Bank of Communications is not the worst. It has a good reputation in the industry. There are only a few people who think that Bank of Communications is not good.

Bank of Communications is one of the four major banks in China and has a high reputation.

But a sharp rise in non-performing loans has pushed down valuations.

In the past two years, non-performing loans increased by 25.924 billion yuan, an astonishing 34.33% increase.

Among all large A-share banks, this increase is the largest.

It reflects that Bank of Communications faces relatively severe historical problems in asset quality control.

The relevant advantages of Bank of Communications are specifically introduced as follows: 1. Bank of Communications’ service coverage is wide: Bank of Communications Bank of Communications has 235 domestic branches, including 30 provincial branches, 7 directly affiliated branches, 199 provincial branches, and 239 branches nationwide.

There are 3,270 business outlets in 158 counties or county-level cities*** at or above the prefecture level; it has 7 non-bank subsidiaries, including wholly-owned subsidiaries BoCom Leasing, BoCom Insurance, and

Silver Investment, holding subsidiaries of BoCom Fund, BoCom Guosen, BoCom Life and BoCom International.

2. Bank of Communications’ business is relatively comprehensive: Bank of Communications’ business scope covers commercial banking, securities, trust, financial leasing, fund management, insurance, offshore financial services, etc.

Other introductions: 1. Bank of Communications' personal business includes: savings deposits, personal loans, foreign exchange services, financial planning, investment services, insurance services, convenience services, wealth management, private banking and other services.

2. Bank of Communications' small business user services include: loan application, one-stop entrepreneurship, business development, one-stop Zhuoye, investment and financing, tax financing, science and loan, hand-in-hand and Huinongtong services.

3. The international business of Bank of Communications includes: interbank services, international business services, foreign exchange financial services and Bao-foreign exchange transaction services, etc.

Use special years to resolve historical baggage.

Interpreted from the positive side, taking advantage of the special year of 2020, the Bank of Communications has brought out some historical baggage of the past and some things that were hidden in the past and exposed them in the sun.

From a long-term business perspective, this may not necessarily be a good thing.

Analyzing from the perspective of non-performing ratio, the high point of Bank of Communications' non-performing ratio appeared in the mid-term report in June 2020, and the non-performing ratio soared from 1.47% in the mid-term report in 2019 to 1.68%.

Also in the 2020 mid-term report, non-performing loans soared from 75.5 billion yuan in 2019 to 96.3 billion yuan.

It is not difficult to see that among the more than 25 billion in new non-performing loans added by Bank of Communications in the past two years, about 21 billion were incurred in 2019-2020.

Whether it is affected by the epidemic or resolving historical burdens, the more than 20 billion that should be exploded has been exhausted.