The "semi-annual report" on the issuance of secondary capital bonds by commercial banks was released.
In the first half of this year, the total scale of secondary capital bonds issued by commercial banks reached 379.15 billion yuan, an increase of 2.5 times compared with the same period last year.
Although the issuance scale of Tier 2 capital bonds increased significantly in the first half of the year, the monthly growth was "uneven". In the past June, commercial banks issued 12 Tier 2 capital bonds intensively.
The six state-owned banks are the "main force" of issuance
Compared with other capital replenishment methods, it is more convenient to issue Tier 2 capital bonds, so this method is more "favored" by commercial banks.This phenomenon is particularly evident in the first half of 2022.
Flush iFinD statistics show that in the first six months of 2022, the total issuance of Tier 2 capital bonds reached 379.15 billion yuan, a substantial increase of 252.30% compared with 107.62 billion yuan in the same period in 2021.
In the first half of this year, the number of banks issuing secondary capital bonds and the number of bonds issued also increased compared with the same period last year, but the increase was limited.In the first half of 2022, a total of 34 banks issued 37 Tier 2 capital bonds (including multiple tranches), compared with 33 Tier 2 capital bonds issued by 31 banks in the same period last year.
Although the increase in the number of bond-issuing banks and the number of bonds issued is limited, the issuance scale has increased significantly. This is because the six major state-owned banks in the first half of this year are the "main force" in issuing tier-2 capital bonds, which has greatly increased the issuance of tier-2 capital bonds. scale.
According to the reporter's statistics, in the first half of this year, as many as 8 tier-2 capital bonds with a scale of over 10 billion yuan were issued, compared with only 3 in the same period last year.The six major state-owned banks all issued tier 2 capital bonds in the first half of the year. Among them, Industrial and Commercial Bank of China issued tier 2 capital bonds with a scale of 90 billion yuan. Agricultural Bank and China Construction Bank also issued tier 2 capital bonds of 60 billion yuan each in the first half of the year. .
"Compared with other capital replenishment methods, the biggest advantage of tier 2 capital bonds is that the issuance threshold is low, and it is suitable for all types of banks. In the context of strong capital replenishment needs of commercial banks, issuing tier 2 capital bonds for capital replenishment is more efficient. It is favored by all kinds of banks.” Jin Yi, chief macro bond analyst of Guohai Securities, said in an interview with a reporter from Securities Daily that the issuance scale of tier-2 capital bonds in the first half of this year increased significantly, or the issuance of secondary capital bonds with major state-owned banks and joint-stock banks. It is related to the large scale of tier-2 capital bonds. The issuance scale of a single tier-2 capital bond of such banks is mostly more than 10 billion yuan, and there is a situation of rolling issuance of multiple issues.
Monthly Issue "Hot and Cold"
The reporter noticed that although the overall issuance of secondary capital bonds in the first six months of this year has risen sharply, the monthly issuance is extremely uneven. One such bond was not issued in May, but there was a "blowout" in June. ”, 12 Tier 2 capital bonds were issued that month, ranking fifth in the monthly issuance volume of commercial banks’ Tier 2 capital bonds since their launch in 2013.
Although such bonds can only supplement the bank's secondary capital, it is conducive to further enhancing its capital strength, optimizing its capital structure, and enhancing its ability to resist risks and serve the real economy.
The main regulatory indicators of commercial banks disclosed by the China Banking and Insurance Regulatory Commission show that at the end of the first quarter of 2022, the capital adequacy ratio of commercial banks (excluding branches of foreign banks) was 15.02%, down 0.11 percentage points from the end of the previous quarter.Obviously, banks still have more urgent capital replenishment needs.
Regulatory authorities have also been actively supporting commercial banks to replenish capital through multiple channels.On May 26, the People's Bank of China issued the "Notice on Promoting the Establishment of a Long-term Mechanism for Financial Services for Small and Micro Enterprises Dare to Loan, Willing to Loan, Ability to Loan, and Loan", which emphasizes "expanding diversified sources of credit funds" and "continuing to support small and medium-sized banks in issuing loans". Perpetual bonds, Tier 2 capital bonds”.
Jin Yi told reporters that increasing provision and dividends year by year has affected the speed of the bank's accumulation of endogenous capital. In this context, the bank pays more attention to the replenishment of exogenous capital.With the continuous implementation of relevant support policies, secondary capital bonds will become an important tool for commercial banks to replenish capital in the future.
