Bank of Wuxi's non-performing ratio has been steadily decreasing

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As an important indicator of a bank's operating condition, asset quality has always been of great concern to the market. In recent years, the Bank of Wuxi has continued to increase its efforts to write off non-performing assets, its non-performing ratio has been continuously reduced, and its credit quality and risk control capabilities continue to rank among the top listed banks.

In the first quarter of 2021, after Bank of Wuxi's non-performing ratio exceeded 1% for the first time; moving into 2022, the bank's asset quality continued to tamp down, with the non-performing ratio dropping to 0.87% for the first time in the first quarter and further to 0.86% in the third quarter, down 0.07 percentage points from the end of the previous year, again the lowest level since its listing. Among them, the proportion of loans of concern category dropped further to 0.26% in the third quarter from the lowest 0.27% of A-share listed banks in the first half of the year.

It is worth mentioning that the provision coverage ratio of Bank of Wuxi

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as been increasing year by year, further thickening the "safety cushion" of assets.In the third quarter of 2020, the bank's provision coverage ratio exceeded 300%, and in the first quarter of 2021 and the first quarter of this year, it exceeded the 400% and 500% marks. As of the third quarter of this year, the bank's provision coverage ratio increased to 539.05%, up 61.86 percentage points from the end of the previous year, and the provision-to-loan ratio was 4.65%, up 0.19 percentage points from the end of the previous year, both of which ranked among the top listed banks.

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As for the risk control measures and the trend of asset quality for the year, on September 28, the Bank of Wuxi said during the reception of institutional research, while strictly approving credit, the bank continued to promote the construction and application of big data risk control model, and formulated several mechanisms including market access, lending review, credit withdrawal, risk warning, non-performing assets disposal, etc., and made timely risk warning and disposal recommendations. The non-performing rate is expected to remain stable with a decrease this year, and there will be no major changes in the concern rate and overdue rate.

The rapid expansion of scale brings sustained high growth in performance. In the first half of this year, the operating income and net profit of Bank of Wuxi increased by 6.7% and 30.27% respectively year-on-year, ranking the second highest in terms of net profit growth among listed banks. However, with the rapid expansion of its scale also increases the bank's consumption of capital, especially as the Bank of Wuxi's support for the real economy increases, leading to a sudden increase in pressure on its capital replenishment. As of the end of the third quarter, Bank of Wuxi's core Tier 1 capital adequacy ratio and Tier 1 capital adequacy ratios were 9% and 10.33%, up 0.26 and 0.2 percentage points, respectively, from the end of the previous year, but its capital adequacy ratio dropped 0.25 percentage points from the end of the previous year.



WriterMaso