A reporter from China Securities Journal recently reviewed the 2021 annual reports of several banks and found that as of the end of 2021, the balance of non-performing loans and non-performing loan ratios involving real estate in the banking industry as a whole increased slightly compared with the previous year.
According to industry insiders, this is related to the increase in the provision by commercial banks of the real estate industry.
On the whole, the risk exposure of the banking industry's housing-related business is limited, and commercial banks will further strengthen risk control measures in the follow-up, while increasing support for affordable rental housing projects and high-quality housing companies' mergers and acquisitions.
NPL ratio of housing-related loans rose slightly
According to the incomplete sorting out by reporters from China Securities Journal, as of the time of publication on March 29, there are 7 A-share listed banks including Bank of China, Bank of Communications, China Merchants Bank, Industrial Bank, China CITIC Bank, Ping An Bank and Bank of Suzhou in their 2021 annual reports. Disclosure of housing-related loans.
On the whole, the balance of real estate loans of various banks has increased compared with the end of 2020, but the proportion has decreased, and the loan structure has been optimized.
Taking Bank of China as an example, as of the end of 2021, the bank's real estate loan balance was 687.186 billion yuan, accounting for 4.38% of the bank's total loan balance.
At the end of 2020, the above two figures were 639.777 billion yuan, 4.51%.
In terms of asset quality, the balance of non-performing loans and the ratio of non-performing loans in the real estate industry of most banks rose slightly.
According to the annual report of Ping An Bank, as of the end of 2021, the non-performing loan ratio of the real estate industry was 0.22%, an increase of only 0.01 percentage points from the end of 2020.
The situation of other shares is similar.
As of the end of 2021, the balance of non-performing loans in the real estate industry of China Merchants Bank increased from 1.190 billion yuan at the end of 2020 to 5.655 billion yuan, and the non-performing loan ratio increased from 0.3% to 1.41%; the balance of non-performing loans in the real estate industry of China CITIC Bank increased from 9.633 billion yuan to 5.655 billion yuan. 10.331 billion yuan, with a non-performing loan ratio of 3.63%, an increase of 0.28 percentage points from 2020.
The non-performing loan ratio of some small and medium-sized banks in the real estate industry has increased significantly.
According to the annual report of Bank of Suzhou, as of the end of 2021, the balance of non-performing loans in the real estate industry was 514 million yuan, and the non-performing loan ratio was 6.65%, while the above two data in 2020 were 88.802 million yuan and 1.36% respectively.
In this regard, the staff of Suzhou Bank's investor line responded to a reporter from China Securities Journal that this aspect is related to the overall real estate situation since the second half of last year, and on the other hand, due to the bank's attitude of clearing risks, it has actively increased the Provisions for the real estate industry.
Continue to provide financing support
Regarding the risk level of the current housing-related business, all banks are more optimistic, saying that the business development is cautious, the mortgage guarantee is sufficient, and the risk is generally controllable.
Guo Shibang, vice president of Ping An Bank, said at a performance conference a few days ago that the bank's real estate-related business risks are generally controllable.
"Baoneng is the most important real estate insurance business, but it has reached a judicial settlement with Baoneng, and the court has issued a mediation letter. Among them, the Baoneng City project with the largest amount of 5.4 billion yuan can immediately enter the judicial auction execution link. If the sale goes well , a large pressure drop is expected in 2022."
According to Hu Gang, vice president of China CITIC Bank, the bank's real estate loan business presents the following four characteristics: firstly, it has always adopted a relatively cautious attitude, especially in the choice of customers; secondly, in terms of guarantee, 99% of the existing real estate is Customers have mortgages; thirdly, in terms of regional distribution, the total balance of real estate loans in first- and second-tier cities exceeds 90%, of which first-tier cities account for more than 50%; fourthly, the provision level for real estate loans is increased, and the loan-to-distribution ratio exceeds 6%. Compared with the overall loan-to-business ratio, it has doubled.
Looking forward to the future, the management of many banks said that on the one hand, they will increase forward-looking investigation and intelligent early warning, and on the other hand, they will continue to increase financing support for the real estate industry.
Yang Bingbing, vice president of Everbright Bank, believes that the real estate industry will gradually stabilize in the future. The next step is the bank's housing-related loan strategy. There are four aspects: first, actively support the construction and operation of affordable rental housing; second, actively support urban The third is to reasonably support the real estate mergers and acquisitions of high-quality entities and high-quality projects; the fourth is to support the commercial housing market to better meet the reasonable housing needs of home buyers, and to implement city-specific policies to promote the healthy development of the real estate market and a virtuous circle.