Yangtze River Business Daily reporter Xu Jia
Chongqing Rural Commercial Bank (Chongqing Rural Commercial Bank, 601077.SH, 03618.HK) lags behind in the performance growth rate of the A-share trillion-level listed rural commercial bank.
According to the data, in 2023, Chongqing Rural Commercial Bank will achieve operating income of 27.956 billion yuan, a year-on-year decrease of 3.57%; The net profit attributable to shareholders of the bank (net profit, the same below) was 10.902 billion yuan, a year-on-year increase of 6.1%, and "reduced revenue and increased profits" for two consecutive years. In the first quarter of this year, Chongqing Rural Commercial Bank achieved operating income of 7.128 billion yuan, a year-on-year decrease of 2.88%; The net profit was 3.524 billion yuan, a year-on-year decrease of 10.81%, becoming the only listed rural commercial bank in the A-share market with both revenue and net profit declining.
The Yangtze River Business Daily reporter noted that under the pressure of narrowing interest margins, in 2022 and 2023, Chongqing Rural Commercial Bank will achieve net interest income of 25.404 billion yuan and 23.493 billion yuan, a year-on-year decrease of 831 million yuan and 1.911 billion yuan, a decrease of 3.17% and 7.52%. Just looking at the item of "eating interest rate differentials", Chongqing Rural Commercial Bank has earned 2.742 billion yuan less in two years.
But on the other hand, Chongqing Rural Commercial Bank smoothed profits by adjusting provisions.
In 2022 and 2023, when "revenue is reduced and profits are increased", the amount of credit impairment losses of Chongqing Rural Commercial Bank will decrease by 27.75% and 24.22% year-on-year, respectively. In the first quarter of 2024, the bank's credit impairment loss was 1.333 billion yuan, an increase of 1.203 billion yuan from the same period last year.
Adjustment of provisions affects the growth rate of performance
A few days ago, Chongqing Rural Commercial Bank released its annual report. In 2023, the bank will achieve operating income of 27.956 billion yuan, a year-on-year decrease of 3.57%; net profit was 10.902 billion yuan, a year-on-year increase of 6.1%.
Chongqing Rural Commercial Bank has been "reducing income and increasing profits" for two consecutive years. Previously, in 2021, the revenue scale of Chongqing Rural Commercial Bank exceeded 30 billion yuan for the first time, reaching 30.842 billion yuan, and its net profit also reached 9.56 billion yuan, a year-on-year increase of 13.79%.
However, in 2022, the revenue of Chongqing Rural Commercial Bank will begin to grow negatively, and the bank's operating income in the current period will be 28.99 billion yuan, a year-on-year decrease of 6%; net profit was 10.276 billion yuan, a year-on-year increase of 7.49%.
The reduction of provisions has a particularly obvious effect on the performance of Chongqing Rural Commercial Bank. The Yangtze River Business Daily reporter noticed that after returning to A, from 2019 to 2021, the amount of credit impairment losses accrued by Chongqing Rural Commercial Bank was 6.573 billion yuan, 10.209 billion yuan, and 10.852 billion yuan respectively. Among them, the credit impairment losses of customer loans and advances were 4.935 billion yuan, 9.459 billion yuan and 11.051 billion yuan respectively, showing an increasing trend.
However, in 2022, in the context of negative revenue growth, the credit impairment loss of Chongqing Rural Commercial Bank will be 7.841 billion yuan, a year-on-year decrease of 27.75%. Among them, the credit impairment loss of customer loans and advances was 7.719 billion yuan, a year-on-year decrease of 3.332 billion yuan, a decrease of 30.15%.
The same phenomenon will also occur in 2023, when Chongqing Rural Commercial Bank made a credit impairment loss of 5.941 billion yuan, a year-on-year decrease of 1.899 billion yuan, or 24.22%. Among them, the credit impairment loss of customer loans and advances was 4.226 billion yuan, a year-on-year decrease of 3.493 billion yuan, a decrease of 45.25%.
In this regard, Chongqing Rural Commercial Bank said that the main reason is that the bank has made forward-looking impairment provisions for large-scale risk loans in previous years, and at the same time has continuously increased the collection of non-performing assets in the previous period. In 2023, the quality of loan assets improved steadily, and impairment losses decreased significantly.
After significantly reducing the provision for credit impairment losses for two consecutive years, at the beginning of 2024, Chongqing Rural Commercial Bank increased provisions, resulting in a decline in net profit.
According to the first quarterly report, in the first quarter of 2024, Chongqing Rural Commercial Bank achieved operating income of 7.128 billion yuan, a year-on-year decrease of 2.88%; net profit was 3.524 billion yuan, a year-on-year decrease of 10.81%.
Chongqing Rural Commercial Bank also said that this was mainly caused by changes in credit impairment losses. In the first quarter, the bank's credit impairment loss was 1.333 billion yuan, an increase of 1.203 billion yuan over the same period last year, mainly due to the bank's realization of a large amount of non-performing assets disposal and recovery in the same period last year, accounting for 70.76% of the annual total.
Chongqing Rural Commercial Bank said that on the basis of maintaining the prudent provision for impairment losses on assets, the bank will continue to increase the collection of non-performing assets, and strive to maintain the stability of the annual collection amount. In the first quarter, the bank's profit before provision was 5.123 billion yuan, an increase of 5.44% over the same period last year.
The pressure on interest margins continued to decline in the net profit of wealth management subsidiaries
By smoothing profits through provisions, Chongqing Rural Commercial Bank is currently facing the problem of performance growth under the pressure of narrowing interest margins.
According to Dongcai choice data, compared with its peers, in 2023, among the 10 A-share listed rural commercial banks, Chongqing Rural Commercial Bank will rank ninth in terms of operating income and net profit growth. In the first quarter of 2024, Chongqing Rural Commercial Bank became the only listed rural commercial bank in the A-share market with both revenue and net profit declining.
The annual report shows that in 2022 and 2023, Chongqing Rural Commercial Bank will achieve net interest income of 25.404 billion yuan and 23.493 billion yuan, a year-on-year decrease of 831 million yuan and 1.911 billion yuan, a decrease of 3.17% and 7.52%. Just looking at the item of "eating interest rate differentials", Chongqing Rural Commercial Bank has earned 2.742 billion yuan less in two years.
In the first quarter of this year, the net interest income of Chongqing Rural Commercial Bank was 5.519 billion yuan, a year-on-year decrease of 558 million yuan.
Not only that, since 2021, the intermediate business income of Chongqing Rural Commercial Bank has also experienced negative growth for three consecutive years. From 2020 to 2023, the bank's net fee and commission income will be 2.903 billion yuan, 2.724 billion yuan, 1.913 billion yuan and 1.791 billion yuan, a year-on-year increase of 29.65%, -6.16%, -29.77% and -6.37%.
Among them, in 2023, affected by the continuous decline in the overall market asset yield, the wealth management fee income of Chongqing Rural Commercial Bank will decline, and the bank's fund management fee will only be 227 million yuan in the current period, a year-on-year decrease of 50.84%. At its peak, in 2020, the bank's fund management fees reached 1.937 billion yuan.
The Yangtze River Business Daily reporter also noted that as the first wealth management subsidiary of the National Rural Commercial Bank and the Western Corporate Bank, as of the end of 2023, the net profit of Chongqing Rural Commercial Bank's wealth management subsidiary was 170 million yuan, a year-on-year decrease of 188 million yuan, a decrease of 52.5%.
However, in the first quarter of this year, the net income of fees and commissions of Chongqing Rural Commercial Bank finally stopped falling and rebounded, reaching 523 million yuan in the current period, a slight increase of 0.19% year-on-year.
In addition, from the perspective of asset quality, as of the end of 2023, the balance of non-performing loans of Chongqing Rural Commercial Bank was 8.059 billion yuan, an increase of 343 million yuan from the end of the previous year, and the non-performing loan ratio was 1.19%, a decrease of 0.03 percentage points from the end of the previous year.
At the end of March 2024, the total assets of Chongqing Rural Commercial Bank exceeded 1.49 trillion yuan, the total customer loans and advances were 696.971 billion yuan, the balance of non-performing loans was 8.274 billion yuan, an increase of 215 million yuan from the end of the previous year, and the non-performing loan ratio was 1.19%, unchanged from the end of the previous year. The provision coverage ratio was 367.54%, an increase of 0.84 percentage points from the end of the previous year.
Chongqing Rural Commercial Bank said that at the end of 2023, the bank's corporate non-performing loans continued to show a trend of "double decline", and the asset quality continued to improve; However, the impact of the current macroeconomic slowdown on retail customers is still ongoing, which has a certain impact on the asset quality of the bank's retail loans.
As of the end of 2023, the balance of retail non-performing loans of Chongqing Rural Commercial Bank was 4.663 billion yuan, an increase of 1.347 billion yuan or 40.6% from the end of the previous year, and the non-performing ratio increased from 1.17% at the end of the previous year to 1.6%.
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