Multi-wheel drive Bank of Ningbo's performance in the first half of 2022 is stable and improving, and retail business has become a new growth engine

time:2022-12-09 19:43:52source:chakarski.com author:Education stock
Multi-wheel drive Bank of Ningbo's performance in the first half of 2022 is stable and improving, and retail business has become a new growth engine

As we all know, risk control is one of the core competitiveness of commercial banks, which means that for banks, risk control plays a crucial role. As one of the representatives of city commercial banks, Bank of Ningbo is well versed in this, and regards keeping the bottom line of risk as the most fundamental business goal. With good risk control, Bank of Ningbo's business tentacles have been extended to all aspects, forming a multi-profit center including corporate banking, retail companies, wealth business, etc., among which retail business has gradually developed into a new growth engine. On August 27, Bank of Ningbo handed over the "transcript" of the 2022 mid-year report. In the first half of this year, the company's revenue was 29.412 billion yuan, a year-on-year increase of 17.56%; the net profit attributable to shareholders of the parent company was 11.268 billion yuan, a year-on-year increase of 18.37%. The core driving force for Bank of Ningbo to achieve double-digit growth in both revenue and net profit in the first half of the year is inseparable from good risk control. On this basis, key businesses such as retail business and financial technology have blossomed everywhere, helping Bank of Ningbo to reach a new level. Power source - risk control The importance of risk control to banks is self-evident, and it can be said to play the role of "ballast stone". The same is true of Bank of Ningbo, one of the representatives of city commercial banks. As it said in this year's interim report, the whole bank has always adhered to the risk concept of "controlling risks is to reduce costs, and managing risks is to create value". the most fundamental business objective. Against this background, the NPL ratio of Bank of Ningbo has been kept below 1% for decades, and it continued to maintain a relatively good level in the industry in the first half of this year, with a NPL ratio of 0.77%. Most of the bank's risks mainly come from loans, and it is not difficult to understand the reason why the non-performing loan ratio of Ningbo Bank is so low by looking at the loan direction of Ningbo Bank. Among Ningbo banks, the industry with the highest non-performing loan ratio in the first half of this year was the accommodation and catering industry, at 0.99%, but the loan amount in this industry accounted for only 0.3% of the total. Coincidentally, the real estate industry, which is going through a cold winter, brought 339 million yuan of non-performing loans to Bank of Ningbo, with a non-performing loan ratio of 0.87%. However, as of the end of June this year, Bank of Ningbo's loans in this industry only accounted for 3.94% of the total. Not only that, the secret of Ningbo Bank's non-performing loan ratio is closely related to its knowledge of customers. For a long time, Bank of Ningbo has accurately controlled the development law of the industry where customers are located, mastered the actual family background of customers, and ensured that Bank of Ningbo has a lower channel for customer identification and acquisition than large banks. Bank of Ningbo adheres to the concept of measuring the earth with both feet and creating value with professionalism. As of the end of June 2022, the total loans of Ningbo Bank reached 989.481 billion yuan, an increase of 14.69% over the end of the previous year. In addition to asset quality, the provision coverage ratio reflects a bank's ability to withstand risks. In the first half of this year, the provision coverage ratio of Bank of Ningbo reached 521.77%, far higher than the regulatory red line of 150%. It is not difficult to see from the above that the risk control capability of Bank of Ningbo is one of its core competitiveness, which also lays a solid foundation for its various businesses. Wealth Management Helps Retail Business Become a New Growth Engine Under the background of Bank of Ningbo's sound risk control, the bank's business tentacles have been extended to all aspects, forming a diversified profit center, among which the retail business has gradually developed into a new growth engine. In the first half of this year, the retail business of Bank of Ningbo has blossomed everywhere, and the personal loan interest income accounted for 47.6% of the total loan interest income, which was 11.863 billion yuan, a year-on-year increase of 13.3%; not only that, the average rate of return on personal loans was 6.97%, which is far higher The average yield on corporate loans is 4.45%. In addition to basic retail, with the continuous growth of residents' wealth, the wealth management industry will enter a golden period of development. As McKinsey said, by the end of 2020, the scale of China's wealth management market in terms of personal financial assets will reach RMB 200 trillion, ranking second in the world. By 2025, the scale of China's wealth management market is expected to reach RMB 332 trillion. With the volume of millions, various banks are scrambling to deploy wealth management business one after another. Naturally, Bank of Ningbo will not miss the opportunity to move towards new retail including wealth management. As early as 2018, Bank of Ningbo took wealth management and private banking business as the starting point for its retail transformation, and successively established the head office wealth management department and private banking department. Today, the transformation of Bank of Ningbo's retail business has been fruitful. In the first half of this year, the total AUM of individual customers reached 609.5 billion yuan, an increase of 75.5 billion yuan compared with the beginning of the year. Among them, the AUM of private banking customers was 175.7 billion yuan, an increase of 29.2 billion yuan from the beginning of the year. Not only that, the continuous expansion of financial licenses has also contributed to the wealth management business. As early as 2013, Bank of Ningbo "joined hands" with Li'an Fund Management Company to jointly fund the establishment of Yongying Fund, with a shareholding ratio of 71.49%, which means that Bank of Ningbo holds a fund license. After nearly ten years of development, as of the end of June this year, the public offering of Yongying Fund reached 261.7 billion yuan. In 2019, Ningyin Wealth Management was approved to be established as another "child" in the financial map of Bank of Ningbo. After a lapse of three years, the management scale of Ningyin Wealth Management has increased step by step. At the beginning of the year, it increased by 61.3 billion yuan. In addition to Yongying Fund, Ningyin Wealth Management and other subsidiaries, this year, Ningbo Bank's retail footprint has taken another step, and it has won the gold consumption license from Huarong in one fell swoop. On May 6 this year, Bank of Ningbo successfully held a 70% stake in the original Huarong Xiaojin. After the Bank of Ningbo took the consumer gold license into its arms, it continued to increase its holdings of the original Huarong consumer gold. In July, the company's shareholding ratio increased to 76.67%. Subsequently, the consumer gold company officially changed its name to Anhui Ningyin Consumer Finance Co., Ltd. With the support of its subsidiaries, the non-interest net income of Bank of Ningbo has grown steadily. In the first half of this year, the company achieved non-interest income of 12.109 billion yuan, a year-on-year increase of 34.01%, accounting for 41.17% of operating income, an increase of 5.05 percentage points over the same period last year. Obviously, the wealth management business promotes Bank of Ningbo's retail transformation further and escorts it. Fintech runs through it. The rapid development of the Internet has brought earth-shaking changes to the banking industry, which means that the role of Fintech in various banks cannot be ignored. And financial technology is naturally a "booster" for the digital transformation of banks. Since the beginning of this year, the digital transformation of the banking industry has ushered in policy spring breeze. The "Guiding Opinions on the Digital Transformation of the Banking and Insurance Industry" issued by the China Banking and Insurance Regulatory Commission at the beginning of the year is the first special document issued by the China Banking and Insurance Regulatory Commission on the digital transformation of the banking and insurance industry, helping the digitalization of the banking industry to go further. Under the guidance of the policy, Bank of Ningbo has accelerated its "race to the ground" in the field of financial technology. Today, financial technology has penetrated all businesses of Bank of Ningbo. Taking the small and micro enterprises that Bank of Ningbo serves as an example, Bank of Ningbo meets the financing needs of small and micro enterprises through products such as small and micro loans, fast review and fast loans, on-lending financing, and easy loans, and at the same time uses digital product transformation to speed up processing efficiency. Among them, the fast review and fast loan is one of the typical cases. The customer initiates the application through the Bank of Ningbo APP, WeChat official account and other channels, and uses the mobile phone terminal "real estate evaluation + face recognition + card binding authentication" to realize the online business processing , loan approval from 3.5-4 days to the fastest 3 minutes to complete. With many featured products, Bank of Ningbo maintained double-digit growth in corporate loans in the first half of this year. By the end of June 2022, the total corporate loans of the company was 533.104 billion yuan, an increase of 14.78% over the beginning of the year. This is just the tip of the iceberg for Bank of Ningbo in the field of financial technology. As we all know, mobile banking is an important channel connecting customers and banks, and it has become the core force for each bank to conduct business. Bank of Ningbo takes Bank of Ningbo APP, online banking and WeChat banking as contact points to create an intelligent, mobile and personalized one-stop service platform for customers. Today, the effectiveness of the three major APPs has become increasingly apparent. Taking the Bank of Ningbo APP as an example, as of the end of June 2022, the number of Bank of Ningbo APP customers was 6.6125 million, an increase of 13.22% from the beginning of the year; the number of monthly active customers of the APP was 3.1116 million, an increase from the beginning of the year 10.23%. And financial technology is naturally inseparable from the support of real money. Statistics show that in 2021, 14 banks have invested more than 150 billion yuan in financial technology. On this basis, since the beginning of this year, various banks have turned their attention to the field of financial technology, and Bank of Ningbo is no exception. Every year, about 5% of its operating income is invested in the construction of financial technology. There are various indications that financial technology has fully empowered all aspects of Bank of Ningbo, adding to the icing on the cake for the sustainable development of the multi-profit center.
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