① Changshu Bank's three-quarter non-interest income reached 1.467 billion yuan, accounting for a further increase of 17.53%, and investment income became the key to high performance growth; ② The rising trend of non-performing rates is still difficult to contain; it increased to 0.77% in the third quarter, up 0.01 percentage points from the interim report.
Financial Services Association, October 24 (Reporter Zou Juntao) On the evening of October 24, Changshu Bank released its 2024 three-quarter report. The report shows that in the first three quarters of this year, Changshu Bank achieved operating income of 8.37 billion yuan, an increase of 11.30% over the same period last year; net profit attributable to shareholders of listed companies was 2.976 billion yuan, an increase of 18.17% over the same period last year.
A Financial Services Association reporter noticed that similar to the situation in the first half of this year, the double-digit increase in Changshu Bank's three-quarter results is still a high increase in non-interest income such as handling fees, commissions, and investment income. However, it is worth noting that Changshu Bank's non-performing loan ratio continued to rise in the third quarter.
The share of non-interest income increased to 17.53%, supporting continued high growth in performance
The report shows that in the first three quarters of this year, Changshu Bank's cumulative revenue was 8.37 billion yuan, of which net interest income was 6.903 billion yuan, an increase of 6.15% over the same period last year, accounting for 82.47% of total revenue. The non-interest revenue portion reached 1.467 billion yuan, accounting for 17.53% of total revenue.
Promoting overall performance growth by increasing the share of non-interest income has already been reflected in Changshu Bank's interim report. In the first half of this year, Changshu Bank's share of non-interest income reached 16.42%, an increase of nearly 5 percentage points over the same period last year. Changshu Bank achieved double-digit growth in revenue and net profit during the same period. Judging from the three-quarter report, Changshu Bank's share of non-interest income has clearly further increased.
Further analysis of Changshu Bank's non-interest income structure reveals that it mainly relies on handling fees and commission income and investment income, and the latter is more critical. The report shows that in the first three quarters of this year, Changshu Bank's net income from fees and commissions increased to 65.088 million yuan, an increase of 260.02% over the same period last year; the scale of investment income increased to 1.339 billion yuan, an increase of 92.54% over the same period last year.
According to the interim report, Changshu Bank's investment income in the first half of the year reached 0.917 billion yuan, an increase of 95.96% over the previous year. Changshu Bank disclosed that the main reason for the high increase in investment income was that part of the investment income obtained by disposing of debt investments increased significantly compared to the same period. As of the end of June this year, Changshu Bank held 17.787 billion yuan of treasury bonds, accounting for 18.18% of the bank's total financial investment.
Notably, the three-quarter report showed that Changshu Bank's fair value change earnings were negative 0.115 billion yuan, and the interim report showed that this portion of revenue was 8.976 million yuan.
The non-performing loan ratio increased to 0.77%, up 0.01 percent in the third quarter
The interim report showed that Changshu Bank's non-performing loan ratio showed signs of rising, but continued to rise in the third quarter.
The report shows that as of the end of September this year, Changshu Bank's non-performing loan ratio was 0.77%, up 0.02 percentage points from the beginning of this year and 0.01 percentage points from the first half of this year. In the same period, Changshu Bank's provision coverage rate was 528.40%, a further decline from the first half of the year.
It is worth mentioning that Changshu Bank's situation has also received attention from institutions. On September 9, Changshu Bank disclosed a record sheet of investor relations activities, and the institution asked, “Your bank's non-performing rate and provision coverage rate are among the highest among listed banks in the first half of this year. How can you anticipate the asset quality and provision coverage rate in 2024?”
Changshu Bank responded at the time that the Bank has always insisted on managing the direction, managing the industry, managing employees, and building a good system to strictly control risks through a “before, during, and after” risk management model. As of the end of June 2024, the Bank's non-performing loan ratio was 0.76%, provision coverage was 538.81%, and the overall asset quality was good. Looking forward to 2024, the Bank will adhere to a sound risk appetite, continue to improve the risk management and control system, continuously enhance risk compensation capabilities, and maintain an overall stable level of defect rate and provision coverage.
