【Annual Report】For three consecutive years, SPD Bank's revenue and profit have declined, and the decline in net profit in 2023 will be particularly severe.
On the evening of April 29, the 2023 annual report released by Shanghai Pudong Development Bank (600000) showed that the revenue was 173.4 billion yuan, a year-on-year decrease of 8.1%. This is the second decrease in revenue after a 2.8% decrease in revenue in 2021 and a 1.2% decrease in 2022.
Last year, the revenue scale of Shanghai Pudong Development Bank was close to 171.5 billion yuan in 2018, and about 12% less than 196.4 billion yuan in 2020.
Shanghai Pudong Development Bank achieved net interest income of 118.435 billion yuan last year, down 11.40% year-on-year. Non-interest net income was 55 billion yuan, an increase of 0.08% over the previous year. Among them, the net income from fees and commissions was 24.453 billion yuan, down by 14.77%.
non-interest income was 30.546 billion yuan, an increase of 16.31%. Among them, investment gains and losses, fair value change gains and losses and foreign exchange gains and losses are relatively volatile. For example, the investment income was 27.9 billion yuan last year, while it will be 19.9 billion yuan in 2022, which is equivalent to an increase of 8 billion yuan. The foreign exchange profit and loss last year was a loss of more than 3.5 billion yuan, but in 2022, it will be 6.7 billion yuan, a gap of 10.2 billion yuan. The fair value change was about 2.6 billion yuan last year, and the loss in 2022 is about 3.9 billion yuan, which is a difference of 6.5 billion yuan.
Net profit also continued to decline.
In 2023, SPD Bank will achieve a net profit attributable to the parent company of 36.7 billion yuan, a decrease of more than 28% compared with 2022, and a profit decline for four consecutive years since 2020. The difference is that from 2020 to 2023, profits fell by no more than 10%, while in 2023 there will be a sharp decline. Compared with the net profit attributable to the parent company of 58.9 billion yuan in 2019, the current net profit scale decreased by 22.2 billion yuan or 38%.
Looking at the long term, the net profit of 36.7 billion yuan is higher than the 33.7 billion yuan in 2012, but lower than the 40.9 billion yuan in 2013, and it suddenly returned to 10 years ago.
Among the large joint-stock listed banks in China, it is really rare for Shanghai Pudong Development Bank to decline in profits for four consecutive years, a 10-year regression.
In 2013, SPD and IB were inseparable, with a net profit gap of only 300 million yuan, and in 2023, IB's net profit will be 77.1 billion yuan, almost twice that of SPD. China Merchants Bank has a growing leading edge among the eight major joint-stock banks.
Although the net profit declined, the dividend should still be paid as usual. SPD Bank plans to distribute a cash dividend of 3.21 yuan to all ordinary shareholders for every 10 shares, with a total cash dividend of 9.422 billion yuan and a cash dividend ratio of 30%, which is similar to the dividend ratio of most banks.
By the end of 2023, SPD Bank's total assets exceeded 9 trillion yuan, net assets were 724.7 billion yuan, the non-performing loan ratio was 1.47%, and the net interest margin was 1.49%, a decrease of 0.23 percentage points. The weighted average return on equity was 5.21%, down 2.77 percentage points.
The decline in performance also has an impact on executive compensation. Last year, a number of supervisors of Shanghai Pudong Development Bank cut their salaries by more than one million yuan, and the highest salary was Zhang Yong, a supervisor, at about 3.15 million yuan. He Weihai and Zhang Baoquan were 2.9 million yuan and 2.89 million yuan respectively, but decreased by 1.19 million yuan and 1.07 million yuan. Supervisor Li Guangming is about 1.28 million yuan.
The remuneration of the president and the chairman of the board of directors is relatively close, about 780,000 yuan, and the salaries of several vice presidents are 780,000 yuan and 880,000 yuan. This compensation system is a bit upside down. In addition, the president and several vice presidents hold hundreds of thousands of shares.
As of the end of 2023, SPD Bank has a total of 63,600 employees, with an average profit of about 580,000 yuan last year, and an average salary of 448,400 yuan per person is basically the same as 449,800 yuan in 2022.
As of April 29, the total market value of Shanghai Pudong Development Bank was 217.8 billion yuan, corresponding to a net profit of 36.7 billion yuan, and a price-earnings ratio of about 5.9 times. The dividend per share is 0.32 yuan, corresponding to the stock price of 7.42 yuan, and the dividend yield is 4.3%.
Note: The remuneration mentioned in this article includes wages and bonuses, employee benefits, five insurances and one housing fund, enterprise annuity, supplementary retirement benefits, etc., and is pre-tax.