On January 11, the banking sector rose, and the Shenwan bank index closed up 1.14%. More than 70% of the stocks in the sector were red, Bank Of Chengdu Co.Ltd(601838) led the rise by 5.09%, and Industrial Bank Co.Ltd(601166) , Bank Of Jiangsu Co.Ltd(600919) , Bank Of Hangzhou Co.Ltd(600926) rose by more than 3%. Since this year, the attention of the banking sector has increased significantly. In the six trading days from January 4 to 11, the Shenwan bank index rose by 4.45%, during which 41 stocks in the sector rose across the board.
At present, the banks that have disclosed the 2021 annual performance express and performance forecast have performed well. On January 10, the first annual performance express of the bank in 2021 was released. According to the announcement of Industrial Bank Co.Ltd(601166) , in 2021, the company realized an operating revenue of 221.236 billion yuan, a year-on-year increase of 8.91%; The total profit was 95.310 billion yuan, a year-on-year increase of 24.37%; The net profit attributable to the shareholders of the parent company was 82.68 billion yuan, a year-on-year increase of 24.10%, and the profitability remained at a good level. By the end of 2021, the total assets of the company were 8601.324 billion yuan, an increase of 8.96% over the end of the previous year, including 4428.183 billion yuan of loans in domestic and foreign currencies, an increase of 11.66% over the end of the previous year; The total liabilities were 7907.028 billion yuan, an increase of 8.77% over the end of the previous year, including the balance of deposits in domestic and foreign currencies of 4311.041 billion yuan, an increase of 6.63% over the end of the previous year. The asset quality continued to improve, and the company’s non-performing loan balance was 48.714 billion yuan, a decrease of 942 million yuan compared with the end of the previous year; The non-performing loan ratio was 1.10%, down 0.15 percentage points from the end of the previous year; The provision coverage rate was 268.73%, an increase of 49.90 percentage points over the end of the previous year.
On the same day, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) also released a performance express. According to the operating performance and financial situation, by the end of 2021, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) total assets were 158.455 billion yuan, an increase of 13.64% over the beginning of the year; The total loan was 95.381 billion yuan, an increase of 21.41% over the beginning of the year. In 2021, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) achieved an operating revenue of 3.821 billion yuan and a net profit attributable to shareholders of the parent company of 1.148 billion yuan, a year-on-year increase of 20.72%.
Earlier, Bank Of Chengdu Co.Ltd(601838) issued the announcement on advance increase of performance in 2021. It is expected that the net profit attributable to shareholders of Listed Companies in 2021 will increase by 1.085 billion yuan to 1.507 billion yuan, an increase of 18% to 25% year-on-year compared with the same period of last year (statutory disclosure data); Compared with the same period of last year (legally disclosed data), the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses will increase by 1.090 billion yuan to 1.512 billion yuan, with a year-on-year increase of 18% to 25%.
Everbright Securities Company Limited(601788) pointed out that the preference of funds for undervalued sectors has increased. As of January 7, the overall price to book ratio (PB) of A-share banking sector was 0.65 times and that of H-share banking sector was 0.49 times. Combined with the historical situation of Pb valuation, the overall Pb of A-share banking sector and H-share banking sector is at a low level in recent years. In terms of bank types, the Pb valuation of A-share banks from high to low is: 0.82 times for urban commercial banks, 0.78 times for joint-stock banks, 0.76 times for rural commercial banks and 0.58 times for state-owned banks.
China International Capital Corporation Limited(601995) said it was optimistic about the performance of bank stocks in 2022, and the compression of Industry Valuation since 2018 is expected to be repaired. The agency said that the reasons for being optimistic about bank stocks include: first, the steady growth policy has been effective, some problem assets have been resolved by restructuring, and the industry indicators have remained stable. Among them, the head institutions have maintained a healthy state of statements, and others have accelerated the recognition and elimination of problem assets; Second, after the impact of the epidemic, the profits returned to the steady growth track, the net interest margin stabilized and the handling fee income increased, driving the growth rate of PPOP (profit before provision) higher, and the net profit potential of high-quality banks was released; Third, the space and range for continued adjustment of valuation are limited, and the overly pessimistic market expectations reflected by valuation and positions are expected to be corrected.
