The performance of listed banks in the first three quarters was polarized, and the banner of the middle closing was carried, and the real estate risk was exposed

As of the end of October, the three quarterly reports of listed banks were disclosed, except for Minsheng Bank and Shanghai Pudong Development Bank, listed banks achieved positive growth in net profit attributable to the mother in the first three quarters. Among them, 31 listed banks have achieved double-digit growth, accounting for 76%, and some listed banks with fast profit growth rates have carried the banner of profit growth under the background that there is still some pressure on net interest margins.

In addition, the asset quality of the vast majority of banks has continued to improve, and the non-performing ratio has declined all the way, but the provisions of various banks have not decreased at all. Some banks have hinted at the risk profile of the real estate industry in the third quarterly report, including the increase in the non-performing loan ratio of mortgage loans and the ratio of non-performing loans to public real estate.

The middle close is "bright"

From the perspective of operating income, 33 listed banks achieved positive revenue growth, of which Bank of Ningbo, Bank of Chengdu, Bank of Jiangsu, Bank of Qilu and Bank of Nanjing achieved positive revenue growth of more than 20%, while Jiangyin Bank, Bank of Qingdao, Pudong Development Bank, Bank of Zhengzhou, Zijin Bank, Bank of Guiyang and Minsheng Bank recorded negative growth.

In terms of profit performance, among the 41 listed banks, Bank of Jiangsu and Ping An Bank increased by more than 30% in the first three quarters of the net profit attributable to the mother, ranking the forefront of listed banks; 11 banks including Zhangjiagang Bank, Bank of Ningbo, Bank of Hangzhou, and Industrial Bank increased their net profit attributable to their mothers between 20% and 30%, 18 banks including Wuxi Bank, Changshu Bank, Changsha Bank, and Everbright Bank increased their net profits between 10% and 20%, and the net profits of the remaining 9 banks increased by less than 10%, of which, The net profit of China Minsheng Bank and Shanghai Pudong Development Bank increased negatively year-on-year.

It can be seen that banks with rapid net profit growth are national banks with outstanding retail business characteristics and high-quality operating quality, such as China Merchants Bank, Ping An Bank, and Industrial Bank; or banks located in high-quality areas such as Jiangsu, Zhejiang, Shanghai, Chengdu-Chongqing Economic Circle, such as Bank of Ningbo, Bank of Jiangsu, Bank of Hangzhou, Bank of Chengdu, etc. But Minsheng Bank and Shanghai Pudong Development Bank were left at the end.

Last year, Minsheng Bank's net profit attributable to the mother plummeted by 36%, directly due to the large provision for impairment losses, as of the third quarter of this year, although its non-performing loan ratio fell slightly by 0.03 percentage points from the end of last year, it is still at a high level among listed banks, and asset quality pressure still exists. In addition, Minsheng Bank's net interest income, fee and commission income both showed a downward trend.

The same is true of SPDB's recent situation, on the one hand, the non-performing rate is at a high level; on the other hand, net interest income, fee and commission income have dropped sharply year-on-year.

In addition, judging from the three quarterly reports of 41 listed banks, the interest rate spread performance was the same as that in the middle of the year, among them, the interest rate spreads of state-owned banks and rural commercial banks increased slightly from the previous month, while the interest rate differentials of joint-stock banks and urban commercial banks decreased slightly from the previous month.

For example, in the third quarter, although the net interest income of Industrial Bank only increased by 0.82% year-on-year, the net income of non-interest increased by 24.83% year-on-year, of which the net income of fees and commissions increased by 26.31% year-on-year; the non-interest net income of Ping An Bank in the first three quarters increased by 17.6% year-on-year; and the non-interest income of Bank of Ningbo increased by 51.79% year-on-year.

Real estate risks continue to be exposed

In terms of asset quality, as of the end of September, the overall non-performing ratio of listed banks fell by 3BP to 1.27% compared with the middle of the year, down 0.09 percentage points from the end of last year, of which only 4 listed banks had an increase in the non-performing rate from the beginning of the year.

Most of the banks with obvious improvement in the non-performing rate in the middle of the year were regional cities and rural commercial banks, such as Zijin Bank's non-performing rate decreased by 0.33 percentage points month-on-month, Changshu Bank's non-performing rate fell by 0.09 percentage points quarter-on-quarter, and China Merchants Bank, Sunong Bank and Bank of Hangzhou all fell by 0.08 percentage points month-on-month.

From the perspective of the absolute level of non-performing rates, the non-performing rates of banks such as Postal Savings, Ningbo and Changshu continue to be at a low level below 1%.

Although the non-performing ratio continued to decline, the vast majority of banks still maintained the provision for provision, and the provision coverage ratio of 33 listed banks was higher than that at the end of last year, and the ability to compensate for risks was further enhanced.

In terms of wealth management net worth, 5 banks disclosed the proportion of net worth wealth management products at the end of the third quarter.

Among them, the balance of various types of wealth management products in Hangzhou Bank was 282.311 billion yuan, and the proportion of net worth wealth management products that met the requirements of the new asset management regulations reached 96.68%, an increase of 11.70 percentage points over the end of the previous year; the stock of expected income wealth management products of Bank of Nanjing was all cleared on September 30, 2021, and as of the end of the reporting period, the total net value of the group's wealth management products was 317.714 billion yuan, and the net value products accounted for 100% of the total scale of net worth products. The existing scale of Bank of Shanghai's wealth management products was 432.942 billion yuan, an increase of 13.27% over the end of the previous year, of which the scale of net worth products accounted for 95.78%, an increase of 20.99 percentage points over the end of the previous year; the balance of Bank of Changsha's wealth management products was 62.471 billion yuan, an increase of 25.15% over the beginning of the year, of which the balance of net worth products increased by 40.39%, and the balance of net worth wealth management products reached 96.00%.

In addition, in view of the risk situation of the real estate industry, many listed banks also mentioned in the third quarterly report, of which the third quarterly report of Minsheng Bank said that as of the end of the reporting period, the bank's mortgage loan non-performing loan ratio was 0.25%, up 0.03 percentage points from the end of the previous year.

China Merchants Bank also said in the third quarterly report that affected by the credit risk exposure of some real estate enterprises, the bank's non-performing loan ratio to public real estate was 1.29%, up 1.06 percentage points from the end of the previous year, lower than the non-performing rate of the company's corporate loans by 0.18 percentage points, and the asset quality of public real estate loans was within the controllable range.

In addition, as of the end of the third quarter, the balance of concerned loans in China Merchants Bank's personal housing loans increased by 3.5 billion yuan compared with the end of last year.