“Good news came one after another. The profit growth rate of small and medium-sized banks was not 20%. I\’m embarrassed to speak! Take a clear-cut stand to call banks and actively look at more bank stocks.” Liao Zhiming, an analyst at trump bank, commented on the bank’s performance express, which appeared in a crowd this week.
With the introduction of measures to stabilize growth, the undervalued banking sector also began to dance like an elephant in the new year. In just a few days this year, bank ETFs have increased by more than 4%.
On Tuesday, Industrial Bank Co.Ltd(601166) led the banking sector to rise continuously under the boost of the performance express. On Tuesday, Bank Of Jiangsu Co.Ltd(600919) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , China Citic Bank Corporation Limited(601998) performance letters appeared one after another, refreshing the heat of the banking sector again.
bank performance express exceeded expectations
from the 2021 annual performance express of several listed banks, it can be seen that their performance is significantly better than the previous third quarterly report of 2021.
This week, five banks including Industrial Bank Co.Ltd(601166) , Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Bank Of Jiangsu Co.Ltd(600919) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) and China Citic Bank Corporation Limited(601998) disclosed their performance express, and Bank Of Chengdu Co.Ltd(601838) also predicted the performance of 2021 on January 5. From the announcement information, listed banks not only made great progress in performance growth, but also significantly improved the proportion of loans, and significantly improved the quality of loans.
On January 11, Bank Of Jiangsu Co.Ltd(600919) released a performance express: after deducting non profits, the growth rate of net profit attributable to shareholders was as high as 31%, which not only continued to lead listed banks, but also better than the previous performance of the third quarterly report of 2021. In the third quarterly report, Bank Of Jiangsu Co.Ltd(600919) led the banking sector with a performance growth rate of 30%.
Bank Of Jiangsu Co.Ltd(600919) said that last year, guided by the strategy of building a “smart, characteristic, international and comprehensive” service leading bank, it comprehensively promoted the operation and management work, and steadily improved the business scale, efficiency and quality.
As of the end of the reporting period, the total assets of the bank were 2618.390 billion yuan, a year-on-year increase of 12.00%; The balance of various loans was 140.172 billion yuan, a year-on-year increase of 16.52%. During the reporting period, the net profit attributable to the shareholders of the listed company was 19.694 billion yuan, a year-on-year increase of 30.72%. At the end of the reporting period, the non-performing loan ratio was 1.08%, a decrease of 0.24 percentage points compared with the beginning of the period, and has decreased year by year in the six years since listing. The provision coverage rate was 307.72%, an increase of 51.32 percentage points over the beginning of the period, and has increased year by year in the six years since its listing.
Its net profit increased by 128.21} over the same period last year. Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) performance express shows that last year, the bank achieved an operating revenue of 7.653 billion yuan, a year-on-year increase of 16.27%; The net profit attributable to common shareholders was RMB 2.184 billion, a year-on-year increase of 21.13%. By the end of 2021, the bank’s total assets were 246.607 billion yuan, an increase of 18.17% over the beginning of the year; The total loans were 162.797 billion yuan, an increase of 23.59% over the beginning of the year. Personal loans accounted for 61.02% of the total loans, an increase of 4.01 percentage points over the beginning of the year. Personal operating loans accounted for 39.84% of the total loans, an increase of 2.94 percentage points over the beginning of the year.
In addition, among large and medium-sized banks, China Citic Bank Corporation Limited(601998) performance is expected to increase by 13%. China Citic Bank Corporation Limited(601998) announced that the net profit attributable to shareholders in 2021 was 55.641 billion yuan, an increase of 13.60% over the previous year. By the end of 2021, the non-performing loan ratio was 1.39%, down 0.25 percentage points from the end of the previous year; The provision coverage rate was 182.14%, an increase of 10.46 percentage points over the end of the previous year.
is it a good time for elephants to dance?
A feature highlighted in the performance letters of many banks is the improvement of business structure, high growth of net profit, and the improvement of non-performing loans. In this regard, many institutions also believe that this is a sign that the overall performance of the banking industry tends to improve.
Haitong International said in its latest research report that according to the situation of A-share listed banks that released the latest performance express, both Industrial Bank Co.Ltd(601166) and Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) showed a good trend of “profit acceleration + non-performing decline + provision increase + loan proportion increase”. The whole industry will show a good performance trend, not just individual companies.
“With the launch of the national steady growth policy, it is expected that banks will start the main wave.” Zheshang Securities Co.Ltd(601878) said Liang Fengjie, chief bank analyst.
From a historical comparison, Huatai Securities Co.Ltd(601688) Shen Juan believes that the banking sector can often obtain excess returns relative to the Shanghai stock index in January, mainly driven by performance release, policy catalysis and capital allocation. At the current time point, we are optimistic about the repair market of the banking sector under the background that the bank fundamentals continue to improve, the policies are more active and promising, and the capital style is switched to the undervalued sector.
In terms of performance, Shen Juan expects that the fundamentals of listed banks are expected to continue to improve, with a year-on-year profit growth rate of 12.9%. With the disclosure of some bank performance letters, it is expected to catalyze the market of the sector. In terms of policy, the tone is “stable”, the monetary policy is more proactive and promising, and the total amount + structural tools work together. It is expected to further reduce interest rates and reserve requirements in the first quarter of 2022, superimpose the pre issuance of special bonds, and protect the bank’s business environment. In terms of funds, since mid December 2021, funds have shifted from high valuation sector to low valuation sector, and the market style has changed. At present, Pb in the banking sector is only 0.65 times, the dividend yield is close to 5%, and the configuration value is high. It is expected that the market style switching trend is expected to continue.
(source: Shanghai Securities News)
