(Economic Watch) China's Big Four Banks Will Make New Focus on Net Investment of 997.4 Billion RMB in Last Year
China News Agency, Beijing, March 31th: The four major banks in China last year made a net profit of 997.4 billion trillion yuan in loans. There will be a new focus on investment.
China News Agency reporter Wei Wei
As of March 31, the 2019 annual results of the four major banks in China have all been announced.
Industrial and Commercial Bank of China achieved a net profit of 313.4 billion yuan (RMB, the same below), an increase of 4.9% year-on-year; China Construction Bank's net profit of 269.2 billion yuan, an increase of 5.32%; Bank of China achieved an after-tax profit of 2019 billion yuan, an increase of 4.91% ; Agricultural Bank of China achieved a net profit of 212.9 billion yuan for the year, a year-on-year increase of 5.08%.
In 2019, China's four major banks made a net profit of about 977.4 billion yuan, and their total assets exceeded 103 trillion yuan.
Strengthening financial capabilities
Judging from the 2019 annual reports of the four major banks, under the various "ceilings" of risk prevention and control, the financial risk capabilities of the major banks have been enhanced.
At the end of 2019, the Industrial and Commercial Bank of China's non-performing loan ratio decreased by 0.09 percentage points from the end of the previous year to 1.43%.
China Construction Bank's non-performing loan ratio was 1.42%, a decrease of 0.04 percentage points from the previous year; provision coverage ratio was 227.69%, an increase of 19.32 percentage points from the previous year.
As of the end of 2019, the Group's non-performing loan balance was 178.2 billion yuan, and the non-performing loan ratio was 1.37%, a drop of 0.05 percentage point from the end of the previous year. The focus and overdue loans achieved a "double decline".
The non-performing loans of the Agricultural Bank of China continued to "double decline", with the balance of non-performing loans of 18,710 million yuan, a decrease of 2.792 billion yuan from the previous year; the non-performing loan ratio was 1.40%, a decrease of 0.19 percentage points from the end of the previous year.
Where are trillions of loans going?
The annual report shows that ICBC's various loans in 2019 increased by 1.34 trillion yuan or 8.7% over the end of the previous year, of which domestic RMB loans increased by 1.33 trillion yuan or 9.8%. From an industry perspective, ICBC has focused on supporting key areas of economy and people's livelihood such as transportation, public facilities, energy, manufacturing, and service industries.
"New infrastructure" is a new focus of major banks' loan support in 2020.
Wang Jingwu, deputy president of ICBC, said that in 2020, ICBC will strengthen its ability to serve the needs of optimizing the industrial structure, accelerating technological innovation, and promoting regional economic development. Speed up the improvement of service levels for new industries and new formats such as the Internet of Things, 5G technology, and digital technology, and strengthen support for the core momentum of future economic growth.
Zhang Gengsheng, deputy governor of China Construction Bank, said that in 2020, CCB's domestic loan is expected to increase in three major areas: first, medical, health, and health; second, new infrastructure with a market size of more than 1 trillion yuan; three It is a traditional infrastructure. In addition, the impact of the international epidemic on China's industrial chain also depends on "if the foreign epidemic cannot be ended by the third quarter, it will have a great impact, and this year's loans may be particularly cautious in this regard."
How big will the epidemic be?
Industrial and Commercial Bank of China President Gu Yan said at the results conference that in 2020, the spread of the new crown pneumonia epidemic will pose challenges to consumption and exports, which will have a certain impact on the quality of bank assets. During the epidemic, ICBC has extended or renewed loans to 18,600 enterprises.
Liu Guiping, President of China Construction Bank, said that commercial banks are closely related to economic operations. There is no doubt that the outbreak has a great impact on the economy and will also have an impact on business management.
"This year's impact on asset quality has been a foregone conclusion." Jin Yanmin, chief risk officer of CCB, pointed out that according to CCB's stress test, the first round of domestic epidemic was generally controllable, but the impact of the second round of global risk input would also Need to continue to observe.
According to Liu Jiandong, director of risk at Bank of China, affected by the new crown pneumonia epidemic and the large fluctuations in global financial markets, in the short term, consumption and service industries such as catering and accommodation, tourism and entertainment, wholesale and retail, and transportation are the first to bear the brunt. "Affected by the epidemic, the default rate of individual customers who have temporarily lost their source of income and had difficulty in repayment has increased."
Zhang Qingsong, Governor of the Agricultural Bank of China, said at an online performance briefing held on March 31 that New Crown Pneumonia was a major unexpected external shock. In terms of bank loans and new loans, the Agricultural Bank has focused on the affected areas. The industries, regions and customers with greater influence shall conduct risk assessment and risk monitoring, and at the same time take measures to prevent and resolve them. He believes that the impact of the epidemic on the quality of agricultural bank loans is temporary and controllable, and he has confidence in the quality of agricultural bank loans. (Finish)