Zhengzhou Bank revenue growth decline, housing irregularities rate significantly increased

Recently, Bank of Zhengzhou Co., LTD. (hereinafter referred to as “Bank of Zhengzhou”) disclosed its 2021 performance report.Zhengzhou Bank operating index has a small growth, growth is relatively small.Specifically, Bank of Zhengzhou achieved operating revenue of 14.801 billion yuan in 2021, a year-on-year increase of 1.33%;Net profit attributable to shareholders reached 3.226 billion yuan, up 1.85% year on year;Its total assets reached 574.980 billion yuan, an increase of 4.96% compared with the end of 2020.Silver Persimmon financial reporters noted that the bank of Zhengzhou revenue growth rate in the past three years were 20.88%, 8.30%, 1.33%, the growth rate declined significantly.Among them, non-interest income, which affects the growth of the bank’s revenue in 2021, declined. During the reporting period, non-interest income was 2.852 billion yuan, down 515 million yuan or 15.32% compared with the same period last year, accounting for 19.27% of the operating revenue ratio.Among them, the net income of fees and commissions was 1.242 billion yuan, down 488 million yuan from the previous year;Other non-interest income was 1.61 billion yuan, down 27 million yuan from the same period last year.Bank of Zhengzhou said that, first, due to the response to the regulatory policy of reducing fees and profits and the reduction of the scale of trusteeship business, the bank’s fee and commission net income of 1.242 billion yuan, 488 million yuan less than the same period last year, a drop of 28.23%;Second, due to the change in financial investment income measured at fair value and recorded in current profit and loss, other non-interest income of 1.61 billion yuan, decreased by 27 million yuan, or 1.67%, compared with the same period last year.In terms of asset quality, although the non-performing loan ratio of Zhengzhou Bank has declined, it is still higher than the listed banks that have disclosed their annual reports.By the end of the report, the non-performing loan ratio was 1.85%, 0.23 percentage points lower than that at the end of 2020, and the non-performing loan balance was 5.345 billion yuan.The provision coverage rate is 156.58%.From the perspective of profitability, the overall profitability has declined. By the end of the reporting period, the weighted average return on equity of the Bank was 7.17%, down 1.20 percentage points compared with the end of 2020.Net interest margin 2.24%, down 0.22 percentage points;Net interest yield 2.31%, down 0.09 percentage points;The cost-income ratio was 22.98%, up 0.58 percentage points.In terms of capital adequacy ratio, The capital adequacy ratio of Zhengzhou Bank is higher than the average capital adequacy ratio of joint-stock banks issued by CBRC, and its capital adequacy ratio is 15.00%.Core Tier 1 capital adequacy ratio was 9.49%, up 0.57 percentage points from 8.92% at the end of the previous year.Tier 1 capital adequacy ratio was 13.76%, up 2.89 percentage points from 10.87% at the end of 2020.The capital adequacy ratio was 15.00%, up 2.14 percentage points from 12.86% at the end of last year.It is worth noting that although the operating indicators of Zhengzhou Bank are positive growth, the potential risks can not be ignored, and the balance of non-performing loans to the public real estate of zhengzhou Bank will increase substantially in 2021.The annual report shows that the outstanding balance of real estate non-performing loans of Zhengzhou Bank rose from 382 million yuan in 2020 to 1.194 billion yuan in 2021, an increase of 212.64%;The non-performing loan ratio increased by 2.22 percentage points from 1.25% to 3.47%.The non-performing loan ratio of individual housing mortgage loans was 0.96%, up 0.44 percentage point;The outstanding non-performing loans increased by 110.59% from 186 million yuan to 391 million yuan.In addition, the annual report shows that The Bank of Zhengzhou in 2021 will not carry out cash dividends, do not send bonus shares, do not carry out capital reserves into shares.The bank explained that it will not pay cash dividend in 2021, mainly considering the following factors: First, the severe flood disaster and THE COVID-19 epidemic have brought serious impact on the economic development of Henan Province, and the bank continues to benefit the real economy, which has affected the development speed and revenue level to some extent.Second, complying with regulatory guidance to retain undistributed profits will help the Bank to further enhance the ability to resist risks and provide a guarantee for the bank to maintain stable and sound operation.By the end of April 8, Zhengzhou Bank’s A-shares were at 2.96 yuan, up 0.34%, 35.51% lower than the offer price of 4.59 yuan, with A total market value of 24.47 billion yuan.

Leave a Reply

Your email address will not be published.