In the third quarter, the net profit of most small and medium-sized banks declined compared with the same period last year. Among the 19 small and medium-sized banks that have published the third quarter report, 15 of them are in negative growth in net profit. Among the other four, the growth rate of net profit of 3 companies is in single digit, and the growth rate of net profit of Wenzhou bank is more than 40%. Prior to this, Wenzhou banks net profit fell sharply.
The biggest drop in net profit was found in Daxinganling rural commercial bank, with a net profit of only 40 million yuan in the first three quarters, a decrease of 71% compared with the same period last year. The banks business is mainly concentrated in Jiagedaqi District of Daxingan Mountains, and the impact of the epidemic on this area is not serious this year. One of the important reasons for the pressure of net profit of agricultural and commercial banks in Daxinganling lies in the fact that the local economic growth rate has slowed down due to the complete cessation of commercial logging forestry, which has formed a certain negative impact on the business development of local financial institutions.
In addition to the above risks, the great khinganling rural commercial bank also faces the risk of large shareholders. The banks largest shareholder is new Hualian, with a shareholding ratio of 18%. On October 20, this year, Bank of Beijing said that the company recently received the notice on judicial freezing and judicial transfer of equity of Shanghai Branch of CSDCC and the notice of assistance in execution of intermediate peoples Court of Jinzhou City, Liaoning Province, which was forwarded by Shanghai Stock Exchange. It was informed that about 523 million shares held by the companys shareholder Xinhualian holdings were frozen by the court, accounting for 100% of its shares; the waiting period for freezing was 3 years. Also on October 20, Kodak manufacturing announced that it received relevant documents and learned that the companys shares held by the shareholder New Hualian holdings had been frozen for three rounds by the judiciary, with a total of 431 million shares waiting to be frozen.
In addition, the net profit of Shiyan rural commercial bank also declined significantly in the first three quarters. Data show that as of the third quarter of this year, the net profit of Shiyan rural commercial bank was 154 million yuan, down 41.6% year-on-year. The main reason is novel coronavirus pneumonia epidemic prevention work has continued to carry out a certain impact on Hubeis economy; meanwhile, Shiyan agricultural and commercial bank has made capital replenishment in the three quarter.
A banking analyst said that at present, the overall asset quality of small and medium-sized banks is poor, the coverage level of credit asset provision and capital adequacy ratio are lower than the average level of commercial banks. The supervision also requires the regional corporate banks to serve agriculture, rural areas and farmers and small and micro enterprises. In principle, loans should not go out of the county and funds should not go out of the province. Regional supervision should be strengthened, and the loan business in different places should be strictly restricted. In addition, with the business of financial institutions such as state-owned banks gradually sinking and seizing local excellent customers, rural commercial banks are facing fierce competition. In terms of the quality of credit assets, due to the limited level of credit risk management of small and medium-sized banks, the credit strategy in history is generally extensive. Under the pressure of economic downturn, asset recovery and disposal test the ability of small and medium-sized banks. In the future, the profitability of small and medium-sized banks will continue to decline.
Up to now, there are only three banks that have disclosed the non-performing rate in the three quarterly reports of non listed banks this year, namely Datong agricultural commercial bank, Yingdong agricultural commercial bank and Sheyang agricultural commercial bank.
According to the financial data of Yingdong agricultural and commercial bank, as of the end of September, the balance of loans was 19.687 billion yuan, including 19.218 billion yuan of normal loans, 122 million yuan of special attention loans, 347 million yuan of non-performing loans, and the non-performing loan ratio was 1.76%, and the non-performing rate at the end of last year was 1.45%.
An agricultural commercial bank executive said that affected by the slowdown in macroeconomic growth, the external business environment of commercial banks is facing greater pressure. In addition, the regulatory authorities have been stricter in the management of the five level classification of credit assets of commercial banks, requiring that loans overdue for more than 90 days should be included in the management of non-performing loans. In addition, the non-performing loan ratio of commercial banks has continued to rise, and the overall quality of credit assets has declined.
In 2020, due to the impact of the epidemic situation on the macro-economy and the greater operational pressure on private and small and micro enterprises, the non-performing loan ratio of commercial banks will continue to grow. In particular, the credit quality of urban commercial banks and rural commercial banks will still face certain downward pressure in the future, and the pressure on provision will be greater. The people said.