Shanxi Bank has released its 2021 annual report. This is also the first time that Shanxi Bank has released its annual report since its inauguration.
Since the merger and reorganization of Datong Bank, Changzhi Bank, Jincheng Bank, Jinzhong Bank, Yangquan Commercial Bank on April 28, 2021, since most of the above banks are the first in the area The interest rates of local banks are slightly higher than those of the central bank, and their ability to absorb deposits is relatively strong, so Shanxi Bank was once favored by a large number of depositors.
According to the 2021 annual report of Shanxi Bank, in 2021, Shanxi Bank achieved operating income and net profit of 2.705 billion yuan and -4.673 billion yuan respectively.
This kind of loss-making annual report is very rare in the banking industry. Affected by the thunderstorm incident in rural banks in Henan, many netizens expressed concerns about Shanxi Bank. So what is the reason for its loss, and will it affect the safety of depositors' funds?
In the report, Shanxi Bank explained that "proactively digesting risks and proactively dealing with historical issues" is the main reason for the net loss. In 2021, in accordance with accounting standards and regulatory requirements, a supplementary impairment provision of 4.815 billion yuan will be made. If the impact of supplementary provisions is excluded, a pre-provision profit of 975 million yuan will be achieved.
In other words, after the reorganization and merger of Shanxi Bank, in order not to be dragged down by the historical old debts of previous local banks, it took the initiative to divest some bad debts. It is inevitable that some costs must be paid during the disposal process. This is the reason for the huge loss of 4.673 billion last year. main reason.
In other words, it’s survival with a broken arm. In order to survive, we had to cut off some projects that seemed to be profitable, but actually had risks in getting the money back.
So how big a risk is this? Perhaps we can get a glimpse of Shanxi Bank's equity changes after the merger and reorganization.
Currently, the top ten shareholders of Shanxi Bank are: Shanxi Rongjin Xingjin Private Equity Investment Fund Partnership (63.76% stake), Datong Economic Construction Investment Group Co., Ltd. (3.27% stake), Zhongrong Xinda Group ( 1.73), Shanxi Juyuan Coal Chemical (1.15%), Guangdong Omar Electric, Shanxi Zhongzheng Industrial Group, Xiamen Yuzhe Group, Qingdao Commodity Trading Center, Shanghai Mandao Investment and Yongtai Energy (the latter few hold less than 1% of the shares ), with the top ten shareholders holding a total of 74.72% of the shares.
In other words, Shanxi Rongjin Xingjin Private Equity Investment Fund Partnership occupies the majority. So what exactly makes this major shareholder so wealthy?
It can be seen from Tianyan that the major shareholder of Shanxi Rongjin Xingjin Fund is the Shanxi Provincial City Commercial Bank Reform and Development Fund Partnership, and the major shareholder of the Shanxi Provincial City Commercial Bank Reform and Development Fund Partnership is Shanxi Financial Holding Group , and Shanxi Financial Holding The actual controller of the group is Shanxi Provincial Department of Finance .
In other words, Shanxi Financial Holdings Group, which is actually controlled by the Shanxi Provincial Department of Finance, indirectly holds more than 60% of the equity of Shanxi Bank through Shanxi Financial Xingjin Fund. Shanxi Bank can also be regarded as a bank under the control of the Shanxi Provincial Department of Finance.
is similar to this type of bank, which is generally led by the local finance and invested by local capital, providing strong financial support for local economic development, but it also has many disadvantages.
A friend in the industry once said that small shareholders of many local banks will use their equity advantages to in turn lend money to banks, gradually emptying out their inherent funds. In addition, the loan recipients will be intervened by the local government and will be tilted towards enterprises that the government intends to support. , some bank employees will generate a series of risks from internal relatives.
It is this obvious regional characteristic that has both advantages and disadvantages for the development of banking business. In order to control this risk, it is the only trend to gradually return bank control to financial jurisdiction, so as to avoid thunder .
From this perspective, Shanxi Bank's annual report loss is not a bad thing. At least the money in it is safe, which is much better than forging annual reports to whitewash the situation.
