Since last year, 5 banks have landed on A shares and 12 are lining up

Since 2021, bank IPOs have accelerated, and 4 banks have landed on A shares throughout the year.

On February 5, 2021, Bank of Chongqing (601963. SH) was listed on the main board of the Shanghai Stock Exchange, becoming the third A+H-share listed city commercial bank in China; on June 18, Qilu Bank (601665.SH) was listed on the main board of the Shanghai Stock Exchange, and Shandong Province welcomed the third A-share listed bank; on June 25, Ruifeng Bank (601528.SH) landed on the main board of the Shanghai Stock Exchange, and Zhejiang Province ushered in the first A-share listed rural commercial bank; on August 19, Shanghai Rural Commercial Bank (601825.SH) landed on the main board of the Shanghai Stock Exchange, and A shares ushered in a trillion rural commercial bank. In 2020, only one A-share bank, Xiamen Bank (601187.SH), will be listed.

On January 17 this year, Bank of Lanzhou landed on the Shenzhen Stock Exchange, and A shares ushered in the first bank stock of this year. With the successful listing of Bank of Lanzhou, the number of A-share banks has expanded to 42. What will happen to bank A-share IPOs in 2022?

Up to now, there are 12 banks in the queue for IPO in A-shares, namely Huzhou Bank, Dafeng Rural Commercial Bank, Kunshan Rural Commercial Bank, Ma'anshan Rural Commercial Bank, Dongguan Bank, Nanhai Rural Commercial Bank, Shunde Rural Commercial Bank, Xiamen Rural Commercial Bank, Yaodu Rural Commercial Bank, Haian Rural Commercial Bank, Guangzhou Bank and Chongqing Three Gorges Bank.

The six banks that queued up for A-share listing achieved positive revenue and net profit in the first three quarters of last year

Nine of the 12 banks lining up for A-share IPOs disclosed their plans for the issuance of interbank certificates of deposit in 2022 on China MoneyNet. However, the surging news found through the previous year's interbank certificate of deposit issuance plan that at present, only half of the 12 banks queuing for A-share IPOs have third-quarter year-on-year data.

Judging from the revenue and net profit data of 6 banks, in the first three quarters of last year, 6 banks achieved positive growth. From the perspective of revenue, in the first three quarters of last year, the revenue of Huzhou Bank, Chongqing Three Gorges Bank, Ma'anshan Rural Commercial Bank, Dongguan Bank, Jiangsu Kunshan Rural Commercial Bank and Jiangsu Dafeng Rural Commercial Bank increased by 21.03%, 11.40%, 4.57%, 2.51%, 2.07% and 1.19% respectively year-on-year.

From the perspective of net profit, in the first three quarters of last year, the net profits of Ma'anshan Rural Commercial Bank, Jiangsu Kunshan Rural Commercial Bank, Dongguan Bank, Chongqing Three Gorges Bank, Huzhou Bank and Jiangsu Dafeng Rural Commercial Bank increased by 36.79%, 15.34%, 9.76%, 8.25%, 8.03% and 0.87% year-on-year.

The asset scale of 7 companies exceeds 100 billion

In terms of total assets, the asset scale of Bank of Guangzhou is the largest among the 12 banks mentioned above. As of the end of September 2021, Bank of Guangzhou had total assets of 724.486 billion yuan, achieving operating income of 11.941 billion yuan and net profit attributable to the mother of 3.110 billion yuan in the first three quarters.

Among the 12 banks queuing for A-share IPOs, there are 7 banks with assets of more than 100 billion yuan, namely Bank of Guangzhou, Dongguan Bank, Shunde Rural Commercial Bank, Chongqing Three Gorges Bank, Nanhai Rural Commercial Bank, Jiangsu Kunshan Rural Commercial Bank and Xiamen Rural Commercial Bank.

There are 5 banks with assets of less than 100 billion yuan, namely Huzhou Bank, Haian Rural Commercial Bank, Ma'anshan Rural Commercial Bank, Yaodu Rural Commercial Bank and Dafeng Rural Commercial Bank.

Judging from the acceptance dates of the 12 banks queuing for A-share IPOs, Jiangsu Dafeng Rural Commercial Bank has the longest queue for A-share IPOs. Jiangsu Dafeng Rural Commercial Bank accepted the application on November 8, 2017, and the sponsoring institution is China Merchants Securities Co., Ltd.

Like Dafeng Rural Commercial Bank, Xiamen Rural Commercial Bank has a long acceptance time, and the sponsor of Xiamen Rural Commercial Bank is CITIC Construction Investment Co., Ltd., and the acceptance time is December 25, 2017.

Judging from the operating data of dafeng rural commercial bank and Xiamen rural commercial bank, the net profit growth of revenue last year was generally weak. According to the 2022 interbank certificate of deposit issuance plan of Dafeng Rural Commercial Bank, as of the end of September 2021, the total assets of Dafeng Rural Commercial Bank were 53.535 billion yuan, and the operating income in the first three quarters of 2021 was 1.784 billion yuan, an increase of 1.19% year-on-year; and the net profit was 462 million yuan, an increase of 0.87% year-on-year.

According to the 2022 interbank certificate of deposit issuance plan of Xiamen Rural Commercial Bank, as of the end of September 2021, the total assets of Xiamen Rural Commercial Bank were 129.088 billion yuan. From January to September last year, Xiamen Rural Commercial Bank's operating income was 2.043 billion yuan and net profit was 655 million yuan. In 2020, Xiamen Rural Commercial Bank achieved an operating income of about 3.350 billion yuan, a year-on-year decrease of 8.62% from 3.666 billion yuan at the end of 2019; and a net profit of about 835 million yuan, a year-on-year decrease of 29.80% from 1.189 billion yuan at the end of 2019.

In addition, Huzhou Bank updated its prospectus on the CSRC website last year: Huzhou Bank intends to publicly issue no more than 338 million shares (accounting for 25% of the total share capital after the issuance) on the A-share Shanghai Stock Exchange. Huzhou Bank said that after deducting the issuance fee, all the funds raised from the offering will be used to supplement the bank's core Tier 1 capital and improve the level of capital adequacy.