Source: Associated Press of Finance
Original title: 1.14%! At the end of last year, the net interest margin of Bohai Bank dropped by 0.36 percentage points, breaking the new low of listed banks A and H that have published their annual reports
How to view a bank's sustainable operation ability? Net interest margin is definitely a key indicator.
Today evening, Bohai Bank disclosed its 2023 annual report. Data shows that the bank's net interest margin at the end of last year dropped by 0.36 percentage points compared with the end of 2022, from 1.50% to 1.14%. According to Wind data, this level has broken the new low of all listed banks (including A-share and H-share) that have published data.
In this regard, an analyst in the banking industry of a securities firm told the Associated Press of Finance that objectively speaking, the continuous reduction of LPR last year was a major impact on the net interest margin of all banks. The "worst" net interest margin of Bohai Bank may be related to the decline in the average yield of loans and the relatively high cost of deposits on the liability side due to the bank's insufficient effective credit demand on the asset side.
The analyst believes that under the background of the downturn in the real estate market last year, some banks that excessively relied on personal housing loans and development loans in the past may be under greater pressure, and the net interest margin may be under more pressure. In addition, some smaller banks also need to pay more interest on the liability side.
1.14% "worst" net interest margin
On December 31, 2005, Bohai Bank was officially established, becoming the youngest new force among the 12 national joint-stock banks in China. In July 2020, Bohai Bank was listed in Hong Kong, less than 4 years so far.
According to its 2023 annual report, Bohai Bank realized an operating revenue of 24.997 billion yuan last year, a year-on-year decrease of 5.55%; The net profit was 5.081 billion, down 16.81% year on year. The more critical data is that the net interest margin of Bohai Bank at the end of last year was 1.14%, down sharply from 1.5% the previous year.
According to Wind data, among the joint-stock banks that have published their annual reports, Ping An Bank 、 China Merchants Bank 、 Zheshang Bank 、 Industrial Bank 、 CITIC Bank 、 Everbright Bank 、 Minsheng Bank The net interest margin of eight banks, including Bohai Bank, was quite different last year, and Bohai Bank ranked last.
Specifically, the net interest margin of Ping An Bank, China Merchants Bank, Zhejiang Merchants Bank, Industrial Bank, CITIC Bank, Everbright Bank and Minsheng Bank last year was 2.38%, 2.15%, 2.01%, 1.93%, 1.78%, 1.74% and 1.46% respectively, while the net interest margin of Bohai Bank was 1.14%, significantly lagging behind that of the same bank.
Even compared with the major A-share listed banks, the net interest margin of Bohai Bank is the last one of the 24 banks that have published their annual reports, of which the one closest to Bohai Bank is Bank of Communications (Net interest margin 1.28%). It is worth noting that the net interest margin of 7 of the 24 banks last year was still more than 2%.
The reporter from the Associated Press of Finance noted that according to the annual report of Bohai Bank, by the end of 2023, the non-performing loan ratio of Bohai Bank was 1.78%, up 0.02 percentage points from the end of 2022. In addition, by the end of 2023, the non-performing rate of the bank's real estate industry was 3.65%, 0.78 percentage points higher than 2.87% by the end of 2022.
Analysts said that the bank's net interest margin was too low or affected its ability to resist risks
From the data of last year, although the net interest margin of many listed banks has dropped significantly compared with last year, the "worst" net interest margin of Bohai Bank is still surprising.
The reporter from the Associated Press of Finance noticed that according to the information on the official website of Bohai Bank, the bank had adjusted the listing interest rate of RMB deposits on December 25, 2023. However, compared with other joint-stock banks, the overall deposit interest rate of Bohai Bank is still high. According to the information after the last round of adjustment, the three-month, half year, one-year, two-year, three-year and five-year deposit product interest rates of Bohai Bank are 1.23%, 1.49%, 1.65%, 1.90%, 2.30% and 2.30% respectively, while the two-year, three-year and five-year deposit interest rates of other joint-stock banks are 1.80%, 2.00% and 2.05%. This shows that Bohai Bank has a higher cost than other major joint-stock banks in terms of collecting reserves.
The above analysts believe that if the net interest margin continues to decline, it will affect the bank's net profit level, thus affecting the endogenous supplement of bank capital, and ultimately testing its ability to resist risks. Because for banks, the loss of some non-performing asset exposure needs a certain surplus net interest margin to make up.
The reporter from the Associated Press of Finance also noticed that on April 7, the State Financial Supervision and Administration Administration just disclosed the reply on the issuance of capital instruments by Bohai Bank. The regulatory authorities agreed that Bohai Bank would issue 15 billion yuan of capital instruments in the form of secondary capital bonds. According to the announcement of Bohai Bank, the raised funds of this bond will be used to supplement tier two capital after deducting the issuance expenses.
When the stock market recovers, open an account first! Intelligent fixed investment, condition sheet, individual stock radar... for you>>
Massive information, accurate interpretation, all in Sina Finance APP
