Since 2014, when the state approved the establishment of the first batch of 5 private banks, exactly 10 years have passed until 2024, and the number of private banks in mainland China has reached 19. In addition to the pressure of changes in the economic situation, the development of private banks also faces challenges such as difficulty in internal governance, intensified operating pressure and difficulty in capital replenishment.
Securities Star noted that in the first half of this year, the performance of nearly 10 private banks that have released semi-annual report data is generally stable, but Yealink Bank is the only bank with a double decline in revenue and net profit. In particular, the net profit indicator fluctuates greatly, and after the net profit shrank by more than 70% to more than 50 million yuan in 2021, it rebounded to 140 million yuan last year. As of the end of June this year, the bank's net profit further fell to 18 million yuan, a year-on-year decline of more than 70%.
In addition, the total assets of Yealink Bank, which once approached the 60 billion mark, have continued to shrink in the past two years, falling to 51.756 billion yuan by the end of 2023 and further to 48.787 billion yuan by the end of the first half of this year. At the same time, as of the end of June this year, Yealink Bank's non-performing loan balance was 528 million yuan, and the non-performing loan ratio rose to 1.73% from 1.61% at the end of last year.
The performance has declined, and the asset scale has shrunk again
According to public information, Yealink Bank is the first private bank in Northeast China, and in December 2016, the China Banking Regulatory Commission approved the application for the establishment of Jilin Yealink Bank. In May 2017, it was jointly established in Changchun by 7 private enterprises including Zhongfa Financial Holding Investment and Jilin Sankuai Technology (Meituan), with a registered capital of 3 billion yuan. As one of the four Internet banks, Yealink Bank's main business areas revolve around consumer finance, small and micro finance, and rural finance.
A few days ago, Yealink Bank released its 2024 semi-annual report, showing that the bank's operating income in the first half of the year was 605 million yuan, a year-on-year decrease of 4.87%; The net profit was 18 million yuan, a year-on-year decrease of 69.49%.
Securities Star noted that from 2020 to 2023, Yealink Bank's operating income will be 1.567 billion yuan, 1.433 billion yuan, 1.083 billion yuan, and 1.065 billion yuan respectively. The corresponding net profit fluctuates greatly, judging from the interim report data for the period of 2021-2024, the bank has experienced three declines in net profit in four years, and only achieved positive growth in net profit in the first half of 2023.
Among the nearly 10 private banks with available data, Yealink Bank's net profit decline of more than 70% in the first half of the year was also at the bottom of its peers, and Wenzhou Minshang Bank, which has a similar revenue scale, although its profit was also under pressure, but its net profit fell by only 3.67% in the first half of the year.
In addition to the deterioration of performance indicators, the change in Yealink Bank's asset size indicators is more severe.
From 2021 to 2023, Yealink Bank's assets will be 59.965 billion yuan, 53.634 billion yuan, and 51.756 billion yuan respectively. As of the end of the first half of this year, the total asset scale was 48.787 billion yuan, a decrease of 2.988 billion yuan from the beginning of the year, and also fell below the 50 billion mark.
In the first half of this year, among the private banks that have released data, among the top 10 in terms of asset size, there are MYbank, Sanxiang Bank and Yealink Bank, whose total assets have shrunk, but MYbank is currently the leader of private banks, with total assets as high as 446.292 billion yuan, and the decline of 1.29% is still bearable, but Yealink Bank's asset scale fell by 5.77% in the first half of the year, the largest amount.
The defective rate has risen, and the internal control has been "broken"
At the end of the first half of 2024, Yealink Bank's NPL ratio rose to 1.73%, with a balance of NPLs of RMB528 million, compared with 1.61% in the previous two years, but now it has re-emerged.
Securities Star noted that in the first half of this year, the proportion of normal and doubtful loans of Yealink Bank declined. Among them, normal loans decreased by 3.207 billion yuan, accounting for 0.89 percentage points of the loan balance. However, the proportion of concern, subordinated and loss loans all increased, of which the proportion of concern rose to 2.87%, with an increase of 173 million yuan and a balance of more than 870 million yuan.
In its semi-annual report, Yealink Bank said that it would "take all available means to resolve risks by taking multiple measures at the same time, establish a linkage mechanism between business departments, risk departments and external law firms, flexibly use collection, restructuring and judicial means to promote the process of credit risk resolution, and supervise and promote the progress of resolution on a monthly basis." ”
In addition to facing the risk of asset quality deterioration caused by the rise in non-performing ratios, Yealink Bank also suffered from "huge fines" in the first half of the year.
At the beginning of this year, Yealink Bank received a large fine from the central bank, exposing the company's internal management problems. On March 12, the Jilin Branch of the People's Bank of China announced an administrative penalty information publicity form, and Yealink Bank was heavily fined 7.5834 million yuan for three violations, and the administrative penalty decision date was March 7.
According to the fine, Yealink Bank was fined 7.5834 million yuan for violating the provisions on matters related to the prevention of new types of illegal crimes in telecommunication networks, failing to perform customer identification obligations as required, and failing to submit large-value transaction reports or suspicious transaction reports as required.
Among them, Sun Qi, then an expert in the wealth innovation department of Yealink Bank, was responsible for the above three violations and was fined 255,300 yuan.
Against the backdrop of a sharp decline in net profit and an increase in the non-performing loan ratio, Yealink Bank's high penalty is undoubtedly an impact on its financial indicators, and this heavy penalty incident has exposed the failure of its internal control mechanism to some extent, and also reflects the operating pressure faced by private banks as a whole.
Under various challenges, on September 30, Yealink Bank issued the "Announcement on Comrade Jiang Yongjun's Formal Inauguration as President of the Bank" on its official website.
According to the announcement, the third regular meeting of the board of directors of the bank in 2024 and the tenth meeting of the third board of directors decided to appoint Comrade Jiang Yongjun as the president; At the same time, the bank recently received the "Jilin Financial Supervision Bureau's Reply to Jiang Yongjun's Qualifications for the President of Jilin Yealink Bank", which officially approved Jiang Yongjun's qualifications as president.
Under the leadership of the new president, Yealink Bank may need to further adjust its strategy and optimize its governance structure in the future to cope with the changing market environment and internal challenges. (This article debuted Securities Star, author|Zhao Zixiang)
Source: Securities Star
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