China’s listed banks in 2020 review and Future Outlook Report From Ernst & Young
The following is the China’s listed banks in 2020 review and Future Outlook Report From Ernst & Young recommended by recordtrend.com. And this article belongs to the classification: Enterprise financial report, Investment & Economy, research report.
China’s listed banks novel coronavirus pneumonia industry has achieved positive growth in net profit in 2020, which indicates that the listed banks in China have stood the test of the new crown pneumonia epidemic and showed sufficient operational toughness. It is believed that listed banks should actively seek transformation, seize policy opportunities and maintain strategic strength, which can maintain resilience and achieve sustainable high-quality development.
In the first quarter of 2021, the total net profit of 38 A-share listed banks was 519.944 billion yuan, a year-on-year increase of 4.55%, 0.49% lower than that in the first quarter of 2020.
In 2020, the operation of listed banks is facing greater pressure, with a total net profit of RMB 1761.6 billion, with a growth rate of 0.10%. As the growth of net profit slowed down, the weighted average return on net assets and average return on total assets were 11.19% and 0.86% respectively, which were 1.28% and 0.07% lower than that in 2019.
Affected by factors such as COVID-19, the bad loans of listed banks rose at the end of 2020, and the balance of non-performing loans totaled 18271 billion yuan, an increase of 241 billion 100 million yuan compared with the end of last year, and the weighted average non-performing loan rate increased from 1.47% at the end of 2019 to 1.50%. Although the non-performing loan ratio of listed banks increased, the overdue loan ratio continued to decline, from 1.70% at the end of 2019 to 1.49% at the end of 2020.
In recent years, the profit contribution of retail business has been increasing year by year, which has become a new engine of profit growth. Due to the relatively small impact of the epidemic, the retail business performed particularly well in 2020, accounting for 42.33% of the total business income, 2.86 percentage points higher than that in 2019, and the proportion exceeded that of the company’s business for the first time; The pre tax profit of retail business accounted for 45.61% of the overall pre tax profit, increased by 6.56 percentage points compared with that in 2019, and the leading advantage over the company’s business expanded from 2.46 percentage points in 2019 to 10.29 percentage points.
By the end of 2020, 19 financial management subsidiaries of listed banks have opened. With the transfer of financial management business management to subsidiaries, relying on the parent bank’s superior resources in sales channels, customer group scale, system operation and other aspects, the net profit and product scale of financial management subsidiaries will grow rapidly in 2020, which also drives the growth rate of intermediate business income of listed banks to pick up.
2021 is the last year of the transition period of the new asset management regulations, and the transformation of financial management business of listed banks and financial management subsidiaries is still facing challenges. Jiang Changzheng said, “in the current market environment, with the emergence of new technologies, new products and new regulatory environment, the asset management industry is gradually changing and entering a new era. According to the requirements of relevant regulatory policies, the traditional profit-making mode of wealth management business, such as term mismatch and leverage promotion, has been limited to a certain extent. Enriching the types of asset investment and improving the ability of asset pricing and risk management have become the main ways for asset management products to make profits. It is very important for commercial banks to find out the business model of financial management business, enhance the core competitiveness and realize the healthy and orderly development of financial management business in the new environment. “
In 2020, listed banks will actively respond to the national strategy, continue to promote the development of green finance and Inclusive Finance, and this kind of business will grow rapidly. Among them, the balance of green loans of large commercial banks increased by 25.38%, and that of Inclusive Finance increased by 48.38%. In this regard, Xu Xuming said: “for listed banks, it is an inevitable choice to carry out green finance and Inclusive Finance in depth. On the one hand, with the vigorous promotion of national strategies such as “carbon peaking”, “carbon neutralization” and “Rural Revitalization”, we can enjoy the policy dividend and seize the market opportunity only by following the trend; On the other hand, only by actively taking social responsibility and focusing on customers can we enhance customer stickiness, improve the coverage and availability of financial services, and promote the quality and efficiency of financial services. “
2021 is the first year of the 14th five year plan, and the listed banks have entered a new stage of development. “In the new stage where opportunities and challenges coexist, listed banks need to turn pressure into driving force, fully implement the new development concept, make long-term planning, maintain strategic concentration, and continuously promote business transformation, so as to achieve sustainable and high-quality development,” Xin Yi said
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