On April 22, China Merchants Bank Co.Ltd(600036) released the first quarterly report of 2022.
Data show that in the first quarter, the bank achieved an operating revenue of 91.99 billion yuan, a year-on-year increase of 8.5%, a year-on-year increase of 12.5% to 36 billion yuan, and its operating performance was stable. This is also the first quarterly report of the stock bank.
and the first quarterly report are disclosed together with an important announcement of China Merchants Bank. China Merchants Bank said in the announcement that at present, Wang Liang, the executive vice president, presides over the work of the whole bank, “the operation and management of the bank operates normally” and “there is no undisclosed information that should be disclosed”
A few hours before the disclosure of the first quarterly report, the website of the State Supervision Commission of the Central Commission for Discipline Inspection disclosed that Tian Huiyu, the former party secretary and President of China Merchants Bank, was suspected of serious violation of discipline and law, and is currently undergoing discipline review, supervision and investigation by the State Supervision Commission of the Central Commission for Discipline Inspection.
net interest margin increased for three consecutive quarters
By the end of March, the total assets of China Merchants Bank were about 9.42 trillion yuan, an increase of 1.8% over the beginning of the year. Among them, the growth rate of loans was slightly higher than that of asset scale, and the proportion in total assets also increased by nearly 1 percentage point to 61.2% compared with the beginning of the year.
structurally, the bank’s retail loan increment was less than 40 billion yuan for two consecutive quarters, with a year-on-year slowdown in the first quarter. CMB explained that it was mainly due to the weak consumption willingness of residents and the reduction of effective demand for loans from small and Micro customers under the continuous and repeated impact of the epidemic
On the liability side, China Merchants Bank continued the good deposit growth momentum in the fourth quarter of last year. The deposit increment in a single quarter remained above 330 billion yuan, and the month on month increase continued to be higher than 5%, but the incremental structure changed significantly.
Specifically, in the fourth quarter of last year, the increment of the bank’s corporate demand deposits accounted for more than 80%, while in the first quarter of this year, the increment focused on time deposits, accounting for about 88% of the increment of deposits in the whole bank. This may be related to the general net breaking of financial products in the first quarter. Some customers turn to products with stable returns such as large certificates of deposit, resulting in the phenomenon of regular deposits.
it is worth noting that according to the disclosure, the net interest margin of China Merchants Bank has increased month on month for three consecutive quarters, and the net interest margin in the first quarter of this year was 2.51%. However, Wang Liang, executive vice president of the bank, once said at the annual performance meeting that maintaining the stability of net interest margin this year will face great challenges
First, the central bank lowered the LPR interest rate twice, and the bank loan interest rate showed a downward trend, which put great pressure on this year’s interest margin control and maintaining the interest margin advantage;
Second, in terms of deposit growth, the competition of banks for deposits is more intense, the cost of deposits will rise, and there will be a huge squeeze on the interest margin.
In fact, the recent changes in the interest rate of large certificates of deposit of China Merchants Bank have attracted much attention China Merchants Bank Co.Ltd(600036) app shows that at present, the interest rate of the bank’s three-year certificates of deposit on sale is only 2.9%, while the interest rate of the bank’s certificates of deposit with the same term sold in January and early April this year are 3.45% and 3.2% respectively.
some brokerage analysts said that using all means to reduce the cost of deposits is the top priority of the subsequent credit expansion, and it is also the key to the steady growth of credit expansion without damaging the bank interest margin, which is double positive for banks
In terms of the growth of non interest income, under the downturn of the capital market, the wealth management income of China Merchants Bank decreased, while the asset management income and custody fee income continued to grow.
According to the data, in the first quarter, the income of the bank’s wealth management decreased by 11.1% year-on-year, including the decline of agency fund income and the rapid growth of agency insurance income.
By the end of March, CMB’s retail AUM (managed customer assets) had reached 11.34 trillion yuan, an increase of 5.4% over the beginning of the year. Among them, AUM of sunflower and above customers increased by 4.7% over the same period, accounting for more than 70% of the total increment of retail AUM; AUM of private banks exceeded 3.5 trillion yuan, an increase of 3.1% over the beginning of the year.
bad rare “double liter”
In terms of asset quality, in the first quarter, CMB further strictly identified non-performing loans and fully exposed risks. The ratio of loans overdue for more than 90 days to non-performing loans decreased from 69% at the beginning of the year to 58%.
but on this basis, the non-performing loan ratio of the bank ended the previous “six consecutive declines” and rarely “double rises” in the first quarter: the non-performing loan ratio increased by 0.03 percentage points to 0.94% compared with the beginning of the year; The proportion of concerned loans rose to nearly 1%
In view of the increase of non-performing loans and concerned loans, China Merchants Bank explained that it was mainly affected by the rising risk of real estate customers and the impact of the epidemic in some areas on the retail loan business.
Among them, the non-performing loan balance of the real estate company of the bank suddenly increased to 9.4 billion yuan from 4.96 billion yuan at the beginning of the year, and the non-performing loan rate of the industry reached 2.57%.
CMB also continued to disclose the “account book” of risk control related to real estate business in its financial report: as of the end of March, the balance of real and contingent credit, proprietary bond investment, proprietary non-standard investment and other businesses bearing credit risk related to real estate of CMB totaled about 517.5 billion yuan, an increase of 1.2% over the beginning of the year.
Among them, the balance of the bank’s loans to public real estate was about 365.3 billion yuan, an increase of 9.3 billion yuan over the beginning of the year. It was mainly invested in high-quality projects and high-quality customers, but its proportion in the bank wide loans decreased.
Meanwhile, the bank’s financial capital contribution, entrusted loans, consignment trusts actively managed by cooperative institutions, lead underwriting debt financing instruments and other businesses that do not bear credit risk totaled 378.4 billion yuan, down 8.2% from the beginning of the year.
in addition to the continuous exposure of real estate business risks, the newly generated non-performing loans of CMB’s credit cards increased by nearly 1.6 billion yuan in the first quarter, which was mainly caused by the adjustment policy of overdue recognition time point, the implementation of the non-performing policy of reducing the non-performing loans overdue for more than 60 days and the superposition of the impact of the epidemic situation
Looking forward to the asset quality in the next stage, China Merchants Bank said that at present, the epidemic abroad is still continuing, geopolitical conflicts are escalating, and the external environment is becoming more complex, severe and uncertain; China’s epidemic frequency has increased, and its economic development is facing triple pressures of shrinking demand, supply shock and weakening expectations.
Specifically, the recovery of consumption and investment is slow, it is more difficult to stabilize exports, the supply of energy and raw materials is still tight, the pressure of imported inflation is increasing, the production and operation of small, medium-sized and micro enterprises and individual industrial and commercial households are difficult, and employment is facing great pressure; In some places, the contradiction between fiscal revenue and expenditure has increased, and there are many hidden risks in the economic and financial field.
CMB believes that due to the superposition of internal and external factors, the risks of some industries and regions may accelerate their exposure, and the asset quality of the bank will face certain challenges.
first quarter results appear gradually
before CMB, Bank Of Nanjing Co.Ltd(601009) , Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) .
Among them, Bank Of Nanjing Co.Ltd(601009) in the first quarter, the operating revenue and net profit increased by 20%, and the non-performing loan ratio and the proportion of special loans decreased compared with the beginning of the year Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) in that quarter, the revenue increased by 11.8% year-on-year, the net profit increased by nearly 30%, and the asset quality also showed a good trend. The revenue and net profit of Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) in the first quarter also increased by about 20%.
at the same time, the above-mentioned three banks were significantly increased
Among them, Bank Of Nanjing Co.Ltd(601009) in the first quarter, it was increased by nearly 120 million shares held by major shareholders and persons acting in concert. Since the beginning of the year, the stock price of the bank has risen by more than 36%, ranking first among listed banks Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) respectively obtained the net increase of about 55 million shares and 71.1 million shares from the north, with the cumulative shareholding ratio of 5.63% and 6.96% respectively, an increase of 3.05 percentage points and 2.6 percentage points respectively over the beginning of the year.
According to the data, as of the closing on April 22, Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) and Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) share prices rose by 23.4% and 14.8% respectively during the year, ranking among the top listed banks.
on the other hand, China Merchants Bank, on the basis of a net increase of about 444 million shares last year, continued to receive a net increase of about 187 million shares from the north in the first quarter, but its A-share price has fallen by 12.7% since the beginning of the year, ranking the second among listed banks
Among them, affected by the news of personnel changes of President Tian Huiyu, the bank’s share price fell continuously in the first three trading days of this week, with a cumulative decline of nearly 10%, but it has rebounded since then.
While the market gradually digested the adverse effects of the sudden change of the bank’s president, the news that Tian Huiyu was investigated for serious violation of discipline and law landed after hours on April 22, which also added a trace of uncertainty to the stock price trend of China Merchants Bank next week.
According to the previous research report of Anxin securities, from the perspective of stock price, liquidity, macroeconomic expectations and emergencies will affect the short-term stock price trend. The change of China Merchants Bank Co.Ltd(600036) president may increase the short-term fluctuation of the company’s stock price; But in the medium and long term, the stock price is basically determined by fundamental factors.
