At the beginning of 2024, the board of directors of Bank of Nanjing will be elected, and Xie Ning will serve as the chairman of the board and become the new "head" of the company.
In the first three quarters of 2023, although the company recorded both revenue and net profit, the growth rate fell to single digits, and the slowdown was very obvious. In addition, the company's personal loan non-performing rate is relatively high, and the number of complaints about consumer loan business is quite high, so it is necessary to strengthen post-loan management and improve service quality.
Welcoming a new person at the helm
On January 8, the board of directors of Bank of Nanjing held a general election and ushered in a new helm.
At the first meeting of the 10th board of directors, the board of directors of Bank of Nanjing agreed to elect Xie Ning as the chairman of the 10th board of directors, and Hu Shengrong, the former chairman of the board, retired at the end of the year.
In addition, the qualifications of Chairman Xie Ning are subject to the approval of financial regulators, and before that, the company's board of directors designated Zhu Gang, an executive director, to perform the duties of chairman on his behalf.
Hu Shengrong, born in 1963, is a veteran of Bank of Nanjing, having served as president since June 2013 and chairman of the board of directors from April 2017 until his retirement. According to the 2022 annual report, its annual salary before tax in 2022 was 720,000 yuan, and the number of shares held at the end of the year was 60,000 shares.
According to the short and quick interpretation, it was expected that Xie Ning would succeed Hu Shengrong as chairman of the Bank of Nanjing.
On December 14, 2023, the official announcement of the appointment and dismissal of new cadres at the cadre meeting of Bank of Nanjing, Xie Ning was the new secretary of the party committee of the bank, and Hu Shengrong no longer served as the secretary of the party committee due to age.
According to the resume, Xie Ning, born in 1976, has a master's degree, and previously worked mainly in the People's Bank of China, successively serving as the deputy director of the monetary and credit management department of the Nanjing branch; Deputy Secretary of the Party Committee and Vice President of Taizhou Central Branch (presiding over the work), Secretary of the Party Committee, President and Director of Taizhou Central Branch of the State Administration of Foreign Exchange; Director of the Office of the Party Committee (Party Committee Office), Member of the Party Committee and Vice President of Nanjing Branch; Member of the Party Committee and Vice President of Jiangsu Branch.
He joined Bank of Nanjing in December last year and is now at the helm of the company.
Judging from his resume, Xie Ning has no experience in commercial banks, but his work experience in branches of the People's Bank of China is destined to make him more sensitive to policy changes and market trends, and may be expected to allow Bank of Nanjing to seize the opportunity in future development.
It is worth mentioning that the board of directors of Bank of Nanjing also elected a new leadership team, Zhu Gang continued to serve as president, and the vice presidents were Zhou Wenkai, Chen Hui, Song Qingsong, Jiang Zhichun, Chen Xiaojiang (all professional managers) and Miller dispatched by BNP Paribas.
Among them, Chen Huo's qualifications are subject to the approval of the financial regulator.
As a result, the Bank of Nanjing has formed a new leadership team headed by Xie Ning and Zhu Gang, who are responsible for strategy and operation respectively. And can we deliver a report card that satisfies investors?
Performance slowed in the first three quarters of last year
According to the official website, Bank of Nanjing, founded in 1996, is a mixed-ownership commercial bank composed of state-owned legal person shares, Chinese legal person shares, foreign shares and many natural person shares. In July 2007, the company was listed on the Shanghai Stock Exchange, which is the first city commercial bank in China to be listed on the main board of the Shanghai Stock Exchange.
As of the end of September 2023, Bank of Nanjing's total assets increased by 15% year-on-year25% to 24 trillion yuan, total liabilities increased by 14 percent year-on-year5% to 207 trillion yuan, operating in Jiangsu Province and Beijing, Shanghai and Hangzhou, with a total of 17 branches, 270 business outlets, and more than 15,000 employees.
It is currently ranked 91st in the 2023 Top 1000 Global Banks published by The Banker magazine and 21st in the 2023 Top 100 Chinese Banks by the China Banking Association.
According to the interpretation of Short Ping Kuai, from 2018 to 2022, Bank of Nanjing's operating income has grown steadily, from 2740.6 billion yuan rose to 44.6 billion0.6 billion yuan, of which a year-on-year increase of 9% in 2022. During the same period, the company's net profit attributable to the parent increased from 110$7.3 billion to $18.40.8 billion yuan, of which a year-on-year increase of 1609%。
Overall, the company's performance in the above period is remarkable, and this situation has changed in 2023.
In the first three quarters of 2023, Bank of Nanjing achieved operating income and net profit attributable to the parent company of 3569.2 billion yuan, 1528.4 billion yuan, a year-on-year increase. 09%, the performance is still growing, but the growth rate is slowing down significantly.
In the third quarter, the company's performance even experienced a single-quarter decline, with operating income and net profit attributable to the parent company of 113 respectively8.8 billion yuan, 459.9 billion yuan, down year-on-year. 58%, which is clearly not a good trend.
In contrast, 11 of the 17 A-share city commercial banks achieved operating income growth in the first three quarters, and the top three banks in terms of growth rate were Bank of Lanzhou, Bank of Chengdu, and Bank of Jiangsu. 44%；A total of 6 banks saw a decline in revenue, and the top three decliners were Bank of Guiyang, Bank of Shanghai, and Bank of Zhengzhou, which declined respectively. 62%。
Among the 17 urban commercial banks, a total of 15 have achieved net profit growth attributable to the parent company, and the top 4 banks are Bank of Hangzhou, Bank of Jiangsu, Bank of Suzhou, and Bank of Chengdu, with a growth rate of more than 20%, respectively. 81%；Bank of Guiyang and Bank of Zhengzhou were the only two banks to experience a decline in revenue, respectively. 18%。
Bank of Jiangsu, which is located in the same area as Bank of Nanjing, far exceeds Bank of Nanjing in terms of revenue, net profit scale and growth rate, and Bank of Jiangsu was established in 2007, which is far less than Bank of Nanjing.
According to the analysis, the sharp slowdown in the revenue growth rate of Bank of Nanjing in the first three quarters was mainly related to net interest income, which fell by 2 year-on-year79% to 198RMB8.4 billion, mainly due to the continued narrowing of net interest margin, was 126%, down 093 percentage points.
Bank of Nanjing said at the results conference that as the market-oriented adjustment mechanism of deposit interest rates continued to play a role and the interest rate of the deposit market declined, our bank closely followed the market changes and lowered the interest rate of deposit and some deposit products for many times, of which the interest rate of demand deposit was reduced by 10bp.
For the future, the company said that the bank's interest margin level is facing challenges, and it is expected that the net interest margin will follow the market changes and remain generally stable.
Obviously, the first challenge facing the new leadership team headed by Xie Ning and Zhu Gang at the helm of Bank of Nanjing is to lead the company's performance back to the "fast lane", but this seems to be quite difficult.
The non-performing rate of personal loans is high, so it is necessary to pay attention to consumer loans
From 2018 to 2022, the total amount of loans of Bank of Nanjing continued to grow, from 4803400 million yuan rose to 94591.3 billion yuan, a cumulative increase of 9693%, with a year-on-year increase of 1729% to 109 trillion yuan, the growth rate is still considerable.
During the same period, the company's non-performing loans grew rapidly, with 427.2 billion yuan, 508.2 billion yuan, 617.4 billion yuan, 723.3 billion yuan, 851.6 billion yuan, a cumulative increase of 9934%, a year-on-year increase of 173% to 976.9 billion yuan.
Unlike the rapid growth of non-performing loans, the company's non-performing loan ratio remained at a low level, respectively. 9%, which was still 09%, which is still worth affirming.
According to the 2023 interim report, Bank of Nanjing's loans are mainly corporate loans, accounting for 7404%, the top five industries are leasing and business services, manufacturing, wholesale and retail, water conservancy, environment and public facilities management, and real estate, accounting for respectively. 95%。
According to the interpretation of the short flat fast, the top five industries of non-performing loans are wholesale and retail trade, information transmission, software and information technology services, construction, manufacturing, and real estate, which are 14700 million yuan, 83.9 billion yuan, 74.4 billion yuan, 72.4 billion yuan, 55.5 billion yuan.
The top five industries with the highest defect rates are information transmission, software and information technology services, construction, culture, sports and entertainment, health and social work, and wholesale and retail. 42%。
Personal loans accounted for 2596% and a non-performing loan ratio of 159%, an increase of 05 percentage points. Personal loans are mainly concentrated in consumer loans and housing mortgage loans, accounting for respectively. 27%, the company did not disclose the specific non-performing situation, but mentioned that the non-performing rate of consumer loans and personal business loans has increased.
It should be pointed out that the number of complaints from Bank of Nanjing is quite high.
According to Beijing Business Daily, in the first half of 2023, the median number of complaints per 100 business outlets of city commercial banks in Shanghai was 1523 pieces of 100 business outlets. Among them, the list of the highest number of complaints per 100 business outlets on average ranked first is the Shanghai branch of Bank of Nanjing.
In terms of black cat complaints, as of January 10, the number of complaints of Bank of Nanjing was as high as 845, of which 382 have been completed, and the complaint completion rate is 4521%, with a low completion rate. Judging from the completed complaints, the main object of complaints is Xin Mengxiang, which is an online loan service platform launched by Bank of Nanjing, and the complaints mainly involve violent collection, liquidated damages, credit investigation and so on.
In addition, Bank of Nanjing received a large fine in August 2023, and the company handled the receipt and payment of current account funds, and failed to conduct a reasonableness review of the authenticity of the transaction documents and their consistency with foreign exchange receipts and payments; Failure to report financial accounting and other issues in accordance with the regulations was fined 600,000 yuan by the Jiangsu Provincial Branch of the State Administration of Foreign Exchange.
Remind the company that it needs to strengthen internal control management and further comply with the operation.
In addition to bringing the performance back to the "fast lane," the new leadership group headed by Xie Ning and Zhu Gang also needs to strengthen the management of the personal consumption business, properly handle the problem of many complaints, and at the same time standardize the company's operation, and the burden on them is not light.
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