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Bohai Bank, plummeted 80%

Bohai Bank, plummeted 80%

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2024-05-25 01:23Posted in Guangdong Finance and Economics Creator

Bohai Bank, plummeted 80%

There are more and more "penny stocks".

1

The stock price fell by 80%

Bohai Bank (9668.HK) HK) is really a little "tired".

According to the financial report, in 2023, Bohai Bank will achieve operating income of 24.997 billion, a year-on-year decrease of 5.55%; net profit was 5.081 billion, down 16.81% year-on-year.

Bohai Bank, plummeted 80%

The signs are already there. In the long run, from 2020 to 2022, Bohai Bank's operating income will be 32.492 billion yuan, 29.194 billion yuan, and 26.465 billion yuan respectively, with a year-on-year growth rate of 14.50%, -10.15%, and -9.35% respectively.

The net profit in the same period was 8.445 billion yuan, 8.630 billion yuan and 6.107 billion yuan respectively, with a year-on-year growth rate of 3.07%, 2.19% and -29.23% respectively.

The few "highlight moments" stayed in 2019. In that year, Bohai Bank's operating income was 28.378 billion yuan, a year-on-year increase of 22.4%; net profit was 8.193 billion yuan, a year-on-year increase of 15.71%.

The glory of the past is gone. As of the close of trading on May 24, 2024, Bohai Bank's share price is HK$1.02 per share, which has fallen from the high point of the year:

More than 80%.

Bohai Bank, plummeted 80%

This can no longer be described as a waist chop, but a chop above the leg and stomach.

In terms of market capitalization, the latest market value of Bohai Bank is HK $18.117 billion. What is the concept? It is also a joint-stock bank, and this market value is only that of China Merchants Bank:

1/50。

According to public information, Bohai Bank was established in 2005, is the youngest bank among the 12 national joint-stock banks in China, and was listed on the main board of the Hong Kong Stock Exchange on July 16, 2020.

How did the youngest joint-stock bank get to this point?

2

Net interest margin "falling"

The answer is also hidden in the earnings report.

In 2023, Bohai Bank's non-interest net income will be 7.351 billion, a year-on-year increase of 93.63%. Among them, the net income of fees and commissions was 3.99 billion yuan, a year-on-year increase of 55.65%; Other non-interest net income was 3.352 billion yuan, an increase of 173.12% compared with 2022. That's a bit of a bright spot.

But the interest income indicator is not enough. In 2023, Bohai Bank's net interest margin will be 1.14%.

What is this concept? Compared with himself, the financial report shows that in 2020, Bohai Bank's net interest margin was as high as 2.35%, and now it can be described as "plummeting".

Bohai Bank, plummeted 80%

Compared with peers, according to the statistics of the Financial Associated Press, the net interest margins of Ping An Bank, China Merchants Bank, Zheshang Bank, Industrial Bank, China CITIC Bank, Everbright Bank and Minsheng Bank were 2.38%, 2.15%, 2.01%, 1.93%, 1.78%, 1.74% and 1.46% respectively in the same period.

Even among the major listed banks in the A-share market, Bohai Bank's net interest margin is also at the bottom. According to data from the State Administration of Financial Regulation, the net interest margin of China's commercial banks in 2023 will be between 1.69% and 1.74%, much higher than Bohai Bank's 1.14%.

Bohai Bank's troubles go far beyond its declining net interest margin.

In 2023, Bohai Bank's non-performing loan ratio will reach 1.78%, ranking among the top joint-stock banks. Looking back, the prospectus shows that in 2017, 2018 and as of September 30, 2019, Bohai Bank's non-performing loan ratios were 1.74%, 1.84% and 1.77%, respectively.

Bohai Bank, plummeted 80%

▲Source: Node Finance

But in 2013, Bohai Bank's non-performing loan ratio was only 0.26%. In other words, in just a few years, Bohai Bank's non-performing loan ratio has increased by more than six times.

Along with the non-performing loan ratio, asset impairment losses: from 2018 to 2020, the scale increased from 6.508 billion to 13.224 billion, constantly eroding profits.

Looking deeper, behind the high defective rate, the shadow of real estate is inseparable.

As of the end of 2023, Bohai Bank's real estate NPL ratio was 3.65%, and the amount of NPLs increased from 2.657 billion yuan to 3.229 billion yuan. You must know that Bohai Bank's net profit attributable to the parent in 2023 will only be 5.081 billion yuan.

Bohai Bank, plummeted 80%

Evergrande's annual report disclosed that Bohai Bank is one of the 20 banks it mainly deals with. According to industrial and commercial data, in 2023 alone, there will be more than 250 litigation cases related to Evergrande Real Estate by various branches of Bohai Bank. In addition, Bohai Bank has also fought lawsuits with real estate companies such as Oceanwide and Tahoe.

There is "thunder" behind him, and he is full of tears.

3

Two "internal worries"

Doubts are still spreading.

Back in August 2021, Jemincare Group found that the deposits of 2.8 billion yuan of the two subsidiaries were pledged and guaranteed by Bohai Bank "without knowing". Since the deposit had been pledged and repeated communication failed, Jemincare's subsidiary reported the case to the police in Wuxi, Jiangsu Province, and Jemincare Group also publicly issued a document "Six Questions to Bohai Bank".

Bohai Bank, plummeted 80%

The fact that money deposited by a company in a bank is quietly misappropriated by the bank without consent is magical enough. According to a report in a financial magazine, this incident exposed the weaknesses in personnel management and operation of the business department under the Nanjing branch of Bohai Bank.

Coincidentally, on March 28, 2023, the Office of the Coordination Mechanism for Real Estate Work of Hunan Province issued the "Notice on the Unauthorized Allocation of Pre-sale Funds for Commercial Housing by Bohai Bank Co., Ltd.", and Bohai Bank was announced by the Hunan Department of Housing and Urban-Rural Development to cut off cooperation due to the unauthorized deduction of pre-sale funds such as Evergrande Zhuzhou Yuyuan.

Bohai Bank, plummeted 80%

Looking ahead, before its listing, Bohai Bank had received a number of penalties from the China Banking and Insurance Regulatory Commission, the People's Bank of China, the State Administration of Foreign Exchange, the State Administration of Taxation and other regulatory authorities.

According to incomplete statistics from E-Jian Finance, Bohai Bank received at least 9 fines in 2021, with a total fine of more than 100 million yuan, ranking third among banks in the country.

In the past two years, Bohai Bank has received fines of more than 10 million yuan many times. For example, the head office of Bohai Bank was fined 4.3 million yuan and its branch was fined 12.3 million yuan due to problems such as misappropriation of loan funds, untrue statistical data, and non-standard review procedures for major related party transactions.

Bohai Bank, plummeted 80%

Behind this, it reflects the internal risk control problems of Bohai Bank.

Fines worry executives, but pay cuts worry employees. According to the 2022 financial report, among the 10 listed joint-stock banks, 8% of the average annual salary has decreased, and 3 have reduced salaries by more than 5%, namely Bohai Bank, Minsheng Bank and Ping An Bank.

Among them, the most drastic salary cut was Bohai Bank, with an average annual salary of 41,100 yuan less than the same period last year, a year-on-year decrease of 8%.

Bohai Bank, plummeted 80%

There is also a pay-for-performance clawback. In 2022, Bohai Bank will recover 17.6 million yuan in performance pay for 370 people. Count it out -

It is equivalent to 47,600 yuan recovered per capita.

It seems that the bank's "golden rice bowl" is not very good.

By the end of 2023, Bohai Bank's total assets reached RMB 1.73 trillion, an increase of 4.42% year-on-year.

But the situation has changed. Just over a month ago, Bank of Jinzhou was officially delisted from the Hong Kong Stock Exchange. Regarding the reason for applying for delisting, Bank of Jinzhou said that the bank's H-share share price is in a relatively low price range, and the trading volume has been sluggish, and its ability to effectively raise funds from the equity market is extremely limited.

It is worth mentioning that Bank of Jinzhou was delisted at HK$1.38 per share, while today's Bohai Bank has a share price of only HK$1.02 per share, which is only one step away from the "penny stocks".

History, it doesn't simply repeat itself, but it's always strikingly similar.

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  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%
  • Bohai Bank, plummeted 80%

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