On March 10, at the annual performance conference of Ping An Bank Co.Ltd(000001) 2021, Guo Shibang, vice president of Ping An Bank Co.Ltd(000001) made a response to the risk of real estate business. According to Guo Shibang, the bank’s consignment of the insured business is mainly concentrated in Baoneng and China Fortune Land Development Co.Ltd(600340) two real estate enterprises.
Guo Shibang said, “our bank’s real estate accident business is mainly based on Baoneng, but at present, we have reached a judicial settlement with Baoneng, and the court has issued a mediation letter.” Among them, the 5.4 billion yuan Baoneng city project with the largest amount of risk will be immediately executed by judicial auction. According to the latest repayment plan and disposal plan, if the sales go well, it is expected to form a large pressure drop in 2022.
In addition, on China Fortune Land Development Co.Ltd(600340) aspect, Guo Shibang said that the debt restructuring plan has been issued, and a considerable number of consignment investors have chosen to promote according to the restructuring plan. Subsequently, the bank will assist the product manager in communicating with the debtor and the debt Committee, and continue to follow up the progress of the implementation of the plan and the return of cash flow, Urge the product manager to distribute the cash to the investors in time after receiving the cash cashed by the debtor.
It is worth noting that the Ping An Bank Co.Ltd(000001) annual report also disclosed the real estate business risks. According to the data, by the end of 2021, the bank’s actual and contingent credit, proprietary bond investment, proprietary non-standard investment and other businesses bearing credit risk had a total balance of 341089 billion yuan, of which the bank’s loan balance to public real estate was 288923 billion yuan, an increase of 16.96 billion yuan over the end of the previous year, accounting for 9.4% of the bank’s total principal of loans and advances, a decrease of 0.8 percentage points over the end of the previous year; The bank’s financial capital contribution, entrusted loans, cooperative agency management, consignment trusts and funds, lead underwriting debt financing instruments and other businesses that do not bear credit risk totaled 120686 billion yuan.
According to the bank, by the end of 2021, the non-performing rate of the bank’s loans to public real estate was 0.22%, which was basically the same as that at the end of the previous year, 0.49 percentage points lower than the non-performing rate of the bank’s corporate loans.
In the secondary market, as of the closing of A-Shares on March 10, Ping An Bank Co.Ltd(000001) reported 14.57 yuan / share, an increase of 5.27%, with a total market value of about 282.7 billion yuan.
