At present, a number of banks have released the performance express of 2021. From the performance, the revenue and net profit have generally increased significantly. From the 11 A-share listed banks that have disclosed their performance letters, the annual net profit growth of most banks is more than 20%. In this regard, industry insiders believe that the performance growth of the banking industry has maintained an upward trend, and its robustness is better than market expectations. The current margin of safety of bank stocks is high, and the future market can be expected.
outstanding performance
As of January 17, a total of 11 A-share listed banks have disclosed the performance express of 2021. In terms of performance, the annual net profit of 10 banks increased by more than 20%, and the asset quality of most banks was further improved.
According to the performance express released on January 13, the bank achieved an operating revenue of 169.383 billion yuan in 2021, a year-on-year increase of 10.3%; The net profit attributable to the bank’s shareholders was 36.336 billion yuan, a year-on-year increase of 25.6%. By the end of the reporting period, the non-performing loan ratio of the bank was 1.02%, down 0.16 percentage points from the end of last year.
Immediately after Ping An Bank Co.Ltd(000001) , China Merchants Bank Co.Ltd(600036) also disclosed a brilliant annual report card on January 14. Its performance express showed that the bank achieved an operating revenue of 331.234 billion yuan, a year-on-year increase of 14.03%; The net profit attributable to the bank’s shareholders was 119.922 billion yuan, a year-on-year increase of 23.2%. As of December 31, 2021, the bank’s total assets were about 9.27 trillion yuan, an increase of 10.90% over the end of last year; The total liabilities were about 8.4 trillion yuan, an increase of 10.14% over the end of last year; The non-performing loan ratio was 0.91%, down 0.16 percentage points from the end of last year; The provision coverage rate was 441.34%, an increase of 3.66 percentage points over the end of last year.
Not only the performance of joint-stock banks is satisfactory, but also urban commercial banks are not down. According to the performance express released by Bank Of Jiangsu Co.Ltd(600919) on January 11, the bank achieved a revenue of 63.771 billion yuan in 2021, a year-on-year increase of 22.58%; The net profit attributable to the bank’s shareholders was 19.694 billion yuan, a year-on-year increase of 30.72%. At the same time, Bank Of Jiangsu Co.Ltd(600919) NPL ratio and NPL balance have both decreased.
From the overall performance, among the 11 listed banks that have been disclosed, the year-on-year growth rate of net profit in Bank Of Jiangsu Co.Ltd(600919) 2021 reached 30.72%, and the other 10 banks exceeded 20% except China Citic Bank Corporation Limited(601998) . In terms of the total profit in 2021, China Merchants Bank Co.Ltd(600036) is far ahead with 119.922 billion yuan, Industrial Bank Co.Ltd(601166) , China Citic Bank Corporation Limited(601998) , Ping An Bank Co.Ltd(000001) followed by net profits of 82.68 billion yuan, 55.641 billion yuan and 36.336 billion yuan respectively.
configuration value highlights
Zhongtai Securities Co.Ltd(600918) believes that from the performance express disclosed at present, the positive trend of the banking industry remains unchanged, and the robustness is better than the market expectation. At the same time, the asset quality of each bank remained stable on the whole, the non-performing rate decreased month on month, and the risk offset capacity was consolidated at a high level.
It is noteworthy that, compared with the beautiful performance, the overall performance of the share price of the banking sector since 2021 is not satisfactory. Although the performance of the banking sector far exceeds that of some industries with high valuation, the current overall P / E ratio of the sector is only about 5 times, ranking the bottom in the valuation level of A-share industries.
Zhongtai Securities Co.Ltd(600918) it is expected that the asset quality of listed banks will be in a stable state in the next few years, which will effectively build the safety margin of the banking sector. It is recommended to continue to embrace the core assets of banks, as well as banks with undervalued value, safe asset quality and expected transformation success.
Yu Jinxin, an analyst at Minsheng securities, believes that the banking sector can talk about “five logics” in 2022. To sum up, there is room for valuation, which is easy to go up and difficult to go down; The best buy is on the eve of further economic recovery, and the second best buy is now; The market circulation of the banking sector is not large, and it does not need a huge amount of funds to drive the active trading of the sector. The northward funds have flowed in on a large scale in recent one month; Business is still booming, and performance will become a market booster; Progress on the big wealth management track may lead to alpha differentiation within the sector.
Everbright Securities Company Limited(601788) Wang Yifeng’s team said in the research report that under cross cycle regulation, the banking sector is expected to usher in a further rebound. However, considering that the upward range of credit scale will not be too large, the upward slope of the banking sector will be relatively flat, but the bottom has been relatively clear. For the follow-up trend, it is generally optimistic: on the one hand, under the cross cycle regulation, the bottom of banks is relatively clear, and the risk of institutional allocation of bank stocks is small; On the other hand, the sentiment of the real estate market has been repaired, and the wide credit is expected to be gradually promoted, which is conducive to the future performance of bank stocks.
