Last year, the number of credit cards issued by commercial banks increased slightly, and the non-performing rate decreased

In 2021, the number of bank credit card issuers maintained a slow growth rhythm. In terms of cumulative card issuance, the top five are ICBC, China Construction Bank, Agricultural Bank of China, Bank of China and China Merchants Bank. The non-performing rate of credit cards of 8 Banks decreased in 2021. Among them, China Minsheng Banking Corp.Ltd(600016) and Ping An Bank Co.Ltd(000001) 2 have achieved "double decline" in non-performing asset balance and non-performing rate.

At the same time, banks also continue to strengthen the connection between credit cards and customer groups and activate the credit card stock market. With the intensification of stock competition, mining stock users and optimizing customer group structure have become the key to the transformation of credit card business.

maintain growth

With the release of the annual reports of major issuing banks in 2021, all their credit card achievements have also appeared. It can be seen from the credit card business data of each bank that the credit card issuance volume of each bank maintains a slow growth rhythm, and the main indicators are picking up one after another.

Issuing scale is one of the important indicators to measure credit card business. From the card issuance situation of large state-owned banks and joint-stock banks, ICBC, China Construction Bank, Agricultural Bank of China, Bank of China and China Merchants Bank ranked among the top five in terms of cumulative card issuance.

Among them, ICBC issued 163 million cards, ranking first among major banks, but its growth rate was at the end, at 1.87%. The postal savings bank, which has a low cumulative card issuance, ranks first in the growth rate with 12.93%. Among joint-stock banks, China Citic Bank Corporation Limited(601998) ranks first with 1013239 million cards issued. China Construction Bank, Bank of China, Bank of communications and China Merchants Bank all have a growth rate of no more than 3%, China Citic Bank Corporation Limited(601998) is 9.4%, Ping An Bank Co.Ltd(000001) is 9.2%, China Everbright Bank Company Limited Co.Ltd(601818) is 8.5%, Agricultural Bank Of China Limited(601288) is 7.69% and Industrial Bank Co.Ltd(601166) is 5.1%.

In terms of consumption amount, only China Merchants Bank has exceeded 4 trillion, Ping An, China Construction Bank and Bank of communications are between 3 trillion and 4 trillion, and CITIC, Everbright, Societe Generale, Minsheng, ICBC and ABC are all between 2 trillion and 3 trillion.

In terms of growth rate, the consumption amount of CCB, ICBC, BOC and China Zheshang Bank Co.Ltd(601916) decreased compared with the previous year, China Minsheng Banking Corp.Ltd(600016) , China Citic Bank Corporation Limited(601998) and Postal Savings Bank Of China Co.Ltd(601658) all increased by more than 14%, CMB increased by 9.73%, Ping An Bank Co.Ltd(000001) increased by 9.8%, and Hengfeng bank ranked first with 53.08%.

From the disclosed non-performing rate, the non-performing rate of China Minsheng Banking Corp.Ltd(600016) credit card is high, which is 2.95%, but it has decreased by 0.33 percentage points compared with the previous year Agricultural Bank Of China Limited(601288) credit card non-performing loans dropped to 0.99%, down 0.56 percentage points from the end of last year.

In 2021, the non-performing rate of credit cards of 8 banks, namely China Minsheng Banking Corp.Ltd(600016) , Bank of communications, Ping An Bank Co.Ltd(000001) , Postal Savings Bank Of China Co.Ltd(601658) , China Merchants Bank, China Citic Bank Corporation Limited(601998) , China Construction Bank and Agricultural Bank of China decreased. Among them, China Minsheng Banking Corp.Ltd(600016) and Ping An Bank Co.Ltd(000001) have achieved "double decline" in non-performing asset balance and non-performing rate.

Industrial Bank Co.Ltd(601166) showed a slight increase of 0.13 percentage points in the non-performing rate of credit card. At the performance conference of Industrial Bank Co.Ltd(601166) 2021, Zou Jimin, general manager of venture capital management department, responded when referring to the improvement of bad credit cards, "We could have achieved a double decline in bad credit cards, but we took the initiative to slow down the disposal, mainly for two reasons: first, in order to support covid-19 epidemic prevention and control, protect consumers' rights and interests, appropriately slow down the disposal of customers affected by the epidemic, and encourage customers to take the initiative to repay after the epidemic is alleviated. Second, considering that the recognition standard of overdue credit cards became stricter last year, we also need to give customers a certain adaptation period."

Regarding the data of non-performing rate of credit card, China Merchants Bank Co.Ltd(600036) said that China Merchants Bank Co.Ltd(600036) comprehensively identified the credit card loans overdue for more than 60 days as non-performing, and advanced the identification time point of overdue credit card loans from the next account day to the repayment deadline of this bill according to the regulatory requirements, resulting in more strict identification of overdue and non-performing loans.

The decline in the non-performing rate of credit cards in many banks shows that banks have strengthened the fine operation of cardholders and further strengthened efforts to manage credit card risks.

credit card customer group structure optimization

"At present, the customer group quality of credit cards has been greatly adjusted." Wang Jianzhong, vice president of China Merchants Bank, said at the performance meeting that China Merchants Bank has implemented a low price policy for some customers, with an interest rate of 6% to 9%, and achieved very good results. And increased the delivery of order products, such as car staging.

China Everbright Bank Company Limited Co.Ltd(601818) vice president Qi Ye also pointed out that the bank further focused on high-quality consumer groups, iteratively upgraded key products, improved the card environment of online Internet platform and offline consumption scenes, and improved the quality and efficiency of customers. Among the newly introduced customers in 2021, high-quality customers accounted for 65%, significantly higher than that at the beginning of the year; Online trading volume increased by more than 40% year-on-year.

Ping An Bank Co.Ltd(000001) Xie Yonglin said at the press conference that we have significantly tightened the access threshold and quota management of credit cards.

Previously, the bank's credit card business has experienced an era of "horse racing and enclosure", accompanied by problems such as high credit and excessive credit, the asset quality risk and credit risk have been gradually exposed, and the business development is facing transformation. Affected by the objective environment in the past two years, many banks have adopted the strategy of steady development in the field of credit cards to resist the business risks caused by the rise of non-performing rate of consumer credit by optimizing the asset structure.

At present, the credit card has gradually shifted from the incremental market to the stock market, and the difficulty of transformation lies in how to activate the stock users, and the fine operation has become the starting point of each issuer. It is worth noting that from the layout of bank credit cards in 2021, young customers and "new citizens" have increasingly become one of the key points of the bank.

In order to continuously optimize the customer group structure, China Merchants Bank restructured the customer acquisition combination mode of credit card, while gaining insight into the needs of young customers, built a customer acquisition and management system for young customers, and launched a credit card for college graduates in May last year.

Qi Ye, vice president of China Everbright Bank Company Limited Co.Ltd(601818) said that China Everbright Bank Company Limited Co.Ltd(601818) credit card business will take the opportunity of consumption growth and serving new citizens, focus on the introduction of young consumer high-quality customers, improve the construction of products, scenes, brands and touch of young customers, and increase the proportion of young customers.

Ping An credit card explores financial cross-border play, and launches a theme card with national trend characteristics, so that users can participate in the scene and build a closed-loop service ecology.

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