On March 31, Postal Savings Bank Of China Co.Ltd(601658) held the 2021 annual performance conference.
The annual report shows that in 2021, Postal Savings Bank Of China Co.Ltd(601658) achieved an operating revenue of 318762 billion yuan, an increase of 11.38% year-on-year; The net profit was 76.532 billion yuan, a year-on-year increase of 18.99%.
On how to further improve the comprehensive profitability, Postal Savings Bank Of China Co.Ltd(601658) chairman Zhang Jinliang said that he would unswervingly promote the wealth management strategy and increase the proportion of intermediate business income.
In 2021, Postal Savings Bank Of China Co.Ltd(601658) intermediate business revenue reached 22.007 billion yuan, with a year-on-year increase of 33.42%, the growth rate reaching a new high in five years.
deep ploughing retail AUM increased by more than trillion yuan per year
At present, the value of retail business is becoming more and more prominent. As a large retail bank, Postal Savings Bank Of China Co.Ltd(601658) developing retail finance has natural endowment advantages.
Managing personal customer assets (AUM) is regarded as the core indicator of the bank’s retail financial competitiveness. According to the data, by the end of 2021, Postal Savings Bank Of China Co.Ltd(601658) served 637 million individual customers, and AUM increased by over trillion yuan annually, with a total scale of 12.53 trillion yuan, a year-on-year increase of 11.40%.
Thanks to the continuous cultivation of retail, Postal Savings Bank Of China Co.Ltd(601658) personal banking accounts for nearly 70% of revenue. According to the data, in 2021, Postal Savings Bank Of China Co.Ltd(601658) personal banking revenue was 221855 billion yuan, an increase of 11.99% year-on-year, accounting for 69.60% of operating revenue, an increase of 0.38 percentage points year-on-year.
But at the same time, on the morning of March 31, Postal Savings Bank Of China Co.Ltd(601658) executive director and President Liu Jianjun said at the performance meeting: “our wealth management business has just started, and there is still a big gap with the imagined future development goals.”
He introduced the current situation of Postal Savings Bank Of China Co.Ltd(601658) wealth management business through a set of data: by the end of 2021, the Aum of the bank was 12.5 trillion yuan, of which deposits accounted for 78% and financial assets accounted for 22%.
Liu Jianjun believes that the goal of Postal Savings Bank Of China Co.Ltd(601658) stage is to gradually reduce the proportion of deposits in AUM and expand the proportion of other investment and financial assets. The ultimate goal can be simply summarized as to make the asset allocation of VIP customers reach the ideal state and form the structural optimization of Postal Savings Bank Of China Co.Ltd(601658) aum at the same time.
Postal Savings Bank Of China Co.Ltd(601658) plan: in AUM, deposit and fixed income assets account for 30% to 40%. This is determined according to the different risk tolerance of customers. Other equity and insurance assets account for 20% to 40%. Finally, the customer realized scientific configuration and improved the structure of Postal Savings Bank Of China Co.Ltd(601658) overall AUM.
Liu Jianjun proposed that in the future, wealth management will be gradual in the process of promotion. “In the vast rural market and sinking market, people’s awareness of financial management has not been fully awakened and. In this regard, Postal Savings Bank Of China Co.Ltd(601658) do customer investment and education activities and investment and education salons to stimulate and enlighten their awareness of investment and financial management. This process may last for many years. In this process, the decline of the proportion of deposits is a gradual process.”
“We have an AUM increment of about 1.3 trillion yuan to 1.5 trillion yuan every year. With the continuous expansion of the increment, we can balance it. While the proportion of deposits is declining, we will maintain the growth of the total scale.” Liu Jianjun said.
affected by the epidemic, the asset quality in the retail sector is under pressure
Strong risk control ability is the core competitiveness of commercial banks to control uncertainty. For Postal Savings Bank Of China Co.Ltd(601658) , clean balance sheet, good risk management and excellent asset quality have always been a “business card” of the bank.
The annual report shows that by the end of 2021, Postal Savings Bank Of China Co.Ltd(601658) NPL ratio was 0.82%, down 0.06 percentage points from the end of the previous year; The provision coverage rate was 418.61%, an increase of 10.55 percentage points over the end of the previous year, and the risk offset ability continued to improve; The core Tier-1 capital adequacy ratio was 9.92%, 0.32 percentage points higher than that at the end of the previous year, and the capital adequacy ratio was 14.78%, 0.90 percentage points higher than that at the end of the previous year. The capital strength was continuously enhanced.
By the end of 2021, the proportion of Postal Savings Bank Of China Co.Ltd(601658) non-performing loans and loans overdue for more than 90 days was 1.35, all loans overdue for more than 60 days were included in non-performing loans, and the proportion of loans overdue for more than 30 days was 93.03%.
Postal Savings Bank Of China Co.Ltd(601658) introduced that in 2021, the bank accelerated the construction of advanced methods of capital management, established the whole life cycle management mechanism of risk model, and effectively improved the ability of risk cost and capital refinement measurement; Actively absorb talents with complex backgrounds in financial technology, build a team with excellent professional strength, and improve the intelligent risk control system; Carry out in-depth investigation in high-risk areas, do in-depth and practical whole process management, and build a dam for asset quality.
At the same time, Liang Shidong, chief risk officer of Postal Savings Bank Of China Co.Ltd(601658) reminded that Postal Savings Bank Of China Co.Ltd(601658) in the public field, it is not excluded that in some individual fields, such as urban investment, real estate and manufacturing, individual large corporate customers may have risk exposure.
In the retail sector, it is mainly affected by the epidemic. There is a time lag in the impact of the epidemic in the early stage, and the repayment ability of customers has not been fully restored. At the same time, the local epidemic situation has been repeated. Liang Shidong said: “the superposition of these two items will put certain pressure on the whole retail field, including small and micro enterprise loans, credit cards and consumer loans.”
By the end of 2021, Postal Savings Bank Of China Co.Ltd(601658) company had a non-performing loan balance of 17.451 billion yuan, a decrease of 1.198 billion yuan compared with the end of the previous year, and the non-performing loan ratio was 0.78%, a decrease of 0.17 percentage points compared with the end of the previous year.
The non-performing balance of personal loans was 35.224 billion yuan, an increase of 3.516 billion yuan over the end of the previous year, and the non-performing loan ratio was 0.94%, a decrease of 0.04 percentage points over the end of the previous year. Among them, the non-performing loan ratio of individual housing loans was 0.44%, down 0.03 percentage points from the end of the previous year; The non-performing loan ratio of individual small loans was 1.67%, and that of credit card business was 1.66%, down 0.33 and 0.17 percentage points respectively compared with the end of the previous year.
In the face of possible pressure on asset quality, Liang Shidong introduced that the bank adhered to forward-looking risk management, included large risk customers in the list system management in the public field, and dynamically monitored the risk. At the same time, strengthen the application of intelligent risk control. Especially in the retail field, the risk management of retail credit customers in the whole life cycle is realized through the accurate portrait of customers, the strengthening of loan purpose management, and the accurate and forward-looking post loan early warning.
In addition, Liang Shidong said, Postal Savings Bank Of China Co.Ltd(601658) risk offset is sufficient, the provision coverage rate reaches 418.61%, and the cushion is relatively thick. This year, we will further strengthen the disposal of non-performing assets and broaden the disposal channels. Last year, two issues of non-performing asset-backed securities were issued, totaling 3.2 billion yuan.
