Banking business wins expectations for CCB: better guaranteed growth this year
The performance of large state-owned banks in the Mainland has generally surpassed expectations last year. The management of China Construction Bank (939) is also optimistic about this year’s development. It is confident that non-performing loans will continue to decline, and profits will maintain an upward trend. However, it is estimated that It is still difficult to achieve double digit growth in two years. Chairman Tian Guoli said that the recent reform of financial institutions has helped to maintain consistency in policy formulation and industry supervision.
Among the four major state-owned banks, in addition to BOC (3988), the other three major banks have announced their results. The analysis generally believes that the win is expected, mainly because the net interest margin can still be widened in the tight monetary policy environment. Maintaining a low of 1.33% to 1.42%, it also benefited from strong loan demand and asset quality.
CCB’s net profit last year rose 4.66% year-on-year to RMB 242.3 billion. Vice President Pang Xiusheng pointed out that this was the result of a balanced and steady development of the Bank. Last year, fee income was in a good state, net interest margin remained rising quarter by quarter, and fees, etc. The steady increase in income keeps the cost at a relatively acceptable level in the market. It is believed that profit can maintain an upward trend for a period of this year and beyond, but the growth rate may not reach double digits within one to two years.
This year, the NPL rate is controlled within 1.5%
During the period, CCB’s non-performing loan ratio was 1.49%, down 3 points year-on-year. Pang Xiusheng believes that the bank has passed the peak of non-performing loans and will continue to pay attention to asset management and formulate more stringent loan classification standards. It is believed that the non-performing rate will decline steadily this year and can be controlled within a reasonable level within 1.5%. He also said that CCB has the ability to meet the minimum requirements for provision coverage of the authorities, but even if the level is relaxed, CCB will still implement the ceiling.
As of the end of last year, CCB’s core tier 1 capital adequacy ratio reached 13.1%, and its capital adequacy ratio was 15.5%. Pang Xiusheng said that as a systemically important bank, the pressure for CCB to replenish its capital is still high. It is necessary to meet the requirement for high capital coverage by 2025. This deadline may also be pushed forward. He also said that the four major banks all belong to the same major shareholder. Even if CCB’s capital level is better, the dividend payout ratio must remain consistent with the other three major banks and maintain at the 30% level.
Pang Xiusheng continued that CCB will issue RMB 96 billion yuan of RMB bonds next year. At present, there are also studies on equity financing. However, there is no start-up timetable, and it is waiting for market timing. It is believed that when investors confirm the bank’s pricing, they can also earn per share. When the net assets are thickened and the profit dilutive is limited, it may be the time to issue new shares.
冀 monthly rental of housing platform 10,000 sets
In addition, CCB took the lead in launching the housing leasing platform last year. Pang Xiusheng revealed that when answering this question, the platform has already seized 90% of the large and medium-sized cities in mainland China. More than 100,000 suites are on-line and 26,000 units have been successfully leased. We are confident that we will rent 10,000 units each month. In addition, Tian Guoli stated that although the mainland real estate market is huge, house prices cannot rise unilaterally for a long time. The population of 1.4 billion cannot be solved only by buying a house to solve housing problems. For example, Hong Kong, Europe, and other developed regions have a high rental rate. He is confident in the housing leasing platform and believes that he can become bigger and stronger within a few years.
In addition to the performance data, the analysis also focuses on the development of the financial technology of Bank of China and believes it will affect the expansion of banking business in the future. In addition, the Mainland implemented financial institution reforms and merged with the China Banking Regulatory Commission and China Insurance Regulatory Commission. Chairman Guo Shuqing also served as party secretary of the Central Bank. Tian Guoli believes that this is a good thing. In the past, it used separate supervision, and different departments had different regulatory perspectives. When implementing policies, the focus was different. The merger of the reforms will maintain greater consistency both from the formulation of the central bank’s policies to the supervision of the bancassurance standards.