said that the financial industry is the most profitable, and banks, as traditional financial institutions, make money even more enviable. Especially for state-owned big banks, profits can easily be tens of billions.
Data shows that in 2021, the six major state-owned banks of Industry, Agriculture, China, Construction, Communications, and postal storage have a combined net profit of 1,272.35 billion yuan, with an average daily profit of more than 3.5 billion yuan.
According to Science and Technology Finance Online , it is found that the profits of major state-owned banks have their own obvious geographical characteristics. Most of their profits come from the economically developed Yangtze River Delta region, but there are also major banks whose profits mainly rely on the central and western regions.
In addition, the profitability of major banks in the Northeast region is not ideal, and some banks even suffered huge losses in the Northeast region.
ICBC : Yangtze River Delta , Western
After sorting out the annual reports, except for Bank of China , the other five major state-owned banks have disclosed the specific geographical distribution of profits in 2021. Let's first look at the "Universal Bank" ICBC. The
annual report shows that ICBC's total pre-tax profit in 2021 will be 424.899 billion yuan, a year-on-year increase of 8.36%.
Judging from the geographical distribution of profits, the most profitable place for ICBC is the Yangtze River Delta region, which contributed 83.92 billion yuan in pre-tax profits to ICBC, accounting for 19.8% of ICBC's total profits, accounting for nearly 20%.
As we all know, the bulk of bank income comes from the interest income earned from lending. The Yangtze River Delta region, which contributes the most profit to ICBC, is also the region where ICBC issues the most loans.
By the end of 2021, ICBC's loans in the Yangtze River Delta region will be 4.16 trillion yuan, accounting for 20.2% of its total loans.
In fact, looking back on 2020, the most profitable place for ICBC at that time was not the Yangtze River Delta region, but the Bohai Rim region. Now the Bohai Rim region has become ICBC's third largest profit contributor.
The second largest source of ICBC's profit in 2021 is the western region, which contributed 65.477 billion yuan in pre-tax profit to ICBC last year, accounting for 15.4% of the total profit.
ICBC has the least source of profit in the Northeast region, where its annual pre-tax profit was only 1.259 billion yuan, a sharp drop of 105.96% year-on-year, and the proportion of profit also dropped from 0.7% in 2020 to 0.3%. fell by 0.4 percentage points.
Agricultural Bank of China : Yangtze River Delta, West
Similar to ICBC, the profits of Agricultural Bank of China also mainly rely on the Yangtze River Delta and the western region.
In 2021, the profit of Agricultural Bank of China from the Yangtze River Delta region will be 72.305 billion yuan, accounting for 24.4% of the total profit of Agricultural Bank of China.
The western region, as the second largest earner of the Agricultural Bank of China, will contribute 67.656 billion yuan in pre-tax profits to the Agricultural Bank of China in 2021, accounting for 22.9% of the total.
Similarly, the Yangtze River Delta region and the western region are also the largest and second largest regions in which the Agricultural Bank of China credits.
As of the end of 2021, the ABC's loans in the Yangtze River Delta region will reach 4.09 trillion yuan, accounting for 23.8% of the total loans; the amount of loans in the western region will reach 3.75 trillion yuan, accounting for 21.8% of the total loans.
The place where Agricultural Bank of China achieves the least profit is also the Northeast region. In 2021, the bank's pre-tax profit in the Northeast will be 5.856 billion yuan, accounting for 2%.
Bank of Communications : Yangtze River Delta, Central
Same as ICBC and Agricultural Bank of China, Bank of Communications' biggest money-making area is also concentrated in the Yangtze River Delta region. Unlike them, Bank of Communications' second biggest money-making area is not the west, but the central part of Region .
As of the end of 2021, the loan amount of Bank of Communications in the Yangtze River Delta region is 1.78 trillion yuan, accounting for 27.14% of the total loans. This region will contribute 45.781 billion yuan in pre-tax profits to Bank of Communications in 2021, accounting for 48.72% of Bank of Communications' total profits.
In other words, Bank of Communications' profits mainly come from the economically developed Yangtze River Delta region, which contributes almost half of Bank of Communications' total profits.
The central region, the second largest profit contributor, will contribute 18.922 billion yuan in pre-tax profits to Bank of Communications in 2021, accounting for more than 20% of the profits, which is 20.14%.
It can be seen that the pre-tax profits contributed by the Yangtze River Delta and the central region to Bank of Communications are close to 70% of its total profits. It can be seen that the geographical concentration of Bank of Communications' profits is very high.
In addition, it is worth mentioning that Bank of Communications will be in a state of loss in the Northeast region in 2021. The annual pre-tax profit in this region will be -5.899 billion yuan, and the proportion will also be negative, at -6.28%.
Bank of Communications is the only state-owned bank in Northeast China that is losing money. Looking back on 2020, at that time, Bank of Communications still achieved a pre-tax profit of 392 million yuan in the Northeast, and it will turn from profit to loss in 2021.
In addition, in 2021, the head office of the Bank of Communications will also be at a loss, with an annual pre-tax profit of -5.473 billion yuan, accounting for -5.82%.
It can be seen that the total losses of the Bank of Communications in the northeast and the head office area in 2021 exceeded 10 billion yuan.
Postal Savings Bank : Central, Yangtze River Delta
Similar to Bank of Communications, Postal Savings Bank’s profits mainly rely on the central region and the Yangtze River Delta. Its second largest source of profit. Data from
shows that the central region will contribute 25.047 billion yuan in pre-tax profits to Postal Savings Bank in 2021, accounting for 30.7% of its total profits; the Yangtze River Delta region will contribute 17.289 billion yuan in pre-tax profits, accounting for 21.2%.
It can be seen that the profit of PSBC from the central region and the Yangtze River Delta also accounts for half of the total profit of PSBC. Compared with other big banks, this proportion has a relatively high geographical concentration.
In addition, Postal Savings Bank also incurred losses in the headquarter area last year, with a loss of 7.095 billion yuan, accounting for -8.7%.
CCB : head office, ring Bohai
Compared with other big banks, CCB's most profitable regions are different, and the biggest contribution to its profits is the headquarter region.
data shows that in 2021, CCB's pre-tax profit from the head office area will be 68.394 billion yuan, accounting for 18.08%.
However, from the perspective of the geographical distribution of loans, the head office area is not the largest area for CCB loans. As of the end of 2021, the bank's loan amount in the head office area was 0.9 trillion yuan, accounting for only 4.8%.
The second largest contributor to CCB's profits is the Bohai Rim region. Last year, the pre-tax profit from this region was 64.594 billion yuan, accounting for 17.07%.
Similarly, the Bohai Rim region is not the second largest region for CCB credit.The first and second largest regions of CCB's credit extension are the Yangtze River Delta region and the central region, and its loan amount in these two regions accounted for 18.61% and 18.44% respectively.
In addition, compared with other large state-owned banks, CCB's profit geographical concentration is relatively low. This can be seen from the proportion of profits. Except for overseas and Northeast regions, CCB’s profits are relatively evenly distributed in the head office, Bohai Rim, Central China, Yangtze River Delta, Pearl River Delta, and Western regions.
It is worth mentioning that last year, CCB incurred losses in overseas regions, with a loss amounting to 1.205 billion yuan.
To sum up, among the five major state-owned banks, ICBC, ABC and BOCOM are the most profitable areas in the Yangtze River Delta; Postal Savings Bank is the most profitable area in the central region; CCB is the most profitable in the head office area.
In addition, the profitability of the five major state-owned banks in the Northeast is not satisfactory, while the Bank of Communications in the Northeast suffered a huge loss of nearly 5.9 billion yuan.
