The first state-owned bank reported that Bank of Communications, a bad bank in Shuang Sheng with declining net profit, said it would speed up its digital transformation.

The first semi-annual report of state-owned banks was released.

On the evening of August 28th, Bank of Communications (60 1328. SH； 03328.HK) released the performance report for the first half of 2020, which is the first semi-annual report card disclosed by the new chairman and president of Bank of Communications after taking office.

According to the financial report data, the bank achieved net operating income of126.959 billion yuan in the first half of the year, a year-on-year increase of 73.65438+0%. Of which, net interest income, net fee and commission income increased by 5.465.438+0% and 5.00% respectively year-on-year, and net profit attributable to the mother was 36.505 billion yuan, down by 65.438+04.50050800006

Why is there a negative profit growth for the first time since listing, and the decline is so large? Guo Mang, deputy governor of Bank of Communications, said that this is the result of the combined effects of various factors such as the impact of the epidemic, the active profitability of the banking industry and the increase in provisions.

In terms of entity profits, in the first half of the year, Bank of Communications made profits for the real economy by reducing the loan interest rate, reducing customer handling fees, delaying the repayment of principal and interest, etc., totaling about 654.38+04 billion yuan, and deferred compound interest on the loan amount of 654.38+07 billion yuan, actively reducing the loan interest rate, so the loan interest rate of group customers decreased by 365.438+0 basis points year-on-year.

The epidemic situation has obviously affected the asset quality of banks. By the end of June, the balance and ratio of non-performing loans of Bank of Communications had increased by 23.38 and 0.2 1 percentage point respectively compared with the end of 20 19. The provision coverage ratio was 148.735%, down 23.04 percentage points from the end of last year.

Specifically, as of the end of June, the non-performing loan ratio of Bank of Communications was 2.04%, up 0.26% from the end of 20 19; The NPL ratio of personal loans was 1. 17%, up by 0.1/0/percentage point from the end of last year, and the NPL ratio of credit cards further rose to 2.90%.

In addition, the credit impairment loss of Bank of Communications has also increased significantly. According to the financial report data, the credit impairment loss in the first half of the year was 33.333 billion yuan, an increase of 65.438+0.10.789 billion yuan, with a growth rate of 54.72%, of which the credit impairment loss of loans was 36.5438+0.134 billion yuan, an increase of 9.049 billion yuan, with a growth rate of 4099.

According to Zhang Hui, chief risk officer of Bank of Communications, the impact of the epidemic on Bank of Communications is reflected in consumer loans represented by credit cards, which were first exposed. Bad credit card business accounted for about 26% in the first half of the year. With the further optimization of the new card issuance policy and strategy model, the bad credit card business began to decline in June, and it is expected that the new bad credit card business will drop to the previous level in the second half of the year.

Zhang Hui also said that more than 50% increase in provision expenditure in the first half of the year was affected by the epidemic. At the same time, according to the impact of the epidemic on macroeconomic indicators, Bank of Communications adjusted and optimized the transformation model in time, and the loan provision for extricating itself from difficulties due to the impact of the epidemic was sufficient.

According to the financial report data, as of the end of June, the balance of provisions of Bank of Communications was1432.1700 million yuan, an increase of 91640,000 yuan over the beginning of the year, and the provision expenditure was 33.5 billion yuan, a year-on-year increase of 55.4%.

Zhang Hui said that more than 50% of the provision expenses accrued by the whole bank in the first half of the year were to cope with the impact of the epidemic, and the provision for bail-out loans was sufficient. In the next step, we will continue to implement the requirements of the central and regulatory authorities to ensure stable asset quality.

Under the pressure of declining net profit and bad Shuang Sheng, Bank of Communications is further accelerating the pace of digital transformation.

On August 25th, Bank of Communications announced that its technology subsidiary Bank of Communications Jinke was incorporated in Lingang New District of China (Shanghai) Pilot Free Trade Zone. With a registered capital of 600 million yuan, Bank of Communications Jinke will focus on the three main businesses of "high-end infrastructure research and development and talent supply, business application research and development of group subsidiaries, third-party customer service and product export" to accelerate product research and development, create scientific and technological value and empower financial business development.