Key investment points:
The banking sector index rose first and then fell this week (1.10-1.14), and the price book ratio was lf0.5 as of the last trading day of this week 63pb, the overall valuation is relatively stable compared with last week, and the market heat has decreased. The average daily trading volume is 1075.138 billion yuan (Mom – 12.65%). This week, the central bank invested 10 billion yuan in wide caliber (including 7-day reverse repurchase), the 7-day reverse repurchase interest rate remained at 2.20%, and the overall liquidity is at a stable level; On Friday (January 14), it was announced that the weighted value of dr007 was 2.21%, which was at a normal level and the overall liquidity was good.
Nine A-share listed banks issued performance letters with beautiful data and consolidated investment confidence. This week, a total of 9 A-share listed banks announced their performance letters, including four joint-stock banks: Industrial Bank Co.Ltd(601166) , China Citic Bank Corporation Limited(601998) , Ping An Bank Co.Ltd(000001) and China Merchants Bank Co.Ltd(600036) , with revenue increasing by 8.91%, 5.05%, 10.30%, 14.03% to 221.2 billion yuan, 204.6 billion yuan, 169.4 billion yuan and 331.2 billion yuan respectively, and the net profit attributable to the parent increased by 24.10%, 13.60%, 25.60%, 23.20% to 82.7 billion yuan, 55.6 billion yuan, 36.3 billion yuan and 119.9 billion yuan respectively, Performance exceeded expectations; Two urban commercial banks: Bank Of Jiangsu Co.Ltd(600919) , Bank Of Qingdao Co.Ltd(002948) , the revenue increased by 22.58% and 5.65% to 63.8 billion yuan and 11.1 billion yuan respectively year-on-year, and the net profit attributable to the parent increased by 30.72%, 22.08% to 19.7 billion yuan and 2.9 billion yuan respectively year-on-year, with rapid improvement in performance and better asset quality; Three rural commercial banks: Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) and Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , the revenue increased by 1.81%, 16.27% and 10.75% year-on-year to 3.82 billion yuan, 7.65 billion yuan and 4.65 billion yuan respectively, and the net profit attributable to the parent increased by 20.72%, 21.13% and 29.77% year-on-year to 1.15 billion yuan, 2.18 billion yuan and 1.3 billion yuan respectively. The performance growth rate exceeded 20%. The asset quality was excellent, the provision coverage increased greatly, and the overall outlook in the future.
Looking back on 2021, we will serve small and micro enterprises and the real economy, prevent and resolve financial risks, and make steady development of digital RMB to enhance the confidence of the banking industry in the future. The Bank Of China Limited(601988) Banking Association released ten major events for the banking industry in 2021. The past year was a year for the banking industry to forge ahead with China’s economic recovery under the dynamic prevention and control of the epidemic. The banking industry has actively fulfilled its mission of serving the real economy, assisted the high-quality development of small and micro enterprises, helped micro relief, reduced fees, benefited enterprises and the people, and contributed to stabilizing economic growth. During this period, we promoted the risk disposal of key groups and large enterprises, reduced the pressure of non-performing assets, optimized the overall asset quality of the industry, and the overall financial risk showed a convergence trend. Science and technology has helped the development of banks, digital RMB is in the ascendant, and fully automatic electronic letters and certificates have been successfully implemented. It is worth looking forward to the convenience, automation and intelligence of banks in the future. The banking governance system has been continuously improved, actively promoting green and low-carbon development, serving the national dual carbon strategy, steadily promoting high-level opening to the outside world, and continuously improving cross-border business and settlement capacity. The profit expectation of the banking industry in 2022 is stable and positive, and the “recommended” rating is maintained.
Market performance
The banking sector index fell 1.02% this week, outperforming the market. This week, the Shanghai Composite Index fell 1.63%, the Shenzhen Component Index fell 1.35%, the gem index rose 0.73%, and the Shanghai and Shenzhen 300 index fell 1.98%. It is suggested to focus on high-quality joint-stock banks ( China Merchants Bank Co.Ltd(600036) , Industrial Bank Co.Ltd(601166) , Ping An Bank Co.Ltd(000001) ), large undervalued state-owned banks Postal Savings Bank Of China Co.Ltd(601658) , China Construction Bank Corporation(601939) and high-quality urban and rural commercial banks ( Bank Of Ningbo Co.Ltd(002142) , Bank Of Jiangsu Co.Ltd(600919) , Bank Of Chengdu Co.Ltd(601838) , Bank Of Chongqing Co.Ltd(601963) , Bank Of Hangzhou Co.Ltd(600926) , Bank Of Shanghai Co.Ltd(601229) , Shanghai Rural Commercial Bank Co.Ltd(601825) and Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) ).
Risk tips
Repeated epidemic risk, tightening of monetary policy, risk of increasing non-performing rate, outbreak of major risks and events of default, etc.
