Yangtze Business Daily News ● Yangtze Business Daily reporter Cai Jia
Shandong Province's first prefecture-level rural commercial bank, Qing Rural Commercial Bank (002958.SZ), has weak performance growth.
's third quarter report shows that in the first three quarters of this year, Qing Rural Commercial Bank achieved operating income of 8.021 billion yuan, a year-on-year decrease of 4.88% from ; the net profit attributable to the bank's shareholders (net profit, the same below) was 2.799 billion yuan, and increased by 52.42% year-on-year. Among them, the bank has had negative revenue growth for four consecutive quarters.
Why will the behavior of young rural commercial enterprises reduce income and increase profits? A reporter from the Yangtze Business Daily noticed that under the influence of factors such as the interest spread, pressure and intensified market volatility, the three indicators of Qing Rural Commercial Bank's net interest income, investment income, handling fees and commission income all fell slightly in the first three quarters of this year.
At the same time, Qing Rural Commercial Bank has reduced the provision of for credit impairment losses, and combined with the reduction of income tax expenses, the net profit continues to maintain positive growth. In the first three quarters, the bank set aside a total of 2.916 billion yuan in credit impairment losses, a year-on-year decrease of 441 million yuan, a decrease of 13.13%.
Although Qing Rural Commercial Bank previously disclosed that the bank has increased the provision of provisions and levels, it is mainly due to the increase in impairment of other assets. However, it should be noted that the asset quality of Qing Rural Commercial Bank has deteriorated significantly since 2021. As of the end of September this year, the bank's non-performing loan rate was 1.91%, further up 0.17 percentage points from the end of last year. It is not only the highest level since the bank went public, but also ranked first among the 42 A-share listed banks.
revenue and net profit growth rates in the first three quarters were all at the bottom. Rural Commercial bank
logged into the A-share market , the performance growth rate of Qing Rural Commercial Bank has been running at a low level.
data shows that Qing Rural Commercial Bank is a joint-stock rural commercial bank formed on the basis of 9 rural cooperative financial institutions in June 2012 through a new merger. It is also the first prefecture-level rural commercial bank in Shandong Province. In the first two years of IPO, Qing Rural Commercial Bank grew rapidly. From 2016 to 2018, Qingyuan Rural Commercial Bank achieved operating income of 5.83 billion yuan, 6.079 billion yuan and 7.462 billion yuan, a year-on-year increase of 1.38%, 4.27%, and 22.75%; net profit of 1.927 billion yuan, a year-on-year increase of 2.136 billion yuan, and 2.419 billion yuan, a year-on-year increase of 3.38%, 10.89%, and 13.23%.
Taking advantage of the strong development momentum, Qingyuan Commercial Bank was listed on the Shenzhen Stock Exchange in March 2019, and achieved operating income of 8.729 billion yuan in the first year of listing, a year-on-year increase of 16.98%; net profit of 2.825 billion yuan, a year-on-year increase of 16.78%, and the growth rate reached the highest level in recent years.
However, after the outbreak of the epidemic, Qing Rural Commercial Bank has significantly slowed down. In 2020 and 2021, the bank achieved operating income of 9.572 billion yuan and 10.297 billion yuan, a year-on-year increase of 9.65% and 7.58%; net profit of 2.96 billion yuan and 3.066 billion yuan, a year-on-year increase of 4.77% and 3.58%. Among them, the industry's performance growth rate in 2021 was the lowest in the past five years.
days ago, the latest data disclosed by Qing Rural Commercial Bank showed that in the first three quarters of this year, the bank's operating income was 8.021 billion yuan, a year-on-year decrease of 4.88%. Among them, since the fourth quarter of 2021, the bank has had negative revenue growth for four consecutive quarters, with a decrease of 25.59%, 6.34%, 0.04% and 8.24% respectively.
reporters of the Yangtze Business Daily noticed that in the first three quarters of this year, seven of the 42 listed banks in A-shares declined, among which Qing Rural Commercial Bank's revenue growth rate was at the last level among listed rural commercial banks. Qingdao Bank , also rooted in Qingdao , achieved revenue of 9.523 billion yuan in the first three quarters of this year, an increase of 16.3% year-on-year, ranking sixth among the 42 listed banks.
. In terms of net profit level, in the first three quarters of this year, Qing Rural Commercial Bank achieved a net profit of 2.799 billion yuan, a year-on-year increase of 2.42%, a narrowing of 5.08% in the first half of the year. Among them, in the first and second quarters of this year, the bank's net profit increased by 3.09% and 7.49% year-on-year to 941 million yuan and 808 million yuan respectively, but the bank's net profit in the third quarter was 1.05 billion yuan, a year-on-year decrease of 1.71%.
Compared with other peers, in the first three quarters of this year, 39 of the 42 listed banks in A-shares increased their net profits year-on-year.In addition to the bottom of revenue growth, Qing Rural Commercial Bank's net profit growth rate is still the lowest among listed rural commercial banks. Qingdao Bank, which is in the same city, achieved a net profit of 2.595 billion yuan, which is less than that of Qingyuan Rural Commercial Bank, but its growth rate is 7.3%, three times that of Qingyuan Rural Commercial Bank.
reporters of the Yangtze Business Daily noticed that in the first three quarters of this year, the bank achieved net interest income of 5.878 billion yuan, a year-on-year decrease of 4.83%. Among them, interest income was 12.488 billion yuan, a slight decrease of 0.3% year-on-year, but interest expenditure was 6.61 billion yuan, a year-on-year increase of 4.11%, reflecting that the bank's interest-bearing liabilities cost pressure remains.
In addition to the narrowing of interest rate spread, volatility on the investment side has also become the main reason for the weak growth of Qingyuan Commercial's performance. In the first three quarters, the bank's investment income was 1.016 billion yuan, a year-on-year decrease of 25.7%. In addition, the bank's net income from handling fees and commissions during the same period was 530 million yuan, a slight decrease of 0.56% year-on-year.
The growth rate of non-performing loan balance is nearly 4.6 billion, far exceeding the growth rate of the bank's loan
's revenue growth. Qing Rural Commercial Bank has reduced the credit impairment provision efforts, which has brought the growth rate of performance back to positive.
third quarter report shows that as of the end of September this year, the total assets of Qingyuan Commercial Bank were 5436.12 billion yuan, an increase of 1.32% from the end of the previous year; of which the total loans and advances were 238.389 billion yuan, an increase of 2.51% from the end of the previous year.
As of the end of September this year, the balance of non-performing loans of Qing Rural Commercial Bank was 4.551 billion yuan, an increase of 12.71% from the end of the previous year, far exceeding the loan growth rate; the non-performing loan rate at the end of the period was 1.91%, further increasing by 0.17 percentage points from the end of the previous year.
In fact, before the IPO, Qing Rural Commercial Bank's credit asset quality was optimized year by year. According to data from Tonghuashun, from 2016 to the end of 2018, the non-performing rate of Qingyuan Commercial Bank dropped from 2.01% to 1.57%. After its listing, the bank's non-performing rate further dropped to 1.46% and 1.44% in 2019 and the end of 2020. However, due to the lag in the bank's asset quality response, under the influence of the epidemic, the non-performing loan rate of Qingyuan Commercial Bank rebounded rapidly at the end of 2021, reaching 1.74%.
Compared with peers, as of the end of September this year, among the 42 listed banks in A-shares, Qing Rural Commercial Bank had the highest non-performing loan rate among listed banks. Among other listed banks, 30 banks had their non-performing loan rates lower than the end of the previous year. Qingdao Bank, which is in the same city as Qingyuan Commercial Bank, had a non-performing loan rate of 1.32% at the end of September, a decrease of 0.02 percentage points from the end of last year.
reporters of the Yangtze Business Daily also noticed that even though the quality of credit assets deteriorated rapidly, Qing Rural Commercial Bank's efforts to set aside asset impairment are decreasing. In the first three quarters, the bank set aside a total of 2.916 billion yuan in credit impairment losses, a year-on-year decrease of 441 million yuan, a decrease of 13.13%.
Although Qing Rural Commercial Bank did not disclose the specific situation of credit impairment in the third quarter report, it disclosed in its semi-annual report that in the first half of this year, the bank made an impairment loss of 2.106 billion yuan for issuing loans and advances to , an increase of 11.65% year-on-year. At the same time, the bank has reduced its provisions on assets such as debt investment, credit commitments, and other receivables.
is also the reduction in credit impairment and the reduction in income tax expenses. These factors have jointly caused the phenomenon of Qing Rural Commercial Bank's reduction in revenue and increased profits in the first three quarters.
As of the end of September this year, Qing Rural Commercial Bank's provision coverage ratio 215.89%. Previously, at the end of 2020 and 2021, the bank's provision coverage ratio was 278.73% and 231.77% respectively.
In the secondary market, as of the close of November 11, Qing Rural Commercial Bank was 2.89 yuan per share, which was nearly 30% lower than its IPO issue price of 3.96 yuan per share. Since the beginning of this year, the bank's stock price has fallen by 25%.
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