On the gap between the press conference of Ping An Insurance (Group) Company Of China Ltd(601318) performance on Friday, the reporter of Shanghai Securities News met his old friend again in the "cloud" -- Xie Yonglin, general manager and co CEO of Ping An Insurance (Group) Company Of China Ltd(601318) group and Ping An Bank Co.Ltd(000001) chairman. He has just finished two online "Q & A sessions" for investors and the media without stopping. Quick words and quick decisions have always been his "label".
Xie Yonglin has been in charge of Ping An Bank Co.Ltd(000001) since 2016. In just five years, he has turned the tide and led Ping An Bank Co.Ltd(000001) into a retail bank. Moreover, Ping An Bank Co.Ltd(000001) plays an increasingly important role in the group - in 2021, the bank's contribution to the operating profit of Ping An group was second only to the group's life insurance and health insurance business.
Top students often carry the expectation of "further" from the market. Even if the bank's performance is still on the rise, the focus of the market is still "whether the retail performance can grow", "whether there are new highlights in corporate business" and "how to reform the new bancassurance reform". Xie Yonglin admitted that the bank's retail business has found the second growth curve; After the comprehensive restart of corporate business, two new tracks have been found under the concept of "double light".
Various signs show that Ping An's banking business is on the road of secondary development.
the second growth curve is clear
In 2021, Ping An Bank Co.Ltd(000001) 's retail business performance was still full of power. Although the proportion of contribution to the bank's net profit decreased slightly, it still accounted for nearly 60%, forming a "dynamic equilibrium" pattern with the corporate business.
Retail business is the largest driving force of the bank's revenue, and the market expectation is also high - can we go to a higher level? In this regard, Xie Yonglin responded, "we have found the second growth curve of retail, and the playing method has been clear. There must be no problem. Both consumer finance and private wealth business will maintain rapid development."
Last year, Ping An Bank Co.Ltd(000001) first proposed a new retail "five in one" model, which aims to provide high-quality products and services to long tail customers with high efficiency and low cost through scientific and technological means and data drive, so as to reduce costs and increase efficiency in customer operation and business development.
From the perspective of many indicators of retail business, the driving effect of this model on business growth has initially appeared - Ping An Bank Co.Ltd(000001) 2021 annual report shows that the year-on-year growth rate of both retail customer assets (AUM), personal deposits and loans is double-digit, especially AUM has exceeded 3 trillion yuan, with a year-on-year growth rate of 21.3%. At the same time, the performance of private bank business indicators is also quite strong. At the end of 2021, 69700 private bank customers reached the standard, an increase of 21.6% over the end of the previous year.
This means that Ping An Bank Co.Ltd(000001) retail customers continue to consolidate and gradually have the momentum to ask for income from wealth management.
At present, the wealth management market is a hot position for banks to compete for of and Xie Yonglin is looking forward to it. He said that first of all, we should further strengthen the advantages of comprehensive financial platform, upgrade product supply, actively strengthen talent reserve, build a highly professional team of asset allocation experts, and improve the operation and service ability of wealth management business; At the same time, seize the opportunity of upgrading and reform of the life insurance market, quickly promote the construction of wealth management team who understand insurance, and open up new momentum for the sustainable growth of private banking and wealth management business.
pair anchor two new tracks
The corporate business, which had made way for retail transformation, was fully restarted the year before last after experiencing pain.
"In the past few years, it was hard to do business with the public. In the past, there were a lot of bad things with the public. At the same time, retail had to break through the transformation. Therefore, the public was wronged." Xie Yonglin said that however, after the comprehensive restart, the growth is obvious, the customer base has been significantly improved, the deposit scale and quality have been significantly improved, and the debt business of the whole bank has also been carried forward. The non-performing rate has reached the best level in history, only 0.71%.
In terms of the number of customers and the number of customers at the end of the previous year, the annual report showed that the increase of customers was 0.2021 million and 0.2021 million at the end of last year. The quality of deposits has also improved significantly. In 2021, the average daily balance of enterprise deposits exceeded 2 trillion yuan, an increase of 10.1% over the previous year, and the average cost rate of enterprise deposits decreased by 21 basis points to 1.96% over the previous year.
Xie Yonglin lamented that the most important reason for this performance is that the path strategy is found correctly.
this is reflected in the corporate income structure. The "double light" route is becoming clearer and clearer. At present, the loan deposit ratio of corporate lines is the lowest in the industry, and more than 70% of public revenue comes from businesses that do not account for capital
But then the market still needs to ask, is there any new growth momentum for the company? It is understood that based on the business model of "AUM (managing corporate customer assets) + lum (total corporate customer financing) + platform" in the past, in 2022, Ping An Bank Co.Ltd(000001) under the concept of "double light", corporate business will layout two new tracks for RE development.
"Face the capital market and direct financing track, give play to the comprehensive financial differentiation advantages of Ping An Group, strengthen the complex investment and financing business, and provide customers with a package of comprehensive financial solutions; face the industrial digital track, give play to the empowerment of science and technology, and expand and strengthen the trading banking industry." Xie Yonglin said.
The comprehensive financial advantages of Ping An group have indeed made Ping An Bank Co.Ltd(000001) corporate business share dividends. In 2021, the total investment and financing scale of Ping An group exceeded 1.1 trillion yuan, forming an average daily deposit of 170.7 billion yuan for Ping An Bank Co.Ltd(000001) continuous operation, with a year-on-year increase of 18.5% and demand accounting for more than 50%.
the reform of Bancassurance was vigorously promoted
from the perspective of Ping An Group, at present, the insurance sector, the first pillar, is under pressure, while the bank is the second pillar of Ping An group. The reform of new bancassurance is the driving force of the group's life insurance reform and new business value. Therefore, under the background of how to give full play to the general direction of comprehensive financial synergy, its reform progress has been highly concerned by the market
Xie Yonglin said that first, he observed that residents' wealth needs to be well allocated, rather than just selling an insurance policy; Second, the middle income of Bank Of China Limited(601988) wealth management still has a lot of room for growth compared with Europe and the United States.
The data show that in the international market, by binding an insurance company to realize the mode of closed-loop service, it has successfully helped many banks to account for 30% - 50% of bancassurance.
"it's not a whim, but an idea. It's natural to do it safely." Xie Yonglin said that now the life insurance industry is facing challenges such as slow retention and slow expansion of customers. Bank wealth management is also facing challenges and needs reform and upgrading. From the perspective of wealth management allocation tools, the bank itself has the power to allocate insurance. Ping An naturally has many advantages, such as account advantages, customer resource advantages and scientific and technological advantages
Last year, as an important part of Ping An Group's life insurance reform, the new bancassurance reform was strongly promoted, and a separate team was set up, which was included in the structure of private banks. "I just hope this team will become a private wealth management team that can do insurance allocation." Xie Yonglin said that bancassurance will develop very well this year, and the group's nbev (embedded value of the new policy) will also come up.
It is reported that at present, the new Bancassurance model has been expanded from 7 pilot branches to 19. The first batch of elite teams have been successfully employed and the production capacity has begun to show. The production capacity of new bancassurance is more than twice that of traditional teams. During the "good start" of this year, the medium income brought by bancassurance increased by 30% year-on-year.
Under Xie Yonglin's vision, the bancassurance product system will be comprehensively upgraded in the future. The medical and health care driven by the group's two wheels should be coordinated into comprehensive finance and wealth management to build a "product + ecology" system.
