Entering 2022, the banking sector will continue to strengthen. Industry insiders believe that, on the whole, the current banking sector valuation is relatively low, superimposed on the good news of the performance of many companies, the overall performance of the sector will be better than expected, and bank stocks are expected to usher in valuation repair opportunities.
Sectors generally rose
On January 20, bank stocks led the rise in various A-share sectors, among whichBank of Lanzhoudaily limit,Qilu Bank、Ping An Bankrose more than 5%,Hangzhou Bank、China Merchants Bankrose more than 3%.
Bank stocks continued to heat up, in fact, not unexpected. Entering 2022, the banking sector has changed from the previous year’s decline and has become a “dark horse” variety. Since 2022, the bank ETF (512800) has surged 6.54%, ranking first in the A-share industry ETF. The 42 A-share listed banks have all recorded positive growth since 2022.
Judging from the performance of individual stocks, after excluding the newly listed Lanzhou Bank, as of the close of January 20,Bank of ChengduThe cumulative increase this year has reached 22.92%, ranking first in the A-share listed banking sector.Bank of Jiangsu、Industrial Bank, Hangzhou Bank and other 7 stocks increased by more than 10%.
In addition to the gratifying rise in stock prices, the performance growth of banks is also remarkable, and the performance of many banks in 2021 exceeded market expectations. A reporter from China Securities Journal noticed that as of the evening of January 20, 15 listed banks had disclosed their 2021 performance reports. Among them, with the annual net profit attributable to the parent as the indicator, China Merchants Bank temporarily ranked first with 119.922 billion yuan, Industrial Bank,CITIC Bank, Ping An Bank, Bank of Jiangsu,Bank of NingboThe net profit attributable to the parent is more than 10 billion yuan.
From the perspective of performance growth, Bank of Jiangsu’s net profit attributable to the parent in 2021 will increase by 30.7% year-on-year, ranking first in the growth rate list, followed by Zhangjiagang Bank, Ningbo Bank, and Ping An Bank, with growth rates of 29.81% and 29.67% respectively. , 25.6%.removeShanghai Rural Commercial Bank、Changsha Bank、Everbright Bank, except China CITIC Bank, the performance growth rate of the remaining 11 banks exceeded 20%.
In addition, it is worth mentioning that the performance report shows that the provision coverage ratio of most banks increased month-on-month, the risk compensation ability was enhanced, and the asset quality continued to improve.
Valuations remain low
Despite the recent strong performance of bank stocks, their overall valuations remain low. From a horizontal perspective, as of now, the valuation of the banking sector is at the bottom of the A-share industry. From a vertical perspective, the current average price-earnings ratio of the banking sector is 5.5 times, which is the bottom of the past decade.
Regarding the current valuation of the banking sector, industry insiders generally believe that its margin of safety is relatively high, and give a positive outlook to the future trend.
Zhongtai SecuritiesAnalyst Dai Zhifeng believes that the banking sector currently has a relatively high margin of safety, and asset quality builds the margin of safety for banking stocks. The asset quality of listed banks is expected to remain stable in the next few years.
BOC SecuritiesAnalyst Lin Yuanyuan said that the current institutional holdings and valuations of the banking sector are at historically low levels, and the dividend rate has continued to increase. As the market continues to digest some factors and catalyzed by policies to stabilize growth such as credit liberalization at the beginning of the year, the banking sector is expected to perform well.
China Merchants SecuritiesChief Strategist Zhang Xia believes that in the period of steady growth, the growth rate of social financing will improve significantly and accelerate upward, bringing about a gradual recovery in investment. At this stage, the market style is dominant, and typical pro-cyclical low-valued industries such as banks Plates, etc., will perform better.
The team of securities engineer Wang Yifeng said in the research report that the bank index is expected to usher in a rebound, and the upward slope will be relatively flat, but the bottom is relatively clear.
Top 10 Bank Stock Gainers Since 2022
Securities abbreviation Latest closing price 2021 net profit growth since 2022 (%)
(Yuan) Increase (%)
Bank of Chengdu 14.75 22.92 –
Bank of Jiangsu 6.85 17.50 30.72
Industrial Bank 22.15 16.33 24.10
Hangzhou Bank 14.70 14.66 –
Postal Savings Bank 5.78 13.33 –
Changshu Bank 7.49 13.31 21.13
Bank of Nanjing 10.08 12.50 –
Zhangjiagang Bank 6.44 11.81 29.77
Sunon Bank 5.39 10.68 20.72
Qilu Bank 6.09 9.14 –
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Responsible editor: Liang Chenjie