On March 28, Bank of China, Agricultural Bank of China, Postal Savings Bank of China, and China Construction Bank collectively disclosed their annual reports. Together with Industrial and Commercial Bank of China and Bank of Communications, which had previously released annual reports, the six major state-owned banks’ “report cards” for last year were all unveiled.
Data show that in 2023, the six major state-owned banks’ net profits attributable to their parent companies have all achieved positive growth, with a total net profit attributable to their parent companies of 1.38 trillion yuan, an increase of 2.12% over the previous year. Calculated based on 365 days in a year, the six major banks’ total days last year Earned 3.772 billion yuan, and total operating income reached 3.53 trillion yuan, showing negative growth year-on-year. Professional analysts believe that this is mainly due to factors such as the continued narrowing of net interest margins, the slowdown in the growth of intermediary business income, and the continued reduction of fees by banks in recent years to benefit the real economy.
As of the end of 2023, the asset size rankings of the six major banks have changed from the end of 2022. Agricultural Bank of China has surpassed China Construction Bank’s 3.832 billion yuan in total assets, rising to second place. In terms of asset quality, the six major banks continued to reduce the balance of non-performing loans, and the non-performing loan ratio declined collectively. At the same time, many major banks continue to increase their provision coverage ratio and enhance their risk compensation capabilities.
The six major banks made a daily profit of 3.772 billion yuan last year, and their net profits attributable to their parent companies all grew positively.
The 2023 annual reports of the six major state-owned banks have been released. According to the review, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China, Bank of Communications, and Postal Savings Bank of China achieved a total net profit attributable to the parent company of 1.38 trillion yuan last year, a year-on-year increase of 2.12%; operating income was 3.53 trillion yuan, a year-on-year decrease of 4.35%. .
The net profits attributable to parent companies of the six major state-owned banks all achieved positive growth. Industrial and Commercial Bank of China and China Construction Bank led the way with 363.993 billion yuan and 332.653 billion yuan respectively, with year-on-year growth rates of 0.79% and 2.44%. Agricultural Bank of China’s net profit attributable to the parent company had the highest year-on-year growth rate, increasing 3.91% from the previous year to 269.356 billion yuan. The net profits attributable to the parent company of Bank of China, Bank of Communications and Postal Savings Bank last year were 231.904 billion yuan, 92.728 billion yuan, and 86.27 billion yuan, a year-on-year increase of 2.38%, 0.68%, and 1.23%.
In comparison, the total operating income of the six major banks declined, and the year-on-year growth rates diverged. Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China rank among the top three, with revenue of 843.07 billion yuan, 769.736 billion yuan, and 694.828 billion yuan respectively in 2023, with year-on-year growth rates of -3.73%, 0.03%, and -1.79% respectively. Bank of China’s revenue grew the fastest year-on-year, increasing 6.41% from the previous year to 622.889 billion yuan. The revenue of Postal Savings Bank and Bank of Communications was 342.507 billion yuan and 257.595 billion yuan respectively, a year-on-year increase of 2.25% and 0.31%.
As for the reasons for the year-on-year decline in revenue growth of the six major banks, professionals pointed out that it is mainly due to the continued narrowing of net interest margins, the slowdown in the growth of intermediary business income, as well as the continued reduction of fees by banks in recent years to benefit the real economy and the decline in financial asset income. factors influence.
According to the annual report data, as of the end of 2023, the net interest margins of the six major banks continued to narrow. The net interest margins of Postal Savings Bank, China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and Bank of Communications were 2.01%, 1.7%, 1.61%, 1.6%, 1.59% and 1.28% respectively, a decrease of 19 and 31 points from the end of the previous year. , 31, 30, 16, 20 basis points.
China Construction Bank, which saw the largest decline in interest spreads, mentioned three influencing factors in its annual report: Affected by factors such as the reduction in loan market quotation rates and the repricing of existing loan interest rates, loan yields fell; due to the decline in market interest rates, bond investment yields were lower than above. year; deposit interest payment levels remained rigid due to intensifying market competition.
Du Juan, a senior researcher at the Jiangsu Commercial Bank Research Institute, said that the first step for banks to deal with the downward pressure on interest spreads is to consolidate their liability base and be able to obtain low-interest liabilities more stably in an environment where interest spreads continue to narrow; the second is to optimize product pricing capabilities. , adjust the pricing of deposit and loan products in a timely manner; the third is to rationally adjust the asset structure. For example, retail loans have higher yields than corporate loans, which can adjust the interest margin pressure of banks; the fourth is to pay attention to risk management, in a low interest margin environment Next, we need to lower risk costs and ensure profit margins; fifth, we need to expand diversified revenue sources. Financial market business, light asset business, etc. all have the potential to continue to improve.
Market fluctuations, fee reductions and interest rate reductions have led to declines in agency wealth management income of many major banks.
In addition to the decline in net interest income caused by the narrowing of interest spreads, which will affect revenue, non-interest income including agency business, bank card business and other intermediate business income is also one of the factors leading to the slowdown in bank revenue.
According to the review, in 2023, with the exception of Bank of China, the other five major state-owned banks will experience negative growth in net fee and commission income. The net fee and commission income of Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of Communications, and Postal Savings Bank of China will be respectively 119.357 billion yuan, 115.746 billion yuan, 80.093 billion yuan, 43.004 billion yuan, and 28.252 billion yuan, down 7.7%, 0.29%, 1.5%, 4.13%, and 0.64% year-on-year.
Du Juan said that bank fee and commission income includes bank card fees, clearing and settlement fees, financial management and insurance agency sales, various light asset business fees, etc. The net income of this part has declined year-on-year. This is mainly due to bank fee reductions and profit concessions in recent years. Decline in card transaction amount, fluctuations in the equity market, and the “unification of bank and bank reports” in bancassurance channels.
Affected by factors such as market fluctuations and banks’ own fee and interest reductions, the fee income of the six major banks has declined most significantly from agency financial services.
In 2023, Postal Savings Bank’s wealth management business fee income was 2.821 billion yuan, a year-on-year decrease of 4.785 billion yuan, a decrease of 62.91%; Bank of Communications’ wealth management business income decreased by 2.346 billion yuan, a decrease of 23.10% year-on-year; ICBC’s personal financial management and private banking, corporate Wealth management fee income fell by 14% and 16.9% respectively; Agricultural Bank of China’s agency business fee fell by 14.7%, mainly due to a decrease in agency wealth management business income; China Construction Bank’s asset management business income was 10.680 billion yuan, a decrease of 5.505 billion yuan from the previous year, a decrease of 3.401% %, mainly due to the decrease in revenue of financial management and trust products due to the decline in scale.
ICBC pointed out in its annual report that due to factors such as capital market fluctuations, changes in investor risk preferences, and public fund rate reforms, business income from personal financial management, private banking, corporate financial management, and asset custody has decreased.
Bank of Communications also explained that the decline in net fee and commission income was mainly due to factors such as continued fluctuations in the capital market, reductions in product rates, and increased fee reductions and profit concessions.
The asset size rankings of the six major banks changed, and the non-performing loan ratios all fell
In 2023, the six major state-owned banks will continue to play a leading role, increase credit in key areas, fulfill their responsibility of financial support for high-quality development of the real economy, and achieve steady improvement in asset scale.
Among them, ICBC ranks first with total assets of nearly 44.7 trillion yuan, setting a new record high and maintaining its global leadership. Agricultural Bank of China’s total assets of 39.9 trillion yuan surpassed China Construction Bank’s 38.32 trillion yuan. It will exchange places with China Construction Bank in 2023, and its asset scale will rise to second place. The total assets of Bank of China, Postal Savings Bank and Bank of Communications are 32.43 trillion yuan, 15.73 trillion yuan and 14.06 trillion yuan respectively. The year-on-year growth rates of the assets of the six major banks reached 12.8%, 17.5%, 10.76%, 12.25%, 11.80%, and 8.23% respectively.
In terms of credit scale, as of the end of 2023, the total loans of the five major banks have achieved double-digit growth. Among them, Agricultural Bank of China expanded the fastest, with total loans and advances extended to 22.61 trillion yuan, an increase of 2.85 trillion yuan or 14.4% from the end of the previous year.
Agricultural Bank of China disclosed in its annual report that in 2023, the bank’s loans in key areas such as manufacturing, technological innovation, inclusive small and micro businesses, and green development will continue to maintain rapid growth momentum on the basis of a high base. The balance of manufacturing loans was 2.95 trillion yuan, a growth rate of 28%; of which the balance of medium and long-term manufacturing loans was 1.21 trillion yuan, a growth rate of 58%. The scale of strategic emerging industry loans exceeded 2 trillion yuan. The balance of green credit is 4.05 trillion yuan, an increase of 1.35 trillion yuan. The balance of loans in the inclusive finance sector according to the People’s Bank of China is 3.5 trillion yuan, with a growth rate of 37%.
Regarding other major banks, the total amount of customer loans and advances of Industrial and Commercial Bank of China was 26.09 trillion yuan, an increase of 12.4%; the net amount of loans and advances issued by China Construction Bank was 23.08 trillion yuan, an increase of 12.64%; the total amount of customer loans of Bank of China was 19.96 trillion yuan, an increase of 12.4%. An increase of 13.72% from the end of the previous year; the total customer loans of the Postal Savings Bank were 8.15 trillion yuan, an increase of 13.02% from the end of the previous year; the customer loan balance of Bank of Communications was 7.96 trillion yuan, an increase of 9.08% from the end of the previous year.
In terms of asset quality, the six major banks continue to increase their efforts to dispose of non-performing loans, and the non-performing loan ratio has collectively declined compared with the previous year. At the same time, many major banks have increased their provision coverage ratios, and their risk compensation capabilities have remained stable.
As of the end of 2023, the non-performing loan ratios of China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, Bank of China, and Postal Savings Bank were 1.37%, 1.36%, 1.33%, 1.32%, 1.27%, and 0.83% respectively, which decreased from the end of the previous year. 0.01, 0.02, 0.04, 0.02, 0.05, 0.01 percentage points; provision coverage ratios are 239.85%, 213.97%, 303.87%, 195.21%, 191.66%, 347.57%, except for China Construction Bank and Postal Savings Bank , the remaining four major banks increased by 4.5, 1.27, 14.53 and 2.93 percentage points respectively compared with the end of the previous year.
Du Juan pointed out that judging from the data in the 2023 annual report, while banks are reducing provision provision, their asset quality is performing well, the bad debt rate has dropped, and the provision coverage ratio has increased. This has the denominator effect of the rapid growth of bank loan scale, and banks have strengthened risk control. The effectiveness of human-machine collaboration in risk control has been highlighted through the efforts of capabilities, especially with the help of digital technology. Major banks generally have ample provisions and have relatively mature disposal models for risk assets such as off-balance sheet and write-off, and their asset quality performance is stable.
Text/Qian Xiaorui
(Editor: Qian Xiaorui)
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2024-03-29 09:23:28
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