Five Major State-Owned Commercial Banks Showed Their Report Cards Last Year: Net Profit Growth Slowed Down

Every April is the time when the annual reports of listed companies are concentrated.

The five largest state-owned banks

Recently, the report cards were also released.

ICBC achieved a net profit of 278 billion 200 million yuan in 2016, an increase of 0.4% over the previous year, a net profit of 183 billion 900 million yuan, an increase of 1.86% over the previous year, a profit of 164 billion 600 million yuan, a decrease of 3.67% compared with that of the previous year, and a net profit of 231 billion 500 million yuan, an increase of 1.45% over the same period last year, while the Bank of communications was 67 billion 200 million yuan, an increase of 1.03% over the same period last year.

From this report card, five big banks

The growth rate slowed down, the increase was basically hovering on the "1" up and down.

While profit growth has slowed down, the total number of employees has also declined.

According to the annual report data, by the end of 2016, except for the number of employees in the bank increased by 1088, the total number of four employees in the construction of workers and peasants was 1 million 629 thousand and 800, down 18824 from the previous year.

In 2016, the total number of the five major institutions was 70783, representing a decrease of 169 from 70952 in 2015, with a decrease of 0.2%.

The total number of employees in the five industries was 1 million 722 thousand, a decrease of 17736 from 2015 and a decrease of 1%.

The bank's profit growth has slowed down and the number of employees has become thin, which has aroused widespread concern in society.

Many people worry: how can the profit growth of the five largest banks be so low? What is the future of the traditional banks?

Profits slowed down, and the net income of the five major businesses decreased by 6% - 9%.

"The growth of bank owners' business revenue has slowed down, while the cost has not been significantly reduced, and the profit growth rate has slipped normally."

Ceng Gang, director of the Research Institute of the Financial Research Institute of the Chinese Academy of Social Sciences, said that this trend will continue despite the fact that the real economy is still in the adjustment period.

Zeng Gang analysis, the most fundamental reason for the decline in profit growth is

Increasing the effective credit demand of enterprises leads to a decline in the level of return on assets of banks.

Second, the marketization of interest rates has also pushed the net interest margin level of banks to a constant narrowing and the traditional main business income of banks has declined.

Thirdly, financial disintermediation also reduced the demand for bank credit in the real economy. In 2016, the cost of issuing bonds was much lower than the interest rate of bank loans, which also led to a decline in bank assets yield.

In addition, the non-performing loans of commercial banks increased, and the provision level of risk provision increased with the increase of the scale of non-performing loans, and some profits were reduced.

Net interest income is the main source of bank income, but the net interest margin level has declined in recent years. In 2016, the net interest income of the five major companies decreased by 6% to 9%.

In 2016, China's net interest margin narrowed by 29 basis points last year, reaching 1.83%.

In this regard, Zhang Qingsong, vice president of the Bank of China, analyzed that, first, since the beginning of 2015, the people's Bank of China has continued to lower the benchmark interest rate on deposit and loan. Because of the disagreement between the time limit for deposit pricing and the period of loan pricing, the net interest margin has declined. The two is the impact of "camp to increase"; three, the US dollar raised interest rate last year, but there is no opportunity for assets to be used at high yield in China.

Dot loss, information technology to improve customer habits

Shrinking networks and reducing staff is not only the five main line of downsizing.

This is a trend. Last year, the number of employees in the banking sector declined for the first time in recent years.

"The promotion of information technology, bringing customers' habit change, is the main reason for the bank's lean body."

Zeng said that more and more customers were receiving financial services through electronic channels. The electronic banking substitution rate of listed banks has reached over 95%, which means that banks have reduced their dependence on traditional physical outlets.

For example, the amount of financing of ICBC has exceeded 630 billion yuan, and 92 of the 100 businesses have been completed online. It has become the largest Internet financing bank.

The replacement rate of the electronic channel business of the bank reached 91%, and the intelligent outlets in the mainland accounted for 50%.

With the improvement of the electronization of traditional banks, people also have personal feelings.

For example, personal accounts opened online banking, you can tie Alipay, WeChat, payment, pfer, remittance and other businesses on computers and mobile phones can do.

Large amount of withdrawals business can also be done by ATM and other ways. Basically, there is no need to go to the counter.

Dong Ximiao, a visiting researcher at Chongyang Financial Research Institute, Renmin University of China, analyzed the changes in the five major industries, and the overall reduction in the number of institutions and staff was mainly due to structural adjustment and optimization.

There will still be room for reduction in the banking industry in the future, but these people will be trained and pferred inside the banks. Massive layoffs will not happen.

"The structure of employees in China's banking industry is quite different from that in Europe and the United States."

Dong Ximiao said that the 60% to 80% Bank of Europe and the United States is the marketing personnel, the proportion of teller is 20% to 40%, while the marketing personnel in the banking industry in China only account for 20% to 30%, and the percentage of tellers is 70% to 80%, which is almost reversed.

The physical outlets of China's banking industry in the past were mainly "accounting pactions", and now they are changing to "marketing service type".

In this process, the pformation of the counter personnel into the marketing personnel is very large, and the future will be consistent with the personnel structure of the banks in Europe and the United States.

Steady recovery, non-performing loans "double rise" trend has been curbed.

How do we look at the current bad loans of banks? What is the future trend? This is also a particular concern of the community.

Overall, with the overall economy in 2016,

As well as the banks' efforts to increase the disposal of non-performing loans, the trend of "double litre" of the scale of non-performing loans and the rate of non-performing loans has finally been curbed, and the quality of the assets of the five major banks generally has a steady trend.

Among them, the balance of bad loans and bad loans of ICBC, Bank of China and Bank of China is still "double litre", but the rate of increase has slowed down. The balance of non-performing loans between ABC and CCB has increased year by year, but the rate of non-performing loans has declined.

Such as Agricultural Bank of China, as of the end of 2016, its non-performing loan ratio was 2.37%, 0.02 percentage points lower than the end of last year.

The industrial and Commercial Bank of China Chairman Yi said that at present, the bad loan rate of ICBC is 1.62%, which is lower than the national average of 1.74% and lower than that of the international big banks.

Bad volume, bad rate growth slowed compared with the same period, the provision coverage rate increased in the four quarter, asset quality steady good trend has emerged.

Does this mean that the turning point of substantial improvement in asset quality has arrived?

Dong Ximiao thought that we could not judge this.

From a regional perspective, the risk of non-performing loans will spread from the eastern coast to the central and western regions.

In the central and western regions, due to the concentration of resource industries, large enterprises and large number of state-owned enterprises, non-performing loans may take longer to fully expose.

From the industry perspective, although the current real estate industry bad loan rate is not high, but as a capital intensive industry concentrated a large amount of credit funds, under the huge pressure to inventory, its potential risks will further appear.

In addition, the risk of shadow banking system and non credit business of banks may also be exposed gradually.

At present, the pressure of the stable operation of the economy is still large, and the difficulties faced by the real economy are still more. "Three go down, one subsidy and one subsidy" continues to push forward, and the "zombie enterprise" is reorganized and exited. Some enterprises' exposure to debt risk may increase. More effective measures should be taken to prevent risks and should not be taken lightly.

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