At the same time, many indicators such as net interest margin and net interest margin, which measure the profitability of the bank, have also declined, and profitability is still under pressure. On the eve of the disclosure of the 2020 annual report of CITIC Bank, Li Qingping, who has been deeply involved in the bank for seven years, announced his resignation as chairman.
In addition, the annual report of CITIC Bank also announced the operating conditions of its subsidiaries and joint ventures. However, most of these companies did not achieve satisfactory results last year. Among them, baixin bank, where CITIC Bank holds 65.7% of the shares, suffered a net loss of nearly 400 million last year.
Both revenue and net profit growth rate declined.
The annual report shows that in 2020, CITIC Bank achieved an operating income of 65,438+0,947.365,438+0 billion yuan, a year-on-year increase of 3.865,438+0%; Realized a net profit of 49.532 billion yuan, a slight increase of 65,438+0.1%year-on-year; The net profit attributable to shareholders was 48.98 billion yuan, a slight increase of 2.0 1% year on year.
Compared with before, the growth rate of revenue and net profit of CITIC Bank dropped significantly.
As early as 20 19, the annual growth rate of revenue and net profit of citic bank reached 13.79% and 7.97% respectively, and before that, it showed a steady upward trend year by year.
However, in 2020, the growth rate of these two data has taken a sharp turn, dropping by 9.98 percentage points and 6.87 percentage points respectively compared with 20 19.
In fact, the growth rate of bank performance has slowed down, or it is related to the substantial provision of impairment losses in order to improve asset quality in the past two years. The increase in the amount of impairment losses has had a certain adverse impact on its profitability.
In 2020, CITIC Bank made provision for impairment losses of 82.989 billion yuan, a year-on-year increase of 7.42%. Among them, the impairment loss of loans and advances was 69.285 billion yuan, a year-on-year increase of 0.72%; The impairment loss of financial investment was 8.493 billion yuan, up 99.04% year-on-year. This surge is mainly due to the return of impairment losses of financial assets to the table.
In terms of asset quality, the NPL ratio of CITIC Bank in 2020 was 1.64%, which was 0.0 1 percentage point lower than the 438+09% at the end of 1965, but the NPL balance increased by 1 1.09% to 73.452 billion yuan. In addition, the provision coverage ratio also decreased by 3.57 percentage points to 17 1.68%.
Facing the decline of NPL ratio, President Fang proudly stated in his annual report speech that by the end of 2020, the NPL ratio of CITIC Bank had dropped to 65,438+0.64%, the lowest in the past five years, and the trend of asset quality gradually became clear.
Profitability is further under pressure.
In addition to the impairment losses accrued, it has a certain impact on the profitability, and many indicators to measure the profitability of CITIC Bank, such as net interest margin and net interest margin, have also declined, further putting pressure on the profitability of the bank.
By the end of 2020, the net interest margin of CITIC Bank decreased by 0. 18 percentage points year-on-year to 2.18%; The net interest margin decreased by 0. 19 percentage points year-on-year to 2.26%.
For the decline in net interest margin, CITIC Bank explained that it was mainly affected by factors such as the real economy and the downward interest rate during the epidemic. At the same time, the epidemic caused the consumption of residents to shrink, the growth rate of credit card loans with relatively high yield slowed down, and the proportion of high-yield assets declined.
CITIC Bank said that considering the macro-economic and financial situation and market competition situation, it is predicted that the net interest margin of banks will still face downward pressure in 20021year.
In response to the decline in net interest margin, CITIC Bank has made debt cost control the top priority of the whole bank.
However, in addition to the net interest margin, two other indicators to measure the profitability of CITIC Bank also declined.
The data shows that by the end of 2020, the average return on total assets and average ROE of CITIC Bank were 0.69%, 10. 1 1%, respectively, which were 0.07 percentage points and 0.96 percentage points lower than the end of the previous year.
Combined with the data of 20 18, the above two indicators have shown a downward trend for two consecutive years.
It is worth mentioning that despite the pressure of profit, CITIC Bank still pays dividends generously. According to the annual report, CITIC Bank plans to distribute a cash dividend of 2.54 yuan for every 65,438+00 shares, with a dividend of 65,438+02.429 billion yuan, accounting for 27.04% of the net profit attributable to shareholders.
This is the biggest dividend of the bank in the past three years, with an increase of 6.28% over the previous year.
The performance of most subsidiaries declined, with a net loss of nearly 400 million in baixin bank.
1. The net profit of CITIC Guo Jin decreased by 63.76% year-on-year.
By the end of 2020, CITIC Guo Jin had total assets of HK$ 394.244 billion, up 8.7% year-on-year and 2,442 employees. However, in 2020, the net profit of CITIC Guo Jin decreased by 63.76% year-on-year to HK$ 6543.8+RMB 25 million.
CITIC Guo Jin 1924 was established in Hong Kong and was acquired by CITIC Group in June 1986. Now it is a wholly-owned subsidiary of CITIC Bank, which is the main platform for the bank to carry out overseas business, covering commercial banks and non-bank financial business. Commercial banking business is mainly carried out through CITIC Bank (International), which holds 75% of the shares, and non-bank financial business is mainly carried out through CITIC International assets, which holds 46% of the shares.
2. The net profit of CITIC Bank (International) decreased by 58.87% year-on-year.
In 2020, CITIC Bank (International) controlled by CITIC Guo Jin achieved an operating income of HK$ 73,654,388+08,000, a year-on-year decrease of 65,438+02,465,438+0%; Net profit also decreased by 58.87% year-on-year to HK$ 65,438+065,438+056 million.
CITIC Bank (International) is a fully licensed commercial bank rooted in Hong Kong. As for the sharp decline in performance, CITIC Bank explained that it was mainly affected by the epidemic, which led to a serious decline in Hong Kong's economy, a near stagnation of cross-border activities in the Mainland, a sharp drop in market loan interest rates and a narrowing of net interest margin.
3. Net investment loss of Yin Xin120,000.
Yin Xin Investment was established in 1984, which is an overseas investment platform established by CITIC Bank in Hong Kong, with a shareholding ratio of 99.05%.
By the end of 2020, the total investment assets of Yin Xin were 65.438+09.746 billion yuan, an increase of 654.38+0.77% compared with the end of last year; The net assets were 3,465,438+0.6 million yuan, down 3.26% from the end of last year. The asset management scale decreased by 40% year-on-year to 52.845 billion yuan, and the annual net loss was 65.438+0.2 billion yuan.
4. The net profit of CITIC Financial Leasing decreased by 65.89% year-on-year.
In 2020, CITIC Financial Leasing, which was wholly established by CITIC Bank, realized a net operating income of 65.438+90.6 million yuan, a year-on-year increase of 654.38+0.24%, but its net profit decreased by 65.89% year-on-year to 262 million yuan.
5. baixin bank has a net loss of 388 million yuan.
Baixin bank, a new Internet bank, officially opened in June 20 1 17. Last year, it achieved a net operating income of1723 million yuan, but the annual net loss was as high as 388 million yuan.
Baixin bank is a new type of Internet bank jointly initiated by China CITIC Bank and Fujian Baidu Borui Network Technology Co., Ltd. Last year, Canada Pension Fund Investment Company, an overseas institution, was introduced as a new shareholder, and its registered capital increased to 5.634 billion yuan. After the capital increase, CITIC Bank holds 65.70% of the shares.
6. Yin Xin Wealth Management achieved a net profit of 600 million yuan.
Yin Xin Finance, a wholly-owned financial subsidiary established by CITIC Bank in July 2020, achieved a net operating income of 974 million yuan and a net profit of 595 million yuan last year.
As a financial subsidiary of CITIC Bank, which has just opened for half a year, the performance of Yin Xin Financial is disclosed in the annual report for the first time, and it is also one of the outstanding subsidiaries mentioned above. By the end of 2020, the scale of new products of Yinxin Wealth Management in line with the new asset management regulations reached 39.892 billion yuan.
End of movement
It is worth mentioning that on the eve of the disclosure of CITIC Bank's annual report, the bank also experienced a major personnel change.
On March 16, the bank announced that it had resigned as chairman and all other positions after seven years of hard work at CITIC Bank, and announced that Zhu, chairman of CITIC Group, was elected as the chairman of the bank. This has yet to be approved by the regulatory authorities.
2065438+In March 2004, Li Qingping joined CITIC Bank as the deputy general manager of CITIC. In July of the same year, Li Qingping became the president of CITIC Bank, during which he implemented a number of reforms, including formulating the strategic plan of CITIC Bank from 20 15 to 20 17, proposing the "second transformation" of retail, and establishing "baixin bank" in cooperation with Baidu. 2065438+In July 2006, Li Qingping was promoted to the position of Chairman of China CITIC Bank.