After the Bank of China and CCB announced their results yesterday, the state-owned Bank of China has fully announced its third-quarter results
In addition to the Bank’s third-quarter earnings rose by 3% year-on-year, compared with the first half of the year, the third quarter net profit of CCB, ICBC (01398), Agricultural Bank of China (01288) and Bank of Communications (03328) accelerated faster than the first half.
In summary, in the first three quarters of this year, the growth rate of net profit of the construction and agricultural cooperatives reached 5% or more, while that of the Bank of China was 4.1%.
Net interest margin is under pressure
In the third quarter, there was no significant rebound in mainland loan demand, and the downward trend in market interest rates put pressure on loan pricing. On the other hand, deposit competition fiercely pushed up capital costs, which brought pressure on the net interest margin of the Bank of China. ICBC and Bank of Communications’ net interest margin for the first nine months narrowed by 3 pips and 1 pip from the first half of the year. CCB remained unchanged at 2.27%, while Bank of China extended 1 basis point to 1.84%.
The asset quality continued to improve. The non-performing loan ratio of CCB and Bank of Communications remained at the end of June, at 1.43% and 1.47% respectively, while the other three improved by 1 basis point to 3 basis points. The provision coverage ratio continued to increase. Bank of China and CCB increased by 4.72 and 0.25 percentage points respectively to 182.24% and 218.28%.
China Merchants Bank earns 18% more Continued to increase provision coverage
In addition, the leading bank of the joint-stock bank (03968) also announced its results yesterday, and the quarterly net profit continued to record double-digit growth.
Although the operating profit before the provision of China Merchants Bank increased by only 5%, its credit provision decreased by 11.2% year-on-year, driving the third quarter net profit to rise 17.7% to 26.63 billion yuan. In the first three quarters of the year, China Merchants Bank earned 77.24 billion yuan, up 14.6%. In addition, China Merchants Bank’s third-quarter net interest margin was 2.57%, down 12 basis points quarter-to-quarter.
Although the Ministry of Finance issued a document requiring the over-provisioned Bank of China to over-provision the provision for dividends, CMB continued to increase the provision coverage ratio, reaching 409.41%, an increase of 15.29 percentage points from the end of June. highest. The non-performing loan ratio of China Merchants Bank in the first three quarters was 1.19%, an improvement of 4 basis points from the end of June.
The recently announced performance of the Bank of China has not seen any surprises. The stock price generally weakened with the market yesterday. Except the Postal Savings Bank (01658), other state-owned banks fell 0.4% to 1.3%, dragging down the HSI by about 37 points. Hong Kong stocks fell 119 points yesterday to close at 26,667 points; the main board turnover was 75.3 billion yuan.