ICBC earns a net profit of 600 million yuan in half a year.

Yesterday, ICBC (1398) announced its first half results. Among them, the net profit was 160.7 billion yuan (RMB, the same below), a year-on-year increase of 4.5%, and the position of “making money” was maintained. The profit attributable to shareholders reached 160.42 billion yuan, up 4.87% year-on-year. The profit before provisioning reached 280.7 billion yuan, an increase of 8.9% year-on-year. Earnings per share of 0.45 yuan, no interim dividend. The bank’s customer deposits increased by 1.26 trillion yuan compared with the beginning of the year, and both stocks and growth rates are ahead of the industry. ICBC Chairman Yi Huiman said that the interim results are very good and the growth in gold is high. It is expected that the asset quality will continue to improve this year, and the non-performing loan ratio will stabilize in the whole year.

Non-performing loan ratio fell for six consecutive quarters

As an economic “barometer”, the non-performing loan ratio of the banking industry has been receiving attention. ICBC said that since the beginning of this year, core indicators such as non-performing ratio, bad amount, overdue rate and scissors have continued to improve. In the first half of the year, the bank’s net interest margin and net interest margin were 2.16% and 2.3%, respectively, up 13 basis points and 14 basis points respectively. Asset impairment losses amounted to 83.558 billion yuan, up 36.05%.

Yihui will be full of performance announcements, and the quality of ICBC assets is reliable and true. This year’s non-performing loan ratio has confidence to remain stable and declining. He also said that the quality of assets depends on the economic environment on the one hand and the bank management level and risk appetite on the other.

“The low non-performing rate of ICBC is exchanged for huge financial costs.” Yi Huiman: “In the past three years, ICBC spent 205 billion yuan to dispose of 600 billion yuan of non-performing loans. This year, it may have to invest 100 billion yuan to dispose of 2200. Non-performing loans of 100 million yuan. Disposal of 820 billion yuan of non-performing loans in 4 years, making ICBC’s financial statements cleaner.”

As of the end of June, ICBC’s non-performing loans were 229.976 billion yuan, an increase of 4.07% from the end of last year; the non-performing loan ratio was 1.54%, down 0.01 percentage points from the end of last year, which was the sixth consecutive quarterly decline. The core tier 1 capital adequacy ratio was 12.33%, down 0.44 percentage points from the end of last year; the tier 1 capital adequacy ratio was 12.81%, down 0.46 percentage points; the capital adequacy ratio was 14.73%, down 0.41 percentage points, all meeting regulatory requirements.

Confident, the net interest margin will remain stable in the future

ICBC President Gu Yu was asked if the net interest margin had peaked. The net interest margin of ICBC in the first half of the year was 2.30%. The level of net interest margin in the second half of the year remains to be seen. He expects that liquidity will be more abundant in the second half of the year, but the demand for loans and financing is still strong, which will bring development opportunities for the Group. In addition, ICBC has a large customer base and is confident that the net interest margin will remain stable in the future.

With regard to the impact on the banking industry after the new regulations on asset management, Yi Huiman said that after the new regulations for asset management, the results of the management of asset management in the same industry were significant, and the funds gradually returned to the formal financial system. The liquidity and market interest rates were normal. Downstream, these are the fruits of governance chaos.

He admits that the new regulations on asset management will definitely have an impact on the banking industry. However, the scale of ICBC’s wealth management is still good, and the total volume has remained stable. At the same time, he said that in the long run, the new regulations on asset management will benefit the healthy development of the entire industry.

Gu Yu added that ICBC has always been more standardized in terms of asset management in the past few years. After the introduction of new regulations, ICBC’s intermediary business income in the asset management sector has declined, but the decline is small, less than 30%. Although asset quality is under pressure in the second half of the year, it is believed that it can remain basically stable.

This year’s new credit priority will be tilted to Xiaowei

In terms of personal housing loan investment, Gu Yu said that in the first half of the year, ICBC’s personal housing loan increased by 341.8 billion yuan, and the average household balance was about 300,000 yuan. The non-performing rate was 0.29%, 90% of which was the first suite of funds. On the whole, the real estate market is now at a stable level, the leverage ratio of residents is relatively stable, and the debt risk is controllable.

In terms of risk prevention and control, Gu Yu introduced that ICBC first grasps the regional and rhythm of personal housing loans, supports the reasonable credit demand of residential housing, and suppresses the investment demand of various real estate speculators. Second, it strictly grasps the investment direction of real estate development loans. Support the security housing project and ordinary commodity housing; Third, strictly implement various regulatory requirements, strengthen the use of loan funds and flow management; Fourth, actively and steadily expand the housing rental market.

When it comes to the impact of Sino-US trade disputes, it will be full of points. ICBC attaches great importance to Sino-US trade frictions and will adopt due credit and financing policies in accordance with development trends. As for trade frictions, the mainland economy has brought new uncertainties. The cross-border competition caused by interest rate liberalization and the supervision of the New Deal have brought more cost investment. He said that this will inevitably bring challenges to the second half and next year.

In addition, Yi Huiman also said that this year’s new credit scale will be biased toward Xiaowei, and the scale of small and micro credit will be open. On the basis of the PF branch, the Department of Inclusive Finance will be established in the second branch. .