The net interest margin stopped falling and rebounded, the investment income increased significantly, and the recovered non-performing loans exceeded the loans written off in the same period. In the first quarter of this year, under the background of the continuous high growth of the net profit of the banking industry, Ping An Bank Co.Ltd(000001) ‘s operating income and net profit also achieved a year-on-year double-digit growth.
The first quarter report disclosed on April 26 showed that in the first quarter of this year, Ping An Bank Co.Ltd(000001) operating revenue and net profit were 46.207 billion yuan and 12.85 billion yuan respectively, with a year-on-year increase of 10.6% and 26.8% respectively. Compared with the revenue and net profit growth of 10.2% and 18.5% in the same period last year, these two indicators of the bank in the first quarter of this year increased by 0.4 and 8.3 percentage points respectively, and the net profit growth rate exceeded that of last year by 1.2 percentage points.
net profit growth ranked first, and the interest rate spread rebounded rapidly
Last year, the revenue and profit of listed banks maintained a relatively rapid growth. In the first quarter of this year, this momentum was continued. Up to now, among the seven A-share listed banks that have disclosed the first quarterly report, including Ping An Bank Co.Ltd(000001) , except China Merchants Bank Co.Ltd(600036) , the other six have achieved a net profit growth rate of more than 20%.
So far, among the listed banks that have disclosed the first quarterly report, the fastest growing performance is Bank Of Hangzhou Co.Ltd(600926) . In the first quarter of this year, the bank’s revenue increased by 15.73% year-on-year, while its net profit increased by 31.39% year-on-year Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Ping An Bank Co.Ltd(000001) followed, ranking second and third respectively. In terms of asset size, among the banks above the scale of trillion yuan, Ping An Bank Co.Ltd(000001) ‘s net profit growth rate is second only to Bank Of Hangzhou Co.Ltd(600926) , ranking second.
Compared with the same period last year, the interest rate spread of some listed banks is still under pressure to narrow, but there is differentiation among different banks. According to the first quarterly report, the net interest margin of Bank Of Nanjing Co.Ltd(601009) , China Merchants Bank Co.Ltd(600036) decreased by 0.05 and 0.01 percentage points respectively in the first three months of this year, while that of Bank Of Ningbo Co.Ltd(002142) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) increased by 0.03 percentage points.
Compared with the peers that have disclosed the first quarterly report, Ping An Bank Co.Ltd(000001) interest margin rebounded rapidly. In the first quarter of this year, the net interest margin of the bank was 2.8%. Although it still decreased by 0.07 percentage points year-on-year, it increased by 0.06 percentage points month on month compared with the fourth quarter of last year, the average cost ratio of liabilities and deposits decreased by 0.04 and 0.01 percentage points year-on-year, and the annualized weighted average return on net assets also increased by 1.82 percentage points to 14.1%.
Since this year, due to the sharp fluctuations in the capital market, the net value of public funds and bank financial management has retreated in a large area, which has cooled the issuance of new products and had a significant impact on the wealth management income of commercial banks. In the first quarter, Ping An Bank Co.Ltd(000001) wealth management revenue also decreased by 6.8% year-on-year, of which the agency fund business was more obvious. The revenue decreased by 10.1% year-on-year, but improved compared with the fourth quarter of last year, with a month on month increase of 26.4%.
In order to make up for the impact of the decline in commission sales income such as funds and financial management, many banks are making efforts in insurance agency business. In the first quarter, Ping An Bank Co.Ltd(000001) agency insurance revenue was 717 million yuan, an increase of 46% year-on-year. In the same period, China Merchants Bank Co.Ltd(600036) such revenue increased by about 60% year-on-year.
In addition, the growth of investment income is also a major driver of profit growth. Thanks to the increase in investment income such as bond and fund investment and bill discount, the net non interest income of Ping An Bank Co.Ltd(000001) in the first quarter increased by 18.7% year-on-year.
non performing asset recovery boosts profit growth
Different from other banks, the recovery of non-performing assets has become a big booster for Ping An Bank Co.Ltd(000001) profit growth. In the first quarter, the bank recovered 18.13 billion yuan of non-performing assets, a year-on-year increase of 32.4%, including 5.087 billion yuan of written off non-performing loans, 84% of which were recovered in cash. In the same period, the amount of non-performing loans written off by the bank was 13.03 billion yuan, and the recovered non-performing loans were 40% higher than the amount written off in the same period.
With the rapid growth of profits, the asset quality of some banks has basically remained stable. According to the data of the first quarterly report, as of the end of March, Bank Of Ningbo Co.Ltd(002142) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) and Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) had non-performing loan ratios of 0.77% and 0.81% respectively, which were the same as that at the end of last year; In the same period, the non-performing rate of Bank Of Nanjing Co.Ltd(601009) , Bank Of Hangzhou Co.Ltd(600926) decreased by 0.01 and 0.04 percentage points compared with the end of last year.
Ping An Bank Co.Ltd(000001) is the same. By the end of March, the bank’s non-performing loan balance was 32.06 billion yuan, an increase of about 790 million yuan over the end of last year, with a non-performing rate of 1.02%, which was the same as that of the same period last year, and the proportion of concerned loans decreased by 0.01 percentage points over the end of last year.
However, the proportion of overdue loans of Ping An Bank Co.Ltd(000001) has increased. The first quarterly report showed that as of the end of March, the bank’s overdue loans accounted for 1.62%, an increase of 0.01 percentage points over the end of last year; The proportion of loans overdue for 60 days and more than 90 days increased by 0.06 and 0.04 percentage points respectively over the end of last year.
This situation may be related to housing loans. According to the first quarterly report, as of the end of March, Ping An Bank Co.Ltd(000001) undertaking credit risk had a balance of 345.46 billion yuan in public real estate business, an increase of 4.38 billion yuan over the end of last year, including 292.82 billion yuan in public real estate loans, an increase of 3.89 billion yuan over the end of last year, with a non-performing rate of 0.45%, an increase of 0.23 percentage points over the end of last year, but still 0.28 percentage points lower than the industry average.
At the same time, the bank increased the write off of non-performing loans. In the first quarter of this year, Ping An Bank Co.Ltd(000001) accumulated write off of non-performing loans of about 13.03 billion yuan, an increase of more than 6.3 billion yuan compared with 6.726 billion yuan in the same period last year.
The disclosed data also showed that in the first quarter, Ping An Bank Co.Ltd(000001) accrued loan impairment loss of 12.76 billion yuan, basically the same as 12.8 billion yuan in the same period last year, and the provision coverage rate in the same period was 289.1%, an increase of 0.68 percentage points over the end of last year.
