The change of “king of retail” is settled!
The Chinese reporter of the securities firm learned that on the afternoon of May 19, China Merchants Bank Co.Ltd(600036) held a bank wide cadre meeting. Wang Liang, the executive director, executive vice president, financial director and Secretary of the board of directors who is currently presiding over the work of CMB, was appointed as the party secretary of the bank.
after fulfilling the necessary corporate governance procedures, Wang Liang, 56, will become the fourth president of China Merchants Bank after Wang Shizhen, Ma Weihua and Tian Huiyu. It is reported that the board of directors is fully responsible for the daily management of CMB
Later that day, China Merchants Bank officially announced that the board of directors of the bank unanimously adopted a resolution to appoint Wang Liang as the president of China Merchants Bank Co.Ltd(600036) with a term of office from the date when the qualification of the president is approved by the CBRC to the expiration of the 11th board of directors.
It is worth noting that the 11th board of directors and supervisors of China Merchants Bank will normally expire next month and will usher in the general election of the board of directors and supervisors and the appointment of senior executives. According to the articles of association, the board of directors of CMB is composed of 11 to 19 directors.
Wang Liang served as party secretary of China Merchants Bank
On the afternoon of May 19, CMB held a bank wide cadre meeting. Wang Liang, who has worked in the bank for 27 years, was appointed secretary of the Party committee of CMB.
according to the articles of association of China Merchants Bank, the party secretary and President of the bank shall be held by one person. Therefore, after going through the necessary internal processes, Wang Liang will become the fourth president of China Merchants Bank after Wang Shizhen, Ma Weihua and Tian Huiyu
In fact, the notice on Wang Liang’s promotion and appointment was publicized in the bank from May 7 to 13. The market has long expected Wang Liang’s promotion. Many leaders of branches also rushed to the headquarters of China Merchants Bank to report their work.
It is understood that Wang Liang graduated from Renmin University of China. After obtaining his master’s degree in money and banking in 1991, he worked in China Science and Technology International Trust and Investment Corporation, which was formerly the China Science and technology finance company established in 1988.
In 1995, Wang Liang was transferred to Zhanzhan Road Office of China Merchants Bank Beijing Branch. Starting from the grass-roots level, he successively served as vice president, President and general manager of risk control department of the branch. He was promoted to assistant president of the branch in 2001, vice president of the branch in 2003 and President of Beijing Branch in 2006.
At the helm of the branch, Beijing Branch doubled many core indicators such as asset scale, self operated deposits and pre tax profit, which was praised as “a banner in the system of China Merchants Bank” by Ma Weihua, then president of China Merchants Bank.
In March 2013, Wang Liang entered the senior management of China Merchants Bank as the assistant to the president, was employed as the vice president of the head office in November 2014, and was appointed as the executive vice president of China Merchants Bank in August 2021. During this period, he was successively in charge of many core businesses such as CMB’s risk and compliance line, financial market and wealth management business, asset liability and financial management.
among them, in 2016, China Merchants Bank attracted much attention for taking the lead in realizing the “double reduction” of non-performing assets. At that time, Wang Liang was in charge of the risk line. After taking charge of the gold market and wealth management business in 2017, Wang Liang actively promoted the business transformation, established the Jianghu position of China Merchants Bank in the wealth management and custody market, and laid a solid foundation for the follow-up China Merchants Bank to build a great wealth management value cycle chain. In charge of accounting and finance, Wang Liang built a fortress balance sheet for CMB, which was praised by analysts, making it safer, more stable and long-term
At the same time, Wang Liang began to hold the post of secretary of the board of directors in June 2016 and communicated with investors and the media. He was widely praised by the market for his familiarity with the bank’s operating data and open communication attitude.
Some analysts believe that Wang Liang’s succession means that China Merchants Bank’s strategy, personnel, business and financial data will maintain the greatest degree of stability and consistency.
according to wind data, since this week, China Merchants Bank’s A-share has regained its northward capital after two months, with a net purchase of more than 1 billion yuan per week, ranking first among A-share listed banks and second among A-share listed companies
Keep the implementation of the strategy unchanged
Market expectations for Wang Liang’s succession began in late April. At that time, Tian Huiyu, the former president, was suddenly dismissed. Later, it was confirmed that he was investigated for serious violations of discipline and law. Wang Liang presided over the work of the bank as executive vice president.
As Tian Huiyu had obvious marks on the promotion and implementation of CMB’s strategy, business performance and market value performance during his helm, his sudden sacking also made investors full of doubts, especially worried about the change of CMB’s development ideas.
In this regard, Wang Liang said at the first quarter performance exchange meeting of the bank that on April 18, the board of directors decided that he would preside over the work of CMB and “fully authorize him to act as president” to ensure the stability of the business team of the whole bank. “Over the past week, we have made concerted efforts to maintain the stable development of various businesses. At present, the operation and management are normal.”
Wang Liang also stressed that “three invariants” and “five consistent adherence” are the characteristics and advantages of CMB, and the board of directors and management will adhere to them for a long time
The so-called “five consistent adherence” means: always adhere to the “two consistent”: always adhere to the road of marketization and specialization, always adhere to innovation driven development, always adhere to differentiated development strategy, and always adhere to the concept of steady and prudent risk management. The reason why we can achieve the “five consistent adherence” is that we always maintain the “three invariants” of the president responsibility system under the leadership of the board of directors, the market-oriented incentive and restraint mechanism and the stability of cadres and talents.
“Our bank has a good corporate governance mechanism. The board of directors will maintain the stability and continuity of the whole bank with a highly responsible attitude towards China Merchants Bank Co.Ltd(600036) and make prudent choices and decisions for the new president.” Wang Liang said at that time.
Referring to the future development ideas, Wang Liang believes that China Merchants Bank established the development strategy focusing on “retail banking” business in 2004, put forward the “light banking” strategy in 2014, and put forward the 3.0 business model with “value cycle chain of big wealth management” as the core last year. These are in the same line and keep pace with the times, and are constantly improved and deepened on the basis of retail banking strategy.
“at present, retail banking business has become the ballast and half of our business. It has made great contributions to us in terms of scale, revenue, profit and brand. We will be firm in our retail banking business.” Wang Liang stressed
In addition, at the beginning of last year, China Merchants Bank formulated a new five-year development plan and proposed to become “the best value creation bank with innovation driven, leading model and distinctive characteristics”, which has achieved remarkable results since its implementation last year. Wang Liang said that in the next step, the management will unswervingly implement the strategy and keep the implementation of the strategy unchanged.
UBS previously reported that the high-quality management team of China Merchants Bank has always been one of the main factors for its success; It is believed that the new president promoted internally will be a positive result, which is expected to maintain investors’ confidence in the strategic continuity of the bank.
“Steady word first”
There is no doubt that resolving the secondary impact of the change of president and the “sacking” of the former president and maintaining the stability of business and team are the primary and even overriding tasks of Wang Liang after taking office as president.
Miao Jianmin, chairman of China Merchants Group and chairman of China Merchants Bank, also said at the cadre Symposium of China Merchants Bank at the end of April that at present, we should focus on stabilizing strategy, mechanism, operation and team. He also stressed that “although the president of China Merchants Bank Co.Ltd(600036) has changed, the corporate governance will not change, and the support of the board of directors for China Merchants Bank Co.Ltd(600036) will not change”
“I hope the cadres and employees of CMB will calm down to do their own work and support the new management team to carry out their work. I believe that under the leadership of the new team and through the efforts of the whole bank, we will be able to complete the annual business objectives and tasks.” Miao Jianmin pointed out
On May 13, Miao Jianmin again stressed during the investigation of Shenzhen branch that he hoped the branch would strive to do a good job in the “four stability” work.
In addition to “stability”, the challenges facing Wang Liang are not small:
First, after years of rapid development, how to continue to achieve the business performance of “outperforming the market and superior to the industry” under the background of the continuous narrowing of the interest rate spread of the banking industry?
Second, how to maintain the advantages of retail business, especially wealth management business, in the increasingly crowded track?
In addition, in the face of the depressed stock price performance, how to win the recognition and trust of investors is also particularly critical.
According to the data, in the first quarter of this year, CMB achieved an operating revenue of 91.99 billion yuan, a year-on-year increase of 8.5%, a year-on-year increase of 12.5% to 36 billion yuan, and its operating performance was stable. However, affected by the downturn in the capital market, the bank’s income in wealth management decreased by 11.1% year-on-year, including the decline of agency fund income and the rapid growth of agency insurance income.
At the first quarter performance exchange meeting, Zhong Desheng, assistant to the president of China Merchants Bank, once said when talking about the wealth management business that with the 3.0 model as the core, China Merchants Bank is fully promoting the construction of the core competence of retail business in the era of wealth management, including: accelerating the construction of customer-centered asset allocation professional competence; Build an integrated service model of “investment, business and private science” and strengthen the advantages of private banking; Build the channel advantages and characteristics of China Merchants Bank in the era of wealth management through the service mode of “people + digitization”; Increase the layout of wealth management in the construction of APP open platform and increase the intensity of opening; Through open integration, the bank’s organizational and collaborative effectiveness will be brought into full play.
Zhong Desheng believes that in the process of formulating and implementing the retail business strategy, China Merchants Bank has accumulated the advantages of building a systematic retail business, “which is our foundation and foundation”. Coupled with a number of core capacity-building being promoted, he was “full of confidence” in China Merchants Bank to create a new competitive advantage in the era of wealth management.
How to maintain long-term market competitiveness and realize the Evergreen Foundation? When Wang Liang was interviewed by the media in his early years, he once had a point of view that running a bank should not be like a 100 meter sprint, only pursue the momentum for the moment, but like running a marathon, according to his own rhythm and physical strength, in order to reach the end. “The best thing is to be stable and fast. The development of an enterprise must be good, not fast.”
