Many listed banks announced their performance reports, and their non-performing ratios generally declined.
[ad_1]
So far, five A-share listed banks have successively announced their 2023 performance reports. Among them, there are 2 joint-stock banks and 3 city commercial banks. A reporter from the “Economic Information Daily” noted that in 2023, in the face of a complex market environment, the overall operations of the five banks maintained a positive development trend, and the non-performing loan ratio generally declined.
Among the listed banks that have announced performance reports, China Merchants Bank is temporarily leading the way in terms of full-year performance. The bank achieved operating income of 339.123 billion yuan in 2023, a year-on-year decrease of 5.660 billion yuan, a decrease of 1.64%; a total profit of 176.606 billion yuan, a year-on-year increase of 11.493 billion yuan, an increase of 6.96%; a net profit attributable to the bank’s shareholders was 146.602 billion yuan , a year-on-year increase of 8.590 billion yuan, an increase of 6.22%.
From the perspective of operating conditions, the performance growth rate of the three city commercial banks was significantly ahead of the two joint-stock banks. Specifically, the operating income of China Merchants Bank and China CITIC Bank declined to varying degrees compared with the previous year, with declines of 1.64% and 2.60% respectively; year-on-year increases in net profit were 6.22% and 7.91% respectively. Relatively speaking, the three city commercial banks achieved positive growth in revenue and net profit. Among them, Changsha Bank’s operating income had the highest year-on-year growth of 8.46%; Hangzhou Bank’s net profit had the highest year-on-year growth of 23.15%. The net profits of the three city commercial banks all achieved double-digit growth year-on-year.
In terms of asset size, the growth rate changes of the five listed banks are consistent with the above situation. Compared with the end of the previous year, the growth rates of the two joint-stock banks China Merchants Bank and China CITIC Bank were 8.77% and 5.91% respectively; the growth rates of the three city commercial banks in the same period all reached double digits, among which Qilu Bank had the highest growth rate of 19.56%.
In terms of asset quality, compared with the end of the previous year, the non-performing loan ratios of the five banks all declined slightly. Among them, China CITIC Bank and Qilu Bank led the way with declines of 0.09 and 0.03 percentage points respectively; the remaining three banks also fell by 0.01 percentage points.
From the perspective of institutional holdings, public funds are currently underweight the banking sector. Recently, a research report from Galaxy Securities pointed out that in the fourth quarter of 2023, the proportion of public offerings to banks as a whole will decrease. Broken down, the holding proportions of state-owned banks, joint-stock banks, city commercial banks and rural commercial banks were 0.54%, 0.45%, 0.81% and 0.08% respectively, which were -0.03, -0.2, -0.49 and -0.49 respectively changed from the third quarter of 2023. 0.01 percentage points. Among them, the position proportion of city commercial banks is higher than the historical average and median value, the position proportion of rural commercial banks is the same as the historical average and median value, and the position proportion of state-owned banks and joint-stock banks is lower than or equal to the historical average and median value.
Galaxy Securities further analyzed that there is still much room for improvement in the proportion of public equity holdings in the banking sector. At the current stage, the policy of stabilizing growth continues, the probability of economic stabilization is enhanced, and market liquidity is expected to remain reasonably abundant, which is beneficial to the improvement of the banking industry’s operating environment. In addition, factors such as fiscal policy, optimization of credit structure and stabilization of interest rate spreads have provided strong support for banks’ business expansion and optimization of asset quality.
Recently, the People’s Bank of China announced a reduction in required reserve ratio, which has also sent a strong positive signal. It is expected to reduce banks’ liability-side costs and alleviate the pressure of narrowing net interest margins. On January 24, the central bank announced that it would lower the deposit reserve ratio of financial institutions by 0.5 percentage points starting from February 5, and would lower the re-loan to support agriculture, re-loan to support small businesses, and rediscount interest rates by 0.25 percentage points each from January 25.
Ping An’s fixed income strategy report pointed out that according to the calculation results, this comprehensive RRR cut will help boost the interest margins of listed banks by about 0.7 basis points, increase the profit contribution rate by about 0.7%, and alleviate the operating pressure on banks. The agency believes that continued policy efforts are expected to improve market expectations, and the upward elasticity of the banking sector will gradually become apparent.
[ad_2]
Source link