Gu Weiyu: The advantages and deficiencies of Nanjing Bank's 2022 intermediate report show

Author | Gu Weiyu

Associate Professor of Financial Innovation and Risk Management Research Center of the Central University of Finance and Economics, appreciate APP experts

On August 17, 2022, Gu Weiyu, the director of the Financial Innovation and Risk Management Research Center of the Central University of Finance and Economics, shared his view of Nanjing Bank's 2022 interpretation at the interpretation of the APP financial report. Gu Weiyu pointed out that Nanjing Bank in Nanjing's main urban area The retail business advantages are outstanding, the financial market has strong investment capabilities, complete financial licenses, strong comprehensive comprehensive business development capabilities, and strong anti -risk capabilities.

In response to the possible shortcomings of Bank of Nanjing, Gu Weiyu also pointed out two points: one is to further strengthen compliance and internal control. Second, Nanjing Bank's disposal of non -performing assets will continue to put on pressure on Nanjing Bank's risks. It requires banks to make overall arrangements in business operations, risk management, and capital supplements.

1. Overall evaluation

As an old listed bank in Jiangsu area, ROE has always maintained a high level.

The company's business development has deeply cultivated the developed regions of the long triangle, and continued to promote the two strategies of "big retail strategy" and "trading banking strategy". In Nanjing's main urban area, the retail business advantages are outstanding, the financial market has strong investment capabilities, complete financial licenses, strong comprehensive business development capabilities, and strong anti -risk capabilities.

2. Specific analysis

From the five aspects of financial situation, business operations, asset quality and risks, channels and outlets, equity, corporate governance and capital management, a brief analysis of the three dimensions: total, structure, and trend.

Financial situation (income, profit, asset status):

1) Revenue profit continues the upward trend in the early stage. In the context of the Jiangsu epidemic, Nanjing Bank's performance shows strong toughness. In the first half of the year, the operating income was 23.53 billion, a year -on -year increase of 16.3%; the net profit attributable to the mother was 10.15 billion, a year -on -year increase of 20%; the weighted average net asset yield (Roae) was 17.5%, an increase of 0.7%year -on -year.

However, the year -on -year year -on -year growth rate of revenue, preparation of profit, and net profit attributable to the mother may be the impact of the overall seasonal and economic operation. Revenue, pre -preparation profits, and net profit attributable to mothers year -on -year growth rates were 16.3%, 17%, and 20.1%respectively, but the quarterly decreased by 4.1, 5.4, and 2.3, respectively. The growth rates were 12.1%and 17.9%, respectively, and the quarterly declined 8.3 and 4.4.

2) From the perspective of income structure:

(1) Net interest income: The narrowing of interest margins and dragging on the performance, but the margin of pressure decreases, and the scale growth of the scale is hedged to a certain extent. The contribution of the net interest difference was -23.9%, and the quarterly increased by 2.6; the contribution of the scale to profit growth was 23%, and the quarterly decreased by 1.9.

(2) Non -interest income: The contribution of non -interest income to profit is 39.2%, which is the core force of driving performance growth. However, the second quarter of non -interest income fell 12%from the first quarter, the main reason was that the growth rate of commission fees slowed down; other non -interest income continued to increase in the first quarter, an increase of 108.2%year -on -year, mainly from investment income The profit or loss of fair value changes shows the strong bond investment and trading capabilities of Bank of Nanjing. This capabilities have been better played in the liquidity loose market in the first half of the year.

2. Business operation:

1) Deposit

(1) The growth rate is innovative. In the first half of the year, the deposit was 15.2 billion yuan, an increase of 49.6 billion year -on -year. At the end of the second quarter, Nanjing Bank's total liabilities, interest payment liabilities, and deposit growth rates were 15%, 15.6%, and 16.7%, respectively. The quarterly changes were changed by -1.4, -1.1, and 1.1. Among them, the growth rate of deposits has reached a new high in five years, and has formed a strong support for the expansion of the asset end.

(2) In terms of structure, regular deposits increased by 119.5 billion yuan, an increase of 58.6 billion year -on -year, and the proportion of deposits increased by about 1.8%to 72.6%from the previous month, which may bring about the increase in liability costs.

2) Loan

(1) Credit investment strongly supports asset expansion. The project reserves were relatively abundant, with a new loan of 113.3 billion yuan in the first half of the year, an increase of 19.65 billion year -on -year. With reference to the launch target set at the beginning of the year, nearly 80%of the newly added placement plan has been completed throughout the year. The year -on -year growth rates of Nanjing Bank's total assets, assets, and loans were 14.9%, 15.4%, and 17.6%, respectively, and the quarterly decreased by 1.3, 0.9, and 0.1, respectively.

(2) Loan structure:

Grasp the marketing points of peak season, increased more public projects. In the first half of the year, the public (excluding bills) increased by 850, a year -on -year change of 175. In terms of industry investment, infrastructure loans in the field of water conservancy and environmental public facilities performed outstandingly, an increase of 17.75 billion yuan, an increase of 16.56 billion year -on -year.

The rhythm of the retail credit offering has slowed down, and the mortgage, consumer loan, and individual business loans are more obvious. Retail loans increased by 12.8 billion, a year-on-year change of -16.4 billion. Mortgage, consumer loans, and individual business loans were added 1.73, 9.66 to 0.6 billion respectively, respectively, and a year -on -year increase of 61, 52, and 4.15 billion. It is mainly due to the impact of economic recovery in the real estate adjustment and epidemic situation. In fact, the growth rate of small and micro loans at Bank of Nanjing's retail end in more than two years has declined, and this trend is expected to continue.

3) Inspection and loan ratio: 73.9%at the end of the second quarter, and the quarter -on -month increase of 1.9%. The growth of both ends of the asset -liability is better, and the liquidity is better as a whole. 4) Pricing and profitability: The difference in net profit is narrowed and the cost of debt needs to be improved. In the first half of the year, the interest difference between Nanjing Bank was 2.21%, which narrowed 4bp from the beginning of the year. At the asset side, the loan yield was 5.27%, a decline of 15bp from the beginning of the year, mainly due to the insufficient demand for the overall credit of the industry and the dual impact of the real economic policy. At the liability side, the cost rate of deposit was 2.32%, a decline of 3bp from the beginning of the year. Under the trend of regular deposits, Bank of Nanjing needs to further adjust the cost of comprehensive liabilities by adjusting the regular deposit interest rate.

5) The scale of wealth management: The total scale of Nandan's financial management rose to nearly 380 billion yuan, an increase of over 16%over the beginning of the year, and the retail AUM also increased by 12.4%.

Bank of Nanjing will also rely on the two strategies of "Large Retail Transformation+Trading Bank" to increase the absorption of low -cost funds for savings and settlement, optimize the deposit structure and interest rate structure, and reduce the cost of comprehensive liabilities; increase the investment of loans, maintain the scale of scale High increase; give full play to the ability of bond investment transactions to improve the level of profitability.

3. Asset quality and risk:

The bad balance increased slightly year -on -year but the overall continued stability was continued.

The Bank of Nanjing has increased the disposal of bad nuclear sales in the first half of the year, and the attention rate and overdue rate have declined. The non -performing rate continued to operate at a low level of 0.9%. At the end of the second quarter, Nanjing Bank's adverse rates, attention rates, and overdue rates were 0.9%, 0.83%, and 1.18%, respectively. In addition, the 22nd half -annual report showed that the non -performing rate of retail loans increased by 28bp to 1.16%from the beginning of the year, mainly due to the impact of the epidemic in consumer loans and credit card business.

In the second quarter, the net increase in credit impairment was 2.14 billion yuan, an increase of 150 million year -on -year; the dial -up coverage rate was slightly down 3.2%to 395.2%month -on -month, and the loan loan fell to 3.55%than the season. The overall risk replacement ability remains high.

4. Channel and outlets:

The proposed outlet expansion plans are promoted in an orderly manner. This year, 40-50 new outlets are expected to be set up. The sinking and density of the outlets help to speed up the asset end expansion and support profit growth.

In addition, the acquisition of Suning Consumer Finance Co., Ltd. through supervision and approval. After landing, it will help the company's C -end business breakthrough area and capital layout. The retail business is expected to become a new growth point. my country's consumer gold company has a relatively obvious scale and performance, showing the head concentration trend. Whether the Bank of Nanjing can play a model and risk control advantage has a synergy effect with Suning's funding, and it is yet to be further observed.

5. Equity, corporate governance and capital management:

Equity structure: Nanjing Bank's equity structure is relatively scattered. The largest shareholders are foreign institutions and deeply participate in management. The company's governance structure is better, which helps improve decision -making levels and risk management risks.

Dividend policy: Bank of Nanjing was selected as the first "List of List of Listed Companies" released by the China Listed Companies Association for the first time. Among the more than 4,800 listed companies, Nanjing Bank's cash dividend level ranked 47th.

The main shareholders increase their holdings of supplementary capital, and the capital adequacy ratio increases. In the first half of the year, six of the top ten shareholders of Bank of Nanjing have increased their holdings. Among them, Bank of France, the Bank of Paris, Nanjing Hi -Tech, and Jiangsu Tobacco Company increased their holdings of 290 million shares by the company, with a total amount of about 2.9 billion. At the end of the second quarter, Nanjing Bank's core first level/first/first/capital adequacy ratio was 9.85%, 10.67%, and 13.02%, respectively, and the quarterly rose 10, 9, and 7bp.

The increase in major shareholders helps Nanjing Bank to reduce the pressure of capital supplementation and consolidate the foundation of future growth. At the same time, it shows the confidence of shareholders' confidence in bank development and help enhance the market's confidence in banks. At the same time, the bank's equity structure tends to diversify, which will help further improve the corporate governance mechanism and enhance the company's market -oriented operation capabilities.

Third, possible shortcomings

(1) At the same time as the performance of Bank of Nanjing's performance, there are also some events that cause negative effects. In the past two years, issues such as executives were investigated by executives, changes in presidents, fixed increases, regulatory interviews, rating, and attack on wealth management products. Compliance and internal control need to be further strengthened.

(2) The bank has continued to increase the bad disposal of the bank, and the quality of hedging assets deteriorates. In 2021, the table and hidden non -performing assets disposed of by Bank of Nanjing nearly 9 billion yuan, becoming a record high. This situation is likely to continue for a period of time, and continuous pressure on the risk of banks in Nanjing will be continuously stressed. It requires banks to make overall arrangements in business operations, risk management, and capital supplements.

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