At present, the performance express of five banks has been the first to disclose that the net profit of most banks increased by more than 20% year-on-year. At the same time, the non-performing loan ratio at the end of last year decreased compared with that at the beginning of last year.
“At present, the banks that have disclosed the performance express are top students in listed banks, which are representative. The performance express with frequent good news indicates that the overall profitability of listed banks will remain at a good level last year.” China Merchants Securities Co.Ltd(600999) Liao Zhiming, chief analyst of the banking industry, said in an interview with the Securities Daily that the banks that have disclosed the performance express at present have a very rapid profit growth. It is expected that under the background of large-scale improvement of asset quality, although the provision level has increased steadily, the Listed Banks will continue the excellent performance of stable and good performance in the third quarterly report of last year in 2021, The performance of high-quality urban commercial banks and joint-stock banks will be more eye-catching, and the profit growth rate of individual banks may be higher than market expectations.
5 banks’ performance disclosure in advance
So far, five listed banks in Shanghai and Shenzhen have disclosed their performance letters, and their net profit growth, asset quality and other indicators have performed well
In terms of profitability, the net profit growth of the five banks was exceptionally strong last year, all reaching double digits. Statistics show that Bank Of Jiangsu Co.Ltd(600919) has the most eye-catching performance. Last year, the bank realized a net profit of 19.694 billion yuan attributable to the shareholders of the parent company, with a year-on-year increase of 30.72%, the highest increase among all banks. The net profit of Industrial Bank Co.Ltd(601166) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) increased by more than 20% last year, and the net profit of China Citic Bank Corporation Limited(601998) also increased by 13.60% year-on-year.
Last year, with the increase of support for the real economy and the increase of credit, it also led to the growth of the asset scale of banks. The performance express shows that the asset scale of the five banks increased to varying degrees last year.
Among the banks that have disclosed their performance letters, Industrial Bank Co.Ltd(601166) has the largest “volume”. Its total assets reached 8.60 trillion yuan by the end of last year, an increase of 8.96% over the beginning of last year; The asset scale of China Citic Bank Corporation Limited(601998) also exceeded the 8 trillion yuan mark. The bank’s total assets as of the end of last year were 8.04 trillion yuan, an increase of 7.06%; Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) has the highest increase in asset scale, with an increase of 18.17% as of the end of last year.
As an important indicator in the bank performance report, the change of bank asset quality is also highly concerned by all parties in the market. The asset quality of the five banks continued to improve in 2021, and the non-performing loan ratio by the end of last year was lower than that at the beginning of last year.
Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) by the end of 2021, the non-performing loan ratio was less than 1%, only 0.81%, which was the lowest among the above banks. Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) by the end of 2021, the non-performing loan ratio was 1.00%, down 0.28 percentage points from the beginning of last year. In addition, Bank Of Jiangsu Co.Ltd(600919) by the end of 2021, the non-performing loan ratio was 1.08%, a decrease of 0.24 percentage points compared with the beginning of the period, which also made its non-performing loan ratio decline year by year in the six years since its listing. At the same time, the provision coverage of all banks has improved compared with that at the beginning of last year, and their ability to resist risks has been continuously enhanced.
Liao Zhiming said that the overall asset quality of listed banks will show a stable and positive trend in 2021. Although some real estate enterprises fell into a liquidity crisis last year, the non-performing loan ratio of other industries improved significantly, which led to the decline of the overall non-performing loan ratio of listed banks. “The strong profit growth of banks in 2021 will undoubtedly have a more positive impact on the valuation of the banking sector this year.”
As the index of capital adequacy ratio is not disclosed in the performance express of listed banks, it can be seen that the capital supplement means of listed banks are more sufficient. In addition, with the repeated use of various tools such as fixed increase, sustainable debt and even share allotment last year, the capital strength of Listed Banks is expected to be further consolidated under the background of multi-channel capital supplement policy.
profit is expected to maintain growth this year
Although the performance express of many banks is the first, it is only the “tip of the iceberg” in terms of the number of banks and the content of disclosure. If you want to understand the complete annual operation of the bank, you still need to find the answer in the annual report.
The scheduled disclosure schedule of annual reports of listed companies released by Shanghai and Shenzhen Stock Exchange shows that the first annual report of listed banks will appear on March 10, Ping An Bank Co.Ltd(000001) will be the first to submit last year’s complete performance answers among A-share listed banks.
The annual report disclosure time distribution of banks is relatively average, and the annual report appearance time of all 41 listed banks will be concentrated in March and April. Among them, the annual reports of 23 listed banks were disclosed in March and 18 in April. Among them, the disclosure time of the six major state-owned banks is relatively advanced as a whole, and the annual reports of the six major state-owned banks will “collectively appear” in March.
While listed banks slowly opened the performance curtain in 2021, they also made prospects for the performance of listed banks this year.
In its latest 2022 commercial bank operation outlook report, the financial research center of Bank of communications pointed out that 2022 will be a key year for commercial banks to “deepen transformation”. Under the background of “stability” of various policies, the profit growth and asset quality of commercial banks in 2022 will remain basically stable.
Tang Jianwei, chief researcher of the financial research center of BOCOM, told the Securities Daily that compared with the sharp recovery of the profits of listed banks in 2021, it is expected that the year-on-year growth rate of the annual net profits of listed banks in 2022 may fall to between 6% and 10%, but the growth rate will still reach about 6.5%. With the more prudent risk appetite of commercial banks and the increase in the disposal of non-performing assets, it is expected that the overall asset quality will be stable and controllable in 2022, and the average non-performing rate will remain at about 1.8%.
