According to Cailian News on September 6th, under pressure on the quality of retail assets, China Construction Bank is further increasing the transfer of personal non-performing loans.

According to a rough count by Cailian News reporters, in the first week of September, China Construction Bank consecutively released 35 pieces of information on the transfer of non-performing loans in the Silver Depository Center, involving a total of 2.818 billion yuan in unpaid principal and interest. Among them, 34 were projects for the transfer of personal consumption or operation non-performing loans.

In the view of industry insiders, China Construction Bank has been intensively transferring non-performing loans, mainly due to the relatively high generation of non-performing retail loans and non-performing loan ratio this year, which has put some pressure on asset quality. Data shows that by the end of the first half of the year, the non-performing loan ratio of personal loans and advances at China Construction Bank increased by 0.18 percentage points compared to the end of last year, with different degrees of increase in housing, credit card, operation, and consumption loans.

"The overall risk pressure on the retail side of the entire industry is relatively high, and the industry will still maintain a high level of disposal of non-performing assets in the second half of the year." experts said. It is understood that by the end of the first half of this year, the retail non-performing loan ratio of 42 listed banks was 1.41%, an increase of 0.23 percentage points compared to the end of last year.

China Construction Bank has consecutively launched 35 projects for the transfer of non-performing loans, with a total of over 2.8 billion yuan in unpaid principal and interest.

According to the disclosure of the non-performing loan transfer zone of the Silver Depository Center, in September, in just the first week, China Construction Bank has already consecutively released 35 pieces of information on the transfer of non-performing loans. Cailian News reporters found that in terms of amount, the total unpaid principal and interest of the above projects reached 2.818 billion yuan; in terms of types of non-performing loans, only one was a transfer of non-performing loans for corporates, and the remaining 34 were projects for the transfer of personal consumption or operation non-performing loans.

"Actively resolving and disposing of non-performing assets is conducive to consolidating the sound operation foundation of banks." Industry analysts believe that the intensive transfer of non-performing asset projects by China Construction Bank is mainly due to the relatively high generation of non-performing retail loans and non-performing loan ratio this year, which has put some pressure on asset quality, and it is also a manifestation of the bank's active expansion of channels for disposing of non-performing assets.

From the perspective of asset quality, as of the end of June this year, the non-performing loan balance of China Construction Bank was 342.904 billion yuan, an increase of 17.648 billion yuan from the end of last year; the non-performing loan ratio was 1.35%, a decrease of 0.02 percentage points from the end of last year. However, while the overall non-performing loan ratio has improved, the non-performing loan ratio for personal loans and advances at the bank has increased by 0.18 percentage points to 0.84%.

In particular, the non-performing loan ratio for individual business loans has increased by 0.62 percentage points to 1.57% compared to the end of last year. In addition, the non-performing loan ratio for credit card loans at the bank has increased by 0.2 percentage points to 1.86%, the non-performing loan ratio for personal consumption loans has increased by 0.04 percentage points to 0.9%, and the non-performing loan ratio for personal housing loans has increased by 0.12 percentage points to 0.54%.

At the same time, the China Construction Bank is also increasing its efforts to dispose of non-performing assets. According to the semi-annual report data, as of the end of June, the bank's non-performing loans transferred in bulk to external asset management companies amounted to 6.845 billion yuan, an increase of 5.174 billion yuan from the same period last year.

In addition, as of the first half of the year, the bank still faces the possible disposal of loans and advances that have been written off but may still be subject to enforcement. However, compared to the same period last year, the outstanding amount has decreased by 0.256 billion yuan.

Looking ahead to the future trend of asset quality, Li Jianjiang, deputy president of China Construction Bank, stated at the mid-year earnings conference that in the second half of the year, the bank will continue to enhance risk awareness, adhere to a bottom-line mindset, fully grasp the risk situation, further strengthen proactive management and control, and expects the overall stable operation of asset quality in the second half of the year, with key areas of risk remaining controllable.

Retail asset quality of listed banks is generally under pressure, and the industry will continue to maintain a high level of disposal of non-performing assets in the second half of the year.

In fact, not only China Construction Bank, but also other retail banks have been experiencing pressure on asset quality since the beginning of this year. It was found by reporters from Cailian Press that in the first half of this year, the non-performing loan ratios of listed banks for personal loans were generally higher than at the end of last year.

Overall, as of the end of the first half of the year, the non-performing loan ratio for retail loans at 42 listed banks was 1.41%, an increase of 23 basis points from the end of last year. Among them, the non-performing loan ratios for mortgage loans, consumer loans, business loans, and credit card loans increased by 8, 11, 22, and 27 basis points, respectively, compared to the end of last year.

Looking at the state-owned major banks, the personal loan non-performing loan ratios of the six state-owned banks have all increased to varying degrees, including China Construction Bank, with four of them increasing by more than 10 basis points. Among them, Industrial and Commercial Bank of China rose by 20 basis points to 0.90% from the end of the previous year, Bank of Communications rose by 17 basis points to 0.98%, and Bank of China rose by 12 basis points to 0.88%.

At recent intensive earnings conferences, many bank management teams have also discussed the asset quality on the retail side. CM Bank's Vice President Wang Ying frankly stated that in the second half of this year and the near future, the quality control of retail credit assets will still face challenges, and the bank's non-performing loan ratio, attention ratio, and overdue ratio will see a slight increase.

According to Ni Jun, Chief Analyst of the banking industry at GF Sec, mainly due to the slowdown in social financing growth since the beginning of this year, and factors such as the gradual withdrawal of previous small and micro support policies, the pressure on retail risks in banks has significantly intensified, with the non-performing loan ratio on the rise, various forward-looking asset quality indicators starting to fluctuate. "This trend is expected to continue in the second half of the year and gradually be reflected in indicators such as non-performing loan ratios and provision coverage ratios," he said.

At the same time, industry analysts have also told Caixin reporters that there is relatively high overall retail risk pressure in the entire industry, and all institutions are actively disposing of non-performing assets through various means. In the second half of the year, the industry will still maintain a significant intensity in disposing of non-performing assets.

"In recent years, China has actively nurtured the development of the non-performing asset disposal market, expanding channels for non-performing asset disposal and entities participating in the non-performing market, and encouraging innovative ways of disposing of non-performing assets. In addition to write-offs and collection, methods such as non-performing asset transfer and asset securitization have also rapidly developed," analysts said.