China Merchants Bank President talks about the impact of the epidemic: February credit card, mortgage overdue rate increased significantly

China Merchants Bank President talks about the impact of the epidemic: February credit card, mortgage overdue rate increased significantly
Under the epidemic, how much is the banking business affected?At today’s antique China Merchants Bank’s 2019 performance press conference, China Merchants Bank President Tian Huiyu said that the epidemic had an impact on China Merchants Bank’s customer acquisition, loan and deposit, net interest income, intermediate business income, and asset quality.Among them, the most direct and the biggest impact is the quality of assets. In February, credit card and mortgage loans and small and micro overdue rates increased significantly.In 2019, China Merchants Bank’s non-performing loans both fell.However, the generation of non-performing assets of China Merchants Bank is improving in 2019, with an increase of 89.Of the $ 3.7 billion in non-performing assets, credit card loans accounted for the lowest percentage.”Affected by the epidemic, (credit card business) overall asset quality and risk will improve.When introducing the strategy adopted by China Merchants Bank first, Tian Huiyu stated that China Merchants Bank adheres to the positioning of “one body and two wings”.”However, the proportion of retail sales is not as good as possible. China Merchants Bank’s five-year retail sales plan is about 60%. This plan is appropriate.”” The epidemic has the most direct impact on China Merchants Bank’s business, and the biggest impact is on asset quality, “Tian Huiyu said. The epidemic has five major impacts on China Merchants Bank’s business: one is customer acquisition, and the first quarter, especially the February debit and credit card retailThe number of customer acquisitions has decreased significantly, the number of newly registered companies has exceeded the threshold, and the growth of small business customers has decreased substantially.The second is deposits and loans. The steady growth of public loans has the biggest impact on retail credit cards, small and micro loans and housing loans.Third, the net interest income decreased due to changes in our credit structure. The situation in February was mainly due to the decline in the rate of retail business credit and the decline in the proportion of relatively high-yield assets; affected by the decline in market interest rates.Under the combined effect of the above two factors, net interest income is affected to a certain extent.Fourth, the income from intermediate business, the settlement of the credit and debit card transactions, which affects the business income of credit cards and debit cards; debt issuance, asset management project release, due to the isolation during the epidemic, which makes it difficult to make full adjustments, business incomeInfluenced by certain influences.Fifth, the most direct and the biggest impact is on asset quality, and the repayment ability of credit cards and personal loans is expected to decline. In February, the credit card and mortgage loans, small and micro overdue rates exceeded a substantial increase.”The special factor for China Merchants Bank is that 40% of the collection capacity of credit cards is in Wuhan. During this period, it was impossible to work, which has a certain impact on our collection capacity.Tian Huiyu said that the situation started to improve in March, and the production capacity collected has basically recovered. Judging from the transaction volume reflected by the system, it has basically reached a normal level, which is almost the same as last year.Tian Huiyu also introduced that China Merchants Bank has the highest share of overseas transactions in the entire bank, and the highest fee income for overseas transactions. In February, the Chinese cannot go out, and the amount of overseas transactions has basically been halved.However, the outbreak also brought some good effects to China Merchants Bank.According to Tian Huiyu, first, the advantages of China Merchants Bank’s online and wealth management were fully utilized during the epidemic period, and wealth management and fund sales increased substantially to support and promote the steady growth of retail AUM; second, financial market businesses were not affected.However, the impact of large fluctuations in the domestic and overseas markets, especially in overseas markets, has partially benefited.In terms of bond investment, in the second half of 2019, China Merchants Bank increased its bond investment and prolonged its duration. The spread and floating profit of the bond portfolio have increased significantly.In terms of foreign exchange and precious metals, due to the two strategies of strict control of exposure and budget combination, there is no loss in market changes, but there are small gains; the third is China Merchants Bank hedging tool, a hedging tool product for customersThe series has played a good role in this round of volatility, with a significant increase in trading volume in a year; Fourth, the net worth of financial management has remained basically stable.“Credit card non-performing loans accounted for approximately 8 billion yuan, which accounted for part of it.” China Merchants Bank ‘s 2019 annual report showed that China Merchants Bank ‘s non-performing loans both fell.As of the end of the reporting period, the bank’s total non-performing loans were 522.7.5 billion yuan, a decrease of 13 from the end of last year.3 billion yuan; NPL ratio 1.16%, down by 0 from the end of last year.20 digits.However, in 2019, the asset quality of China Merchants Bank will remain stable and improve, while maintaining a double-decline trend, it is also a matter of concern.In 2019, the generation of non-performing assets of China Merchants Bank has increased, and the amount of non-performing assets reached 442.1.5 billion, an increase of 89 from the previous year.3.7 billion yuan.”More generated 89.Of the 3.7 billion US dollars of non-performing assets, the focus is still on the non-performing assets of credit cards, and the non-performing loans of credit cards generated approximately 8 billion US dollars, accounting for the volume.”China Merchants Bank Vice President Wang Liang said at today’s performance announcement that in terms of credit card asset management policies, credit issuance and customer acquisition, China Merchants Bank has adopted a contraction strategy in 2019, mainly for P2P remediationTotal debt risk.”If there is no impact of the epidemic this year, this year’s China Merchants Bank credit card will maintain a relatively good development quality and status.At present, due to the impact of the epidemic, we judge that the overall asset quality and risks will increase.“In 2014, China Merchants Bank implemented the“ One Body and Two Wings Strategy ”.“ One Body ”refers to retail banks, and“ Two Wings ”refers to corporate finance and interbank finance.At today’s performance conference, when addressing the strategy adopted by China Merchants Bank, Tian Huiyu said that under the epidemic, there was time and opportunity to do some in-depth thinking and fully realize that “one body and two wings” became an organic wholeThe importance of the “one body and two wings” may become an important factor in balancing financial performance.At the same time, Tian Huiyu said that the proportion of retail is better.”In recent years, everyone is generally optimistic about retail, and it is said that banks with a high proportion of retail have a strong ability to resist risks and have small fluctuations.However, this does not mean that the proportion of retail sales exceeds the better.At present, China Merchants Bank retail accounts for more than 55%, and the five-year plan is about 60%. This plan is appropriate. Especially in this epidemic, let us rethink the strategic positioning and the appropriateness of strategic planning.Tian Huiyu also added that if the retail business has no features, the powerful “two wings” and “one body” will not go far.In addition, at the first level, China Merchants Bank’s 2019 net interest margin declined quarter by quarter.In doing so, Tian Huiyu said that this is the result of China Merchants Bank ‘s active asset and liability management to balance the current financial performance and customer demand, that is, the result of proactive action. You do n’t have to worry too much about this.According to Tian Huiyu, China Merchants Bank has taken measures on the asset side in the net interest margin management this year since the second half of last year.First, under the downward trend of interest rates, the project financing and the issuance of medium and long-term loans were increased in the second half of last year; second, the duration was extended, and the repricing cycle and duration were lengthened;The certificate of deposit, the source of denial of customer initiative and high costs, is strictly controlled in terms of proportion and overall; the current industry debt scale is 1.At around RMB 6 trillion, under the current market environment, the cost of interbank debt is expected to be better controlled.”Everyone should not have illusions about our net interest margin. We can’t go against the trend. What we can do is to continue to maintain the leading edge of the net interest margin industry.”Tian Huiyu said.Sauna, Ye Wang Hou Runfang Edited by Yue Caizhou Proofreading Li Ming