Is “paper wealth” supporting the performance of Nanjing Bank? Average monthly salary of 46,600 yuan is trending on the Internet
2024-08-18
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Bank of NanjingofNon-interest net income has exceeded net interest income and has become the "main force" of operating income.。By Chu Xiaoqiang
Recently, Nanjing Bank was the first to submit its mid-term "report card", and its operating performance and employee salary situation came to light.In the first half of this year, Nanjing Bank's operating income and net profit both increased, and the non-performing loan ratio decreased. Several data were better than the same period last year.This undoubtedly made Chairman Xie Ning feel relieved. After all, this wasThis is his first semi-annual "report card" since he took the helm of Nanjing Bank at the beginning of the year.However, if we look closely at the performance data, we will find that Nanjing Bank’s operating income growth is actuallyMainly driven by "paper wealth"At the same time, the bank also hasNet interest income declined, personal loan non-performing rate increased, and capital adequacy level decreasedDue to a series of hidden worries, its operating pressure is not small.In addition, in terms of remuneration, which is of concern to the outside world, the total remuneration of Nanjing Bank’s employees decreased in the first half of the year.Average monthly salary fell 5% year-on-year, related topics once rushed toWeiboThe hot search triggered widespread discussion among netizens.
The average monthly salary of 46,600 yuan is on the hot search
Since the beginning of this year, the share price of Bank of Nanjing has been rising all the way, with the increase approaching 50%. In the A-share market, which was "lagging" in the first half of the year, this is undoubtedly one of the few stocks with strong performance. Among all bank stocks, Bank of Nanjing is "far ahead", with its share price increase ranking first.The "successful performance" in the capital market has given Nanjing Bank more confidence to take the lead in its financial report.On July 31, the bank’s 2024 semi-annual report was first released, making itThe first of the 42 A-share listed banks to disclose its semi-annual report.However, after the semi-annual report was released,Compared with operating performance, the outside world is more concerned about the employee salaries of Nanjing Bank.August 2, "The average monthly salary of Nanjing Bank is 46,600 yuan" was once a hot topic on Weibo, sparking widespread discussion among netizens.According to the semi-annual report, the total employee compensation of Nanjing Bank in the first half of the year was 4.541 billion yuan, a year-on-year decrease of 4.02%. The total number of employees at the end of the period was 16,260.After some rough calculations, it was found that the average monthly salary of Nanjing Bank employees is 46,600 yuan.If calculated in the same way, the average monthly salary of Nanjing Bank in the same period last year was 49,000 yuan.In contrast,The average monthly salary per person in the first half of this year decreased by 2,500 yuan, a year-on-year decrease of 5%.However, such an average monthly salary cannot convince netizens. After all, it cannot represent the actual salary level of most ordinary employees.In response to this, many netizens complained and said that "it has been averaged again."Some netizens even joked, "If I were equal to Jack Ma, I would still be worth 10 billion yuan!"However, several netizens who are suspected to be Nanjing Bank employees revealed the actual salary status of grassroots employees in the comment area. They said,The monthly salary for employees in ordinary grass-roots positions is basically around 4,000 yuan, and that for supervisors is only around 5,000 yuan.Obviously, the salaries of these ordinary employees, who make up the majority, are far from the standard of 46,600 yuan per month. Therefore, the salaries of executives have attracted everyone's attention.However, in the 2024 semi-annual report, Nanjing Bank did not disclose the remuneration of its senior executives. However, according to the 2023 annual report, 23 senior executives (including those who left) received salaries during the reporting period, with a total pre-tax annual salary of nearly 29.89 million yuan.There are 11 executives (including former executives) whose annual salary exceeds 2 million yuan. The highest annual salary is Deputy President Song Qingsong, whose annual salary before tax is 2.3163 million yuan.If we calculate the average value,The average annual salary of the 23 senior executives is 1.3 million yuan, and the average monthly salary is nearly 110,000 yuan, far exceeding the average monthly salary of 46,600 yuan for all employees.In comparison, the average monthly salary of executives seems to be more referenceable and convincing.
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Operating income growth mainly depends on "paper wealth"
Compared with the "declining average monthly salary" that has attracted outside attention, Nanjing Bank's operating performance is much less popular, even though there was a "double increase" after year-on-year comparison.According to the semi-annual report, in the first half of 2024, Nanjing Bank's operating income and net profit attributable to the parent company were26.216 billion yuan, 11.594 billion yuanThe year-on-year growth rates were7.87%、8.51%, compared with the same period last year3.28%、5.26%The growth rates have increased.If compared with the performance growth rate in 2023, the improvement is more obvious, because in 2023, the growth rates of the bank's revenue and net profit attributable to the parent company are only1.24% and 0.51%, which is almost a stagnant growth. Among them, after deducting non-recurring gains and losses, the bank's net profit attributable to the parent company in 2023 once fell by 1.3% year-on-year.0.9%。Comparing the past and the present, doesn’t this 2024 semi-annual “report card” with “double increases” appear to be excellent?However, it may seem okay at first glance, but if you look closely, you will find that beneath the appearance of "excellence", many data are actually not satisfactory.As we all know, banks are mainly engaged in deposit and loan business, and their business is to earn interest rate differentials. Their operating income is mainly composed of net interest income and net non-interest income. Even though banks now have asset management and wealth management businesses, for most banks, net interest income still occupies the majority.But if you look at Nanjing Bank's semi-annual report, you will find thatThe growth of operating income is not based on net interest income, but is supported by net non-interest income.In the first half of the year, Nanjing Bank's non-interest net income was 13.405 billion yuan, a year-on-year increase of 25.51%, accounting for 51.13% of its operating income.Net interest income not only decreased by 5.96% year-on-year to 12.81 billion yuan, but its proportion also dropped from 56.06% in the same period last year to 48.87%.In other words, Nanjing BankNet non-interest income has exceeded net interest income, becoming the "main force" of operating income.The bank's sluggish net interest income is reflected inIn terms of net profit margin and net interest margin indicators, the two figures were 1.64% and 1.96% respectively, down 0.25 percentage points and 0.23 percentage points respectively from the end of the same period last year.If we continue to break it down, among the non-interest net income that supports the growth of Nanjing Bank's operating income, the net income from fees and commissions only increased by 309 million yuan year-on-year; investment income even decreased by nearly 1.5 billion yuan year-on-year;Only the "gains from changes in fair value" increased by 3.556 billion yuan year-on-year, an increase of 477.9%, far exceeding the year-on-year increase in operating income of 1.913 billion yuan.In other words,The reason why Nanjing Bank's operating income increased in the first half of the year was due to the gains from changes in fair value.You should know that the gain from changes in fair value is only a book profit, which is "paper wealth" and can be understood as "floating profit" during investment. It is generally the gain generated by the value changes of trading financial assets such as stocks, funds, trusts, bonds, etc. held by the company due to market price fluctuations.Before the profits are “secured”, these profits are all “virtual”.Of Nanjing Bank's nearly 4.3 billion yuan in fair value change gains, 4.261 billion yuan came from trading financial assets, accounting for as high as 99.09%.Of course, making money from financial investments is a good thing, but banks are, after all, institutions that rely on their main business of deposits and loans to serve the real economy. If they rely too much on investment-related businesses, they will not only face the risk of deviating from their main business and moving away from the real economy, but may also cause greater fluctuations in performance when market conditions are not good.Take the semi-annual report of Nanjing Bank as an example. If the gains and losses from changes in fair value of financial investments are excluded, it is questionable whether Nanjing Bank’s operating income will achieve positive growth.In terms of asset quality,As of the end of June 2024, Nanjing Bank's non-performing loan ratio was 0.83%, down 0.07 percentage points from the end of the previous year; the provision coverage ratio was 345.02%, down 15.56 percentage points from the end of the previous year.Among them, personal loans, which accounted for a quarter, had a non-performing loan ratio of 1.64%, up 0.14 percentage points from the end of last year.In the first half of this year, Nanjing Bank put over 600 million yuan of non-performing loans of personal consumption on the “shelf”, one of which was 115 million yuan in principal and interest, and was taken over by Chongqing Fucheng Asset Management Co., Ltd. in April. The progress of the transfer of the rest has not yet been announced.In terms of capital adequacy, as of the end of June 2024, Nanjing BankThe capital adequacy ratio, tier 1 capital adequacy ratio and core tier 1 capital adequacy ratio were 12.83%, 10.79% and 8.97% respectively., down 0.7 percentage points, 0.61 percentage points and 0.42 percentage points respectively from the end of last year.Capital adequacy levels have declined.Editorial Board Member on Duty: Li HongmeiEditor-in-charge: Ma Lin, Wen Hongmei
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