Five years later, Industrial Bank Co.Ltd(601166) set off a new round of major adjustment of the organizational structure covering the three lines of technology, retail and enterprise finance.
Strategic promotion and digital transformation determine the necessity of this organizational change. Therefore, the bank hopes to better adapt to the digital society, the requirements of double carbon transformation and the rapid growth of residents' wealth, better serve the national strategy and the bank wide strategy, innovate the business model, consolidate the customer base and optimize the business structure.
But change is not limited to the architectural level. In this regard, Industrial Bank Co.Ltd(601166) chairman LV Jiajin has a clear understanding that "the organizational structure is not flexible once it is changed, and the mechanism construction at the micro level must be improved".
LV Jiajin revealed at the annual performance briefing that the bank will also carry out a series of reforms in terms of assessment and evaluation, salary distribution mechanism, business process reconstruction, information system construction and talent team structure adjustment, accelerate reform mobilization, ensure the expected effect of reform and improve the market competitiveness of the "three business cards" of green bank, wealth bank and investment bank.
Among them, the grasp of rhythm is particularly critical. As LV Jiajin said in his speech in the annual report, "we are well aware that strategic transformation is a protracted war that can not wait but can not be rushed. Focusing on running our own affairs is the fastest path in the long journey."
Data show that Industrial Bank Co.Ltd(601166) has made a good start in the year of the new five-year plan. The annual operating revenue was 221.24 billion yuan, a year-on-year increase of 8.9%; The net profit attributable to the shareholders of the parent company was 82.68 billion yuan, a year-on-year increase of 24.1%, and the proportion of cash dividends reached a new high.
fully accelerate the digital transformation
Science and technology is the primary productive force. Industrial Bank Co.Ltd(601166) with total assets of more than 8 trillion established the strategy of "prospering the bank through science and technology" earlier in the industry. At the beginning of taking office, LV Jiajin proposed that "digital transformation is a battle of life and death", and will accelerate the digital transformation to become a strategic work under the leadership of the Party committee of the head office, which runs through all aspects of strategic transformation.
Over the past year, the bank has strengthened its overall planning and resource investment in digital transformation, and explored to establish a flexible and agile organization across lines, departments and posts, so as to strengthen the leading role of financial technology.
The most direct data is that last year, the investment in Industrial Bank Co.Ltd(601166) science and technology reached 6.36 billion yuan, a year-on-year increase of 30.9%, accounting for 2.55% of operating revenue. The proportion of scientific and technological personnel doubled, and the proportion of scientific and technological personnel of the whole bank reached 6.45% at the end of the year. "The whole bank almost always calls it science and technology, and will think about solving problems through digitization." LV Jiajin said.
This is still not enough. LV Jiajin believes that in order to create a "digital industry", we should focus on solving action problems and fundamentally change the business model of the whole bank. Thus, the top-level design problem of science and technology architecture adjustment has been put on the table.
It is understood that this scientific and technological reform focuses on strengthening the supporting and leading role of science and technology and improving the ability of science and technology planning, construction, management and safety. The specific measures are: adjust the original "one office, one department and one company" to "one committee, four departments and one company", optimize the Ba + SA mechanism and promote the in-depth integration of science and technology and business.
Among them, through the establishment of digital transformation Committee and financial science and Technology Department, strengthen the top-level design of digital transformation of the bank, and improve the overall planning and construction management capacity of scientific and technological development of the bank; A new data management department is established to strengthen the management and application of data assets and solve the fragmentation of current data asset management.
At the same time, establish the technology operation Department and network security department, build the group's integrated security operation system and new network security system, and improve the network security level and online security capability; Facing the business, branches and frontiers, adjust the internal structure of Societe Generale digital company and improve the level of digital construction and application.
In addition, focus on the ecology of financial scenes. "Societe Generale has a lot of apps in retail, corporate finance, industry and other lines. We will integrate and upgrade the existing apps, and provide five self built apps, including silver platform, Societe Generale housekeeper, Societe Generale Pratt & Whitney, Societe Generale life and Qianda shopkeeper, which will be released in the near future." LV Jiajin revealed.
in terms of human resource investment, the bank will continue to promote the plan of 10000 scientific and technological talents, and realize that the proportion of scientific and technological personnel in the whole bank will exceed 10% by 2025. "This year, we will increase investment in science and technology and arrange it according to the proportion of 5% of the annual revenue without capping." LV Jiajin said
wealth channel construction "industrial ideas"
The reform of the retail line focuses on implementing the customer-centered concept, implementing the hierarchical and classified operation and management of customers, and comprehensively improving the service ability of wealth management, consumer credit and business credit to all kinds of customers, especially the long tail customers, through digitization.
According to this idea, Industrial Bank Co.Ltd(601166) integration has formed a retail organizational structure based on the retail platform department and four key business lines: wealth management department, private banking department, retail credit department and Credit Card Center.
Among them, the retail platform Department aims to improve the ability of remote centralized operation customers and platform operation customers, and improve the service level of mass customers and long tail customers; The adjusted and established wealth management department puts more emphasis on the concept of asset allocation and continues to cultivate the wealth customer group.
"We hope that through the adjustment of retail structure, we can change the unbalanced pattern of the four basic businesses of retail 'deposit, loan and foreign exchange investment', promote the overall growth of retail business, continuously improve the proportion of retail revenue, and further make retail a 'ballast' for the development of the whole bank." LV Jiajin has high hopes for this.
data show that last year Industrial Bank Co.Ltd(601166) achieved a net operating income of nearly 70 billion yuan from retail banking business, contributing more than 31.5% to the bank's revenue. At the end of the year, the bank's retail AUM (managed customer assets) was 2.85 trillion yuan, and the annual wealth sales scale exceeded 5 trillion yuan
In fact, "fortune bank" is also one of the "three business cards" that Industrial Bank Co.Ltd(601166) strives to firmly polish. Over the past year, the bank achieved a wealth bank revenue of 23.39 billion yuan through financial management, agency sales, asset custody, trust and fund subsidiaries, a year-on-year increase of 13.2%.
However, it is undeniable that there are more and more participants in the "big wealth management" track, and there are not a few banks that determine it as a strategic focus. At this time, the importance of channels is becoming more and more prominent.
Tao Yiping, the president, believes that Industrial Bank Co.Ltd(601166) is different from some banks starting from retail, Industrial Bank Co.Ltd(601166) starts from the financial market and has a deep and extensive circle of peers. Therefore, the bank's wealth channel construction ideas can be summarized as follows: highlight key areas offline, highlight "money shopkeeper" and "wealth cloud" online.
Among them, "Qianda shopkeeper" has been transferred from the same industry line to the retail line, and the upgraded app is expected to be put into operation within this year.
"In the future, our retail wealth platform will only have 'Qianda shopkeeper'. We hope to rely on 'Qianda shopkeeper' to fully integrate into the Internet business system and build it into the most complete one-stop wealth product supermarket."
It is understood that at present, the "Qianda shopkeeper" app operation team and the bank's offline wealth business operation team have been integrated into the wealth management department and will be expanded to more than 300 people. "This is where we will focus our efforts in the future".
At the same time, the bank built an open wealth management platform "wealth cloud" based on the cooperation advantages of peer customers. Last year, 667.6 billion yuan of financial products were sold to retail customers of 65 state-owned banks, joint-stock banks, regional banks and rural financial institutions through the "wealth cloud", a year-on-year increase of nearly 430%.
Tao Yiping revealed that he hopes to achieve the goal of "10 banks and 100 billion" this year, that is, through the "wealth cloud" to sell retail financial management to more than 100 peers, the number of financial management consignment sales of small and medium-sized banks has exceeded 100 billion, and the total consignment scale has exceeded trillion.
green integration into all departments
Unlike the "wealth bank" track, Industrial Bank Co.Ltd(601166) has always been outstanding in the green finance track.
As the first "equator bank" in China, Industrial Bank Co.Ltd(601166) took the lead in developing green finance business as early as 2006. Among the "three business cards" that the bank focuses on polishing, "green bank" is listed as the first one to "consolidate its advantages".
According to the disclosure, at the end of last year, the bank had 38000 green finance customers and a green financing balance of 1.39 trillion yuan, an increase of about 27% and 20% respectively over the beginning of the year. Among them, the balance of green loans was 453.94 billion yuan, accounting for more than 10% of the total loans. Both data ranked first in the stock bank.
However, at the same time, with the deepening of the "double carbon" strategy, financial institutions have significantly increased their layout and services for the green economy, and competition is inevitable, even some price competition.
Tao Yiping is not worried about this. "First of all, I feel very happy and gratified, which shows that Xingye is no longer fighting alone, with many like-minded people; the decline of market interest rate is actually a good thing, and I believe it can help the country's green and low-carbon transformation." He said.
How to face the competition? It is understood that based on the advantages and ability of long-term cultivation and precipitation in the field of green finance, Industrial Bank Co.Ltd(601166) will further promote the adjustment and optimization of green financial system and mechanism, resource allocation, assessment policy and risk policy.
The bank's corporate finance reform aims to break the "departmental wall", especially integrate green finance into various departments and integrate green financial comprehensive solutions into services for various customer groups, so as to form several departments: corporate finance department, green finance department (Strategic Customer Department), GSP finance department (Rural Revitalization Department), institutional business department and Transaction Banking Department (International Business Department).
Among them, the focus is on the joint cooperation of the green finance department and the strategic customer department, forming a new pattern of the integration of new green finance and strategic customers, strengthening the close combination of the green business philosophy and the production and operation of industrial customers, so that green finance can serve more customers.
"I believe that with the further implementation of the reform of green financial system and mechanism and the adjustment of organizational structure, it will stimulate new vitality and new momentum and continue to consolidate the existing market position." Tao Yiping said.
At the same time, he said, Industrial Bank Co.Ltd(601166) the biggest advantage is diversification. Its strongest ability is to integrate financial market resources, expand access to high-quality green gold customers through diversified and personalized comprehensive financial services, and form a green financial development model based on comprehensive income with the status of the host bank, which can completely dilute the factors of price decline.
Tao Yiping revealed that at present, the income of the bank's green financing is basically the same as the average rate of return of corporate finance, but the asset quality of green financing is significantly better. "Last year, our non-performing rate of green loans was about 0.4%. It can be said that the risk adjusted yield performance is very good."
According to the Industrial Bank Co.Ltd(601166) new five-year plan, each branch and subsidiary should become the leader of green finance in its location and industry. By the end of 2025, the balance of green financing of the whole bank will exceed 2 trillion yuan and the number of customers will exceed 50000.
"commercial bank + investment bank" strategy re implemented and re started in the first year
As the traditional advantageous business of Industrial Bank Co.Ltd(601166) , investment banking undoubtedly plays a key role in the promotion of the bank's "1234" strategy.
As early as the last five-year plan, the bank established the business strategy of "commercial bank + investment bank". In the new round of five-year plan, the "investment bank" is regarded as one of the "three business cards" to be continuously created.
At the annual performance presentation meeting, LV Jiajin stressed the need to maintain strategic concentration, especially "commercial banks + investment banks" as the strategic core, and strengthen the implementation. "We regard 2022 as the first year of the re implementation and re start of 'commercial banks + investment banks', improve the thinking of investment banks throughout the bank, strengthen the linkage of commercial investment, strengthen typical cases and promote replication."
In fact, Industrial Bank Co.Ltd(601166) does not lack cases of commercial investment linkage. Chen Xinjian, vice president and Secretary of the board of directors, for example, said that in the process of serving Jingke energy to spin off the core assets of US stock companies and return to the A-share listing, the bank formulated the "equity + creditor's rights" comprehensive financial service scheme and participated in the project as an exclusive arranger.
"Through direct equity investment, it has driven the comprehensive cooperation between various businesses such as deposit, bill guarantee and salary payment on behalf of Jingke energy. By this year, the company will be listed on the science and innovation board, and the listing and fund-raising of more than 10 billion will also be placed in our bank. The floating profit of investment is close to 10 times, and the comprehensive income is very considerable." Chen Xinjian revealed.
The "raising + withdrawing" business model of investment banks has been established to further improve the "raising + withdrawing" business model of investment banks. "At present, 56 projects have been invested, of which 12 have been listed, and the investment has gradually entered the harvest period."
It is understood that at present, the product system under Industrial Bank Co.Ltd(601166) "big investment bank" is relatively sound, and key businesses continue to lead the market. Among them, the underwriting scale of non-financial bonds reached a new high of 712.65 billion yuan last year, and the first innovative products of the same industry were continuously launched in the products, which has become the key to driving the business cooperation of commercial banks; The scale of M & A financing and syndicated financing increased by 28.5% and 38.7% year-on-year respectively.
The construction of investment bank ecological group has also been fruitful. The circle of friends of "xingcaizi" including "stocks, bonds, loans and transfers" was expanded to 150, and the annual asset turnover scale was 331.6 billion yuan, an increase of 47.4% year-on-year, effectively reducing the occupation of resources on the balance sheet; There are 96 cooperative institutions for equity investment and "investment joint loan", gradually opening up the space for equity investment.
Chen Xinjian disclosed that at present, the bank's investment banking products have covered nearly 3000 large and medium-sized enterprises. "Most of these customers have become our strategic cooperation customers, bringing nearly 470 billion yuan of daily average deposits and settlement deposits, accounting for about 30% of the whole bank".
investment banking business has been playing a more and more important role in cutting into and driving the business of commercial banks in terms of liabilities, assets and customers. At the same time, it has also formed a large investment banking mechanism integrating "research, investment, commitment, marketing and trust"
Taking "investment" and "trust" as an example, the investment banking department linked the capital center and xingyin financial management to carry out standardized bond investment. Last year, it provided 115.6 billion yuan of high-quality assets for the wealth management sector; The trusteeship scale of investment banking business also exceeded 850 billion yuan, making an important contribution to the growth of trusteeship scale of the whole bank.
"I believe that the strategy of 'Commercial Bank + investment bank' will play a more and more important role in Industrial Bank Co.Ltd(601166) development." Chen Xinjian said.
