① Recently, china construction bank corporation has accelerated the disposal of non-performing assets, consecutively releasing 21 relevant project transfer announcements within three days, involving an unpaid principal and interest total of approximately 1.61 billion yuan. ② It is generally believed in the industry that, influenced by factors such as the economic recovery being below expectations, the quality of retail assets in banks is under pressure, which has become an overall trend in the market.
The Financial Association reported on November 22 (journalist Shi Sitong) that on November 22, china construction bank corporation continued to release several non-performing loan transfer project announcements on the silver registry center. The Financial Association's reporters found that recently, china construction bank corporation has accelerated the disposal of non-performing assets, consecutively releasing 21 relevant project transfer announcements within three days, involving an unpaid principal and interest total of approximately 1.61 billion yuan.
Industry insiders believe that the pressure on the quality of retail assets in banks has become an overall trend in the market, influenced by factors such as the economic recovery being below expectations. With recent continuous issuance of macro-control policies, the external environment faced by banks will gradually improve. In light of the current pressure of risk exposure on the retail side, the industry will continue to maintain a significant effort in the disposal of non-performing assets.
Accelerating the disclosure of non-performing loan transfer information, with a focus on individual non-performing loans for transfer.
The Financial Association's reporters reviewed the non-performing loan transfer section of the silver registry center and found that since November, china construction bank corporation has issued a total of 29 non-performing loan transfer announcements, involving an unpaid principal and interest total of 2.211 billion yuan. Recently, the speed of their transfer disclosures has notably accelerated, with 21 relevant project transfer announcements released within three days, involving an unpaid principal and interest total of approximately 1.61 billion yuan.
It is noteworthy that in terms of the type of non-performing loans, most of the non-performing loan transfer projects disclosed by china construction bank corporation are individual operating non-performing loans. Specifically, among the disclosed transfer projects since November, only 3 are corporate non-performing loan projects, involving unpaid principal and interest of approximately 0.345 billion yuan, while the remaining 26 are all for personal non-performing loans such as consumer and operating loans.
This move is beneficial to solidify china construction bank corporation's stable operating foundation, enhance its risk resistance capability, and meet the regulatory requirements for financial institutions to strengthen risk management. Zheng Jiawei, chief analyst of fixed income at Yongxing Securities, told Financial Association reporters that since 2024, china construction bank corporation's retail non-performing loans generation and non-performing loan rate have been relatively high, increasing asset quality pressure. The bank's intensive transfer of non-performing assets indicates that it is actively responding to the current pressures on retail asset quality, accelerating non-performing asset disposal through market-based means to relieve asset quality pressure.
From the third quarterly report, china construction bank corporation has not disclosed the related situation of personal loan non-performing loans for the first three quarters. Overall, as of the end of September this year, the bank's non-performing loan balance was 346.906 billion yuan, an increase of 21.65 billion yuan compared to the end of last year; the non-performing loan rate was 1.35%, a decrease of 0.02 percentage points.
However, from the previous mid-year report, behind the overall improvement in the bad debt ratio, the personal loan and advance bad debt ratio of china construction bank corporation in the first half of the year was 0.84%, an increase of 0.18 percentage points from the end of last year, with the personal operating loan bad debt ratio rising by 0.62 percentage points to 1.57%.
At the previous third quarterly earnings conference, a relevant person in charge from the credit management department of china construction bank corporation stated regarding the situation of personal consumer loan bad debt ratio that the overall bad debt ratio for personal consumer loans has remained stable. Although it has slightly increased since the beginning of the year, it still maintains a relatively good level. The bad debt ratio for china construction bank corporation's credit cards also remains at a good level compared to peers. Going forward, the bank will continue to improve the quality and efficiency of loan issuance in key areas, while effectively assessing risks and proactively responding to new situations and challenges to ensure continuous stability of asset quality.
The risk exposure pressure on banks' retail end is increasing, and the external environment may gradually improve in the future.
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 the second half of the year, china construction bank corporation continues to dispose of bad assets. Previously, in September, the bank released 35 pieces of bad loan transfer information in a week at the bank credit registration center, with total unpaid principal and interest reaching 2.818 billion yuan, with the project type mainly being personal consumer or operational bad loans.
"Recently, the growth rate of social financing has declined, and factors such as the gradual withdrawal of previous support policies for small and micro enterprises may impact banks' retail asset quality. These external factors have exacerbated the risk exposure pressure on banks' retail end, leading to an increase in retail bad debt ratio." Zheng Jiawei stated.
In fact, during the recent series of earnings conferences, many bank executives have discussed the asset quality of the retail end. For instance, Guo Dai, the general manager of the credit management department of minsheng bank, candidly mentioned that this year, the credit risks in comparably small, micro and retail sectors have generally shown an upward trend. Meanwhile, Tang Shuhui, the deputy general manager of risk management department of china citic bank corporation, also stated that due to the unexpected pace of economic recovery, the retail asset quality of the banking industry is generally under pressure, which is an overall market trend.
However, looking ahead, the industry generally believes that the external environment is gradually improving. "Current macro-control policies have been continuously issued, providing strong support for stabilizing the economy and mitigating risks," said Tang Shuhui. At the same time, Guo Dai also noted that from the perspective of the external environment, with the continuous rollout of a package of incremental policies since September, economic recovery is expected to accelerate and will gradually transmit to real enterprises and residents' incomes, improving the external environment faced by banks.
Insiders believe that actively resolving and disposing of non-performing assets is beneficial for solidifying the foundation of banks' stable operations. Currently, the risk pressure on the retail end across the entire industry is relatively high, and institutions are actively seeking various ways to address this. The industry will continue to maintain a significant effort in disposing of non-performing assets.
At the same time, Zheng Jiawei further pointed out that with the increase in the non-performing loan ratio, commercial banks have a strong demand for diversified disposal methods for non-performing assets. Bulk transfer of non-performing assets can improve the efficiency of commercial banks' disposal and market liquidity, helping banks quickly recover funds and reduce the non-performing loan ratio. Additionally, regulatory authorities encourage banks and financial institutions to broaden the channels for disposing of non-performing assets and innovate ways of handling non-performing assets.
