Following the first pre increase announcement of listed urban commercial banks, the first performance express of listed joint-stock banks and rural commercial banks has also been released one after another.
On January 10, Industrial Bank Co.Ltd(601166) , Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) successively announced that the net profits attributable to the shareholders of the parent company of the two banks last year increased by 24.1% and 20.7% respectively year-on-year, reaching a new high in nine years and ten years respectively.
Prior to this, Bank Of Chengdu Co.Ltd(601838) disclosed the announcement of performance pre increase on January 4, and it is expected that the net profit of last year will increase by about 18% ~ 25% year-on-year. On January 11, Bank Of Jiangsu Co.Ltd(600919) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , China Citic Bank Corporation Limited(601998) also disclosed that the performance Express reported that last year’s net profit increased by more than 30%, 20% and 13% respectively year-on-year.
Under the continuous “good news” of performance, the A-share banking sector rose against the market recently, with a cumulative increase of more than 4.4% in the six trading days since the beginning of the year. Among them, Bank Of Chengdu Co.Ltd(601838) and Industrial Bank Co.Ltd(601166) led the rise, with cumulative increases of 15.3% and 12.4% respectively.
Everbright Securities Company Limited(601788) Wang Yifeng, chief banking analyst, believes that the preference of funds for undervalued sectors has increased, bank stocks usually perform well at the beginning of the year, and the bank sector is expected to remain strong in the future.
no 20% profit growth
excuse me?
In the first year of “new handsome” Lv Jiajin at the helm, Industrial Bank Co.Ltd(601166) handed over the best report card in recent nine years.
According to the performance express, the operating revenue of Industrial Bank Co.Ltd(601166) in 2021 was 221.24 billion yuan, a year-on-year increase of 8.9%, and the net profit attributable to the shareholders of the parent company was 82.68 billion yuan, a year-on-year increase of 24.1%. From 2013 to 2020, the annual profit growth of the bank never exceeded 20%.
On January 10, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) released the performance express, becoming the first listed rural commercial bank to release the performance express of 2021. According to the disclosure, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) achieved an operating revenue of 3.82 billion yuan last year, with a year-on-year increase of 1.8%, and realized a net profit attributable to shareholders of 1.15 billion yuan, with a year-on-year increase of 20.7%. The growth rate of net profit was the highest in recent ten years.
On the whole, the above two banks have shown a good trend of accelerating profits, declining non-performing loans, increasing provisions and increasing the proportion of loans. Among them, Industrial Bank Co.Ltd(601166) at the end of last year, the balance of non-performing loans rebounded compared with the end of the third quarter, and the trend of “double decline” of non-performing loans for several consecutive quarters was ended, but the bank’s non-performing loan ratio gradually decreased to 1.1%, the best level in recent seven years.
Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) achieved a “double drop” in non-performing loans for three consecutive quarters, resulting in a sharp drop in the non-performing loan ratio to 1% at the end of last year; The provision coverage increased for six consecutive quarters, reaching 411%, ranking among the leading levels of listed banks.
Before Industrial Bank Co.Ltd(601166) , Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , the Bank Of Chengdu Co.Ltd(601838) in Southwest China issued a performance pre increase announcement on January 4. It is expected that the net profit attributable to shareholders will increase by 18% ~ 25% year-on-year last year.
On January 11, Bank Of Jiangsu Co.Ltd(600919) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , China Citic Bank Corporation Limited(601998) also disclosed that the net profit attributable to shareholders last year was 19.69 billion yuan, 2.18 billion yuan and 55.64 billion yuan respectively, with a year-on-year increase of 30.7%, 20.1% and 13.6% respectively.
“Is it embarrassing to say hello without 20% profit growth?” Some investors expressed concern about this. Haitong Securities Company Limited(600837) Lin Jiali, chief banking analyst, predicted in the report that “the whole industry will show a good performance trend, not just individual companies.”
According to the data disclosed by the CBRC in mid November, in the first three quarters of 2021, commercial banks achieved a cumulative net profit of 1.7 trillion yuan, an increase of 11.5% year-on-year; The non-performing loan ratio fell for four consecutive quarters to 1.75%, and the provision coverage ratio rose to 197%.
Feng Shui turns
transferred to bank shares
Compared with the “tepid” in 2021, the attention of listed banks in 2022 has increased significantly.
Thanks to the “pre joy” of the performance of many listed banks, the A-share banking sector rose against the market in the first six trading days of the year, with a cumulative increase of more than 4.4%, outperforming the market, and the sector recovered significantly.
Among them, Bank Of Chengdu Co.Ltd(601838) and Industrial Bank Co.Ltd(601166) have increased by 15.3% and 12.4% year to date respectively, followed by Bank Of Jiangsu Co.Ltd(600919) and Postal Savings Bank Of China Co.Ltd(601658) , with cumulative increases of more than 10%.
From the perspective of trading, the activity of the banking sector has increased significantly. In the first week of 2022, the average daily turnover of A-share bank shares reached 22 billion yuan, an increase of 54% over the previous week. The average daily turnover of A-share bank shares was the highest in nearly four months. The weekly net inflow of funds from the bank sector to the North was also close to 4 billion yuan.
Everbright Securities Company Limited(601788) Wang Yifeng, chief banking analyst, released a research report that the banking sector is expected to remain strong in the future. There are three reasons: first, the real estate risk is gradually mitigated, and the market pessimistic expectation is in the process of repair; Second, the key to steady growth lies in “steady investment”, which requires “wide credit”, and the market has expectations for “wide credit”; Third, the preference of funds for undervalued sectors increased, and bank stocks usually performed well in the beginning of the year.
With regard to the performance of the banking sector in recent ten years, Wang Yifeng also said that the banking sector had a good trend in the first quarter of most years, especially in January. Excluding 2020 affected by the epidemic, the banking sector recorded a winning rate of relative returns of up to 90%.
Shen Juan, chief analyst of Huatai Securities Co.Ltd(601688) big financial team, also released a research report, saying that in the history of resumption of trading, the banking sector often obtained 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 of continuous improvement of bank fundamentals, more active and promising policies and switching of capital style to the undervalued sector.” Shen Juan said.
