“The profit growth rate of small and medium-sized banks is not 20%. I\’m sorry to talk! We look at more bank stocks.” China Merchants Securities Co.Ltd(600999) Liao Zhiming, chief analyst of banking industry, commented on the 2021 performance express of A-share listed banks that appeared frequently this week. 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 letters for 2021. The performance growth of these five banks is gratifying, the proportion of loans has been significantly improved, and the loan quality has been significantly improved.
By the end of 2021, Bank Of Jiangsu Co.Ltd(600919) total assets amounted to 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%. The net profit attributable to the shareholders of the listed company was 19.694 billion yuan, a year-on-year increase of 30.72%. The non-performing loan ratio was 1.08%, a decrease of 0.24 percentage points compared with the beginning of 2021, 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 2021, and has increased year by year in the six years since listing.
Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) in 2021, the revenue was 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 2021; The total loan is 162.797 billion yuan, an increase of 23.59% over the beginning of 2021, the proportion of personal loans to total loans is 61.02%, an increase of 4.01 percentage points over the beginning of 2021, and the proportion of personal operating loans to total loans is 39.84%, an increase of 2.94 percentage points over the beginning of 2021.
China Citic Bank Corporation Limited(601998) in 2021, the net profit attributable to shareholders was 55.641 billion yuan, a year-on-year increase of 13.60%. By the end of 2021, the non-performing loan ratio was 1.39%, a year-on-year decrease of 0.25 percentage points; The provision coverage rate was 182.14%, a year-on-year increase of 10.46 percentage points.
The performance letters of these banks are characterized by improved business structure, high net profit growth and improved non-performing loans.
Some institutions believe that this is a sign that the overall performance of the banking industry tends to improve. Haitong International said in the research report that Industrial Bank Co.Ltd(601166) and Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) show a good trend of “profit acceleration + non-performing decline + provision increase + loan proportion increase”, and the whole industry will show a good trend of performance.
Shen Juan, chief analyst of Huatai Securities Co.Ltd(601688) said that she was optimistic about the repair market of the banking sector under the background of continuous improvement of bank fundamentals, more active and promising policies and switching capital style to the undervalued sector.
