Scanning 104 small and medium-sized banks: only more than 30 companies have increased their net profits, and many of them have substandard capital adequacy ratio

category:Finance
 Scanning 104 small and medium-sized banks: only more than 30 companies have increased their net profits, and many of them have substandard capital adequacy ratio


At the same time, more than 30 small and medium-sized banks still achieved year-on-year growth in net profit in the first half of the year, but the growth rate was small, basically in single digits.

In May this year, the research group of the Central Bank Research Bureau issued a paper saying that in the face of the complex situation of the superposition of the impact of the epidemic and the economic downturn, financial risks have accumulated. With the lagging effect of the real economic difficulties transmitting to the financial sector, as well as the influence of some policy factors, the pressure on the disposal of non-performing loans and capital consumption in the later period of the bank is obviously increased, and the growth rate of bank profits may decline, which does not exclude the possibility of zero growth or negative growth in the year.

Net profit decline

According to the CBRC data, in the first quarter of this year, Chinas commercial banks realized a net profit of 600.1 billion yuan, a year-on-year increase of 5%, and the growth rate was 4.4 percentage points lower than that of the same period of last year. As Chinas financial cycle and economic cycle are not fully synchronized, the risk exposure of non-performing loans has a certain lag. In addition, since the outbreak of the epidemic, the banking industry has implemented policies such as deferred repayment of principal and interest for enterprises. Under the pressure of asset quality, the net profit declined in the second quarter of this year.

Up to now, 104 small and medium-sized banks have disclosed the information of the second quarter of 2020. The total net profit in the first half of the year is 43.081 billion yuan, which is down from 45.249 billion yuan in the same period of last year, with a year-on-year decrease of 4.8%. Compared with the same period last year, the net profit of 70 small and medium-sized banks decreased, but the net profit of more than 30 small and medium-sized banks increased.

Net profit decreased by more than 50% year-on-year in Liaoyang bank, Shanxi Yuxian rural commercial bank, Henan Xinzheng agricultural commercial bank, Shandong Laizhou agricultural commercial bank, Guizhou Xiuwen agricultural commercial bank, etc.

Taking Liaoyang bank as an example, the bank realized a net profit of 81 million yuan in the first half of this year, compared with 691 million yuan in the same period last year. Liaoyang bank is a local joint-stock bank established on the basis of the former Liaoyang City Credit Union. In April 2010, with the approval of the former CBRC, it was renamed Liaoyang bank.

According to the annual report of Liaoyang bank in 2019, the annual net profit is 1.107 billion yuan, and only 416 million yuan in the second half of last year. Since the beginning of this year, the epidemic has had a great impact on the resumption of work and production of local small and medium-sized enterprises, leading to an increase in the scale of overdue loans and concerned loans of local banks, further affecting the profitability of banks.

A bank source told the first finance and economics reporter that at the current stage, the macroeconomic downward pressure still exists, and in the first half of the year, banks issued a large number of loans to small and medium-sized enterprises in accordance with the regulatory requirements. In the future, non-performing assets may gradually be exposed, further affecting the banks profits.

Capital adequacy ratio of several banks is not up to standard

At present, due to the implementation of policies such as no principal renewal and deferred repayment of principal and interest, the risk exposure of non-performing loans may be delayed. In addition, with the increase of credit loans, the financial risks of banks after the epidemic will increase. When the policy of deferred repayment of principal and interest is due, some loans may become real non-performing loans, and the pressure on the disposal of non-performing loans and capital consumption will increase.

On the whole, the problem of insufficient capital of small and medium-sized banks is relatively common. Due to the relatively poor profitability of small and medium-sized banks, it is difficult to realize endogenous capital supplement through profit accumulation.

From the perspective of external financing, the tools and channels of capital replenishment of listed banks and non listed banks are quite different, and the channels of capital replenishment of non listed banks are relatively limited. Wu Xiaoling, former vice president of the peoples Bank of China, said in early August that there are great restrictions on capital replenishment channels for small and medium-sized banks, especially unlisted small and medium-sized banks. Shareholders willingness to invest in small and medium-sized banks is relatively insufficient. First of all, when banks (especially state-owned banks) increase capital and share, the stock price should not be lower than the net assets per share, otherwise there is the suspicion of the loss of state-owned assets. But at present, the Pb of listed banks is generally lower than 1, so shareholders are not willing to increase capital at the price of net assets per share. Secondly, the state-owned enterprises all have the main responsibility and the main business, and the finance belongs to the non main business. At present, the state-owned enterprises investment in the non main business is restricted and restricted by various aspects. Thirdly, due to the limited share ratio, the shareholders rights of commercial banks are limited, which can neither affect the investment decisions of commercial banks nor recommend executives.

In addition, there are fewer potential shareholders who are lack of capital contribution ability or meet the requirements. At present, some small and medium-sized shareholders are lack of sustainable investment ability. Although the main shareholders are willing to take the responsibility of increasing capital, they are also facing the limitation of equity proportion. If the new shareholders compare with the qualification requirements of the sponsor shareholders, it is difficult to find the qualified objects in the short term. For example, for private banks, shareholders must be purely private enterprises. But this year, most private enterprises generally have difficulties in self financing. At this time, it is more difficult for private enterprises to invest hundreds of millions of yuan into a bank, and they are not allowed to pay dividends or obtain any form of related loans within five years. Wu Xiaoling said. A bank source said that the fundamental dilemma of capital replenishment of small and medium-sized banks is that some small and medium-sized banks have high risks, high operating pressure and weak profitability, while the risks have not been cleared out, and institutional investors are not optimistic about it in a short period of time. Some analysts say that it is reasonable to support banks to replenish capital reasonably, but for banks with relatively poor operating performance, even after capital replenishment, it will take a long way to become a good bank. Banks should pay attention to improve their management ability and management level, formulate a reasonable development strategy, and develop steadily and sustainably. Source: editor in charge of Finance and Economics: Zhong Qiming_ NF5619

In addition, there are fewer potential shareholders who are lack of capital contribution ability or meet the requirements. At present, some small and medium-sized shareholders are lack of sustainable investment ability. Although the main shareholders are willing to take the responsibility of increasing capital, they are also facing the limitation of equity proportion. If the new shareholders compare with the qualification requirements of the sponsor shareholders, it is difficult to find the qualified objects in the short term. For example, for private banks, shareholders must be purely private enterprises. But this year, most private enterprises generally have difficulties in self financing. At this time, it is more difficult for private enterprises to invest hundreds of millions of yuan into a bank, and they are not allowed to pay dividends or obtain any form of related loans within five years. Wu Xiaoling said.

A bank source said that the fundamental dilemma of capital replenishment of small and medium-sized banks is that some small and medium-sized banks have high risks, high operating pressure and weak profitability, while the risks have not been cleared out, and institutional investors are not optimistic about it in a short period of time.

Some analysts say that it is reasonable to support banks to replenish capital reasonably, but for banks with relatively poor operating performance, even after capital replenishment, it will take a long way to become a good bank. Banks should pay attention to improve their management ability and management level, formulate a reasonable development strategy, and develop steadily and sustainably.