On March 31, Postal Savings Bank Of China Co.Ltd(601658) held a 2021 annual performance conference to answer the hot topics concerned by investors, such as interest rate spread trend, credit investment direction, asset quality, intermediate business income and so on.
key indicators of Postal Savings Bank Of China Co.Ltd(601658) 2021 annual report:
The operating revenue was 318762 billion yuan, a year-on-year increase of 11.38%;
The net profit attributable to bank shareholders was 76.17 billion yuan, a year-on-year increase of 18.65%;
Personal banking revenue was 221855 billion yuan, a year-on-year increase of 11.99%, accounting for 69.60% of operating revenue;
AUM (managing individual customer assets) increased by more than trillion yuan annually, with a total scale of 12.53 trillion yuan, a year-on-year increase of 11.40%;
The non-performing loan ratio was 0.82%, down 0.06 percentage points from the end of the previous year;
The provision coverage rate was 418.61%, an increase of 10.55 percentage points over the end of the previous year.
interest margin level keeps leading in the industry
Postal Savings Bank Of China Co.Ltd(601658) chairman Zhang Jinliang said that the net interest margin of the whole bank was 2.36% in 2021, a year-on-year decrease of 6 basis points, and still maintained a leading level among peers.
According to Zhang Jinliang’s analysis, from the perspective of assets in 2022, there are several favorable factors for Postal Savings Bank Of China Co.Ltd(601658) . First, there is still much room for improvement in the deposit loan ratio. According to the calculation, for every 1 percentage point increase in the deposit loan ratio, the return on assets of Postal Savings Bank Of China Co.Ltd(601658) will increase by 1.5 basis points. “In previous years, our annual deposit loan ratio will increase by 2-3 percentage points, and it is estimated that it will also increase by more than 2 percentage points this year.”
Second, the structural advantages will be further strengthened. It is estimated that the yield of real loans is more than 200 basis points higher than that of non real loans. Among credit assets, the RAROC level of retail credit is higher than that of corporate loans. Therefore, Postal Savings Bank Of China Co.Ltd(601658) has always adhered to the strategy of giving priority to entities and giving priority to retail in asset allocation in recent years.
Third, there is still much room for non credit assets to take the initiative Postal Savings Bank Of China Co.Ltd(601658) there are 5 trillion yuan of asset allocation in the financial market, and there is a lot of room for optimization.
From the debt side, Zhang Jinliang said that Postal Savings Bank Of China Co.Ltd(601658) also faces several favorable factors. First, this year, we will promote the performance appraisal system with value deposits as the core, and guide the branches to vigorously develop low-cost value deposits.
Second, the dividend from the reform of the self-regulation ceiling of deposit interest rate last year will be concentrated this year. More than 95% of Postal Savings Bank Of China Co.Ltd(601658) ‘s liabilities are deposits, benefiting a lot.
Third, Postal Savings Bank Of China Co.Ltd(601658) this year, many high interest deposits are due. For example, more than 500 billion yuan of high interest deposits with a maturity of more than three years are due. The interest rate of these deposits is higher, at more than 3.8%. With the repricing of maturity this year, the interest rate will drop. In addition, Postal Savings Bank Of China Co.Ltd(601658) also made a detailed plan, hoping to undertake these high interest deposits through funds and financial management.
“In short, the management of interest rate spread this year faces great challenges, but we are confident that through active asset liability management, the level of interest rate spread will remain ahead of the industry.” Zhang Jinliang said.
increase credit extension on the premise of controllable risk
Liu Jianjun, President of Postal Savings Bank Of China Co.Ltd(601658) said that Postal Savings Bank Of China Co.Ltd(601658) should increase credit supply under the premise of controllable risk throughout the year, and continue to make accurate arrangements for investment.
For this year’s credit supply, Liu Jianjun put forward the principle of “appropriate total amount, entity priority, better structure and faster pace”. In terms of adhering to the appropriate total amount, it is expected that the bank’s credit growth will maintain a good level this year.
On the one hand, Liu Jianjun formulated the “structure optimization” strategy. “Three improvements” include increasing the proportion of deposits and loans, the proportion of physical loans and the proportion of retail credit; “One pressure drop” refers to the pressure drop of bill financing, because the yield of bill financing is generally low.
In addition, we should pre launch the rhythm. This year’s Postal Savings Bank Of China Co.Ltd(601658) quarterly credit supply basically follows the proportion of “4321”.
As for the direction of credit investment, Liu Jianjun said that in the field of retail credit, we will mainly focus on agriculture, rural areas and farmers, agriculture related and inclusive small and micro loans to increase credit investment. At the same time, we will also increase credit investment in credit cards, consumer loans and other fields. In the field of corporate credit, the bank has determined that the target customer group is medium and large-scale enterprises. Among these enterprises, we should especially target some “specialized, special and new” and single champion enterprises in the manufacturing industry and conduct in-depth cooperation with them. At the same time, we will also vigorously develop green credit.
strive to maintain a high level of revenue growth in 2022
In 2021, Postal Savings Bank Of China Co.Ltd(601658) intermediate business revenue was 22.007 billion yuan, a year-on-year increase of 33.42%.
According to Zhang Xuewen, vice president of Postal Savings Bank Of China Co.Ltd(601658) in recent years, Postal Savings Bank Of China Co.Ltd(601658) regards intermediary business as the strategic business of the whole bank. From 2019 to 2021, the average annual growth rate will reach 23%. In 2022, Postal Savings Bank Of China Co.Ltd(601658) will strive to maintain a high level of medium income growth, with the goal of maintaining a growth rate of more than 20%.
In terms of specific measures, Zhang Xuewen said that in terms of retail business, we should continue to focus on wealth management business; Vigorously grasp the settlement and clearing business; Continue to focus on credit card business.
Zhang Xuewen also mentioned that the company and capital business are also the potential for the development of Postal Savings Bank Of China Co.Ltd(601658) intermediate business, because the proportion of company and capital business in Postal Savings Bank Of China Co.Ltd(601658) is still very low and the space is very large. We should vigorously develop the financial management business of companies and institutions; Continue to develop custody business; Continue to increase the development of investment banking business.
confident to keep the asset quality at a better level in the industry
Postal Savings Bank Of China Co.Ltd(601658) chief risk officer Liang Shidong said that various macro policies had begun to work at the beginning of the year, but there are many new changes in the current situation outside China, the challenges are also increasing, and the asset quality of the banking industry is facing challenges and pressure.
“On the whole, Postal Savings Bank Of China Co.Ltd(601658) is confident to keep the asset quality at a better level in the industry.” Liang Shidong said that first, Postal Savings Bank Of China Co.Ltd(601658) asset quality foundation is relatively solid.
Second, the risk offset is sufficient. By the end of 2021, Postal Savings Bank Of China Co.Ltd(601658) provision coverage has reached 418.61%, and the cushion is relatively thick.
Third, adhere to forward-looking risk management. In the corporate field, the bank included large risk customers into the list system management and dynamically monitored the risk situation. At the same time, strengthen the risk investigation in key areas to achieve early identification and resolution of risks.
Fourth, strengthen the application of intelligent risk control. Especially in the retail field, through the accurate portrait of customers, strengthening the management of loan purpose, and accurate and forward-looking post loan early warning, we can realize the risk management of retail credit customers in the whole life cycle and improve the refinement level.
Fifth, this year, we will further strengthen the disposal of non-performing assets and broaden the disposal channels.
2021 IT investment of 10 billion yuan
Zhang Jinliang introduced that in recent years, Postal Savings Bank Of China Co.Ltd(601658) made every effort to speed up the information construction, solidly promoted the digital transformation, and achieved remarkable results. In 2021, Postal Savings Bank Of China Co.Ltd(601658) it investment was 10 billion yuan, and the cumulative investment in the past three years exceeded 27.2 billion yuan, accounting for more than 3% of operating revenue.
At the same time, Postal Savings Bank Of China Co.Ltd(601658) has increased the construction of it team in recent years. Zhang Jinliang introduced that the IT staff of Postal Savings Bank Of China Co.Ltd(601658) head office has doubled for two consecutive years, with more than 10000 self owned and outsourced personnel. The bank focused on improving the independent and controllable level of information technology. Last year, the proportion of independent research and development, independent platform application and agile research and development increased by more than 10%.
