Kunpeng Project
Text丨Wu Haishan
Editor丨Lin Weiping
According to recent figures released by the State Administration of Financial Supervision and Administration, the net interest margin of private banks reached 439%, significantly higher than the entire banking industry by 1The average interest margin is 69%, and since last year, it has continued to widen quarter by quarter.
According to recent figures released by the State Administration of Financial Supervision and Administration, the net interest margin of private banks reached 439%, significantly higher than the entire banking industry by 1The average interest margin is 69%, and since last year, it has continued to widen quarter by quarter. In an environment of high interest rates and savings, the widening of interest margins of private banks means that loan interest rates are rising.
But even so, judging from the performance reports released so far, the performance of some private banks is still not good.
Interest margins of private banks have widened against the trend
Recently, the State Administration of Financial Supervision and Administration released the main indicators of commercial banks by institution (quarterly) (2023). The data shows that the net interest margin of other types of banks is only 157%~1.In the case of 9%, the net interest margin of private banks reached 439%。
At the same time, in the four quarters of 2023, the interest margin of rural commercial banks will be 0In addition to the widening of 05 percentage points, the interest rate spreads of large commercial banks, joint-stock commercial banks, city commercial banks and foreign banks all narrowed, with a range of 007 percentage points, 007 percentage points, 006 percentage points and 009 percentage points, while private banks gradually widened by 028 percentage points.
At the same time, the same trend has been shown over the past three years. From the fourth quarter of 2020 to the fourth quarter of 2023, the interest rate spreads of the other five types of banks, except for private banks, have narrowed, and the interest rate spreads of large commercial banks have increased from 204% narrowed to 162%, joint-stock commercial banks from 207% narrowed to 176%, and city commercial banks narrowed from 2% to 157% of rural commercial banks from 249% to 19%, foreign banks from 161% narrowed to 157%, respectively, narrowed. 59% and 004%。
Private banks, on the other hand, saw a net interest margin of 367% widened to 439% with an amplitude of 072 percentage points.
It is worth noting that the monetary background for this net interest margin change is that from December 2021 to February 2024, the LPR 1-year has increased from 385% to 345%, 5-year period from 465% to 395%, down 40 basis points and 70 basis points, respectively.
The deposit interest rates of private banks have significantly outperformed those of large banks
At present, in contrast, the deposit interest rate of private banks is much higher than that of large banks. Since the central bank does not announce the deposit interest rate, but the commercial banks decide on their own, private banks completely lag behind large commercial banks and joint-stock banks in terms of brands and channels, and in order to attract deposits, the interest rates of private banks are often significantly higher than those of other banks.
For example, the Industrial and Commercial Bank of China (ICBC) among large commercial banks will have a one-year deposit interest rate of 145% with a three-year interest rate of 195%, with a five-year deposit rate of 2%. The private bank Liaoning Zhenxing Bank's fixed deposit interest rate announcement on January 31 showed that its three-year deposit interest rate was 339% with a five-year interest rate of 360%, up to 2 for a one-year period25%, which is even higher than the five-year interest rate of ICBC; The announcements of Zhejiang MYbank and Sichuan Xinwang Bank, which are also private banks, also show that their three-year lump sum deposit and lump sum interest rates are 26% and 275%, which is significantly higher than the interest rate of ICBC's five-year lump sum deposit and withdrawal.
It is worth noting that the deposit interest rate of private banks may actually be higher than the above, and some banks will attract customer deposits by issuing subsidy coupons and other means, so as to make the deposit interest rate higher. Of course, this is also a helpless move to some extent, because private banks mainly rely on online channels, and compared with large banks, their brand recognition and customer quality are relatively poor, so they have to raise deposit interest rates to absorb deposits, which is often referred to by the market as high-interest savings.
Fu Lichun, a member of the Financial Committee of the China Marketing Society and founding partner of Yuntai Capital, told this magazine: "The main customers of private banks are private enterprises and individual customers, and some entities with a relatively high degree of marketization. The interest rate spread is relatively high, indicating that the loan interest rate is relatively high, and it also shows that the demand for funds by private business owners is relatively strong, and it is more difficult to obtain funds at the same time, so the loan interest rate reduction is not so large. ”
According to the information disclosed by Wuxi Xishang Bank, as of the third quarter of 2023, the balance of the bank's various loans is 2475.1 billion yuan, of which the balance of retail loans was 1993.3 billion yuan, accounting for more than 80%; The balance of the deposit is 2691.2 billion yuan, personal deposits 1844.7 billion yuan, accounting for 685%。
Dong Baozhen, general manager of Nojitai**, told this magazine: "Because the loan amount of individuals or small and medium-sized enterprises is relatively low, they can accept relatively high loan interest rates. ”
For example, the most well-known micro loan of Shenzhen Qianhai WeBank, the loan interest rate varies from person to person, and even as high as 10% annual interest rate.
At present, after nearly 10 years of development, there are 19 private banks. Among them, Shenzhen Qianhai WeBank and Zhejiang MYbank are the two largest banks, the first echelon of private banks, and their asset scale even exceeds that of some rural commercial banks. As shown in WeBank's 2023 semi-annual report, as of June 2023, WeBank's total assets were 509.9 billion yuan; As of the first three quarters of 2023, MYbank's total assets were 4,8557.1 billion yuan. It is followed by Wuhan Zhongbang Bank, Sichuan Xinwang Bank, Jiangsu Suning Bank, etc., with total assets of more than 100 billion yuan, which is the second echelon of private banks. As shown in the 2023 annual results disclosed by Wuhan Zhongbang Bank, as of the end of 2023, the bank's assets were 114.5 billion yuan; Sichuan Xinwang Bank and Jiangsu Suning Bank have assets of 102.1 billion yuan and 106.3 billion yuan respectively as of the third quarter of 2023.
In addition, most of the assets of private banks are in the region of tens of billions of yuan. At present, the latest private bank is Wuxi Xishang Bank, which was established in 2020, and its asset scale is also the smallest among private banks, only 36.1 billion yuan.
High spreads don't exactly equal high performance
So far, some private banks have disclosed their 2023 annual results. Judging from the results that have been released, the performance is uneven.
For example, as of the end of 2023, Wuhan Zhongbang Bank has achieved an annual operating income of 19300 million yuan, a year-on-year increase of 255%, net profit increased by 21 year-on-year6% to more than 400 million yuan, and its net interest margin is 328%；Although the total assets of Jilin Yealink Bank at the end of 2023 fell by 18 compared with the beginning of the year7.8 billion yuan, or 51.7 billion5.6 billion yuan, the balance of various loans fell by 1029%, operating income 106.5 billion yuan, a slight decrease of 2%, but the net profit was **443% with a net interest margin of 411%；Weihai Blue Ocean Bank's operating income in 2023 will be 239.7 billion yuan, a year-on-year increase of 176% and net profit 79.6 billion yuan, a year-on-year increase of 309% with a net interest margin of 434%。
However, Zhongguancun Bank's net profit declined again after four years. According to the data, its operating income in 2023 will be 184.3 billion yuan, net profit of 31 billion yuan, net profit fell by 30%, and its net interest margin was 397%。
From the perspective of the net interest margin of a single bank, will the performance of private banks with higher interest margins be relatively better?
Private banks are all non-listed banks, and the private banks in **2 disclosed their operations in 2023 in their 2024 interbank certificate of deposit issuance plan.
As can be seen from Table 2, Wuxi Xishang Bank, which has been established for less than four years, has an interest margin of 6 as of September 202321%。As of the third quarter of 2023, the bank's operating income was 111.3 billion yuan, net profit of 28.6 billion yuan, all exceeding 107.8 billion and 25.1 billion yuan.
In second place is Shenzhen Qianhai WeBank, with a net interest margin of 6% as of June 2023. As of June 2023, the operating income was 1964.5 billion yuan, an increase of 25 percent year-on-year7.1 billion yuan, a year-on-year increase of 15%; Net profit 545.2 billion yuan, compared to 89.9 billion yuan for the whole of 20223.7 billion yuan.
Sichuan Xinwang Bank ended the third quarter with 5A 2% spread is the third highest. Although there is no data available for the third quarter of 2022, as of September 2023, Sichuan Xinwang Bank's operating income in the first three quarters has reached 388.1 billion yuan, more than 36$4.4 billion; Net profit for the first three quarters of 2023 was 73.4 billion yuan, more than 6$8.1 billion.
From the above data, it is not difficult to see that the three banks with large net interest margins have performed well. However, from a practical point of view, the performance of a bank's operating income and net profit is affected by multiple factors, and there is not a completely positive correlation between the level of net interest margin and the bank's performance.
For example, the net interest margin of Wenzhou Minshang Bank and Hunan Sanxiang Bank ranks relatively low among private banks. But its performance is very different.
As of the end of September 2023, the operating income of Wenzhou Civil Commercial Bank was 82.3 billion yuan, a year-on-year increase of 21%; Achieved a net profit of 42.5 billion yuan, 31.2 billion yuan, a year-on-year increase of 36%. As of September 2023, Wenzhou Minshang Commercial Bank's provision coverage ratio reached 740%, and the non-performing loan ratio was 035%。
However, although Hunan Sanxiang's net interest margin increased from 218% widened to 272%, but as of September 2023, its bank operating income is 139.8 billion yuan, a year-on-year increase of 12%, and a net profit of 18.6 billion yuan, compared to 22.2 billion yuan, down 16% year-on-year.
(This article was published in the March 2 issue of Market Weekly.) The ** mentioned in the article is for example analysis only and does not make investment advice. ）