Economic Observer Network reporter Wan Min On the evening of April 26, Bank of Ningbo disclosed its performance report for the first quarter of 2022, and various business indicators maintained high growth. According to the quarterly report, the bank achieved a net profit of 5.720 billion yuan attributable to shareholders of the parent company in the first quarter, a year-on-year increase of 20.80%; its operating income was 15.263 billion yuan, a year-on-year increase of 15.40%; its non-performing loan ratio was 0.77%, the same as at the beginning of the year.
As of the end of March 2022, the total assets of Bank of Ningbo were 2,219.192 billion yuan, an increase of 10.10% over the beginning of the year; various deposits were 1,298.669 billion yuan, an increase of 23.34% over the beginning of the year; various loans were 929.914 billion yuan, an increase of 7.79% over the beginning of the year.
At the same time, the non-interest income of Ningbo Bank continued to grow and remained stable in the proportion of revenue. In the first quarter of 2022, the bank realized net interest income of 9.494 billion yuan, a year-on-year increase of 12.59%, accounting for 62.20% of operating income; non-interest net income of 5.769 billion yuan, a year-on-year increase of 20.34%, accounting for 62.20% of operating income is 37.80%.
In its 2021 annual report disclosed recently, Bank of Ningbo stated that it is expected to maintain steady growth in non-interest net income in 2022. First, the wealth management business has a good foundation after the development in recent years. With the continuous improvement of the big wealth system, the income contribution will be further manifested; second, the special service brands such as foreign exchange manager are effectively used. The comparative advantage of market differentiation will continue to be consolidated, and the income from international settlement and financial market agency business will maintain a healthy growth; third, each profit center will continue to seize market opportunities, empowered by financial technology, wealth management, bond underwriting, asset custody, etc. The development space of capital business will be further opened; fourthly, subsidiaries such as Yongying Fund and Ningyin Wealth Management are developing steadily, and the market reputation continues to accumulate, which will become an important source of the company’s non-interest income growth.
In addition, the 2021 annual report shows that the cost-to-income ratio of Bank of Ningbo is as high as 36.95%, which is higher than the industry average, which makes the market worried about the cost pressure caused by the expansion of its retail business. The first quarterly report for 2022 shows that the bank’s cost-to-income ratio has dropped to 32.70%, a new low since 2019. The reporter noticed that in the first quarter, the fee and commission expenses of Bank of Ningbo decreased by 35.81% year-on-year to 251 million yuan, mainly due to the decrease in agency business fee expenses.
After the release of its annual report earlier this month, Bank of Ningbo has attracted the attention of institutional investors due to its long-term stable growth in performance and good profitability. A recent research report by BOC International Securities pointed out that the proportion of bank stocks with heavy positions in the first quarter increased by 0.72 percentage points from the fourth quarter of 2021 to 2.42%, and China Merchants Bank and Bank of Ningbo received the most significant increase. According to statistics, at the end of the first quarter, among the stock allocations of stock-based and partial-share hybrid funds, the total market value of listed bank stocks accounted for the total market value of the fund, up 0.72 percentage points from the end of the fourth quarter of 2021 to 2.42%. From the perspective of quarterly changes, China Merchants Bank and Bank of Ningbo have the most significant increase in holdings, which are 17BP and 11BP higher than that in the fourth quarter of 2021.
However, behind the high growth of Bank of Ningbo, operational compliance risks are also revealed. In the past two months, Bank of Ningbo has received three regulatory fines. On April 18, the Ningbo Banking and Insurance Regulatory Bureau’s Administrative Penalty Information Disclosure Form showed that Ningbo Bank received two fines, and the penalty decision date was April 11. Among them, the Bank of Ningbo was fined 2.2 million yuan due to the illegal flow of credit funds into the real estate field, the illegal provision of financing to land reserve projects, the inadequate review of non-standard investment business capital expenditure, and the inadequate management of real estate loan credit. He was fined 300,000 yuan due to irregular insurance sales. On February 23, the Shenzhen Branch of Bank of Ningbo was fined 400,000 yuan for failing to perform due diligence and misappropriation of loan funds.
During 2021, Ningbo Bank has received regulatory fines many times due to misappropriation of consumer loans and illegal inflow of loan funds into the housing market.
On April 15, the State Council Information Office held a press conference. The relevant person in charge of the China Banking and Insurance Regulatory Commission said on the operation and development of the banking and insurance industry in the first quarter that the supervision capacity has been continuously enhanced. We will gradually make up for the shortcomings of the regulatory system such as related party transactions, information technology risks, and agricultural insurance, and promote the digital and intelligent transformation of the banking and insurance industries. Improve the ability to supervise and administer according to law, and strictly investigate and punish violations of laws and regulations. Since the beginning of this year, more than 800 institutions have been punished, the amount of fines and confiscations has exceeded 640 million yuan, and more than 1,400 responsible persons have been punished.
Between business compliance and growth and development, Bank of Ningbo may need more balance.Return to Sohu, see more
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