The bad rate of Bank of Southern China in East China falls three region bank risk sustained exposure

Mar 5, 2018 1:45:06 PM

since the start of the year, around the Banking Bureau announced the operation of banking financial institutions within its jurisdiction. From the 15 provinces of the Banking Bureau data has been disclosed, the Yangtze River Delta, Pearl River Delta and other regions of the bank NPL ratio continued to fall last year, including Shanghai, Zhejiang and other places even for two consecutive years of bad "double down".

Shanxi, Henan two non-performing loans also show "double down" situation, the Henan non-performing loans in the first 4 years of the current "double down". Thanks to this, the decline of net profit in Henan banking institutions has been reversed for two consecutive years, and net profit increased 17.68% to 68 billion 625 million yuan over the same period last year.

, on the other hand, the quality of assets in Shandong, Jilin and other places is still in bad condition, which is still in the process of bad and rapid growth. In the end of last year, the bad rate of financial institutions in the banking sector reached 4.31% in Jilin, ranking the top in China. The net profit of the two banks has accelerated in successive years.

"now talk about bad inflection point, or only the region one by one, after all, in the region between different city economy and industrial structure is also different, which causes differences in the quality of banking assets serious." The head of risk management department of a joint-stock bank said to the Securities Times reporter. "But from a national perspective, the most difficult and difficult period in East China's Southern China region is basically gone, and the northeast, southwest and Shandong are still in the process of risk exposure."

CBRC regional differentiation of non-performing loans in February 9th released data show that as of the end of 2017, commercial banks non-performing loans 1 trillion and 710 billion yuan, an increase of 193 billion 400 million yuan; commercial banks non-performing loan ratio of 1.74%, unchanged from the beginning of the year, "the banking risk control".

but scattered all over the region, the bad situation area is more serious. Which is consistent with the last part of the listed banks in the financial risk exposure, the earlier Eastern and Southern China area, asset quality further improved, some provinces and cities poor continuous "double down"; non-performing rate of northeast and southwest and Shandong, and will continue to rise overall adverse scale.

specifically, there are 6 provinces last year, the data has been disclosed the adverse "double down", including Zhejiang, Xiamen, Beijing, Shanghai, Shanxi and Henan. Among them, Zhejiang and Shanghai have achieved two consecutive years of "double down", Xiamen, Henan is the first time in recent years the poor "double down".

takes Zhejiang as an example. The balance of non-performing loans in Zhejiang (excluding Ningbo) decreased by nearly 30 billion yuan compared with the beginning of the year. At the end of the year, the non-performing loan ratio of the banking industry decreased by 0.53 percentage points to 1.64% at the beginning of the year. The level of bad rate is lower than that of Guangdong (excluding Shenzhen). According to the provincial government work report, Zhejiang will strive to reduce the rate of non-performing loans to about 1.5% by the end of 2018.

, another big economic province of Jiangsu, continued the bad "one rise one drop" situation in 2016. But at the end of last year, the balance of non-performing loans increased by 7.17% compared with the beginning of 2016. The bad rate decreased from 1.49% at the beginning of 2016 to 1.25% at the end of last year.

in the northeast, southwest and ShandongIn other places, the situation of the deterioration of the quality of the assets of the regional banking industry has not been improved. Taking Jilin as an example, in the economic slowdown, the excess to the capacity of the industry, the state-owned enterprises under the background of deepening reform, Jilin province banking institutions to increase the operating pressure at the end of last year, banks non-performing loan ratio increased by 0.46 percentage points over the year to 4.31%, has been published in the provinces and cities in the first ranked regulatory data.

Shandong Province, which surpassed Zhejiang last year, became the largest province in the scale of non-performing loans. Data show that Shandong (excluding Qingdao) non-performing loan balance increased by nearly 30% to 181 billion 320 million yuan at the beginning of the year, and the bad rate has also risen to 2.56%.

the fastest growth in the balance of non - performing loans last year was Guizhou. At the end of last year, the bad scale of Guizhou's banking industry increased by 65.84% to 55 billion 66 million yuan at the beginning of the year, and the bad rate rose by 0.78 percentage points to 2.63% at the beginning of the year. The bad change of

affects the asset quality differentiation of the net profit

region, and the net profit of the regional banking industry is also affected, and the regional differences are large.

, in Jiangsu, Henan, Guangdong (excluding Shenzhen), Hainan and Xinjiang, the net profit of last year was increased by more than 10%. This is also the Guangdong region (excluding Shenzhen) for second years to achieve a net profit of more than 10% of the increase. Previously, the net profit of the region's banking sector has declined for many years.

Henan is the most significant province that has benefited from better asset quality. In 2017, the banking industry in Henan province for the first time in 4 years of bad "double down". Reflected in net profit, the decline of net profit in Henan banking industry has been declining for two consecutive years. Net profit of 68 billion 625 million yuan last year increased by 17.68% compared with the same period last year. In addition, due to the bad "double down", Shanxi province banking deposit financial institutions last year profit 40 billion 360 million yuan, an increase of 26.44%.

of course, the adverse effects of the "double down" on the net profit of time lag, can not immediately produce torsion effect on the income statement. Taking Xiamen as an example, to achieve the "double down" bad banks in Xiamen last year, but according to the Xiamen Banking Bureau revealed that the first three quarters of 2017, Xiamen banking cumulative after tax profit fell 43.76%.

's net profit in Heilongjiang, Jilin and Shandong continues to fall sharply in areas that have disclosed business data. Among them, the net profit of Shandong area (excluding Qingdao) has declined for 4 consecutive years, while Jilin has been declining for 3 consecutive years. The net profit of the two banks decreased 47.11% and 32.26% compared to the same period last year. This is the typical provinces two bad double up ".

, it is worth noting that, from the two quarter of last year, the banking sector in Jilin has been in the three quarter of the year in which assets and liabilities have "shrink". At the end of the year, the assets size has been compressed by over 200 billion yuan at the end of the first quarter.

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