“Where did the money Go?” from the Annual Reports of Listed Banks

2022-09-22 0 By

As listed banks in 2021 performance report one after another, the banking industry capital flow changes attract attention.Infrastructure and other major projects attracted a lot of money, and loans for scientific and technological innovation and small and micro businesses grew rapidly.Under the background of supporting the recovery and development of the real economy, the total amount of credit issued by listed banks has increased and the structure has been optimized, which to some extent reflects the pulse of China’s economy.Icbc’s domestic RMB loans increased by 2.12 trillion yuan, 243.3 billion yuan more than last year;Agricultural Bank of China extended 2 trillion yuan in new loans, and Bank of China extended 1.38 trillion yuan in domestic RMB loans compared with the beginning of the year, both hitting record highs…The reporter combed and found that in 2021, a number of listed banks continued to increase their lending efforts.”It is the boundship of finance to serve the real economy and the fundamental measure to guard against risks.”Liao Lin, president of ICBC, said that the bank’s credit supply increased steadily last year, and the total amount, pace and structure of investment and financing were arranged for cross-cycle adjustment to help economic recovery.What are the main areas of new loans?As can be seen from the annual report, major national projects, manufacturing and other fields are the “main force” to attract funds.In 2021, the increment of PROJECT loans of ICBC will exceed 700 billion yuan, with a year-on-year increase of nearly 46.2 billion yuan.CCB’s new infrastructure loans amounted to 733.1 billion yuan;Agricultural Bank of China extended 673.8 billion yuan in new loans for major projects.Credit resources continue to invest in manufacturing and other pillar industries of the national economy.By the end of 2021, the balance of ICBC’s manufacturing loans exceeded 2 trillion yuan, an increase of 319.7 billion yuan over the previous year.Agricultural Bank’s outstanding manufacturing loans reached 1.7 trillion yuan, up 272.4 billion yuan from the beginning of the year.In terms of loan structure, medium – and long-term loans, which have always been the pain point of enterprise financing, have grown faster.By the end of 2021, the balance of medium – and long-term loans in the manufacturing sector of BOCOM increased by 44.16% compared with the end of the previous year.Everbright Bank’s balance of medium – and long-term manufacturing loans rose 46% from the start of the year.It is worth noting that in the context of expanding domestic demand and boosting consumption, retail loans have become the preferred direction of credit issuance by many banks.At the end of 2021, citic Bank’s retail loans increased by 161.9 billion yuan compared with the beginning of the year, which is basically equivalent to the increase in loans to the public.In 2021, CMB’s retail loans including housing mortgage loans, credit cards, small and micro loans and consumer loans increased by 306.6 billion yuan, accounting for more than two-thirds of the new loans in that year.As can be seen from the annual report, loans to small and micro businesses, scientific and technological innovation, green development and other sectors have seen significant growth.In 2021, inclusive loans to small and micro enterprises of the five state-owned commercial banks of ICBC, ABC, China Construction Bank and CCCC will maintain a year-on-year growth rate of more than 30%.Among them, icbc, Bank of China’s growth rate of more than 50%.The release of bank credit is affected by multiple factors, including its own positioning, capital constraints, safety and efficiency considerations and policy orientation.In recent years, encouraged by a series of policies, the banking industry is breaking the traditional credit model and controlling risks and costs through technology empowerment and strengthening management, striving to achieve the sustainable development of small and micro financial services.Wang Wei, vice-president of the Bank of China, said there were still quite a few small and micro enterprises whose financing needs had not been effectively met.Serving small and micro enterprises is the need to support the real economy and the inevitable choice for the transformation and development of banks.Boc initially plans to increase inclusive finance loans by 300 billion yuan in 2022.Serving innovative enterprises has always been a difficult problem for the banking industry with low risk appetite.In the context of service innovation-driven development strategy, the banking industry is seeking to break the problem.Data show that by the end of 2021, icbc’s loans to the high-tech field and strategic emerging industries supported by the state have both exceeded 1 trillion yuan.Citic Bank’s outstanding loans to strategic emerging industries grew 70 percent from the beginning of 2021.According to CCB, the bank has increased its support for technology enterprises and innovatively constructed an “evaluation system for innovation capability of technology enterprises”, which evaluates enterprises’ continuous innovation capability and development capability by relying on intellectual property big data, and turns intellectual property data of technology enterprises into practical financial resources.In addition, combing the annual report, it can be found that major banks are vigorously developing green finance to achieve peak carbon neutrality in services.By the end of 2021, agricultural Bank of China’s green credit balance reached 1.98 trillion yuan, an increase of more than 30% from the beginning of the year.The bank’s domestic green credit balance exceeded 1.4 trillion yuan, up 57% from the beginning of the year.Under the current economic situation, it is of great practical significance for finance to provide stronger support for the real economy.It can be seen from the information released by major banks’ performance conferences that the banking industry is highly motivated to serve the real economy in 2022, and many banks have set double-digit growth targets for credit growth.From the credit situation of the first two months, the characteristics of the forward force and precise force are obvious.”By the end of February this year, Bank of Communications’s RMB loans increased by 77.8 billion yuan year-on-year. The rapid lending is mainly due to the implementation of loan project reserves since the fourth quarter of last year.”Guo Mang, vice president of Bocom, said the bank initially planned to increase its yuan loans by about 11.5 per cent this year.Zhang Xuguang, vice president of Agricultural Bank, said that as of the end of February, the bank’s loans increased by 630.4 billion yuan from the beginning of the year, 79.6 billion yuan more than a year ago.It is expected that the increase of agricultural Bank’s lending this year will be higher than last year’s level, with a growth rate of more than 10%.Wang Zhiheng, vice president of Bank of China, also said he expected the bank’s domestic renminbi loans to grow at least 10 per cent year-on-year this year, effectively playing the role of a stabilizer for the big state-owned banks.From the perspective of future capital flow, infrastructure construction, manufacturing, scientific and technological innovation, inclusive finance, green finance and other fields are still favored by major banks.Experts say the ability and efficiency of finance to “supply blood” to the real economy is an important factor affecting economic development.At present, the banking industry continues to improve the accuracy and adaptability of financial services, which will play an important supporting role in stabilizing the macroeconomic market.Xinhua News Agency, Beijing