在业内人士看来，部分优质中小业绩保持高增，主要受益于经营区位带来的需求韧性和良好质量。而息差压缩依然对银行营收有负面影响，伴随息差持续收窄，未来非息收入占比回升或成为商业银行未来转型的亮点。① Currently, listed banks have disclosed rapid performance reports, and both banks have achieved “double growth” in performance, benefiting from factors such as location advantages and increased investment income. ② Experts believe that the current reduction in interest spreads will still have a negative impact on bank revenue, and the recovery in the share of non-interest income will be a highlight of the future transformation of commercial banks.
Financial Services Association, July 19 (Reporter Shi Sitong) As the earnings season gradually began, the operating results of listed banks for the first half of the year also surfaced one after another.
Following Ruifeng Bank, Sunon Bank also revealed its “double growth” performance report. According to the data, in the first half of this year, the bank achieved operating income of 2.264 billion yuan and net profit of 1.121 billion yuan to mother, with year-on-year increases of 8.02% and 15.81%, respectively.
According to industry insiders, the performance of some high-quality SMEs has maintained a high increase, mainly benefiting from the resilience of demand and good quality brought about by business locations. However, the reduction in interest spreads still has a negative impact on bank revenue. As interest spreads continue to narrow, the share of non-interest income may rebound in the future or become a highlight of the future transformation of commercial banks.
Driven by non-interest income, Sunong Bank's performance increased in the first half of the year
Overall, in the first half of this year, the scale of Sunong Bank's business further increased. According to the data, as of the end of June 2024, the bank's total assets were 216.852 billion yuan, up 7.05% from the beginning of the year; total loans were 130.823 billion yuan, up 6.98% from the beginning of the year; and total deposits were 170.32 billion yuan, up 8.07% from the beginning of the year.
In terms of performance, Sunong Bank also continued the previous growth trend. In the first half of the year, it achieved operating income of 2.264 billion yuan, an increase of 8.02% year on year; net profit attributable to shareholders of listed companies was 1.121 billion yuan, an increase of 15.81% year on year. At the same time, the bank's basic earnings per share were 0.63 yuan, an increase of 16.67% over the previous year, further increasing profitability.
At the same time, the bank's overall asset quality remained stable. As of the end of June, Sunong Bank's non-performing loan ratio was 0.91%, the same as at the beginning of the year; the loan ratio was 1.19%, down 0.02 percentage points from the beginning of the year; the provision coverage rate was 441.80%, down 11.05 percentage points from the beginning of the year.
Regarding this “report card,” Sunon Bank also indicated that the main financial data for the 2024 semi-year mentioned above is preliminary accounting data, and that the main indicators such as net profit attributable to listed companies' shares may differ from the data disclosed in the bank's 2024 semi-annual report, but it is expected that the difference will not exceed 10%.
“In the first half of this year, Sunong Bank's revenue grew rapidly, mainly driven by non-interest income such as investment income.” According to Zheng Jiawei, chief fixed income analyst at Yongxing Securities Research Institute, it is still difficult to maintain a fast revenue growth rate against the backdrop of traditional commercial bank interest spreads continuing to be reduced. The industry's performance is growing rapidly. Instead of continuously expanding the balance sheet size, it is increasing return on assets by improving quality and efficiency and improving the level of governance.
The negative impact of interest spread compression is still there, and banks may no longer rely on large-scale expansion for high-quality development
A Financial Services Association reporter noticed that at present, two A-share listed banks, Ruifeng Bank and Sunong Bank, have disclosed quick performance reports for the first half of the year. Similar to Sunong Bank, Rui Fung Bank's performance continued to grow in the first half of this year, achieving operating income of 2.174 billion yuan and net profit to mother of 0.843 billion yuan, with year-on-year increases of 14.90% and 15.48%, respectively.
“The two banks mentioned above performed steadily in the first half of the year, and handed over relatively satisfactory responses in terms of main operating indicators. Both revenue and net profit maintained a good growth trend, while asset quality was also relatively stable.” Su Xiaorui, a senior researcher at Suxi Zhi Research, pointed out that since last year, commercial banks have continued to accelerate the pace of transformation around the financial needs of the real economy. It is expected that in the first half of the year, listed banks will reveal breakthroughs in exploring scenarios and product innovation, and achieve steady performance growth by strengthening risk management.
According to Liang Fengjie, chief banking analyst at Zheshang Securities, the performance of some high-quality small and medium-sized enterprises, such as high-quality urban agricultural commercial banks in Jiangsu, Zhejiang and Chengdu and Chongqing, has benefited from the resilience of demand and good quality brought about by their business locations.
Regarding the overall performance of listed banks, Liang Fengjie believes that profits of listed banks are expected to remain under negative pressure in the first half of 2024, but the profit growth rate is expected to improve slightly from month to month, mainly due to the steady month-on-month decline in interest spreads and the narrowing of the year-on-year decline. Among them, the profit growth rate of large and medium-sized banks was low in the first half of the year, but the revenue growth rate is expected to improve steadily from month to month; the profit growth rate of high-quality small and medium-sized banks is high, but they are facing pressure from a marginal slowdown in revenue growth. “Looking ahead to the whole year, this trend is expected to continue.” she said.
Furthermore, Cheng Ka-wai also further pointed out that in the first half of this year, the reduction in interest spreads still had a negative impact on bank revenue. However, along with the narrowing of interest spreads, the share of banks' traditional interest income has declined, and the share of non-interest income such as intermediary business income and investment income has rebounded, and it may become a highlight of the future transformation of commercial banks. The high-quality development of banks will no longer depend on scale expansion in the future.