Source: Beijing Business Daily
As the highlight of the disclosure of the annual reports of listed companies, on April 29, the annual reports of 42 A-share listed banks in 2023 were collected. In the past year, 42 banks achieved a total of more than 2.09 trillion yuan of net profits attributable to the parent company, of which 37 banks achieved an increase in net profits attributable to the parent company, and 14 banks achieved a growth rate of "double". However, behind the brilliant performance, the banking industry is facing challenges. The prominent situation of "increasing profits without increasing incomes", the narrowing of the margin of net interest margin, and the shrinking of personal housing loan business all pose challenges to the banking operation.
14 banks achieve double growth
A-share listed banks handed over the "report card" of 2023. In the past year, 42 banks achieved a total of more than 2.09 trillion yuan of net profits attributable to the parent, 37 banks achieved growth in net profits attributable to the parent, and 14 banks achieved double growth.
From the perspective of profit growth, local small and medium-sized banks are quite eye-catching, Bank of Hangzhou The growth rate of net profit attributable to the parent company ranked first. In 2023, the Bank realized a net profit attributable to the parent company of RMB 14.383 billion, up 23.15% year on year. Changshu Bank 、 Qilu Bank 、 Bank of Suzhou 、 Jiangyin Bank 、 Bank of Chengdu Suzhou Rural Commercial Bank also performed well, with the net profit attributable to the parent company increasing by 19.6%, 18.02%, 17.41%, 16.83%, 16.22% and 16.04% year on year respectively. BANK OF QINGDAO 、 Bank of Jiangsu Ruifeng Rural Commercial Bank, Qingdao Rural Commercial Bank Bank of Ningbo The year-on-year growth rate of net profit attributable to parent company of Shanghai Rural Commercial Bank in 2023 also exceeded 10%.
At the same time, some banks' operating income is under pressure, leading to the pressure of "increasing profits without increasing income". The reporter of Beijing Business Daily found that in 2023, more than 10 banks will "increase profits but not incomes".
Specifically, among the state-owned big banks, in 2023, Industrial and Commercial Bank of China 、 bank for economic construction The operating revenue decreased by 3.73% and 1.79% respectively year on year, and the net profit attributable to the parent company increased by 0.79% and 2.44% respectively year on year. In joint-stock banks, Ping An Bank 、 CITIC Bank 、 China Merchants Bank 、 Minsheng Bank Similarly, Ping An Bank realized operating revenue of 164.699 billion yuan, down 8.4% year on year, and net profit attributable to the parent company of 46.455 billion yuan, up 2.1% year on year.
Among local small and medium-sized banks, Bank of Shanghai Chongqing Rural Commercial Bank, Zijin Rural Commercial Bank Bank of Chongqing The net profit attributable to the parent company increased, but the revenue decreased by 4.8%, 3.57%, 1.93% and 1.89% year on year respectively.
have other Shanghai Pudong Development Bank 、 Bank of Zhengzhou 、 Industrial Bank 、 Everbright Bank 、 Bank of Guiyang The revenue and net profit attributable to the parent company decreased year on year.
Xue Hongyan, vice president of the Xingtu Financial Research Institute, believes that in 2023, banks will "increase profits but not incomes" mainly because of the stabilizing effect of provision adjustment. Compared with the average annual growth of more than 10 points in the previous two years, some banks intentionally slowed down the pace of provision provision last year.
Liao Hekai, an analyst of Jinle Function, said in an interview with the Beijing Business Daily that the "increase in profits without increase in income" of some banks was mainly due to the continuous adjustment of business structure, focusing on strengthening risk control, increasing revenue and reducing expenditure, strengthening operations to improve profit levels, and continuing to reduce the business direction of high risk and high income.
In the first quarter of this year, the performance pressure of A-share listed banks was still significant. According to the Beijing Business Daily reporter, although the net profit attributable to the parent company of some banks increased compared with the same period of last year, the decline in revenue was greater; Some banks also achieved a double increase in revenue and net profit attributable to the parent in 2023, but in the first quarter of this year, they fell into the situation of "increasing profits without increasing revenue", and many large and medium-sized banks also experienced negative growth in net profit.
Over 90% of banks' net interest margin narrowed
Influenced by factors such as the downward trend of market interest rates and the continuous granting of profits to the real economy, the net interest margin (i.e. net interest yield) of A-share listed banks is facing severe challenges. Among 42 banks, only Bank of Qingdao's net interest margin rose, while 41 banks' net interest margin declined.
By the end of 2023, the net interest margin of BQD was 1.83%, 0.07 percentage points higher than that of the previous year. The bank mentioned in the financial report that it was mainly due to the strict control of the cost rate of deposits and bonds payable, and the decline of the cost rate of interest bearing liabilities, which hedged the impact of the decline in the rate of return on assets and the growth of the size of deposits, and increased the net interest margin.
The banks whose net interest margin declined significantly include Ruifeng Rural Commercial Bank, Ping An Bank, Bank of Jiangsu, China Construction Bank, Industrial and Commercial Bank of China, Suzhou Rural Commercial Bank agricultural bank By the end of last year, the net interest margin indicators of the above seven banks had decreased by 48 basis points, 37 basis points, 34 basis points, 31 basis points, 31 basis points, 30 basis points and 30 basis points respectively compared with the previous year.
As for the reason why the net interest margin decreased significantly, Ping An Bank said that the net interest margin decreased due to the continuous interest transfer of the real economy, the adjustment of the asset structure, and the impact of the repricing effect of loans and changes in market interest rates. Bank of Jiangsu mentioned that the market interest rate and LPR (loan market quoted interest rate) declined, superposing the repricing effect after the LPR decline since last year and the interest rate adjustment of stock housing loans, the return rate of interest bearing assets of commercial banks was under pressure, and the net interest margin was narrowing.
Changshu Rural Commercial Bank Changsha Bank Although the net interest margin is at a high level among listed banks, it has not avoided the trend of narrowing the net interest margin. By the end of 2023, the net interest margin of Changshu Rural Commercial Bank was 2.86%, down 16 basis points from the previous year. The net interest margin of Bank of Changsha was 2.31%, down 0.1 percentage point year on year. The bank said that the growth rate of net interest income was lower than the average daily scale growth rate of interest bearing assets. At the same time, affected by LPR reduction for many times, the average interest rate of loans showed a downward trend, the average interest rate of interest bearing assets was under pressure, and the net interest margin narrowed year on year.
Dong Ximiao, the chief researcher of China Merchants Association, predicted that, on the whole, the bank will continue to reduce the deposit interest rate in 2024 to further reduce the cost of capital and ease the pressure of narrowing the interest margin. In addition to lowering deposit interest rates, banks should also reduce interest subsidies on deposits and fees other than interest, further reducing the implicit cost of deposits.
At the 2023 performance conference and performance explanation meeting, several bank management also revealed the direction of the next step to stabilize the interest margin. just as Postal Savings Bank As President Liu Jianjun said, on the debt side, we should consolidate the advantage of interest payment, further strengthen wealth management, and let customers retain more demand deposits through the AUM comprehensive assessment. We should try to increase the proportion of demand deposits, and also exercise some control over medium - and long-term deposits. Lin Shu, General Manager of the Planning and Finance Department of Industrial Bank, mentioned that the debt side should strengthen the control of deposit and loan interest rates, take control measures for some high cost liabilities to ensure a reasonable decline in deposits, and increase the proportion of low-cost settlement deposits.
Beijing Business Daily reporter Song Yitong, Li Haiyan
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