the 2021 performance report released on March 10 Ping An Bank Co.Ltd(000001) shows that with the completion of the second growth curve, the bank’s main performance indicators of corporate and retail have increased steadily, and the growth momentum of retail business with big wealth as the core is being released.
Xie Yonglin, chairman of Ping An Bank Co.Ltd(000001) believes that the breakthrough of Ping An Bank Co.Ltd(000001) retail corporate business merger in 2021 is due to the second growth curve drawn by each business line.
In the second half of retail transformation, while banks urgently need to seek new drivers for business development, they are also facing increasing pressure on the disposal of non-performing assets. At present, the bank’s asset quality control is still under certain pressure, but Ping An Bank Co.Ltd(000001) has written off the risky assets in advance, and the underlying assets of the stock development loan are in good condition, all of which have been effectively mortgaged, and the overall risk exposure is controllable.
second growth curve kinetic energy release
Ping An Bank Co.Ltd(000001) annual report data show that the bank achieved operating revenue of 169383 billion yuan in 2021, with a year-on-year increase of 10.3%; The net profit was 36.336 billion yuan, a significant year-on-year increase of 25.6%. Among them, the retail business achieved an operating revenue of 98.237 billion yuan, a year-on-year increase of 8.4%, accounting for 58% of the bank’s operating revenue; The net profit of retail business was 21.498 billion yuan, a year-on-year increase of 17.3%. The operating income of corporate business was 43.377 billion yuan, a year-on-year increase of 10.4%.
The rapid growth of Ping An Bank Co.Ltd(000001) retail corporate business in 2021 benefited from the second growth curve drawn by each business line. The second growth curve is the general trend for commercial banks to seek new business growth momentum in the second half of retail transformation.
Xie Yonglin said that after experiencing the high-speed growth stage of retail transformation in previous years, the growth rate of retail business slowed down under the original development model, and it is necessary to find a new growth engine.
As early as 2020, Ping An Bank Co.Ltd(000001) retail business revenue, net profit and other performance indicators slowed down, Ping An Bank Co.Ltd(000001) announced the deepening transformation strategy for the new three years. In the new three years, it will comprehensively upgrade the three major lines of corporate, retail and industry, build a new business growth driver and reshape the balance sheet.
After two years of deepening transformation, with the completion of the second growth curve, the balanced breakthrough of Ping An Bank Co.Ltd(000001) corporate and retail business structure has stabilized.
In the field of corporate business, driven by the “five cards” strategy of supply chain finance, Bill integration, customer business platform, complex investment and financing and ecological comprehensive expansion, Ping An Bank Co.Ltd(000001) corporate business has realized the double improvement of customer quantity and customer quality. According to the Ping An Bank Co.Ltd(000001) relevant person in charge, by the end of 2021, the number of corporate customers of the bank had exceeded 510400, with a year-on-year increase of 39% and 36% respectively over 2019 and 2020, an increase of 1.48 times that of the previous year.
In the field of retail business, the growth momentum of retail business with great wealth as the core is also gradually released Xiang Youzhi, vice president and chief financial officer of Ping An Bank Co.Ltd(000001) bank, pointed out that in 2021 Ping An Bank Co.Ltd(000001) retail business will be further upgraded in terms of business model, and private bank wealth, consumer finance and basic retail business will be driven to achieve performance growth through the “five in one” business model of open bank, AI bank, remote bank, offline bank and integrated bank.
From the perspective of retail business development performance, the scale of Ping An Bank Co.Ltd(000001) various retail customers achieved rapid growth in 2021. According to the annual report, Ping An Bank Co.Ltd(000001) retail AUM increased by 21.3% year-on-year in 2021; The number of wealth customers increased by 17.7% over the end of the previous year; The number of qualified customers of private banks increased by 21.6% year-on-year; AUM balance of qualified customers of private banks increased by 24.6% year-on-year.
Xiang Youzhi revealed that the comprehensive expansion of channels still maintained a high proportion of the growth of various retail businesses.
China Securities Co.Ltd(601066) analysis indicates that the contribution of retail comprehensive expansion channels to Ping An Bank Co.Ltd(000001) private wealth business continues to increase, and the contribution of retail comprehensive expansion channels to private wealth business has maintained an upward trend since this year. In 2021, the proportion of new retail customers, wealth customers and private bank customers to comprehensively expand channels was 51%, 60% and 52% respectively, which was further higher than that in the first three quarters of 2021.
Xiang Youzhi said that in the retail business, the contribution of comprehensive finance to new customers, scale and other indicators accounted for more than 50%, and it was still growing at a high speed year-on-year.
