The first report of 2021 by big state-owned banks: BoCOM’s performance hit a new high in nearly 9 years, and the total financing of real economy exceeded trillion yuan


(reporter Ding Qian) annual report season, state-owned big line as promised.Bocom, the “oldest” of the country’s six largest banks, was the first to release its report card for 2021.On March 27, the day after BoCOM released its 2021 annual report, Zhongtai Securities issued a research report with an overweight rating on boCOM.Have to say, the bank of Communications annual report commendable, for the brokerage to provide a better basis for the rating.According to the annual report, BoCOM achieved revenue of 269.390 billion yuan in 2021, up 9.42% year on year;Net profit (attributable to shareholders of the parent company) reached 87.581 billion yuan, up 11.89% year on year, the first growth rate exceeding ten in nearly nine years, and the best performance since listing.However, in the face of the century of changes and the impact of the epidemic, how does BoCOM effectively prevent and control real estate loan risks?Faced with the core tier 1 capital adequacy ratio downward, and how to “blood”?”This year is probably the most complicated year in my nearly 30 years in the business,” he said.Annual report performance meeting scene, bank of Communications president Liu Jun said.2022 will be a challenging year, but the results of 2021 will be impressive.Bocom has enjoyed its best year of earnings growth in nearly nine years.By the end of 2021, the total assets of the Group were 11.67 trillion yuan, up 9.05% from the end of the previous year.The net profit of the parent company was 87.581 billion yuan, up 11.89% year on year.Operating revenue increased 9.42% year on year;The defect rate was 1.48%, down 19 basis points from the end of last year.It is worth mentioning that at the end of 2021, group customer loans increased by 12.17% compared with the end of the previous year, the highest level in recent years.In terms of credit structure, total financing to support the real economy exceeded one trillion yuan last year, with outstanding loans to strategic emerging industries, inclusive loans to small and micro businesses, and loans to agriculture and rural areas increasing by 90.90 percent, 49.23 percent, and 14.13 percent, respectively, from the end of the previous year. The Yangtze Delta, Beijing-Tianjin-Hebei, and the Greater Bay Area accounted for over 60 percent of the increase in credit.The net profit growth rate of the parent company hit a new high, breaking the 10-year growth rate for the first time in nearly 9 years.The tech wave is both a shock and a reshaping of the banking industry.According to the annual report, BoCOM invested 8.75 billion yuan in 2021, up 23.60% year on year.The share of fintech investment in revenue rose 0.50 percentage points year on year.The proportion of fintech professionals recruited by the bank increased from 32% in 2019 to 55% in 2021.Looking at the layout of the fintech field in recent years, boCOM completed the adjustment of the fintech organizational structure in 2020. The division of powers and responsibilities of various institutions, including the Fintech Department, the Data Management and Application Department, the Fintech Innovation Institute, and boCOM Fintech Co., LTD. (BoCOM Golden Branch for short), has become clearer.Bocom Golden Branch opened at the end of November 2020.In 2021, BoCOM focused on the strategic planning of IT direction, and successively issued the digital transformation action plan, “14th Five-Year” Fintech development plan and data governance plan, and proposed the fintech development vision “POWER”.Where P stands for Platform, O for Open, W for Wise, E for Enterprise, and R for Reinvent.In the field of digital RMB, Qian Bin, vice President of BoCOM, revealed at the performance meeting that by the end of 2021, boCOM has implemented 236,400 digital RMB scenarios, with a total circulation of more than 10 million transactions and a transaction amount of more than 2.3 billion YUAN.In bocom, 11 pilot areas to choose Shanghai nanjing road pedestrian street, happy valley Beijing and suzhou university and other kinds of brigade, colleges and universities, and web celebrity 32 location such as establishing digital clock in local currency consumption model blocks, applying digital currency and enterprise, industry integration digital transformation, to (a) construction of financial ecology scene, construct the ecological system of common development with customers.In recent years, large state-owned banks have increased the number of “pin-zi” (financial management subsidiaries), and wealth management has become one of the high-frequency words.According to the 2021 annual report of BoCOM, during the reporting period, boCOM Group realized 17.310 billion yuan in wealth management fees and commissions through the commission sales of wealth management products, funds and financial services, with a year-on-year growth of 24.32%.In 2021, boCOM achieved net profit of 1.155 billion yuan, up 73.56% year on year;Personal financial assets managed by domestic banks increased by 9.26% from the end of last year.The volatility of the capital market in 2022 will test the wealth management ability of banks.Bank of Communications said that both public funds and private funds, especially equity funds, have seen significant net value withdrawal, and investors’ risk appetite has significantly decreased.But on the whole, with the growth of residents’ income, wealth management and wealth, customers’ demand for maintaining and increasing value of financial assets and diversified allocation is strong. The wealth management market is in a growing stage on the whole, and the wealth management of banks is still promising.As an important carrier of wealth management, financial subsidiary has become an important target of banks.It is worth noting that schroder Bank of Communications Finance Co., LTD. (schroder Bank of Communications Finance for short) officially put its first financial product on sale on March 28, only one month after its opening.As the second financial management subsidiary under the banner of BoCOM and the third sino-foreign joint venture financial management subsidiary in China, what is the difference between Schroder Bank of Communications Financial Management and BoCOM Financial Management?In response, bank of communications director, chairman of bocom financial TuHong is introduced, and the solid charge of bocom financial focus on low risk product system, schroeder bocom financial main multivariate investment asset allocation, the high risk level of mixed type of financial product, with a focus on the issue closed or minimum holding period more than one year,Investment themes include ESG philosophy, sustainable investment, carbon neutrality and so on.Mortgage loan steady growth personal housing mortgage loan growth of 15.13% housing not speculation under the general tone, the bank housing mortgage loan situation has attracted attention from the outside world.According to the annual report, boCOM’s personal housing mortgage loan balance in 2021 was 1.49 trillion yuan, up 15.13% from the end of the previous year, accounting for 22.70%, up 0.58 percentage points.By the end of 2021, the balance of bank of Communications’s public real estate loans was 419.8 billion yuan, up 20.57% from the beginning of the year, accounting for 6.4%, up 0.45 percentage points from the beginning of the year.Regarding the development of real estate business in the next step, BoCOM said that it would actively meet the demand of real estate enterprises for MERGERS and acquisitions in 2022, especially the demand of quality projects of real estate enterprises with initial difficulties in mergers and acquisitions, and promote the financial services of real estate mergers and acquisitions.Up to now, it has signed a strategic joint venture agreement of 10 billion yuan for MERGER and financing with Wukuang Asset Co., LTD., and a strategic cooperation agreement of 9 billion yuan for merger and financing with Midea Real Estate.Behind the bright report card, also exposed some problems facing the bank of Communications.Zhongtai Securities pointed out in the research report that the cost to income ratio of Bank of Communications has increased, including the fourth quarter of a single quarter annualized cost to income ratio of 34.03%, up 7.7 percentage points from the same period last year.Cumulative management fees increased 12.94% year on year, significantly wider than 3.1% year on year in the third quarter.In 2021, the core tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio and capital adequacy ratio are 10.62%, 13.01% and 15.45% respectively, with the sequential ratio of -6bp, -13bp and -30bp.Review of coordinating editor: Yang Zhiying | : li zhen | director: jun-wei wan

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