As of the evening of March 28, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank have all disclosed their 2023 performance reports, and the six major state-owned banks have all handed over their "report cards" for 2023. Overall, in 2023, the operating performance of the six major state-owned banks will be stable and improving, and the asset quality will remain stable. According to the annual report, the net profit attributable to the parent of the six major banks in 2023 will all achieve positive growth, with a total net profit attributable to the parent company of nearly 1.38 trillion yuan and an average daily net profit of 3.772 billion yuan.
ICBC is still the most profitable Agricultural Bank of China's net profit increased the most
In terms of the absolute value of net profit, ICBC, the "largest bank in the universe", still ranks first, with a net profit attributable to shareholders of the bank of 363.993 billion yuan last year, followed by CCB, Agricultural Bank of China, Bank of China, Bank of Communications and Postal Savings Bank of China in 2023, net profit attributable to shareholders of the bank of 332.653 billion yuan, 269.356 billion yuan, 231.904 billion yuan, 92.728 billion yuan and 86.27 billion yuan respectively.
Compared with 2022, the net profit growth rate of the six major state-owned banks in 2023 will be significantly lower, but it will still maintain positive growth. The growth rate of net profit attributable to shareholders of ICBC, CCB, Agricultural Bank of China, Bank of China, Postal Savings Bank and Bank of Communications last year was 0.80%, 2.44%, 3.91%, 2.38%, 1.23% and 0.68%, respectively, while the net profit growth rate in 2022 was 3.49%, 7.06%, 7.40%, 5.02%, 11.89% and 5.22% respectively.
In terms of operating income, among the six major banks, ICBC and CCB will see a decline in operating income in 2023, with Bank of China having the largest year-on-year increase in operating income, with a year-on-year increase of more than 6%. It followed closely behind, with the operating income of the Postal Savings Bank increasing by 2.25% year-on-year to 342.507 billion yuan. The operating income of Agricultural Bank of China and Bank of Communications increased by 0.03% and 0.31% year-on-year respectively, reaching 694.828 billion yuan and 257.595 billion yuan.
The non-performing loan ratios of the six major banks all declined
The asset quality of banks has always been in the spotlight. According to the annual report, the asset quality of the six major banks remained basically stable overall, and the non-performing loan ratio decreased from the end of 2022.
Specifically, the non-performing loan ratio of the Postal Savings Bank was the lowest, at 0.83 percent, down 0.01 percentage points, while the non-performing loan ratio of the Bank of China was 1.27 percent, down 0.05 percentage points, the largest decline. The NPL rates of the other four major banks are all between 1.30% and 1.40%. The non-performing ratios of ABC and Bank of Communications were both 1.33 percent, down 0.04 percentage points and 0.02 percentage points respectively, the non-performing ratios of ICBC were 1.36 percent, down 0.02 percentage points, and the non-performing loan ratios of CCB were 1.37 percent, down 0.01 percentage points.
In terms of provision coverage ratio, as of the end of 2023, the provision coverage ratios of ICBC, Agricultural Bank of China, Bank of China and Bank of Communications were 213.97%, 303.87%, 191.66% and 195.21% respectively, an increase of 4.5, 1.27, 2.93 and 14.53 percentage points respectively from the end of the previous year. In addition, CCB's provision coverage ratio was 239.85%, down 1.68 percentage points from the end of 2022, and PSBC's provision coverage ratio was 347.57%, down 37.94 percentage points from the end of the previous year, but still ranked first among the six major banks.
Net interest margins declined
The annual report shows that the net interest margin of all banks has declined to varying degrees. The net interest margins of ICBC, CCB, Agricultural Bank of China, Bank of China, Bank of Communications and Postal Savings Bank were 1.61%, 1.70%, 1.60%, 1.59%, 1.28% and 2.01% respectively, down 31, 31, 30, 16, 20 and 19 basis points respectively from the previous year.
In the past year, interest expenses of banks have increased significantly due to the rapid rise in deposits. The interest expenses of CCB and Bank of Communications both increased by more than 19% year-on-year, Agricultural Bank of China reached more than 20%, and Bank of China increased by 44.54% year-on-year. At the same time, interest rates on bank loans are falling, and net interest income is falling.
According to the annual report of the Bank of Communications, during the reporting period, the bank's net interest income was 164.123 billion yuan, a year-on-year decrease of 3.39%. In this regard, the annual report explained that the year-on-year decline in net interest income was mainly due to the repeated reduction of the loan prime rate (LPR) and the adjustment of the interest rate of existing housing loans, and the decline in the average yield of customer loans led to the growth of interest income less than expected.
Gu Shu, chairman of the Agricultural Bank of China, said at the results conference that the decline in net interest margin should be viewed from two aspects: assets and liabilities. On the asset side, the interest rate of ABC's loans last year was 3.79%, a decrease of 30BP from the previous year, which is basically consistent with the industry trend and comparable banks, which is the result of taking the initiative to make profits to the real economy. On the liability side, at the end of last year, ABC had the largest increase in customer deposits among peers, with the interest payment rate of RMB customer deposits at 1.71%, maintaining the best level among comparable peers. In the next step, ABC will focus on doing a good job in the "five major articles", do a good job in the coordinated management mechanism of quantity and price, optimize the marginal pricing of assets, and at the same time give full play to the advantages of ABC's network of outlets and huge customer base, and organize more and better low-cost deposits.
Gu Shu also said that in addition to looking at the deposit and loan interest rates, the net interest margin analysis should also look at the tax-free effect of investment varieties. The Agricultural Bank of China invested a large amount of treasury bonds last year, and the interest rate, although lower, was very safe, reducing income tax expenses.
Looking forward to the follow-up interest rate spread trend, Liu Jianjun, chief risk officer of Bank of Communications, said that due to relevant policy tail-end factors, it is expected that the group's net interest margin will still face certain downward pressure in the short term. In the next stage, the bank will make every effort to promote the marginal stabilization of net interest margin within a reasonable range: on the asset side, it will increase loan investment and bond investment, increase the proportion of retail assets, and moderately increase the comprehensive return of asset business. On the debt side, we focused on the growth of low-cost demand funds, continued to reduce high-cost deposits, and flexibly allocated market-oriented funds according to the trend of market interest rates to reduce the overall cost of debt.
The non-performing ratio of public real estate loans of three major banks has risen, and executives said that the risk is controllable
Real estate business has always been a key area for banks' risk prevention and control.
In 2022, the NPL rate of personal housing loans of the six major banks will all increase, but in 2023, the NPL rate of personal housing loans of PSBC and Bank of Communications will decrease. Specifically, the non-performing rates of personal housing loans of ICBC, CCB, Agricultural Bank of China, Bank of China, Postal Savings and Bank of Communications were 0.44%, 0.42%, 0.55%, 0.48%, 0.55% and 0.37% at the end of last year, compared with 0.39%, 0.37%, 0.51%, 0.47%, 0.57% and 0.44% at the end of 2022, respectively. Overall, the non-performing ratio of personal housing loans of the six major banks was all less than 0.6%, and the increase or decrease compared with the previous year did not exceed 7 basis points, and the asset quality was still excellent.
In terms of the non-performing ratio of corporate loans in the real estate industry, three major banks increased and three decreased. As of the end of last year, the non-performing ratios of the real estate industry of ICBC, Agricultural Bank of China and Bank of China were 5.37%, 5.42% and 5.51% respectively, down 0.77, 0.06 and 1.72 percentage points from 6.14%, 5.48% and 7.23% at the end of the previous year, respectively, while the non-performing loans of real estate loans of CCB, Postal Savings and Bank of Communications were 5.64%, 2.45% and 4.99% respectively, up 1.28% from 4.36%, 1.45% and 2.80% at the end of 2022. 1 and 2.19 percentage points.
Wang Jingwu, vice president of ICBC, said that in the field of real estate, ICBC adheres to the asset selection criteria of regional, customer and project trinity, and implements comprehensive policies from the four aspects of "increasing prevention and chemical governance", and strives to build a dispersed, diversified and balanced real estate investment and financing structure. Adhere to the management of stocks, precise risk management, increase the disposal and clearance of risky real estate enterprises and projects, and ensure that the quality of assets is stable and controllable.
The non-performing loan ratio of Bank of Communications to public real estate increased by 2.19 percentage points from the end of the previous year. Yin Jiuyong, vice president of the Bank of Communications, responded: "We are still very confident and confident that the overall risk of public real estate is still at a controllable level. In accordance with the Accounting Standards for Business Enterprises and regulatory requirements, Bank of Communications has comprehensively assessed the risk profile of public real estate customers, and has made full provision for asset reduction, and the current provision for public real estate loans is significantly higher than the average level of the whole bank. ”
Yin Jiuyong said that in the future, the loan quality control of the real estate industry will continue to be a key area of the Bank of Communications, and it will continue to strengthen the management of real estate business risks, continue to track the changes in the risks of real estate enterprises and projects, and identify risks, give early warnings, expose and dispose of risks, and strive to maintain the overall stability of the overall quality of loans in the real estate industry.
For the future development of the real estate industry, Yin Jiuyong believes that with the support of national policies, the real estate market will gradually stabilize and recover. However, from the current point of view, the risks of some real estate enterprises are still in the process of clearing, and the improvement of real estate market sales cannot be achieved overnight. For BOCOM, quality control in the real estate industry will remain a key task in the future.
Zhang Xuguang, vice president of the Agricultural Bank of China, said that in 2023, there will be some new non-performing loans in real estate and other fields, but the risks are generally controllable. By actively implementing policy requirements such as the "16 Financial Measures" and early reporting and quick disposal of non-performing loans, ABC's real estate industry risks have been effectively controlled, and the real estate non-performing rate and new non-performing loans have decreased compared with 2022.
Text/Beijing Youth Daily reporter Cheng Jie
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