Do you know that the China Construction Bank, one of the largest commercial banks in China, has a debt of 35.15 trillion yuan! This figure can be described as staggering. But is it really that simple? Let's unravel this mystery.
Speaking of China Construction Bank, I believe everyone is no stranger to this "national brand" bank. As one of the six major state-owned commercial banks in the mainland, it not only has a high status in China, but also ranks among the best in the global banking industry.
In 2023, CCB ranked 29th on the Fortune Global 500 list, ranking second in the global banking industry, second only to ICBC. It can be said that it has become a banner in China's financial circles.
However, it is unbelievable that such a "king" level bank would have debts as high as 35.15 trillion yuan.
What is going on? Does it mean that there is a serious problem in the operation of the bank? You must know that the banking industry has always been regarded as a "highly indebted" industry, and the asset-liability ratio is usually very high. However, high debt is not the same as loss, and the two concepts are completely different.
Let's take a look at CCB's latest financial data. In 2023, it achieved an operating income of 769.7 billion yuan and a net profit of 332.6 billion yuan. This is not only down from the previous year, but still ranks first among the six major state-owned banks. Moreover, in the past five years, CCB's net profit has maintained a steady growth. This is clearly a far cry from the image of a bank on the verge of bankruptcy.
Why, then, is its debt so staggering? The key lies in the special nature of the banking sector. The main business of a bank is to take deposits and make loans, which means that a large amount of debt money will inevitably appear on the bank's balance sheet.
In fact, 78.66% of CCB's liabilities come from depositors' deposits. In other words, these are the bank's "assets", not "liabilities".
What's more, this high level of debt does not mean that banks are doing badly. On the contrary, it is precisely the embodiment of the bank's profitability. By absorbing a large amount of deposits, banks can be used to issue loans and obtain interest income, which is the foundation of the bank's survival and development. Therefore, we do not have to worry too much about CCB's high debt.
However, even so, the management of banks' liabilities remains a long-term concern. After all, if the size of the debt is too inflated, the bank's risk exposure will be greatly increased in the event of a financial crisis or economic fluctuations. Therefore, the regulatory authorities have always attached great importance to the balance sheet of banks and have taken various measures to strictly control them.
We can see that in the past five years, CCB's asset-liability ratio has remained at around 90%, and there is no obvious sign of deterioration. On the contrary, its net profit performance is not bad, ranking among the top in the industry, which also shows that its operating conditions are quite stable.
It is reported that the bank's revenue in 2024 may face some downward pressure, but with the support of sufficient provisions, profits are expected to remain stable. At the same time, in terms of personal housing loans, since March, the number of second-hand housing mortgage loans has rebounded month-on-month, which undoubtedly brings new opportunities for the bank's future development.
Overall, although CCB has more than 35 trillion yuan in debt, this does not mean that there is any problem with its operating conditions. On the contrary, it is a reflection of its characteristics and strengths as a large state-owned bank.
In the future, with policy support and regulatory protection, it will continue to play an important role in China's financial market and inject lasting impetus into the country's economic development.
Therefore, don't underestimate this "big debtor". It is writing a new legend steadily with strong strength and profound heritage. Let's wait and see how many surprises there are waiting for us to explore in this financial "high-rise"!