On the semi-annual report of the bank: Who has the highest non-performing loan ratio? Where is the safest deposit?

At the end of August, the semi-annual reports of major banks were released one after another. In the first half of this year, among the five major state-owned banks and two major joint-stock banks, ICBC had the highest net profit, Shanghai Pudong Development Bank had the highest non-performing loan ratio, China Merchants Bank had the lowest non-performing loan ratio, the highest provision coverage ratio, better credit risk resistance and China Construction Bank had the highest capital adequacy ratio. According to the data of China Banking Regulatory Commission, the NPL ratio of all commercial banks in China reached 1.94%, the highest in recent two years. Guo Shuqing, chairman of the China Banking Regulatory Commission, suggested that banks should replenish their capital in various ways and prepare enough ammunition to resist risks.

Shanghai Pudong Development Bank has the highest non-performing loan ratio and China Merchants Bank has the lowest.

Based on the semi-annual reports of seven domestic banks, the average profit decreased by nearly 65,438+00 percentage points compared with the same period of last year, with China Merchants Bank having the smallest decline. China Industrial and Commercial Bank has the highest net profit of 148,1640,000 yuan, or 148 1 100 million yuan.

Non-performing loan ratio, commonly known as bad debts, refers to loans with problems in the borrower's repayment ability, which reflects the quality of credit assets of commercial banks. The less bad debts, the better the quality of bank assets. The average NPL ratio of seven banks is 1.54%. Among the non-performing rates, Shanghai Pudong Development Bank has the highest non-performing rate of1.92%; China Merchants Bank is the lowest, accounting for 1. 14%.

Banks will set aside funds for possible non-performing loans in the future. Suppose the bank loan is 1 1,000 yuan, the loan provision ratio is 3%, the provision coverage ratio is 1 1,000%, the reserve is 30 yuan, and when the provision coverage ratio is 1 1,50%, the reserve is 45 yuan. The higher the loan provision ratio and provision coverage ratio, the more funds to deal with risks, and the stronger the ability of banks to resist credit risks. The average loan provision ratio of seven banks is 3.39%, and the average provision coverage ratio is 232. 19%. China Merchants Bank has the highest loan provision ratio and provision coverage ratio, which are 5.03% and 440.8 1%, respectively, and it has good credit risk resistance.

Capital adequacy ratio is the ratio of bank capital to risk-weighted assets, which reflects the bank's ability to resist risks. Within a certain range, the higher the capital adequacy ratio, the more secure the interests of depositors. The average capital adequacy ratio of the seven banks was 15.22%, slightly lower than the end of last year. Among the capital adequacy ratios, CCB has the highest capital adequacy ratio, which is16.62%; Shanghai Pudong Development Bank is the lowest, accounting for 12.63%.

Figure: Total assets and liabilities of financial institutions in China Source: Statistics of China Banking Regulatory Commission.

The profit of commercial banks decreased by 9.4% year-on-year.

By the end of the second quarter, the total assets of China's banking financial institutions were 309.4 trillion yuan, a year-on-year increase of 9.7%. Total liabilities were 283.9 trillion yuan, up 9.5% year-on-year. Debt growth is less than asset growth, and the overall risk is controllable. China's commercial banks realized a cumulative net profit of 1 trillion yuan, down 9.4% year-on-year, and the growth rate dropped by 15.86 percentage points compared with the same period of last year.

A spokesperson for the China Banking Regulatory Commission said that there are two main reasons for the decline in net profit of the banking industry. First, it continues to create profits for the real economy. In the first seven months, it has realized profits of more than 870 billion yuan to the real economy; The second is to increase the disposal of non-performing loans and provisions. In the first half of the year, banking financial institutions handled a total of 1. 1 trillion yuan, an increase of168.9 million yuan year-on-year.

Figure: Non-performing loan balance and non-performing loan ratio of commercial banks in China Source: Statistics of CBRC.

The non-performing loan ratio of commercial banks reached a new high.

By the end of the second quarter, the non-performing loans of China's commercial banks reached 2.73 trillion yuan, and the non-performing loan ratio reached 1.94%, a record high in recent two years. Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said: "It is estimated that the banking industry will dispose of 3.4 trillion yuan of non-performing loans this year, an increase from 2.3 trillion yuan last year, and the disposal will be even greater next year, because many loans have been postponed and some problems will not be exposed until next year."

A spokesman for the China Banking and Insurance Regulatory Commission said that the current non-performing loan ratio is close to the original tolerance limit. However, considering that the COVID-19 epidemic is a once-in-a-century disaster and the economy has completely returned to normal, it is still necessary for the financial sector to make greater contributions. The recent rise in the cost of financial risks is normal and necessary. On the whole, credit risk is completely controllable.

Guo Shuqing said that under the influence of the sudden epidemic, it was inevitable that the sales of enterprises that had operated well would be interrupted, orders would be compressed and non-performing loans would rebound.

Guo Shuqing put forward the countermeasures to deal with non-performing loans. First, classify the quality of physical assets, and urge banks to use the expected credit loss method to evaluate the loan risk, so as to truly reflect the business changes of enterprises. Second, prepare enough ammunition to resist risks, requiring banks to replenish capital in various ways, increase provision and withdrawal in advance, and improve their ability to resist risks in the future. Third, strengthen the disposal of non-performing loans. On the premise of fully revealing the risks, we will study the regulatory requirements for reducing the provision coverage ratio in stages and release all resources for the disposal of non-performing loans. Fourth, strictly control incremental risks, urge banks to strengthen internal control and risk management, do a good job in "three checks" on loans and reduce loan losses.

"Policies in finance, finance, employment and industry should be combined to help and support enterprises in various ways, so that our economic cycle will be more normal and easier." Guo Shuqing said.

China Banking Regulatory Commission will unswervingly fulfill its commitment to opening up. On the premise of ensuring financial security, we will continue to steadily improve the opening-up level of the banking and insurance industries, constantly improve and perfect the supervision methods, and improve the financial management and risk prevention and control capabilities under open conditions.

Materials: Semi-annual report of the Bank in 2020, statistics of CBRC, People's Daily, China News Network, etc.

Author: He Yunying, assistant researcher of Southern Media, Guan, researcher.