1. In terms of asset scale:
total assets of 885.8886 billion, a very auspicious figure! ! ! This was an increase of 6.27% from the end of the previous year.
Of which loans and advances were 5,382,998 million, an increase of 7.04% over the end of the previous year.
is still a relatively high growth rate of asset scale.
2. In terms of operating income:
accumulated operating income of 168.7 billion, an increase of 13.75% year-on-year.
Among them:
1) Net interest income totaled 99.3 billion, a year-on-year increase of 9.3%.
Interest income was 159.2 billion, a year-on-year increase of 3.62%. The main reason for the growth is the increase in the scale of interest-bearing assets, while the rate of return of interest-bearing assets has fallen.
The net interest margin has slightly decreased , this is easy to understand. After all, the entire interest rate market fell in the first half of this year. It is expected that the net interest margin in the second half of the year will still be challenging, but due to the decline in the deposit reserve ratio, it should be possible to optimize the debt structure to keep the net interest margin stable in the second half of the year.
The net interest margin has fallen for the eighth consecutive quarter, which further validates a chart I made before. The net interest margin between Industrial and Minsheng will slowly catch up with China Merchants Bank .
2) There is a big bright spot in non-interest income , for example, non-interest net income reached 69.4 billion, a year-on-year growth rate of more than 20%. It accounts for 41% of revenue.According to this growth rate, the day when 's non-interest net income exceeds 50% can be waited for . It can be seen that the growth of non-interest income has been the main engine of China Merchants Bank's income growth.
Instead of interest income, the fastest growth rate is the fee income of wealth management, which has a year-on-year increase of 34% !
It can be seen that it is no longer the traditional credit business that drives the growth of China Merchants Bank, but the big wealth and investment business. It is expected that China Merchants Bank will reach the threshold of 50% non-interest net income as soon as possible.
3. Credit impairment loss:
Why do I say that China Merchants Bank is the magician who hides net profit? The main reason is here.
reported a total of 41.8 billion impairment losses, an increase of 1.8 billion over the same period last year. Last year’s impairment loss was already very large, and this year is basically the same as last year.
But a closer look will reveal the tricky: Among them, the impairment loss of loans has been reduced. Last year, it accrued 36.2 billion and this year only 14.5 billion. This is a very important data. Why is it so much lower than the same period last year?
(the above picture shows the 2020 mid-term impairment loss)
The explanation in the mid-term report is very clear: “Last year the epidemic increased the provision of , with As the epidemic eases, the quality of loan assets tends to stabilize."
(the above picture shows the impairment loss in 2021)
However, the credit impairment loss of other assets has been correspondingly increased, directly The increase was 27.4 billion, almost twice the amount of loan provision. This is too exaggerated! ! !
The provision for loans has been reduced by 21.7 billion,Naturally, the provision is unlikely to increase significantly. So the so-called provision coverage ratio does not increase "superficial phenomenon"
Why does this appear?
I think there are two main reasons:
1) The provision coverage rate of China Merchants Bank has exceeded 400%, and there is no subjective requirement to increase the provision coverage rate;
2) Objectively, there is no bad write-off Therefore, the write-off in mid-2021 will inevitably be reduced significantly, so the provision for loans must be reduced.
The above two reasons (one subjective and the other objective) have caused the provision coverage ratio of China Merchants Bank to not increase as much as before.
And China Merchants Bank is very clever like a magician, putting the impairment loss into other assets! ! ! This is a magician! ! !
hides profits, hides the provision coverage ratio, and at the same time, provides sufficient impairment losses.
4. Loan quality:
The balance of non-performing loans is 54.542 billion, and the non-performing rate is 1.01%. A decrease of 0.06 percentage points. The non-performing balance increased slightly, and the non-performing rate continued to decline.
In terms of non-performing write-offs, the mid-year report for 2021 has dropped significantly. Last year, 43.7 billion was written off. This year, there is really no bad to write off, so only 14.8 billion was written off in the middle of this year.
The balance of loan loss reserves was basically the same as at the end of last year, 239.7 billion, and the provision coverage ratio was 439%, compared with 437% at the end of last year.
New students' non-performing loans in the first half of the year were 23.2 billion, a year-on-year decrease of 4.7 billion. It shows that the new students' non-performing loans have improved further.
Including corporate non-performing loans generated 6.6 billion, retail non-performing loans generated 2.5 billion, and personal credit card non-performing loans were 14.2 billion. It can be seen from that the bad generation of credit cards still accounts for a relatively large proportion.
5. Summary:
1) In terms of income, non-interest net income is a bright spot, with a growth rate of more than 20%; the only problem is that the net interest margin has been falling. If you remember correctly, it should be the eighth consecutive quarter going down.
2) Net profit has maintained a growth rate of 20%+ when the credit impairment loss has not decreased;
3) Asset quality has improved further, write-offs have been greatly reduced, and the NPL data is very beautiful;
4) The net interest margin on the income side is a little bit flawed, and the non-interest net income is the bright spot;
5) The cost side still adjusts the net profit through credit impairment losses, which is very cleverly hidden! ! !
Through the interim report of China Merchants Bank, it is basically possible to predict the general situation of the stock bank: 's operating income can reach about 10%. Impairment losses will not increase further, individual banks should reduce some (such as people's livelihood), and net profit will increase significantly (+15%).
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