During this time, not only schools are issuing students' final report cards, but banks are also releasing annual "report cards" one after another. Up to now, six banks, including China Merchants Bank, China CITIC Bank, Bank of Hangzhou, Bank of Changsha, Qilu Bank, and Bank of Qingdao, have released their 2023 annual performance reports. Let's take a look at how these banks are doing.
The performance of these six banks in 2023 is relatively bright, and the net profit is all growing positively, one is higher than the other, and some even exceed double digits year-on-year.
China Merchants Bank, China CITIC Bank, Bank of Hangzhou, Bank of Changsha, Qilu Bank and Bank of Qingdao will have attributable net profit of 1466 in 20230.2 billion yuan, 6701.6 billion yuan, 1438.3 billion yuan, 746.3 billion yuan, 423.4 billion yuan, 354.9 billion yuan, a year-on-year increase of respectively. 11%。
In terms of revenue, there were increases and decreases, with city commercial banks growing and joint-stock banks declining.
The four city commercial banks, Bank of Hangzhou, Bank of Changsha, Qilu Bank, and Bank of Qingdao, will achieve revenue of 350 in 20231.6 billion yuan, 2480.3 billion yuan, 1195.2 billion yuan, 1247.2 billion yuan, a year-on-year increase. 11%。
The revenue of the two joint-stock banks, China Merchants Bank and China CITIC Bank, was 33912.3 billion yuan, 20589.6 billion yuan, with a year-on-year growth rate of -164%、-2.60%。
In terms of asset scale, the total assets of the six banks will grow steadily in 2023, with China Merchants Bank and China CITIC Bank both increasing by more than 5%, and four urban commercial banks all growing by more than 10%.
In terms of total loans, except for China CITIC Bank, which did not disclose this data, the total loans of the remaining five banks have achieved rapid growth in 2023. China Merchants Bank, Bank of Hangzhou, Bank of Changsha, Qilu Bank and Bank of Qingdao increased their total loans respectively. 55%。
In terms of asset quality, the non-performing loan ratios of the six banks all decreased to varying degrees, while China Merchants Bank and Bank of Hangzhou both remained below 1%, which was at an excellent level among their peers.
Here we also want to talk about the "king of retail" China Merchants Bank. The last time China Merchants Bank's revenue growth rate was negative was in 2009. The year-on-year revenue growth rate in 2023 fell below the low point of 2016 for the first time, and it was also the first time in the past ten years that there was a negative annual revenue growth. CMB's provision coverage ratio has been high, reaching a high of 450% at the end of 2022. Thanks to sufficient stock provisions, CMB's net profit can still grow when revenue growth declines.
Shenwan Hongyuan** said that from the perspective of different types of banks, the operating income continues to show a trend of "urban and rural commercial banks", state-owned banks, and joint-stock banks. Looking ahead to 2024, it is expected that the industry's revenue will be under pressure across the board due to factors such as loan repricing. The asset quality of banks will remain stable, but with the disruption of risks such as real estate, chemical bonds, and retail consumption, the NPL generation rate may have upward pressure.
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