The income and profit of the banking industry are mainly net interest income, the income is the income of the loan side, and the profit is after deducting the cost of the deposit side.
Specifically:1. The business of a bank can usually be divided into three parts:
1. Liability business: that is, fund-raising activities, mainly deposit business, loan business and bond issuance business;
2. Asset business: that is, the use of capital business activities, mainly including loan business, investment business, cash assets business;
3. Intermediate business: business that does not constitute on-balance sheet liabilities and on-balance sheet assets, and uses its own network, information, credit or license advantages to provide customers with intermediary or first-class services, and collects fees or commissions.
2. The operating income of a bank can also be divided into three parts:
1. Net interest income: corresponding to asset business.
2. Net fee and commission income: corresponding to intermediate business.
3. Other income: corresponding to intermediate business.
3. Take ICBC's 2023 semi-annual report as an example to understand the bank's income and profit:
Income and Composition:
According to the 2023 interim report, ICBC's operating income is 44749.4 billion yuan, including:
1. Net interest income: 33698.7 billion yuan, a year-on-year decrease of 389%。
2. Fee income: 73465 yuan; A year-on-year decrease of 339%。
3. Other non-interest income: 37042 yuan;
It can be seen that net interest income is the main income of ICBC**, and net interest income is: the interest difference between loan interest rate and deposit interest!
Therefore, if the interest rate on the loan side falls, the interest rate on the deposit side will follow suit.
For banks with strong ability to absorb savings, the interest rate on the deposit side can be lowered a lot, so that the interest rate spread will be larger!
If the interest rate spread is large, the interest rate difference will be high.
In addition to this, several other factors that affect net interest income are:
1. On the deposit side, the proportion relationship between demand and time, if the deposit is fixed, the cost will rise!
2. The control of the proportion of non-performing loans, if there are many overdue loans and the non-performing rate is high, the income side will be affected.
These are all delicate management issues.
Fourth, is the bank lying to make money?
Our banks are monopolies, so their financing costs have always been relatively low, and our country has a strict control system for deposit interest rates, and you will not be allowed to save at high interest rates.
But at the same time, the level of lending rates, based on the needs of economic development, has been at a high level for many years.
Therefore, in the past many years, the banking industry has been enjoying the era of "low deposits and high loans" with large interest rate spreads.
However, when the economic fundamentals slowly shift from high-speed development to medium-low speed development, this kind of ** era will be gone forever!
The banking sector has also begun to diverge, and of course the life of large and medium-sized banks is still very good!
But some small banks will have a situation of poor management, of course, there is no kind of bad people doing bad things.
On the other hand, the number of banks is increasing, from 40 in 2000 to almost 5,000 in 2023! Coupled with the lack of economic transformation in some regions. Therefore, banks will also have bankruptcy liquidation.
In other words, the era of "lying to win" of banks, although it has not completely ended, has begun to seriously differentiate!
Especially some small city commercial banks and rural commercial banks!
Therefore, ordinary people can't put all their eggs in one basket with their savings!
However, those major banks with many store networks and strong savings capacity are still living a good life, so there is a saying that banks are required to make profits in difficult economic times.
For consumption to boost banks, they must lower their profits