What are these four banks playing?Supervisory encouraging the release of credit, they have increased their "Tibetan" profits

"China Economic Weekly" reporter Sun Tingyang | Beijing report

The China Banking Regulatory Commission has encouraged large -scale banks and other high -quality listed banks with higher levels of preparation levels to reduce the coverage of allocation in an orderly manner and release more credit resources. Hangzhou Bank (600926.SH), Bank of Wuxi (600908.SH), Zhangjiagang (002839.SZ) and Su Nong Bank (603323.SH) have settled in the list of listed banks. In the first half of this year, " "At the same time as the decline in non -performing loan rates, it still increases the preparation coverage and" hide "the amazing net profit increase.

If you do not increase the coverage of allocation, the annual net profit growth of the four banks will reach 67%to 156%.

As of July 20, a total of five listed banks, including the Bank of Hangzhou, disclosed the performance report in the first half of this year. The net profit in the first half of the year increased by 20%to 32%year -on -year.

The income profit of various banks has increased well. The Bank of Hangzhou explained that the growth of operating income and good control of costs are expected to increase by 32%year -on -year. Zhangjiagang said that in the first half of the year, it adhered to the strategic determination and effectively promoted the continuous and steady development of various businesses. Net profit is expected to increase by 28%year -on -year. According to Su Nong Bank, in the first half of the year, the business scale was further improved, the profitability was further enhanced, the quality of the assets was further improved, and the development structure was further optimized. It is expected that net profit will increase by 22%.

The Bank of Hangzhou, Bank of Wuxi, Zhangjiagang and Su Nong Bank. The non -performing loan ratio of these four banks was declining in the first half of this year.

Hangzhou Bank's non -performing loan ratio decreased, from 0.86%at the end of 2021 to 0.07 percentage points to 0.79%. Both Su Nong Bank and Wuxi Bank decreased by 0.06 percentage points, down to 0.95%and 0.87%, respectively. Zhangjiagang has decreased by 0.05 percentage points to 0.9%.

The above four banks' non -performing loans are far lower than the industry average.

According to data released by the my country Banking Regulatory Commission, at the end of the first quarter of this year, the non -performing loan ratio of urban commercial banks and rural commercial banks in China was 1.96%and 3.73%, respectively. Bank of Hangzhou is a urban commercial bank. Wuxi Bank, Zhangjiagang and Su Nong Bank are rural commercial banks. Their non -performing loan ratio is much lower than the average level.

Despite the decline in non -performing loans, these four banks have increased the preparation coverage in the first half of the year.

At the end of 2021, Hangzhou Bank's coverage rate was 567.71%, ranking first among all A -share listed banks. Wuxi Bank, Zhangjiagang Bank, and Su Nong Bank also ranked first, with 5th, 6th and 7th.

In the first half of this year, Hangzhou Bank's preparation coverage rate increased by 13.89 percentage points to 581.6%over the beginning of the year. Zhangjiagang and Wuxi Bank increased 58.89 percentage points and 54.36 percentage points from the beginning of the year, respectively, to 534.24%and 531.55%, respectively. Su Nong Bank was slightly inferior, and the same period also increased by 17.88 percentage points to 430.1%.

Dialing coverage is also called non -performing loan dial -up coverage. The coverage of the bank's allocation can be understood as a bank built a pool. According to the number of non -performing loans at the end of the report period, the profit is invested in the pool. The current profit of the bank has decreased, and it is reserved for the future non -performing loans into bad debts. In the future, you can remove these money from the pool, which can only affect the water level in the pool (that is, the preparation of the coverage of the coverage).

Increased the coverage of the preparation, the water levels in each bank's own pools are higher, the moat is wider, and the winter reserves are more reserved.

What is the attitude of the regulatory layer for the preparation of the bank?

At the press conference of the CBRC on April 15 this year, the spokesman of the Banking Insurance Regulatory Commission, the spokesman of the CBRC, said that the CBRC encouraged the large banks and other high -quality listed banks to be provided to gradually return the actual allocation coverage. Reasonable level. In an interview with the media, Liang Tao, vice chairman of the CBRC, also stated that he encouraged large banks with higher levels of high -level and other high -quality listed banks to reduce the coverage of allocation in an orderly manner and release more credit resources.

People in the industry commented that this is mainly to encourage further strengthening financial support in the weak links such as small and micro enterprises and the impact of serious industries in small and micro enterprises, epidemic conditions, and serious industries.

Earlier, the regulatory layer had lowered the bank's allocation requirements.

In March 2018, the former Banking Regulatory Commission issued the "Notice on Adjusting the Supervision of Commercial Bank Loans for Loans for Loans", which dropped the regulatory requirements of allocating coverage rates from 150%to 120%-150%.

In addition to the lower limit, the Ministry of Finance said in the "Financial Enterprise Financial Rules (Draft for Soliciting Opinions)" in September 2019 that the basic standard for allocating coverage of the regulatory authorities is 150%. There is a tendency to hidden profits, and the excess quit part should be restored to unprecedrated profits.

The draft of this solicitation has not been formally implemented.

If 120%-150%are the standard interval, more than 2 times, 240%-300%.

During the epidemic in 2020, the CBRC issued a notice clearly that the requirements of relevant banks' allocation of coverage rates from 120%-150%were reduced to 100%-130%.

At the end of 2021, the preparation rate of these four banks was 412%to 568%, which was far more than twice that of the standard range. After the increase in the first half of this year, it will reach 430%to 582%.

If these four banks do not increase the coverage, the net profit growth of the first half of this year will increase. Taking Hangzhou Bank as an example, the balance of the loan at the end of the second quarter of this year was 661.627 billion yuan, the non -performing loan ratio was 0.79%, and the preparation coverage rate was 581.60%. 30.4 billion yuan. If this trip will increase the funds of water levels in net profit, the net profit will increase by 67%in the first half of this year (hereinafter referred to as the "theoretical growth"), and the announcement of the performance Express will increase by 32%, which is about 35.48 percentage points.

Hangzhou Bank's theory is the lowest among the three banks. Also calculated by the above methods, Zhangjiagang Bank, Wuxi Bank, and Su Nong Bank, the theoretical growth of net profit in the first half of this year was 156.41%, 96.25%, and 68.20%, respectively.

The negative growth of the real economy in the region of the region

These banks have been "hidden" on the account. They should "release more credit resources" supported by the real economy. What is the situation?

The net profit growth of these four banks far exceeds macroeconomic data.

According to the data released by the National Bureau of Statistics, in the first half of this year, my country's GDP increased by 2.5%year -on -year. Among the 11 industries, the real estate industry was the lowest year -on -year, which decreased by 4.6%year -on -year. The industry increased by 9.2%year -on -year.

The above four banks are located in the Economic and Economic Yangtze River Delta, but economic growth data in the first half of this year is not optimistic.

The main business of Hangzhou Bank is distributed in Hangzhou, Zhejiang and other cities and counties in the province. In 2021, the bank's loan balance in Zhejiang accounted for 73%of the total loan, of which 46%of the total loans in Hangzhou area were.

Look at the situation of Hangzhou enterprises. The Hangzhou Statistics Bureau announced that in the first five months of this year, the added value of industries above designated size in Hangzhou increased by 6%year -on -year. In key industries, the operating income of the leasing and business service industry increased by 5.3%in the first four months, the information transmission software and information technology service industry decreased by 1.3%, and the transportation and storage and postal industry decreased by 1.6%.

Wuxi Bank's loan balance in Wuxi in 2021 accounted for 76%of the total loan.

Look at the situation of Wuxi enterprises. The Wuxi Statistics Bureau announced that the added value of industrial enterprises above the city in the first five months of Wuxi increased by 1.3%year -on -year. In terms of economic types, private enterprises have increased by 2.4%, foreign companies, Hong Kong, Macao and Taiwan business investment companies have increased by 0.9%, and state -owned holding companies have decreased by 9.2%year -on -year. Among the 33 industries, the added value of 18 industries increased year -on -year, and 15 industries decreased year -on -year. The first four industries are special equipment manufacturing, communication electronics, electrical machinery industry and non -ferrous metals, respectively, with an increase of 9.1%, 6.9%, 5.5%, and 5.1%. The four industries in the lead are the chemical raw materials, automobile manufacturing, metal products and rubber products, respectively, decreased by 15.1%, 7.0%, 5.5%, and 4.6%, respectively.

When the non -performing loan ratio has declined, these banks still increase their original high -end loan dial -up coverage. What are the considerations? When regulatory layers encourage reducing allocation of dial -up coverage and release more credit resources, why did they still increase the dial -up coverage?

"China Economic Weekly" reporter sent a letter to the above issues interviewing Hangzhou Bank, Wuxi Bank, Su Nong Bank and Zhangjiagang Bank. As of press time, Zhang Jiagang replied that it was inconvenient to answer the interview questions. The Bank of Hangzhou, Bank of Wuxi, and Su Nong Bank did not give any response.

If other banks imitate these four banks, how will credit resources change?

Responsible editor | Yang Lin

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