[The Epoch Times, July 6, 2022](Reported by Li Siqi, a reporter from The Epoch Times Special Department) Bank of Nanjing Co., Ltd. (601009.SH, Bank of Nanjing) issued a statement on the evening of July 1, stating that the online news of the day was For “malicious rumors”. Online news indicates that Bank of Nanjing has no small financial risks. Professionals believe that the financial report data of Bank of Nanjing on the surface is beautiful, but its authenticity is doubtful, and there may be a serious problem of “off-balance sheet bad debts”.
The above statement stated that Bank of Nanjing has reported the case and will investigate the legal responsibility of the relevant entities, and stated that the company’s operation and management are “normal” and “operating well”. The so-called “false news spread on the Internet” in the announcement means that Fu Mingfei, the former chief communications officer of Western Securities, said on social media that the Bank of Nanjing not only has financial risks, but also the hole is not small. Fu Mingfei has been terminated from his work contract by Western Securities.
The “2021 Annual Report” released by Bank of Nanjing in April listed as many as 25 major honors during the reporting period. Operating income increased by 18.74% year-on-year, operating profit increased by 23.16% year-on-year, and net profit increased by 20.41%. Look, the performance is good.
On July 4, Song Weijun, a political and economic researcher at Tianjun, told The Epoch Times: “The financial report data of Bank of Nanjing in the past five years is relatively good, and the non-performing loan ratio has been kept below 1% for many years. However, in 2016 (China) began to economic downturn. It is practically impossible for banks to achieve substantial growth in asset size and profits, and keep the non-performing loan ratio below 1%, so the authenticity of the data in the financial report is questionable.” Song Weijun has been in China’s financial industry for 27 years with professional experience, focusing on research in the fields of Chinese politics and economics.
“In addition, since 2017, Nanjing Bank and its branches have received a total of 41 administrative penalties, of which 12 penalties have been imposed on the illegal flow of funds to restricted fields such as real estate and securities. These aspects are also the flashpoints of risks in recent years.”
At the end of 2021, the NPL ratio of Bank of Nanjing was 0.91%; on June 30, 2022, the unaudited NPL ratio dropped to 0.90%. The well-known financial blogger “Financial Truth” analyzed that the Bank of Nanjing has a serious problem of “off-balance sheet bad debts”. The so-called “off-balance sheet account” refers to the business that is not reflected in the bank’s balance sheet, generally not adding bookkeeping assets and accepting deposits, such as mortgages of valuables.
“Financial Truth” analyzed on its Twitter: In 2018, the off-balance sheet credit commitment of Bank of Nanjing was 241.1 billion (about 36.2 billion U.S. dollars), the pledged assets were 95.9 billion (about 14.4 billion U.S. dollars), and the derivative finance was 248.3 billion (about 248.3 billion U.S. dollars). 37.3 billion US dollars), plus other items totaling about 600 billion (about 90 billion US dollars); by 2021, the total off-balance sheet account will expand to 759 billion (about 113.9 billion US dollars), of which bank acceptance bills will increase from 92.6 billion ( (approximately $13.9 billion) doubled to 183.9 billion (approximately $27.6 billion), and pledged assets expanded to 200.5 billion (approximately $30.1 billion).
He therefore concluded: “The off-balance sheet bad debts of (Nanjing Bank) have greatly exceeded the scope of its asset guarantee, and the replacement of the official seal is inevitable.” “After the replacement of the official seal, those hidden mortgage-guaranteed bills will be cashed out in the banking system. , it is impossible to compare the texture of the ink pad, at this time, the ticket holder either reports that he has been defrauded, or he admits that he is unfortunate and silently pays the bill!”
“Replacement of official seal” refers to the announcement of the opening of the new seal issued by Bank of Nanjing on July 1. It is worth noting that the announcement could not be found on the website of Bank of Nanjing the next day and was suspected to have been deleted.
Although Bank of Nanjing issued an announcement on the evening of July 1 (Friday) to refute the online news, its stock price once fell to 9.94 yuan (about 1.49 yuan) from 10.30 yuan (about 1.55 US dollars) at the opening on July 4. Dollar). The stock price of Bank of Nanjing fell by the limit on June 30, because the bank released the resignation announcement of then director and president Lin Jingran on the evening of June 29.
The resignation announcement stated that Lin Jingran submitted a resignation report to the board of directors on June 29, which took effect on that day. Lin Jingran resigned from all positions at the Bank of Nanjing. In addition to his directorship and president positions, he is also the financial controller and authorized representative of Bank of Nanjing.
Regarding the financial risks of Bank of Nanjing, Song Weijun said: “We still need to continue to observe, there are many rumors at present, and there are problems in terms of financial or debt risks in general.”
Regarding BNP Paribas as the largest shareholder of BNP Paribas, Song Weijun’s view is: “Although BNP Paribas is the largest shareholder, Yang Bohao, as the representative of BNP Paribas, has a seat on the (Nanjing Bank) board of directors. From the perspective of the top ten shareholders, the state-owned assets of Bank of Nanjing are very obvious, and in general, the state-owned assets have the final say.” Yang Bohao, who holds French nationality, is currently the CEO of BNP Paribas Corporate and Institutional Bank Asia Pacific and a shareholder director of Bank of Nanjing.
Since the explosion of Henan Rural Bank in April, the risk of China’s banking industry has become the focus of depositors and investors.
Responsible editor: Lian Shuhua#