Sino-Singapore Jingwei Client, October 30 (Zhang Shunan) The financial reports of the six major state-owned banks for the third quarter of 2020 have all disclosed that operating income has increased, but the net profit attributable to the parent (hereinafter referred to as net profit) has collectively declined.

Among them, the "Universal Bank" ICBC still ranks first in its profitability, earning about 835 million yuan a day.

　　Sino-Singapore Jingwei Client noticed that the revenue of the six state-owned banks in the first three quarters all achieved positive growth. Among them, China Construction Bank achieved revenue of 571.435 billion yuan, a year-on-year increase of 5.89%, ranking first among the six major banks.

　　In terms of profitability, in the first three quarters, the six state-owned banks achieved a net profit of over 850 billion yuan, with an average daily profit of over 3.1 billion yuan.

ICBC’s profitability still ranks first among the six state-owned banks, with a net profit of 228.675 billion yuan from January to September, and a daily profit of about 835 million yuan.

　　It should be mentioned that the net profit of the six state-owned banks in the first three quarters all declined.

Among them, Bank of Communications' net profit dropped the most, reaching 12.36%.

　　In terms of the non-performing loan ratio, as of September 30, the Agricultural Bank’s non-performing loan balance was 226.213 billion yuan, an increase of 39.003 billion yuan from the end of the previous year; the non-performing loan ratio was 1.52%, an increase of 0.12 percentage points from the end of the previous year.

The non-performing loans of China Construction Bank were 255.528 billion yuan, an increase of 43.055 billion yuan from the end of the previous year; the non-performing loan ratio was 1.53%, an increase of 0.11 percentage points from the end of the previous year.

At the end of the reporting period, the Bank of Communications' non-performing loan balance was 97.014 billion yuan, an increase of 18.971 billion yuan from the end of the previous year, an increase of 24.31%; the non-performing loan ratio was 1.67%, an increase of 0.20 percentage points from the end of the previous year.

　　In addition, as of the end of the reporting period, according to the five-level classification of loan quality, PSBC’s non-performing loan balance was 49.762 billion yuan, and the non-performing loan ratio was 0.88%.

Bank of China’s total non-performing loans amounted to 211.427 billion yuan, with a non-performing loan ratio of 1.48%, an increase of 0.11 percentage points from the end of the previous year, and a non-performing loan provision coverage ratio of 177.46%, a decrease of 5.40 percentage points from the end of the previous year.

　　Will the negative growth continue?

Wang Yifeng, chief analyst of the financial industry at Everbright Securities Research Institute, once told the media that as the epidemic is brought under control, the existing risks have gradually cleared out, and banking operations will return to normal tracks.

The large state-owned banks and joint-stock banks operate relatively steadily. Even if their net profits temporarily experience negative growth, they will not change the overall pattern. The industry's profit growth rate still depends on these major financial institutions returning to normal as soon as possible.

　　Zeng Gang, deputy director of the National Finance and Development Laboratory, also believes that, overall, the banking industry’s provision coverage is relatively adequate. Although net profit has declined, it is still profitable, ensuring the banks’ ability to write off bad debts and resist risks. Objective is still relatively strong.

However, there may be differentiation on the structural level, and some small and medium-sized banks may face greater challenges in the future.

(Zhongxin Jingwei APP)

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