On April 25, the "King of Retail", which has recently attracted market attention, held a first-quarter performance exchange meeting online.
Prior to this, Tian Huiyu, the former president of China Merchants Bank, who had been in office for nearly nine years, was dismissed from the board of directors on April 18, and then "officially announced" on the 22nd that he was investigated. Since the 18th, the A-share price of China Merchants Bank has fallen by 17%.
All kinds of worries came over me. In this regard, Wang Liang, executive vice president (presiding over the work) of The China Merchants Bank, revealed at the meeting that at present, the bank's various businesses are developing steadily, and various operations and management have remained in a normal state.
Wang Liang particularly stressed that "three unchanged" and "five always adhere" are the characteristics and advantages of CMB, and the board of directors and management will adhere to it for a long time. At the same time, he said that the strategy of CMB is very clear and firm, and the next step of the management will unswervingly do a good job in the implementation of the strategy, and keep the implementation of the strategy unbiased and unshakable.
According to the data, in the first quarter, the bank achieved operating income of 91.99 billion yuan, an increase of 8.5% year-on-year, and net profit increased by 12.5% year-on-year to 36 billion yuan, and the operating performance was stable.
"Unswervingly do a good job in strategic implementation"
During the helmsmanship, Tian Huiyu left a deep impression on everyone. Therefore, his sudden "fall" has also made investors full of doubts, especially worried about the change of china's development ideas.
In this regard, Wang Liang revealed that on April 18, the board of directors decided that he would preside over the recruitment work of the bank and "fully authorize it to act as the president" to ensure the stability of the bank's business team. "Over the past week, we have made concerted efforts to maintain the steady development of various businesses, and the current operation and management are normal."
Immediately after, Wang Liang made the first statement. He said that the "three unchanged" and "five always adhered" are the characteristics and advantages of CMB, and the board of directors and management will adhere to it for a long time.
The so-called "five always adhere", that is, always adhere to the two consistent; always adhere to the road of market-oriented specialization; always adhere to innovation-driven development; always adhere to the differentiated development strategy; always adhere to the concept of steady and prudent risk management. The reason why the "five always adhere" can be achieved is because "always maintain the 'three unchanged' of the president responsibility system under the leadership of the board of directors, the market-oriented incentive and constraint mechanism, and the stability of the cadre team".
"Our bank has a good corporate governance mechanism, and the board of directors will maintain the stability and continuity of the whole bank in an attitude of being highly responsible to China Merchants Bank, and make careful choices and decisions for the new president." Wang Liang said.
Secondly, Wang Liang believes that CMB established a development strategy based on "retail banking" business in 2004, proposed a "light bank" strategy in 2014, and proposed a 3.0 business model with "value cycle chain of big wealth management" as the core last year.
"At present, retail banking has become the ballast stone of our bank, half of the business, whether it is scale, revenue, profit, brand has brought us a huge contribution, retail banking business we will definitely unswerving." Wang Liang stressed.
In addition, at the beginning of last year, CMB formulated a new five-year development plan, proposing to become the "best value creation bank driven by innovation, leading model and distinctive characteristics", and has achieved remarkable results since its implementation last year. Wang Liang said that in the next step, the management will unswervingly do a good job in the implementation of the strategy and keep the implementation of the strategy unbiased and unshakable.
"Shaping a New Competitive Advantage in the Age of Wealth Management"
2021 is considered to be the first year of CMB's big wealth management. In the past year, the bank achieved a large wealth management income of 52.13 billion yuan, an increase of 33.9% year-on-year, contributing nearly 16% to the bank's revenue.
But with the departure of Tian Huiyu, where does big wealth management go? How can CMB continue to maintain the advantages of its retail business, especially its wealth management business, in an increasingly crowded track?
Zhong Desheng, assistant to the president of CMB, revealed that with the 3.0 model as the core, CMB is making every effort to promote the construction of core capabilities of retail business in the era of wealth management. thereinto:
The first is to accelerate the construction of customer-centric asset allocation expertise. Among them, the internal guidance is from product sales to the "customer-centric" asset allocation operation mode, and the external differentiated asset allocation is carried out according to the customer's risk and return preferences.
The second is to build an integrated service model of "investment and private technology" and strengthen the advantages of CMB's private banking business. It is understood that the model stems from CMB's insight into the private banking customer base.
"About 70% of our private bank customers are entrepreneurs or enterprise directors and supervisors, in addition to personal wealth management needs, such customers have personalized needs in terms of 'people, enterprises, families, and communities', so we integrate the advantages of investment banks, commercial banks, private banks, and technology, and integrate services to form a new competitive advantage." Zhong Desheng said.
Third, channel upgrading, through the construction of a "people + digital" service model, the traditional four major channels through the digital way to give professional service connotation and channel synergy, to build CMB's channel advantages and characteristics in the era of wealth management.
Fourth, the layout of wealth management in the construction of the APP open platform makes CMB have new operating capabilities on the new platform of wealth management. At the same time, we will increase the intensity of opening up, enrich cooperative institutions, and provide more comprehensive and professional services.
Fifth, through openness and integration, the organizational effectiveness and synergy of the whole bank will be more fully exerted.
Zhong Desheng believes that in the process of formulating and implementing the strategy of retail business, CMB has accumulated the advantages of systematization of retail business, "which is our confidence and foundation". Coupled with the many core capacity buildings being advanced, he is "confident" that CMB will shape a new competitive advantage in the era of wealth management.
"Confidence in sustaining non-interest income growth"
Last year's high base, in fact, also brought a lot of pressure to CMB's non-interest income growth this year.
In the first quarter, CMB achieved non-interest income of 37.53 billion yuan, an increase of 6.5% year-on-year, which was weaker than the growth rate of the bank's revenue. Among them, due to the epidemic and capital market fluctuations, the wealth management of CMB in the first quarter decreased by 11% year-on-year.
Structurally, the main impact came from the distribution fund and trust income, and the new fund fell by 70% year-on-year. The person in charge of the financial accounting department of CMB said that under the unfavorable situation of fund sales, the market share of the bank's fund sales is steadily increasing, and the comprehensive competitiveness has not been challenged.
At the same time, the bank's wealth management and insurance sales revenue rose sharply year-on-year, which also offset the impact of the first two businesses. "Looking at wealth management, it still depends on whether the comprehensive allocation ability can cope with such market fluctuations."
According to the data, as of the end of March, CMB's retail AUM (managed customer assets) reached 11.34 trillion yuan, an increase of 5.4% over the beginning of the year. Among them, the AUM of golden sunflower and above customers increased by 4.7% in the same period, accounting for more than 70% of the total increase in retail AUM; the average AUM of private households rose to nearly 28 million yuan.
"This shows that the advantages of our systematization still exist, and the trust of our customers is still relatively high." Subsequently, as the capital market bottomed out, the fund sales business is also expected to rebound. The person in charge said.
In addition to the wealth management business, the asset management business and custody business in the large wealth management sector of CMB achieved good growth in the first quarter. Among them, asset management fee and commission income increased by 47.6% year-on-year, custody business revenue increased by 11.3% year-on-year, and the balance of custody assets once exceeded 20 trillion yuan.
In view of the focus of the expansion of non-interest business in the next stage, the person in charge said that in addition to the large wealth management sector, it will also focus on three aspects:
First, focus on integrated customer acquisition, including increasing the integration of credit and debit cards at the retail end, as well as public-private integration, and increasing the integration of "investment and private business";
Second, in terms of public business, in the past few years, the overall layout of online has been increased, and transaction banking and cross-border financial business will become the basis for stable growth under the condition of better market conditions;
Third, the group integrated operation, and gradually increase the comprehensive contribution of subsidiaries.
"Although the growth rate of non-interest income in the first quarter has declined year-on-year, and even the future situation is not optimistic, through systematic arrangements and continuous construction of comprehensive competitive strength, we are confident of maintaining the growth of non-interest income, especially wealth management business." The person in charge said.
"Overall controllable risks in housing-related business"
In terms of asset quality, in the first quarter, CMB further strictly identified non-performing loans, fully exposed risks, and the ratio of loans overdue for more than 90 days to non-performing loans dropped from 69% at the beginning of the year to 58%.
On this basis, the bank's non-performing loan ratio ended the previous "six consecutive declines", and a rare "double rise" in the first quarter. Among them, the non-performing loan ratio increased by 0.03 percentage points from the beginning of the year to 0.94%.
Overall, the increase in the bank's non-performing loans is mainly reflected in two key areas: first, the risk of real estate customers has risen, and the balance of non-performing loans of real estate companies in the bank has soared by 90% to 9.4 billion yuan in the first quarter; second, due to the adjustment policy of the time point of overdue identification, the implementation of the downward adjustment of the non-performing policy of more than 60 days overdue and the impact of the epidemic, the new non-performing credit card has increased by nearly 1.6 billion yuan year-on-year.
Among them, in response to the exposure of real estate business risks, Zhu Jiangtao, vice president of China Merchants Bank, said that the bank's judgment on the risks of the real estate industry at the beginning of the year did not change, and the risk supporting strategy of the whole bank did not change. Specifically:
In terms of real estate access, CMB implements a two-level strategic customer list management system with a total score and implements unified gate quota management at the group level;
In terms of the approval process, for the approval of the on-balance sheet assets of the bank that bears credit risk, CMB adopts the principle of hierarchical authorization, and divides the approval according to the double signature, joint signature and the loan review committee, and finally the president has one vote veto; for the investment and financing approval of the bank that does not bear credit risk, the embedded risk team is given certain authorization, beyond the scope of authorization, the president has one vote to veto; the sales business is submitted to the sales committee for approval.
Zhu Jiangtao revealed that at present, the proportion of real estate business provisions of CMB has risen to more than 10%, and the new business generation in the first quarter is concentrated in two or three housing enterprises, and they are all within the pre-judgment range at the beginning of the year.
"Personal judgment, the rise in real estate risks and the general trend are closely related, but overall controllable. Subsequently, the overall risk exposure of the industry will peak during the year. Zhu Jiangtao thought.
In view of the bad exposure in the credit card field, Zhu Jiangtao believes that the factors affecting the bad generation in the first quarter will continue to affect in the future. But at the same time, the early indicators that reflect the risk of credit cards, such as the entry rate and the recovery rate of the M1-M3 downward migration rate, are relatively stable.
"I personally judge that the monthly peak of credit card bad generation will be in August, and the second highest point will be in May, but the annual bad generation rate will be lower than in 2020." Zhu Jiangtao expected.
Speaking of encouraging large banks to reduce the provision ratio in an orderly manner, Zhu Jiangtao believes that the policy aims to enhance the ability of banks to lend credit and reduce the comprehensive financing costs of enterprises, but it does not mean relaxing the requirements for banks to strictly adhere to the risk bottom line.
According to the data, CMB recorded a credit impairment loss of 21.5 billion yuan in the first quarter, an increase of 4.8% year-on-year. "In the future, we will adhere to the consistent prudent and prudent provisioning policy and will not release profits by reducing impairment losses." Zhu Jiangtao stressed.
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