On August 31st, China Construction Bank held a 2022 interim results conference. Zhang Jinliang, president of CCB , led vice presidents Cui Yong, Ji Zhihong, Zhang Min, Li Yun, board secretary Hu Changmiao, and chief risk officer Cheng Yuanguo attended the conference. The state-owned bank's interim results conference has come to an end. When
summed up CCB's business performance in the first half of the year, Zhang Jinliang said that there is a close relationship between the banking industry, the macro economy and the real economy, which is linked by blood and symbiotic and prosperous. In the first half of the year, in the face of unexpected shocks at home and abroad, CCB actively served and benefited the real economy, reduced corporate financing costs, and maintained a steady growth in profitability. At the same time, it adhered to prudent and steady operation, and by optimizing the structure of assets and liabilities and strengthening refined management, the quality of credit assets operated in a stable and orderly manner.
"We believe that the fundamentals of my country's long-term economic growth have not changed, and the economy has maintained strong resilience. Serving the real economy is the fundamental driving force for the sustainable growth of banks. Supporting the real economy is supporting the future of banks." Zhang Jinliang said. According to
's semi-annual report data, CCB's profitability remained stable in the first half of 2022: the group achieved operating income of nearly 436 billion yuan, a year-on-year increase of 4.72%; net profit was 161.7 billion yuan, a growth rate of 4.95%, which was comparable to the past five years (2016-2021) The compound growth rate of 5.51% is basically the same; ROA is 1.01%, and ROE is 12.59%, maintaining the leading level of comparable peers.
Looking at the operations of the four major state-owned banks in the first half of the year, , China Construction Industry and Agriculture, and , while giving play to the role of the "head goose" of the big banks, increasing credit extension and helping enterprises in bailouts, each bank has its own operating highlights. As far as CCB is concerned, the following aspects are worth paying attention to in the first half of the year:
1, credit issuance hit a record high, helping stabilize the economy and the broader market . In the first half of the year, CCB's RMB loans increased by 1.54 trillion yuan, a year-on-year increase of 364.2 billion yuan, and RMB bonds investment increased by 800 billion yuan, both hitting record highs.
2. The quality of credit assets was stable, the classification was prudent, and the ability to offset risks was strong. As of the end of June, CCB loans overdue for more than 90 days accounted for 44.89% of non-performing loans, and this indicator has been at a low level in recent years; provision coverage ratio 244.12%, ranking second among the four major banks, up from the beginning of the year 4.16 percentage points. The net interest margins of
3 and and have been stable with some declines, ranking first among the four major banks in absolute terms. In the first half of this year, CCB's net interest margin was 2.09%, down 0.04 percentage points from the same period last year, which was in line with the overall trend of the industry, but ranked first among the four major banks in absolute terms. Behind the steady growth of
's financial indicators, it is inseparable from the bank's diligent pursuit of business transformation. For CCB, in recent years, it has made frequent "big moves" in the process of actively seeking change, transformation and development. From deepening digital capability building to exploring the integration of platform-based operations into business operations; from vigorously promoting housing finance and inclusive finance business, to developing green finance , large wealth management, and rural revitalization scenarios, these transformations are called by CCB Exploration of "New Financial Action". Zhang Jinliang of
said that in the next step, CCB will adhere to the high-quality development of and the main line, promote reasonable growth in quantity and steady improvement in quality, and continuously enhance market competitiveness. Deepen new financial actions and promote the integration of the first and second curves. Adhere to consolidate the foundation, improve the comprehensive customer service capabilities, enhance the high-quality development momentum of the business, and strive to achieve a balanced, coordinated and sustainable major indicators such as scale, efficiency and risk. In the first half of the year, in order to help stabilize the economic market, large state-owned banks increased credit issuance and bond investment as never before. Taking CCB as an example, in the first half of the year, the growth rate of loans and advances and financial investment was as high as 8.38% and 10.26% respectively. Wang Yifeng, chief financial analyst at Everbright Securities, believes that since the beginning of the year, the downward pressure on the macro economy has increased, the residents' willingness to expand their expressions is not strong, the corporate sector's credit expansion is highly dependent on policy-driven, and the market-oriented private sector has insufficient willingness to spend on capital. , the effective credit demand is insufficient. In this context, large banks play the role of "head goose" in credit issuance, and "expansion" is the most obvious. As of the end of the second quarter, the loan growth rate was 12.5%, a further increase of 0.6 percentage points from the end of the first quarter.
Finance and the real economy coexist and co-prosper, for banksIn other words, increasing the amount of credit to the real economy can no longer be a "big player", but should focus on improving the demand structure that matches the transformation and development of the real economy, so as to achieve a "double increase" in the amount and quality of credit.
In the first half of the year, while stabilizing the total amount of credit expansion, CCB is also seeking the transformation of credit structure adjustment, enhancing the precision and effectiveness of credit issuance, in order to adapt to new trends in the development of the real economy, infrastructure, manufacturing, inclusive and green finance. etc. are key investment areas:
1. As of the end of June, the balance of infrastructure loans was 5.47 trillion yuan, an increase of 406.590 billion yuan or 8.02% over the end of the previous year, and the balance accounted for 51.66% of corporate loans and advances.
2, the balance of medium and long-term loans in the manufacturing industry was 835.932 billion yuan, with a growth rate of over 24%.
3, the balance of inclusive loans continued to rank first in the industry. As of the end of June, the balance of inclusive finance loans was 2.14 trillion yuan, an increase of 267.1 billion yuan over the beginning of the year, and the progress of the sequence of loans was more than half of ; loan customers 2.25 million, more than At the beginning of the year, there were more than 310,000 households, and the half-year increment was the largest in recent years. The balance of
4 and green loans exceeded 2 trillion yuan, with a growth rate of nearly 23%.
5. The balance of loans to strategic emerging industries was 1.17 trillion yuan, an increase of 245.770 billion yuan or 26.66% over the end of the previous year.
Zhang Jinliang elaborated his views on the relationship between the transformation of the real economy and the adjustment of the credit structure of banks.
"Currently, the world is undergoing rapid changes unseen in a century, and the global economy is facing challenges such as slowing growth, rising inflation, and market turmoil. However, the fundamentals of my country's long-term economic growth have not changed, and the resilience of economic development has continued to increase, promoting high-quality There are many favorable conditions for development. Economic transformation and upgrading have created new growth drivers, and areas such as , digital transformation, , green development and technological innovation are looking forward to more financial support, and there are also historic opportunities for commercial banks.” Zhang Jinliang said.
Zhang Jinliang further stated that serving the real economy well is the duty of commercial banks, and it is also the fundamental guarantee for realizing their own healthy and sustainable development. In the next step, CCB will focus on serving economic and social development, continue to balance scale and quality, promote reasonable growth in quantity and steady improvement in quality, and continuously enhance market competitiveness. Asset-liability business should balance volume and price, actively meet the financing needs of market players, and continue to optimize the liability management strategy and liability structure. Intermediary business should "tap potential and increase income" and accelerate breakthroughs in key business areas. Give full play to the synergy and linkage effect of the group, and optimize the comprehensive marketing and benefit distribution mechanism. Cost control adheres to the principle of diligent and thrifty running the bank, and effectively improves the efficiency of the company's input and output. In the first half of the year, under the complex environment of the impact of the epidemic and the superposition of "triple pressure", the balance of non-performing assets in the banking industry further increased. According to data released by China Banking and Insurance Regulatory Commission , at the end of the second quarter, the balance of non-performing loans of commercial banks was 3 trillion yuan, an increase of 41.6 billion yuan from the end of the previous quarter. Among them, the balance of non-performing loans of large commercial banks increased by 28 billion yuan from the end of the previous quarter, and the non-performing ratio decreased by 0.01 percentage point from the previous quarter.
Judging from the indicators of CCB at the end of the half year, the quality of credit assets is relatively stable. At the end of June, the balance of non-performing loans increased by 19.438 billion yuan from the end of the previous year, and the non-performing ratio decreased by 0.02 percentage points to 1.40% from the end of the previous year.
According to Zhang Jinliang, in the first half of the year, CCB carried out comprehensive risk mapping, strengthened risk response plans, continued to strengthen risk management and control in real estate and local hidden debt, and steadily resolved risks in key areas. The Bank continued to strengthen the management and control of credit asset quality, promoted the post-loan and post-investment management of large-value customers at different levels and levels, and promoted unified credit risk monitoring. The asset quality remained stable, the risk classification was prudent and solid, the overdue rate was 43 basis points lower than the non-performing rate, and the overdue non-performing negative negative scissors difference 87.9 billion, maintaining the best level in the industry. Intensified efforts to dispose of non-performing loans, and maintained a leading position in cash recovery and recovery rate.
Since the beginning of this year, the exposure of real estate financial risks has also made the market highly concerned about the prospects of commercial banks' property-related credit asset quality. At the press conference, CCB management faced this hot issue and made a detailed explanation.
Cheng Yuanguo said that at the end of the first half of the year, although CCB's real estate industry loans were affected by the risk exposure of some real estate companies, the non-performing rate increased, but the amount of loans involved was relatively small, and the overall risk was relatively small.It is controllable, still maintains the best level among comparable peers, and has sufficient provisions. As of the end of June, the balance of public real estate loans was 762.8 billion, with a non-performing rate of 2.98%, an increase of 1.3 percentage points from the end of the previous year, and the balance of personal housing mortgage loans was 6.48 trillion, with a non-performing rate of 0.25%, an increase of 0.05 percentage points from the end of the previous year.
According to Li Yun, as of the end of July, the amount of overdue personal mortgage loans involving and public opinion was 1.142 billion, accounting for 0.018% of the bank's total mortgage loan balance, with a non-performing balance of 500 million yuan, accounting for 0.0077% of the balance of all mortgage loans. Overall, the risk of personal mortgage loans in the whole bank is generally controllable.
Cheng Yuanguo further explained that the asset quality of CCB's real estate industry has remained relatively stable in recent years, which is mainly due to the following three aspects:
First, CCB has continuously optimized its credit structure, and its investment in the real estate sector has decreased compared with the past.
Second, CCB actively implements the housing leasing strategy. CCB invested more credit resources in the field of housing leasing ahead of its peers, and optimized the credit structure of public real estate loans.
The third is to continuously optimize the structure of customers, regions and products, and have strong ability to resist risks of assets. The proportion of high-quality customers remained stable, and the balance of priority support customers accounted for more than 57% of the real estate development loans. Loan support projects are mainly concentrated in first- and second-tier cities, and the balance of real estate development loans in first- and second-tier cities accounts for more than 85%. It mainly supports residential projects, and the balance of residential development loans in real estate development loans accounts for more than 85%.
"It can be said that our bank has sufficient space for credit asset quality management and control, and has the confidence and ability to deal with various risks and challenges, so as to ensure that the quality of credit assets remains stable and that core indicators operate within a reasonable range." Zhang Jinliang said that our bank is expected to offset the level of risk. Sustained adequacy and credit costs remain basically stable, ensuring the ability to withstand possible future risks.
Zhang Jinliang said that CCB will take into account both development and safety, and continuously strengthen risk compliance management. We will cultivate a "stable, prudent, comprehensive and proactive" risk culture, and consolidate the "three lines of defense" of business operation, risk compliance and auditing. Adhere to the asset quality management and control strategy of "active control, accelerated disposal, coordinated and orderly" to ensure that the core indicators of asset quality are within a reasonable range.
ranks first among the four major banks in terms of net interest margin, and explores new finance and seeks one and two curves to join
. Net interest margin is the main support force to ensure bank profitability. In recent years, affected by factors such as the downward trend of interest rates, it is facing the pressure of continuous narrowing. At the end of the second quarter, the net interest margin of large commercial banks was 1.94%, down 0.04 percentage points quarter-on-quarter.However, from the perspective of peer comparison, CCB's net interest margin in the first half of the year achieved the market ranking of the four major state-owned banks, reaching 2.09%, a relatively limited decline, down 4 basis points from the same period last year and the whole of last year.
Zhang Jinliang explained that since the beginning of this year, CCB has hedged some of the changes in the external operating environment have affected our bank by optimizing its asset-liability structure, strengthening comprehensive and differentiated pricing management, deepening digital operations, expanding low-cost funds, and strengthening interest rate risk management. Negative impact, still at a better level among comparable peers.
"It is expected that the loan yield in the second half of the year will still have a certain downside. Our bank will take the initiative to take measures to hedge the negative impact on the net interest margin, and is confident to maintain the leading edge of the net interest margin among comparable peers." Zhang Jinliang said that the asset side is working hard To seek benefits from structural adjustment, there is still relatively large room for optimization in product structure and term structure. On the debt side, traffic management is the top priority, using digital concepts and methods to expand the expansion of small and medium-sized customers and long-tail customer groups, and improve the efficiency of basic financial products such as payment and settlement, salary payment, and fee collection and payment. coverage, etc. In the environment of reducing fees and giving profits, reducing the cost of debt is more conducive to supporting the real economy.
In order to make up for the squeeze on profitability caused by the decline in net interest margin, in recent years, various banks have been increasing the layout of business transformation, among which wealth management business is the top priority of transformation. For CCB, large wealth management has been clearly included in the strategic focus of the Bank's "14th Five-Year Plan". In the context of the weak growth of the traditional middle-income business in the banking industry due to the reduction of fees and profits, the wealth management business is becoming the growth of middle-income business. important engine.
Over the past few years, CCB's wealth management business has become an important engine for the growth of the bank's fee and commission income. 2018-2021,The compound annual growth rate of wealth management fee and commission income is nearly 14%, which is twice the growth rate of the group's middle income. In addition, the management system centered on the full amount of personal funds will form more deposits of low-cost demand deposits, which will also help reduce the cost of debt and stabilize the net interest margin.
CCB's so-called "new financial action" includes the exploration of a variety of new business areas, and big wealth management is just one of them. According to Zhang Jinliang, the purpose is to "promote the integration of one and two curves".
In the field of inclusive finance, CCB took the lead in developing inclusive finance among major state-owned banks with the "blessing" of financial technology . The balance of inclusive loans has exceeded 2.1 trillion yuan, accounting for nearly 10% of the entire market. Become the largest bank in inclusive credit.
According to Zhang Min, the development pattern of CCB takes data as the key production factor, technology as the core production tool, and platform ecology as the main production method. Through "building ecology, setting up scenarios, and expanding users", the three terminals of G, B, and C are connected to build a digital business ecology. For example, the C-end is based on an online business platform that deeply integrates mobile banking financial services and the non-financial ecology of “CCB Life” as the core, supplemented by regional characteristic scenarios, to build a digital ecosystem that integrates online and offline development.
From the end of June to the end of June, 32% of the new CCB retail business customers relied on online channels; the number of mobile banking users continued to lead the industry, and online account transactions accounted for 97.57% of all channels.
Zhang Jinliang said that in the next step, CCB will deepen new financial actions, organically integrate platform thinking into business operations, and promote the continuous improvement of new financial quality and efficiency. For example, Inclusive Finance has further optimized its business structure and accelerated the promotion of comprehensive customer services; fintech has strengthened its driving and leading role, done a good job in coordinating enterprise-level business needs, and promoted data integration, , sharing and application. Green finance continued to increase the proportion of assets, and innovatively expanded green financial products and services. Great Wealth Management continued to promote the synergistic growth of deposits and total funds, vigorously carried out a series of activities in the "Wealth Season", and established benchmarks for wealth management in key regions. The management of
stated: It is confident to maintain stable growth in future performance
Looking at the sources of profit of CCB in the first half of the year, it shows that the net interest income has grown steadily, the net fee and commission income has been generally stable, and the non-interest income has declined year-on-year due to financial market fluctuations. Operating expenses increased slightly.
Zhang Jinliang said that from the perspective of revenue, CCB has a higher capital adequacy ratio , which can support the continuous growth of asset scale and hedge against the downward impact of net interest margin, and there is still room for further optimization of the asset-liability structure. As the impact of the epidemic subsides, household consumption improves, and the strategy of great wealth continues to advance, the growth momentum of intermediary business income is constantly accumulating.
From the perspective of expenditure, CCB's cost-to-income ratio is in an advantageous position among its peers. In the future, marketing and strategic investment will be further enhanced to create greater output returns. The cost of credit is the biggest cost of bank operations. CCB will always adhere to the judgment of substantial risks, strict classification of asset risks, continuous negative scissors gap between non-performing and overdue, high level of provision coverage, and excellent risk resistance capability.
"Although there are still uncertainties in the current epidemic and the economy, we are confident to maintain stable growth in future performance." Zhang Jinliang said that since its listing, CCB has created considerable cash returns for its shareholders, and has accumulated dividends of more than 1 trillion yuan. . In recent years, the proportion of the total cash dividends of CCB to the net profit attributable to shareholders of the Bank has remained at the level of 30%. At present, CCB has no plan to adjust the proportion of dividends. In the future, it will continue to improve the efficiency of refined management, enhance the ability of sustainable development, and strive to provide investors with long-term and stable returns, which is also the core advantage of bank stock investment.
Editor in charge: Tactical Heng
Proofreading: Yao Yuan
