Financial Associated Press, October 30th (Reporter Guo Zishuo) On the last day of the disclosure of the interim reports of listed banks, this evening, the operating conditions of the six state-owned major banks for the first three quarters have been fully revealed.

The latest data shows that in the first three quarters of 2024, all six major banks achieved profitability, with a total net income attributable to shareholders reaching 1.059 trillion yuan. Calculated over 274 days in the three quarters, the total daily earnings amounted to 3.867 billion yuan; total operating income reached 2.67 trillion yuan, showing a negative growth compared to the same period last year.

As of October 30th, the third quarter reports of state-owned major banks have all been disclosed. Among the six state-owned major banks, Industrial and Commercial Bank of China, China Construction Bank Corporation, and Bank of Communications saw a year-on-year decline in revenue for the first nine months.

Specifically, Industrial and Commercial Bank of China, China Construction Bank Corporation, and Agricultural Bank of China ranked in the top three, with operating income exceeding 500 billion yuan each, reaching 626.422 billion yuan, 569.022 billion yuan, 540.212 billion yuan respectively; net income attributable to shareholders exceeded 200 billion yuan each, reaching 269.025 billion yuan, 255.776 billion yuan, 214.372 billion yuan, with year-on-year increases of 0.13 %, 0.13 %, 3.38% respectively.

Bank of China achieved operating income of 478.348 billion yuan in the first three quarters, with year-on-year growth of 1.64%, and net income attributable to the owners of the parent company of 175.763 billion yuan, with year-on-year growth of 0.52%. Postal Savings Bank of China achieved operating income of 260.349 billion yuan, a year-on-year increase of 0.09%; achieved net income attributable to bank shareholders of 75.818 billion yuan, a year-on-year increase of 0.22%.

Bank of Communications showed a slightly weak performance in the first nine months, with a year-on-year decrease of 1.39% in revenue to 196.123 billion yuan; achieved net income (attributable to the parent company's shareholders) with a year-on-year decrease of 0.69% to 68.69 billion yuan.

The proportion of time deposits in major banks has once again increased.

industrial and commercial bank of china's customer deposits in the first three quarters reached 34,592.836 billion yuan, an increase of 1.42% compared to the end of June. Among them, time deposits were 20,693.296 billion yuan, an increase of 3.84% compared to the end of June; demand deposits were 13,135.702 billion yuan, a decrease of 2.50% compared to the end of June. Accrued interest was 518.751 billion yuan, an increase of 5.10% compared to the end of June.

bank of communications' third quarter report shows that customer deposits balance was 8,727.029 billion yuan, an increase of 175.814 billion yuan compared to the end of the previous year, with a growth rate of 2.06%. Among them, demand deposits accounted for 30.96%, a decrease of 3.37 percentage points compared to the end of the previous year; time deposits accounted for 67.14%, an increase of 3.24 percentage points compared to the end of the previous year.

china construction bank corporation absorbed domestic deposits of 27,543.044 billion yuan in the first three quarters, an increase of 3.06 percentage points compared to the end of the previous year. Among them, time deposits were 15,607.874 billion yuan, an increase of 6.17% compared to the end of the previous year. The proportion of time deposits to total domestic deposits increased to 56.67%, an increase of 1.66 percentage points compared to the end of the previous year.

Net interest margin decline.

industrial and commercial bank of china's annualized net interest margin is 1.43%, unchanged from the first half of the year. Agricultural bank of china, china construction bank corporation, and postal savings bank of china's net interest margins for the first three quarters were 1.45%, 1.52%, and 1.89% respectively.

According to the disclosure from bank of communications, the net interest margin for January to September 2024 was 1.28%, a decrease of 2 basis points compared to the same period last year. In response to this, bank of communications pointed out that the year-on-year decrease in net interest margin is mainly due to the faster decline in revenue on the asset side. Firstly, it is a comprehensive impact of adjustments in existing home mortgage rates, LPR reduction, and adjustments to the lower limit of personal home loan interest rate policies, resulting in a greater YoY decline in customer loan yields. Secondly, influenced by the continuous downward trend in market interest rates, investment income from securities decreased YoY. To offset the downward pressure on asset earnings, bank of communications strategically manages asset-liability allocation, continuously optimizes business structure, enhances the refinement of pricing for deposits and loans, and maintains a relatively stable net interest margin.

bank of china achieved a net interest income of 335.997 billion yuan, a 4.81% decrease compared to the same period last year. Net interest spread was 1.41%.

Overall sound asset quality.

In terms of asset quality, only Postal Savings Bank of China saw a slight increase in non-performing loan ratio from the end of the previous year, but still represents the lowest level among the six major state-owned banks. As of the end of the third quarter, the non-performing loan ratio of Postal Savings Bank of China increased by 0.03 percentage points to 0.86%.

Furthermore, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, and Bank of China all saw a decrease of 0.01 percentage point in their non-performing loan ratios compared to the end of the previous year, which were 1.35%, 1.32%, 1.32%, and 1.26% respectively. China Construction Bank Corporation's non-performing loan ratio decreased by 0.02 percentage points to 1.35% from the end of the previous year.

The differentiation in provision coverage remains significant, with both Postal Savings Bank of China and Agricultural Bank of China having provision coverage ratios exceeding 300%, at 301.88% and 302.36% respectively. While Bank of China's non-performing loan provision coverage ratio increased by 7.20 percentage points from the end of the previous year, it still did not reach 200%, standing at 198.86%. Additionally, China Construction Bank Corporation, Industrial and Commercial Bank of China, and Bank of Communications have provision coverage ratios of 237.03%, 220.30%, and 203.87%.