp.Ltd(600016) increased the allocation of highly liquid government bonds and local bonds, and reduced the scale of ABS and corporate bonds with high yield but high risk. The balance of corporate bond investment decreased by 22.8 billion or 5.8% over the end of the previous year.
In implementing the national policy of reducing fees and transferring profits, China Minsheng Banking Corp.Ltd(600016) support the real economy and reduce the financing cost of customers. In 2021, the bank continued to increase the support of Inclusive Finance for small, medium and micro enterprises, and the customer financing cost showed a downward trend.
strive to keep the net interest margin relatively stable
According to the annual report, the bank realized a net interest income of 125775 billion yuan in 2021, a year-on-year decrease of 9.449 billion yuan or 6.99%. The net interest margin was 1.91%, down 0.23 percentage points year-on-year.
China Minsheng Banking Corp.Ltd(600016) said that the decline in net interest margin was mainly due to the large decline in the rate of return on interest bearing assets (4.21%), a year-on-year decrease of 32BP; Among them, the loan yield (4.96%) decreased by 39bp year-on-year.
The decrease in net interest margin was mainly due to the large decline in the rate of return on interest bearing assets (4.21%), a year-on-year decrease of 32BP; Among them, the loan yield (4.96%) decreased by 39bp year-on-year.
China Minsheng Banking Corp.Ltd(600016) Vice President Chen Qiong pointed out, “from the perspective of the market, the net interest margin in 2022 is still expected to face the pressure of further narrowing.”
“In the face of pressure, the bank will take multiple measures to strengthen the management of net interest margin, mainly from the asset side and liability side.” Li Bin said that on the asset side, we should further increase the proportion of credit assets in interest bearing assets, optimize the credit business structure, strengthen the comprehensive pricing management of customers, and highlight the value guidance; At the same time, according to the fluctuation of money market and capital market, reasonably allocate bond investment and interbank assets, optimize term structure and improve income level.
On the liability side, take consolidating the customer base as the China Minsheng Banking Corp.Ltd(600016) primary goal, take the core liability as a strategic oriented business, and strengthen the expansion of low-cost settlement deposits; Strengthen the control of high-cost liabilities, raise funds through multiple channels, and reasonably allocate and arrange the scale and term structure of interbank liabilities and bonds.
“On this basis, we will further optimize the asset liability structure, promote the coordinated growth of asset liability volume and price, and strive to maintain a relatively stable net interest margin in 2022.” Li Bin said.
asset quality improved steadily
Since the second half of 2021, due to the superposition of various factors, the risks accumulated in the early stage of the real estate industry have begun to appear. Some highly leveraged real estate enterprises have capital chain problems, and the asset quality of bank real estate business is under pressure.
As for the concerned real estate assets, by the end of 2021, the balance of non-performing loans of China Minsheng Banking Corp.Ltd(600016) real estate was 9.574 billion yuan, an increase of 6.534 billion yuan over the end of the previous year, and the non-performing loan ratio was 2.66%, an increase of 1.97 percentage points over the end of the previous year.
In this regard, Yuan Guijun, vice president of China Minsheng Banking Corp.Ltd(600016) said that the growth of non-performing balance of China Minsheng Banking Corp.Ltd(600016) company’s business in 2021 was mainly concentrated in the real estate industry, information transmission, software and information technology service industries. Non performing loans in these two industries increased by 9.614 billion yuan in total. The balance of non-performing loans in corporate business in other industries decreased by 4.631 billion yuan compared with the end of the previous year, and the asset quality remained stable or better.
For the risks related to the real estate industry, China Minsheng Banking Corp.Ltd(600016) vice president Shi Jie said that the increase in the amount of non-performing loans and the rate of non-performing loans is in line with the current situation of periodic adjustment of the real estate industry, and the risk of China Minsheng Banking Corp.Ltd(600016) real estate business is within the controllable range.
“In 2022, China Minsheng Banking Corp.Ltd(600016) will continue to optimize the construction of credit management mechanism, promote the construction of risk internal control system, control both ends and strengthen the middle, build a system, upgrade early warning and strictly control personnel.” Yuan Guijun predicts that the overall asset quality of the bank will continue to improve in 2022, the non-performing loan ratio will maintain a steady decline, and the provision coverage will maintain a steady increase.
Tianfeng Securities Co.Ltd(601162) research report said that the year-on-year growth rate of China Minsheng Banking Corp.Ltd(600016) revenue stabilized, and the year-on-year growth rate of net profit attributable to the parent returned to positive. At the same time, China Minsheng Banking Corp.Ltd(600016) strategic objectives are clear, focusing on the three major tasks of “serving the real economy, preventing and controlling financial risks and deepening financial reform”. The plan is clear in two steps from 2021 to 2025. 20212022 is the year to consolidate the foundation of the company, and realize the transformation of growth mode by laying a foundation and consolidating the source. Early adjustment will enhance the initiative of future development and make the future operation more stable and sustainable.
“From 2022 to 2024, the net profit attributable to the parent company is expected to increase by 4.70%, 10.27% and 9.55% year-on-year.” Tianfeng Securities Co.Ltd(601162) researcher Guo Qiwei said.
