Home » Small and medium-sized banks’ interim results frequently predict that asset quality will remain stable and improving._Research_Institution_Express

Small and medium-sized banks’ interim results frequently predict that asset quality will remain stable and improving._Research_Institution_Express

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Small and medium-sized banks’ interim results frequently predict that asset quality will remain stable and improving._Research_Institution_Express

Original title: Small and medium-sized banks’ interim results frequently predict that asset quality will remain stable and improving

Data production: Gao Zhigang

Before the intensive disclosure of the semi-annual reports of the listed banks, the small and medium-sized banks’ performance reports took the lead. Since July, 8 listed banks in Jiangsu and Zhejiang have taken the lead in disclosing their semi-annual performance reports, and their performance growth has exceeded 20%. While the performance has increased rapidly, the asset quality has also maintained a stable and positive trend.

The dazzling performance has attracted intensive research by institutions. Regional small and medium-sized banks with high performance have become the “darlings” of institutional research.

3 banks’ performance growth rate exceeds 30%

In the first half of the year, under the disturbance of multiple factors at home and abroad, my country’s banking industry still handed over a dazzling transcript.

Among the 8 banks that have disclosed their results for the first half of the year, there are 3 banks with a year-on-year growth rate of more than 30% in net profit attributable to shareholders of the parent company, namely Bank of Hangzhou, Bank of Jiangsu, and Bank of Wuxi, with a year-on-year growth rate of 31.52%, 31.20%, 30.27%. In addition, the net profit growth rate of Zhangjiagang Bank, Suzhou Bank, Jiangyin Bank, Sunong Bank, and Nanjing Bank all exceeded 20%.

With the rapid growth of performance, the quality of assets is also improving steadily. Judging from the performance reports, the non-performing loan ratios of the eight banks have declined to varying degrees, the quality of assets has been continuously improved, and the ability to compensate for risks has continued to increase.

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The asset quality of Jiangyin Bank and Suzhou Bank improved significantly. As of the end of June 2022, the non-performing loan ratios of Jiangyin Bank and Suzhou Bank were 0.98% and 0.90%, respectively, down 0.34 percentage points and 0.21 percentage points from the beginning of the year, respectively.

The performance of regional small and medium-sized banks is inseparable from the local economic development. The eight regional banks that disclosed their performance reports above are all located in Jiangsu and Zhejiang regions, and are distributed in Hangzhou, Nanjing, Suzhou, Wuxi, Changzhou and other regions with rapid economic development. The high growth of bank performance also fully demonstrates the resilience of local economic development.

Liao Zhiming, chief banking analyst at China Merchants Securities, believes that banks in Jiangsu and Zhejiang are the first to disclose their performance reports, and the core logic behind the high performance growth is mainly due to high loan growth and falling credit costs. The Jiangsu and Zhejiang regions have experienced rapid economic development, strong demand for corporate financing, and increased bank credit. The year-on-year growth rate of bank loans that have disclosed performance reports was significantly higher than 10%, and most of them reached 15% and above, significantly higher than the national average. In addition, the decline in credit costs and the continuous improvement of asset quality have driven the growth rate of bank net profit to be higher than that of revenue.

The frequency of institutional surveys doubled from the same period last year

According to statistics from Shanghai Securities News, as of July 19, institutions surveyed bank stocks a total of 250 times in July this year, doubling compared to the same period last year. Among them, more than 100 institutions surveyed Changshu Bank, far exceeding other banks. Zhangjiagang Bank, Suzhou Bank and other regional small and medium-sized banks with high performance have also become the objects of frequent attention of institutions.

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Industry insiders believe that bank stocks have recently ushered in centralized research by institutions. On the one hand, the performance reports disclosed by regional small and medium-sized banks performed well, and some banks’ performance exceeded market expectations; The survey of bank stocks is also to further understand how big the impact is.

Since the beginning of this year, institutions have maintained a high enthusiasm for research on bank stocks. Data show that since the beginning of the year, bank stocks have been surveyed more than 2,400 times, more than three times that of the same period last year. Changshu Bank, Ningbo Bank, Hangzhou Bank, Zhangjiagang Bank, Jiangyin Bank, and Sunong Bank were all investigated by more than 200 institutions.Return to Sohu, see more

Editor:

Disclaimer: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.

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