A-share Listed Banks' Performance Review in the H1 2022

Consumer Discretionary, Financials Author: Jiawei Wu Editor: Yiru Qian Sep 16, 2022 03:13 PM (GMT+8)

37 banks reported double growth in revenue and net profit; 31 banks reported a decline in non-performing loan ratio; 20 banks achieved industry average net interest margin and 27 banks improved provision coverage ratio.

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According to the first-half earnings report of 2022, the overall net interest margin of A-share listed banks is on a downward trend. 42 A-share listed banks showed a significant divergence in performance growth in the first half of 2022, with some urban and agricultural commercial banks growing significantly faster than state-owned and joint-stock banks.

From the aspect of overall performance in the first half of this year, the four major banks - ICBC, CCB, ABC and BOC - are far ahead of other banks in terms of performance. Among them, ICBC ranked first with CNY 487.27 billion (USD 69.53 billion), followed by CCB with CNY 435.97 billion, ABC with CNY 387.196 billion.

At the same time, 37 banks saw double growth in revenue and net profit. Among them, Bank of Hangzhou, Bank of Chengdu and Bank of Jiangsu achieved a growth rate of more than 30%.

As an important indicator of bank profitability, the higher the net interest margin of a bank, the stronger its profitability. From the perspective of the net interest margin of A-share listed banks, the average net interest margin in the first half of this year was 2.03%, of which 20 banks reached the average value.

In terms of risk control capability, the overall non-performing loan ratio of listed banks decreased compared to the end of 2021. According to relative data, 31 banks saw their non-performing loan ratios fall in the first half of the year compared to the end of the previous year; the fastest declining bank was Bank of Jiangyin, which saw its non-performing loan ratio fall from 1.32% to 0.98%, a reduction of 0.34 percentage points.