Original title: The semi-annual report kicks off the bank stocks to welcome the valuation repair catalyst
The semi-annual reports released by the Bank of Ningbo and China Merchants Bank showed that the net profit growth rate of the two banks in the first half of the year exceeded 20%, the non-performing loan ratio remained at a low level, and the provision coverage ratio remained at a relatively high level. Many brokerage analysts believe that the disclosed operating data shows that the fundamentals of the banking industry have improved. With the gradual disclosure of the semi-annual report, good performance is expected to bring support to the stock price of bank stocks.
● Our reporter Ouyang Jianhuan
Both banks’ net profit growth rate in the first half of the year exceeded 20%
According to data, China Merchants Bank achieved operating income of 168.749 billion yuan in the first half of the year, a year-on-year increase of 13.75%, and realized a net profit attributable to shareholders of the parent company of 61.150 billion yuan, a year-on-year increase of 22.82%; Bank of Ningbo’s operating income in the first half of the year was 25.019 billion yuan, a year-on-year increase of 25.21 %; The net profit attributable to shareholders of the parent company was 9.519 billion yuan, a year-on-year increase of 21.37%.
From the perspective of income structure, as the two banks have continued to increase their deployment in the wealth management field in recent years, non-interest income has achieved good growth. The semi-annual report shows that Bank of Ningbo achieved non-interest income of 9.036 billion yuan in the first half of the year, a year-on-year increase of 31.53%. The proportion of non-interest income increased by 1.74 percentage points year-on-year to 36.12%; China Merchants Bank achieved non-interest net income of 69.408 billion yuan, a year-on-year increase of 20.75%. .
In terms of net interest margin, the semi-annual report showed that China Merchants Bank’s net interest margin during the reporting period was 2.49%, a year-on-year decrease of 1 basis point; during the reporting period of Bank of Ningbo, the net interest margin was 2.33%, an increase of 8 basis points year-on-year.
Looking forward to the second half of the year, both banks indicated that they will adopt various measures to keep the net interest margin at a reasonable level. China Merchants Bank stated that on the liability side, on the one hand, it continues to promote high-quality growth of deposits, adheres to the growth of low-cost core deposits, seizes the opportunity of adjusting the self-regulatory ceiling of deposit interest rates, and strengthens its advantage in deposit costs; on the other hand, it flexibly arranges market-oriented funding sources. , To promote the steady growth of low-cost and stable demand deposits in the same industry, and to rationally arrange the treasury’s active liabilities. On the asset side, on the one hand, continue to optimize the structure of credit assets, strengthen loan pricing management, and further improve the level of risk pricing; on the other hand, strengthen the forward-looking prediction of market interest rates, improve the efficiency of capital use, and moderately increase the allocation of bonds and high-yield interbank assets.
Defect rate remains low
In terms of asset quality, the non-performing loan ratios of the two banks remained low. The semi-annual report shows that as of the end of June, China Merchants Bank’s non-performing loan balance was 54.542 billion yuan, an increase of 927 million yuan from the end of the previous year, and the non-performing loan ratio was 1.01%, which was a decrease of 0.06 percentage points from the end of the previous year. The Bank of Ningbo’s non-performing loan ratio was 0.79%. The same as the end of the previous year.
In terms of provision coverage, the semi-annual report shows that as of the end of June, China Merchants Bank’s provision coverage ratio was 439.46%, an increase of 1.78 percentage points from the end of the previous year; Ningbo Bank’s provision coverage ratio was 510.13%, an increase of 4.54 percentage points from the end of the previous year .
In order to reduce the burden of non-performing assets, it has become the consensus of commercial banks to increase the write-off and disposal of non-performing assets. The semi-annual report shows that during the reporting period, Bank of Ningbo made a total of 4.532 billion yuan in loan loss reserves, 809 million yuan in non-performing loan recovery, 913 million yuan in non-performing loan write-offs, and the balance of loan loss reserves at the end of the reporting period was 31.99 billion yuan.
During the reporting period, China Merchants Bank disposed of a total of 22.175 billion yuan of non-performing loans, of which 10.57 billion was routinely written off, 6.584 billion was cleared, and 4.857 billion of non-performing asset securitizations were processed through debt repayment, transfer, restructuring, relocation, reduction and exemption, etc. Dispose of 677 million yuan.
Performance drives valuation recovery
Last week, bank stocks generally rebounded sharply. A number of brokerage analysts predict that the good performance of the interim report will provide support to bank stocks.
The banking regulatory indicators for the second quarter recently disclosed by the China Banking and Insurance Regulatory Commission also verified the soundness of the fundamentals of commercial banks. Data shows that in the first half of the year, commercial banks achieved a cumulative net profit of 1.1 trillion yuan, an increase of 11.1% year-on-year, and the non-performing loan ratio of commercial banks was 1.76%. , A decrease of 0.05 percentage points from the end of the previous quarter. In addition, many banks have disclosed the first half of the performance report also shows the profit growth trend, Zhangjiagang Bank, Wuxi Bank, Changshu Bank and other net profit growth rates have remained at double digits.
Wang Yifeng, chief analyst of China Everbright Securities’ banking industry, believes that according to the data of listed banks that have disclosed interim results, various operating indicators have achieved excellent performance. Most of the banks that “led the decline” in the previous period were banks with excellent fundamentals, and they have basically given up the gains brought about by their excellent performance in the first quarter. With the opening of the semi-annual report, the valuation of these banks is expected to be repaired.
Liu Zhiping, an analyst at West China Securities, believes that operating data at all levels fulfills expectations of improvement in the fundamentals of the industry, and it is expected that the successive disclosures in the semi-annual reports of listed banks will catalyze the recovery of the sector’s valuation.
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