The first public response!
On April 18, at the online briefing on the annual performance of Bank Of Ningbo Co.Ltd(002142) 2021, in response to investors’ questions on the news that the floating upper limit of deposit interest rate of small and medium-sized banks is encouraged to be lowered by about 10 basis points (BP), Bank Of Ningbo Co.Ltd(002142) proposed vice president and financial director Luo Weikai said, “we have just received a notice and are in the process of comprehensive evaluation. At the same time, we will refer to the implementation of other similar banks.”
China Securities News · China Securities Taurus reporter previously learned that the market interest rate pricing self-discipline mechanism held a meeting to encourage some small and medium-sized banks to reduce the floating ceiling of deposit interest rates by 10 basis points (BP). This requirement is not mandatory, but the bank making the adjustment may be beneficial to its macro Prudential assessment (MPA). At present, many small and medium-sized banks have received the notice, and each bank has different response plansP align = “center” provides space for pushing down loan interest rates
What is the meaning of encouraging small and medium-sized banks to reduce the floating ceiling of deposit interest rates by about 10 basis points (BP)?
China Industrial Securities Co.Ltd(601377) bank team said that reducing the cost of bank liabilities can provide space for banks to further expand credit supply and promote the decline (yield) of loan interest rate.
Zheshang Securities Co.Ltd(601878) bank team believes that this will help improve the competitive pressure of deposits, guide the industrial decline of deposit costs and support the interest margin. Compared with other banks, the current deposit pricing ceiling of the four major banks is 10bp lower for demand and 25bp lower for fixed term, and the downward elasticity of pricing is relatively small. At the same time, considering the limited downward space for the pricing of demand deposits and short-term deposits, assuming that the pricing of deposits with a term of more than one year in the four major banks decreases by 5bp and that of other banks decreases by 10bp, the static calculation can improve the bank interest margin by about 0.9bp. Among them, the small and medium-sized banks with high proportion of medium and long-term deposits have greater potential to improve the interest margin.
As for whether the small and medium-sized banks concerned by the market will cause the risk of deposit loss after reducing the deposit interest rate, the relevant person of a city commercial bank believes that reducing the deposit interest rate can not only reduce the cost of bank interest payment, but also conducive to supervision and assessment, but also beneficial to commercial banks themselves. “It is expected that most small and medium-sized banks will take the initiative to do so. In this way, the deposit interest rates of small and medium-sized banks in the market will remain basically the same, and the risk of deposit loss is very small.” He said.
In Citic Securities Company Limited(600030) view, controlling the pricing of long-term deposits through the reform of deposit benchmark interest rate and curbing the price war between banks is also expected to drive the debt cost down. However, the relative price advantage of small and medium-sized banks may be weakened, and the regional advantage of small and medium-sized banks needs to be further strengthenedP align = “center” Bank Of Ningbo Co.Ltd(002142) : the impact of the epidemic is generally controllable
At the performance presentation meeting on April 18, Bank Of Ningbo Co.Ltd(002142) also responded to many hot issues. It is worth mentioning that Zhuang Lingjun, President of Bank Of Ningbo Co.Ltd(002142) company, attended the performance briefing for the first time since taking office.
For the current stock price trend, Bank Of Ningbo Co.Ltd(002142) Board Secretary Yu Gang said that in recent years, the company’s PB valuation has remained at the forefront of the industry, basically reflecting the recognition of the company by the capital market.
Bank Of Ningbo Co.Ltd(002142) shares are reported at 38.20 yuan / share, with a market value of 252.3 billion yuan.
For the situation that many financial products have fallen below the net value since this year, Zhuang Lingjun said that the net value is mainly affected by the sharp fluctuations in the capital market, the net value transformation of financial products, fixed income + product allocation of equity assets and other factors. In the future, the company will take multiple measures to effectively respond: first, continue to enrich solid income, bonds and other stable products to meet the needs of low-risk customers; Second, strengthen the construction of investment research team, improve the asset allocation strategy and reduce the withdrawal range of issued products; Third, strengthen investor education to help investors better understand the normal fluctuation of product net worth.
For the impact of the epidemic in Jiangsu, Zhejiang and Shanghai on the bank’s credit supply and asset quality in the second quarter since March, Zhuang Lingjun said, “the epidemic has had a certain impact on the daily operation. However, from the recent market research, customer exchange and other situations, it is generally controllable.”
As for whether to adjust the provision coverage rate in the future, Luo Weikai said that the Bank Of Ningbo Co.Ltd(002142) provision is drawn in strict accordance with the three-stage different risk conditions required by the Ministry of finance, and there is no reduction or increase.
According to the data, by the end of 2021, Bank Of Ningbo Co.Ltd(002142) provision coverage was 525.52%, ranking third among the 27 listed banks that have published their annual reports.
