The "ballast stone" effect of the stable profit market of listed banks is optimistic
2023-11-08
With the smooth completion of the third quarter report disclosure, the transcripts of 42 A-share listed banks have also surfaced. Data shows that the overall operating performance of listed banks is improving, with nearly 90% of banks achieving positive growth in net profit attributable to the parent company. Among them, the six major state-owned banks achieved a total net profit attributable to the parent company of 1.05 trillion yuan. However, while asset quality has steadily increased, 19 listed banks have experienced negative revenue growth, and their net interest margin continues to face downward pressure. In response, industry experts have stated that as the "ballast stone" and "stabilizer" of the market, in the case of low bank valuations themselves, the subsequent stock prices and valuations may gradually recover, and bank stocks still have investment potential. According to Wind statistics, out of 42 listed banks, 37 have achieved a year-on-year positive increase in net profit. Among them, the six major state-owned banks achieved a total net profit attributable to the parent company of 1.05 trillion yuan, once again reaching the trillion yuan mark. The overall net profit in the first three quarters increased by 2.6% year-on-year, a decrease of 0.9 percentage points compared to the half year report. Among them, state-owned large banks saw a slight increase of 2.5% year-on-year; The profit pressure of joint-stock banks is the highest, with a year-on-year decrease of 0.5%; Urban commercial banks and rural commercial banks increased by 10.5% and 12.4% year-on-year. Specifically, in the first three quarters of this year, Agricultural Bank of China achieved a net profit attributable to the parent company of 207.356 billion yuan, a year-on-year increase of 4.97%, ranking first among the six major banks in terms of growth rate; China Construction Bank followed closely, achieving a net profit attributable to the parent company of 255.45 billion yuan, a year-on-year increase of 3.1%; Industrial and Commercial Bank of China achieved a net profit of 269.929 billion yuan, with the absolute value still the highest; Bank of China, Postal Savings Bank, and Bank of Communications achieved double growth in revenue and net profit. Among joint-stock banks, China Merchants Bank led with a net profit attributable to the parent company of 113.89 billion yuan, while Zhejiang Commercial Bank achieved a net profit growth rate of 10.54%. The growth rate of urban commercial banks and rural commercial banks is particularly impressive, with a total of 15 urban commercial banks achieving a year-on-year increase in net profit attributable to the parent company. The net profit growth rate of Changshu Bank and Hangzhou Bank exceeded 20%. In the first three quarters, the quality of bank assets also remained stable. Among the six major state-owned banks, Postal Savings Bank had the lowest non-performing loan ratio, which was 0.81% as of the end of the third quarter, a decrease of 0.03 percentage points compared to the end of the previous year; The non-performing loan ratio of Bank of China decreased by 0.05 percentage points from the end of the previous year to 1.27%; The non-performing loan ratios of Bank of Communications, Agricultural Bank of China, Industrial and Commercial Bank of China, and Construction Bank were 1.32%, 1.35%, 1.36%, and 1.37%, respectively, all decreasing compared to the end of the previous year. It should be noted that while the banking industry maintains a "profit making" model as a whole, it also presents "hidden worries". In the first three quarters, the performance of listed banks was under pressure compared to previous years, with 19 banks experiencing negative growth in revenue growth compared to previous years. In response, Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, told the Economic Reference Daily that the overall growth rate of revenue slowed down in the first three quarters, mainly due to macroeconomic and market fluctuations, as well as the continued interest giving by banks to the real economy. But overall, in the current complex operating environment, banks maintain profitability and stable asset quality, which is sufficient to reflect the resilience and robustness of domestic banks' operations. Narrowing net interest margin has become a major challenge for the industry. Generally speaking, banks' main sources of income include interest margin
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Economic Information Daily
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