Those whose assets have entered the "7 trillion Club"Shanghai Pudong Development BankThe annual report of 2019 and the quarterly report of 2020 were released on the evening of the 24th.
In the past six months, the balance sheet of the joint-stock bank has continuously increased, with assets growing by 3.2% month-on-month in the fourth quarter of last year and 4.2% in the first quarter of this year.
Among them, the increase in assets in the first quarter was nearly 300 billion yuan, the highest in the past five years, and the bank's total loans also stood at a new level of 4 trillion.
Data show that in 2019, Pudong Development Bank achieved an operating income of 190.69 billion yuan, an increase of 11.6% over the same period last year, and a net profit of 58.91 billion yuan, an increase of 5.4% over the same period last year.
Affected by the epidemic, although the growth rate of retail business has fluctuated, in the case of rapid growth in public loans and non-interest income, the bank's revenue and net profit in the first quarter also grew by 10.7% and 5.5% respectively compared with the same period last year.
Under the epidemic: retail loans fell slightly in the first quarter
Affected by the epidemic, the growth rate of retail business, which has become the largest source of income of Pudong Development Bank for two consecutive years, fluctuated in a short period of time. As of the end of March, the bank's retail loan balance was about 1.67 trillion yuan, down slightly from the beginning of the year. However, Pudong Development Bank executives still highly approve of the development of retail business over the past year.
President Pan Weidong said in his speech in the annual report that retail debt, revenue and the number of customers have basically doubled in three years, becoming the company's largest source of revenue for two consecutive years, and completing the digital construction of bank-wide penetration management.
At the end of 2019, the total retail deposits and retail loans of Pudong Development Bank increased by 29% and 13% respectively over the beginning of the year, and the retail deposit station reached a new level of 800 billion yuan, the first increase in the joint-stock bank. The proportion of retail deposits and loans rose to more than 23% and 42% respectively.
In this year, the net operating income of Pudong Development Bank's retail business reached 73.4 billion yuan, accounting for 43% of the bank's revenue. By the end of last year, the bank had nearly 86.5 million retail customers and the balance of personal financial assets (AUM) exceeded Rmb2,000bn, an increase of more than 12 per cent over the beginning of last year.
"under the trend of narrowing interest rate spreads, in order to increase revenue, it is necessary to increase the contribution of intermediary business income. This year, we will work hard on the agency business to expand the retail AUM. " Wang Xinhao, vice president of Pudong Development Bank, said.
In addition, the bankPrivate bankThe number of customers has also exceeded 40, 000, and the financial assets of private banking customers have exceeded 500 billion yuan.
It is worth noting that as a previously recognized "super dark horse" in the market, the credit card overdraft balance and total credit card business revenue of Pudong Development Bank both declined in 2019, but credit card transactions increased by more than 20 per cent year on year to 2.17 trillion yuan.
"returning to the stock bank accounts for the first share of the loan market and the first increment."
For the corporate financial business in 2019, Pan Weidong summed it up as "overcoming difficulties" in his annual report speech. He said that by focusing on key regions and core customers and optimizing asset allocation, Pudong Development Bank achieved the best performance in three years in terms of revenue, customers, deposits and loans.
By the end of last year, the bank's total public loans (including discounted bills) were nearly 2.3 trillion yuan, an increase of 11.3 percent over the beginning of last year, and total deposits to the public were nearly 2.8 trillion yuan, an increase of 8.6 percent over the beginning of last year.
At the results conference on the 24th, the management of Pudong Development Bank also stressed the goal of public business, as well as the importance of strategic customers. Wang Xinhao revealed that the bank recently proposed to "take the first place in the share bank loan market and the first increment in the market". In the long run, it is necessary to reshape the ecology of public customers and create an ecosystem of digital operation.
First of all, for strategic customers, it is necessary to establish a total of two levels of strategic customer franchise system. Wang Xinhao said that more than 70% of the bank's more than 180 billion pairs of public loans in the first quarter went to strategic customers.
"at the same time, through the in-depth management of strategic customers, focus on the upstream and downstream supply chains of core enterprises, do a good job in the settlement of supply chain customers, increase the proportion of settlement deposits, and reduce debt costs." Wang Xinhao said.
In fact, last year, Pudong Development Bank has made a great breakthrough in strategic customer management.
Data show that last year, the total amount of strategic customer-to-public deposits of the bank's head office increased by more than 180 billion yuan, accounting for 86.4% of the bank-to-public deposits, an increase of more than 50% over the beginning of the year; the total amount of strategic customer-to-public loans exceeded 230 billion yuan, an increase of more than 30%.
Secondly, for large and medium-sized enterprises, it is necessary to enhance the stickiness between customers and banks and form the promotion of settlement deposits through product loading.
In addition, for Pratt & Whitney Finance and small and micro enterprises, Pudong Development Bank emphasizes the creation of an intelligent management ecosystem, which is all incorporated into the digital system and adopts a complete online management model.
Wang Xinhao believes that the Internet platform has its advantages for C-end business, but for B-end customers, as transactions are mainly offline, if a closed loop is to be formed, banks have more advantages than the Internet.
"around the small and micro digital management system, we will have a major breakthrough this year." Wang Xinhao revealed.
Promote the "full stack digital construction"
"We recognize that technology is the only force that can subvert the traditional business model of commercial banks." Zheng Yang, chairman of Pudong Development Bank, said in his annual report speech.
Over the past year, Pudong Development Bank has increased its investment in science and technology, investing 4.12 billion yuan in information technology for the whole year, accounting for more than 2 per cent of the bank's operating income. Among them, the investment of system development projects accounts for 35.4%.
In terms of personnel layout, at the end of 2019, the information technology department of the head office of Pudong Development Bank had nearly 3900 staff, an increase of 62 per cent over the beginning of the year and accounting for 7 per cent of the bank's staff.
"We believe that the digitization of commercial banks has ushered in the best opportunity." Pan Weidong also said at the annual report results conference.
In his view, the epidemic has brought a substantial stress test to the digital transformation of banks.
"the business that digitally does well has basically not been affected during the epidemic, but has maintained good growth. For example, although there are short-term fluctuations in retail loans, in terms of agency business, it did not decline but rose in February when the opening of the network was less than 25%, because the agency business has been all online, and the head office can directly guide financial managers. the system has been completely penetrated, so I can see the real-time sales of all financial managers on my mobile phone every day. " Pan Weidong said.
In his speech in the annual report, he also said that Pudong Development Bank will take open bank construction as the strategic commanding height and continue to promote full-stack digital construction with full coverage and comprehensive and deep connectivity.
"full stack digitization means that the depth and breadth of digitization must be in place and must be fully covered. To put it popularly, in the future, banking services and non-banking services will all be online. This is my requirement. " Pan Weidong said.
Based on this goal, Pan Weidong revealed that the bank put forward the "leading, penetration, integration, closed-loop" eight-word digital construction requirements. Specifically:
Lead:The head office is initiated, supported by strong digital platforms and tools, and all business can be led by the head office to expand customers and markets. "under the premise of digitization, the role of leadership can become a reality, otherwise it is just a slogan."
Penetration:The head office directly penetrates the management of the branches, and the branches penetrate the management of the subordinate branches and outlets, so as to really improve the effectiveness and controllability of the management.
Convergence:All systems in all major sectors must be connected, all data should be shared, a strong data platform should be established, and the omni-directional integration between front, middle and background, between science and technology and business, and between banking services and non-bank services should be promoted. From the customer's point of view, there are not so many business sectors, only one banking service.
Closed loop:Based on the support of digital technology, all processes and business management form a closed loop. In other words, there is no breakpoint, once there is a breakpoint, the service effect must be discounted.
It is bad for the public to be 60 days overdue.
Pudong Development Bank, whose non-performing loan ratio had fallen for nine consecutive quarters, experienced a bad "double rise" in the fourth quarter of 2019.
Of this total, the bank's non-performing loan balance rose 20 per cent from the end of the third quarter of last year to 81.35 billion yuan, while the non-performing loan ratio surged 29 BP to 2.05 per cent.
Behind the significant increase in bad performance in a single quarter is the result of Pudong Development Bank's initiative to increase its bad identification.
The bank revealed that in order to meet more prudent regulatory requirements and take the initiative to deal with the uncertainty caused by changes in the external macro environment in 2020, overdue loans to the public for more than 60 days and risk loans in key areas were actively incorporated into the management of non-performing loans at the end of 2019.
This is also evident in the change in the ratio of overdue loans to non-performing loans more than 90 days overdue: at the end of last year, the ratio of Pudong Development Bank was 64%, down 20.6 percentage points from the beginning of the year.
Zheng Yang, chairman of Pudong Development Bank, said in his annual report speech that in 2019, the bank made risk control and prevention a top priority, continued to create conditions for legal compliance and efficient disposal of non-performing assets, and worked together to solve stock risks and control incremental risks in the process of carrying heavy loads. consolidate the quality of assets.
Looking forward to 2020, Zheng Yang said that it is necessary to "firmly adhere to the bottom line that systemic and regional financial risks do not occur". Where:
For key areas and major risks, set up fortified teams and special classes to timely and accurately "mine" and "bomb disposal"
We will continue to take active measures to resolve the potential risks step by step, strictly control the increase, and take more measures to improve the effectiveness of collection and disposal.
Strengthen daily risk monitoring and assessment and make a good disposal plan for the risks of "black swans" and "gray rhinos" that may appear in the future.
In the first quarter of 2020, Pudong Development Bank achieved a bad "double decline". Among them, the non-performing loan ratio fell to 1.99%.
The proportion of cash dividend is back to 30%.
In the 130-page annual report of Pudong Development Bank, it also disclosed the proposed profit distribution plan for 2019: 6 yuan (including tax) for every 10 shares, with a cash dividend of 30.8%, up nearly 12 percentage points from the same period last year.
It is also five years later that the cash dividend ratio of Pudong Development Bank has once again exceeded 30%. The bank's dividend yield is nearly 6 per cent at Friday's closing price.
Wang Xinhao said that increasing the dividend ratio has a very positive effect on the market capitalization management of listed companies and boosting stock prices, as well as confidence in their own management and operation in the future.
"within a few years from this year, the dividend strategy of Pudong Development Bank will be stable, and of course, the final decision will be made according to the actual business situation, but our management team has confidence in the operation and management of the bank as a whole." Wang Xinhao said.
In Pan Weidong's view, for investors, dividend is a balance between short-term and long-term interests.
"in the past few years, the channels for bank capital replenishment were relatively limited, and they could only be supplemented by endogenous sources, so they placed more emphasis on long-term interests. In the past two years, the regulatory authorities have attached great importance to the replenishment of capital by banks, and the channels for capital replenishment have also been significantly rich. last year, when there were relatively abundant internal and external channels, we felt that we could make a balance adjustment between short-term interests and long-term interests. therefore, the dividend ratio has been increased. " Pan Weidong said.
At the same time, he said that in the future, the dividend policy will be continuously improved on the basis of taking into account capital replenishment, sustainable management and the interests of investors.