The first quarterly reports of listed banks have been disclosed one after another. As of April 28, 15 banks have successively disclosed the performance of the first quarter of 2022. From the overall data, the bank performed well in the first quarter: the revenue and net profit all achieved positive growth, and the net profit attributable to the parent of 13 banks increased by more than 10%, including more than 90% of Bank of Lanzhou.
At the same time of good performance, public funds also vigorously “overweight” bank shares. As of the end of the first quarter, the proportion of bank shares held increased by 1.1 percentage points to 4% compared with the beginning of the year, ending the downward trend for four consecutive quarters in 2021, and the increase rate of position proportion ranks first in all industry sectors.
13 banks’ net profit attributable to the parent increased by more than 10%
On April 28, several banks released their quarterly reports, including Bank of Lanzhou, Shanghai Pudong Development Bank Co.Ltd(600000) , Xiamen Bank Co.Ltd(601187) and China Everbright Bank Company Limited Co.Ltd(601818) . On April 28, Bank of Lanzhou disclosed the first quarterly report, which realized a total operating revenue of 1.786 billion yuan in the first quarter, a year-on-year decrease of 1.58%; The net profit was 490 million yuan, a year-on-year increase of 94.05%; The net income from handling fees and commissions was 104 million yuan, an increase of 31.12% over the same period last year; Operating expenditure was 1.228 billion yuan, down 23.44% from the same period last year. The non-performing loan ratio was 1.82%, the provision coverage ratio was 188.06%, and the capital adequacy ratio was 12.09%. This is also the bank that has disclosed the highest growth rate of net profit attributable to the parent in the first quarterly report.
In the second place is Bank Of Hangzhou Co.Ltd(600926) . From January to March, the bank realized an operating revenue of 8.769 billion yuan, an increase of 15.73% over the same period of the previous year; The net profit attributable to shareholders of the company was 3.309 billion yuan, an increase of 31.39% over the same period of last year. For the significant increase in the performance of the first quarter report, Bank Of Hangzhou Co.Ltd(600926) annual report said that the net non interest income in the first quarter was 3.309 billion yuan, an increase of 50.87% over the same period of the previous year, including 1.482 billion yuan of net income from handling fees and commissions, an increase of 20.10% over the same period of the previous year, mainly due to the increase in handling fees such as financial services. By the end of March, the balance of financial products of Bank of Hangzhou was 328313 billion yuan, a net increase of 21.592 billion yuan or 7.04% over the end of the previous year.
Good performance also welcomes “praise” from analysts. Lin Yuanyuan, an Boc International (China) Co.Ltd(601696) analyst, said that Bank Of Hangzhou Co.Ltd(600926) net profit growth is rising at a high level. It is expected to lead listed banks with booming deposits and loans, excellent asset quality and provision coverage of 580%, ranking at the leading level in the industry and supporting the sustainability of bright performance. Optimistic about the company’s future regional development advantages and growth. After the core capital is supplemented in place, the business is expected to maintain rapid growth and maintain the buy rating.
The net profit attributable to the parent of four banks exceeded 10 billion. Including Shanghai Pudong Development Bank Co.Ltd(600000) , China Merchants Bank Co.Ltd(600036) , China Everbright Bank Company Limited Co.Ltd(601818) and Ping An Bank Co.Ltd(000001) . Among the four banks, China Merchants Bank Co.Ltd(600036) is far ahead in net profit.
The report shows that from January to March 2022, China Merchants Bank Co.Ltd(600036) (Group caliber) achieved an operating revenue of 91.990 billion yuan, a year-on-year increase of 8.54%; The net profit attributable to the bank’s shareholders was RMB 36.022 billion, with a year-on-year increase of 12.52%. However, the non-performing loan balance and non-performing rate both increased compared with the end of last year. By the end of March 2022, the non-performing loan balance of China Merchants Bank was 54.138 billion yuan, an increase of 3.276 billion yuan over the end of last year; The non-performing loan ratio was 0.94%, an increase of 0.03 percentage points over the end of the previous year; The provision coverage rate was 462.68%, down 21.19 percentage points from the end of the previous year; The loan provision rate was 4.35%, down 0.07 percentage points from the end of the previous year.
In the analysis of loan quality, China Merchants Bank Co.Ltd(600036) pointed out that due to the rising risk of real estate customers and other factors, the balance and proportion of non-performing loans, concerned loans and overdue loans of the group increased compared with the end of the previous year. By the end of the reporting period, the ratio of non-performing loans of the group to loans overdue for more than 90 days was 1.71, and the ratio of non-performing loans of the company to loans overdue for more than 60 days was 1.34.
fund vigorously increases bank shares
In the first quarterly report, the single digit growth rate of net profit attributable to the parent company is Shanghai Pudong Development Bank Co.Ltd(600000) and China Everbright Bank Company Limited Co.Ltd(601818) , 3.7% and 1.98% respectively. According to the first quarterly report disclosed by Everbright Bank, the net profit attributable to the bank’s shareholders in the first three months of this year was 11.75 billion yuan, a year-on-year increase of 1.98%, and the operating revenue was 38.769 billion yuan, an increase of 0.12% over the same period of last year. By the end of March, China Everbright Bank Company Limited Co.Ltd(601818) NPL balance was 42.986 billion yuan, an increase of 1.62 billion yuan over the end of the previous year; The non-performing loan ratio was 1.24%, down 0.01 percentage points from the end of the previous year; The provision coverage rate was 187.52%, an increase of 0.5 percentage points over the end of the previous year.
Overall, the performance of the banking sector in the first quarter was commendable, and the fund also significantly increased its position in the banking sector in the first quarter Everbright Securities Company Limited(601788) the latest research report pointed out that by the end of the first quarter of 2022, the proportion of bank stocks with heavy positions of the fund had increased by 1.1 percentage points to 4.0% compared with the beginning of the year, ending the downward trend for four consecutive quarters in 2021, and the increase of the proportion of positions ranked first in all industry sectors.
According to the analysis, the proportion of bank stocks held by the fund at present is 6.7% higher than that in 2019 and 5.6% higher than that in 2021, and there is still some room for improvement. According to statistics, by the end of the first quarter of 2022, the positions of state-owned banks, joint-stock banks, urban commercial banks and rural commercial banks were 0.5%, 1.9%, 1.5% and 0.1% respectively, up 0.3, 0.3, 0.4 and 0.1 percentage points respectively compared with the beginning of the year.
Among them, the position proportion of urban commercial banks has reached a record high. Since the second quarter of 2021, the allocation proportion has increased quarter by quarter, and the willingness of institutional allocation is strong. 36 bank stocks have become the heavy positions of the fund. The top three positions in market value are China Merchants Bank Co.Ltd(600036) , Bank Of Ningbo Co.Ltd(002142) and Industrial Bank Co.Ltd(601166) . 964 funds had heavy positions of China Merchants Bank Co.Ltd(600036) , with a market value of 57.5 billion yuan in the first quarter.
Yuan Zhenqi, an analyst at Ping An Securities, said that looking forward to the second quarter of 2022, with the force of the steady growth policy and the correction of the real estate policy, the industry will still be in the channel of negative expectation improvement. At present, the static valuation level of the sector is only 0.61 times, which is still at an absolute low in history, with a sufficient margin of safety, and is still optimistic about the valuation repair opportunities of the banking sector.
