On April 2, Hengfeng Bank released its 2021 annual report. The annual report shows that the bank has maintained steady growth in profitability, revenue scale and other aspects, the non-performing ratio has declined for three consecutive years, and asset quality has continued to improve. In 2021, the bank achieved operating income of 23.879 billion yuan, a year-on-year increase of 13.56%; net profit of 6.348 billion yuan, an increase of 22.01%; asset scale exceeded 1.2 trillion yuan, an increase of 9.25%; non-performing loan ratio was 2.12%, down from the beginning of the year 0.55 percentage points, the balance of non-performing loans and the ratio of non-performing loans maintained a double decline for three consecutive years.
2021 is the second full year of operation since Hengfeng Bank’s shares were restructured. Judging from the data disclosed in the annual report, the newly reborn bank handed over a very good answer. On the one hand, the rapid growth in scale, revenue, customer base, and profit shows the strong development momentum of this bank; on the other hand, the balance of non-performing loans and the ratio of non-performing loans have declined for three consecutive years, especially since the new team took office in 2018. , the non-performing rate is controlled at a very low level of 0.11%, which reflects the bank’s great progress in corporate governance, internal control compliance, risk management and other aspects. According to the list of the world‘s top 1000 banks in 2021 released by the British “Banker” magazine, Hengfeng Bank has jumped 27 places to 135th.
Based on the data of the past three years, the change trajectory of Hengfeng Bank is clearer. Compared with 2019, the total assets increased by nearly 190 billion, an increase of 18.32%; the loan increased by more than 200 billion, an increase of 46.27%; the net profit increased from 599 million in 2019 to 6.348 billion, and the compound growth rate ranks among the best in the industry. Since the share reform and restructuring, the non-performing ratio has been declining year by year, and it will be 2.12% in 2021. The asset quality continues to consolidate. The qualitative change in operating performance and risk management has greatly enhanced the market recognition of Hengfeng Bank. According to public information, the financial bonds issued by Hengfeng Bank in the inter-bank bond market last month were favored by various institutions such as banks, securities companies, funds and insurance companies, and the subscription ratio was as high as 3.1 times. At the same time, the annual report also disclosed that the bank was approved to build a wealth management subsidiary last year, set up a private banking department, a capital operation center, and 8 branch licenses. The approval of this series of new licenses also shows to a certain extent that the regulatory department Recognition of the achievements of reform and development in recent years.
Specific to each business segment, there are many bright spots in each business line of Hengfeng Bank. In terms of corporate finance, the bank actively integrated into the new development pattern, focused on major strategies such as ecological protection and high-quality development in the Yellow River Basin, conversion of old and new drivers, and rural revitalization, and planned layouts in key areas such as green finance, urban renewal, and specialization and innovation. Corporate effective customers increased by 18.19%, and the balance of corporate loans increased by 22.5 billion yuan compared with the beginning of the year. Among them, the growth rate of green credit was 140%, and a number of first orders and green finance businesses in the country were implemented. The scale of non-underwriting businesses such as mergers and acquisitions, syndication, investment and financing advisory, etc. increased by 186% year-on-year. The loan amount of online supply chain series products increased by 295.6% year-on-year. The international business data for the same period hit a new high in the past five years.
In terms of inclusive finance, focusing on key industrial chains such as advanced manufacturing industry clusters, construction and construction, rural revitalization, and key customer groups such as high-quality small and micro enterprises and self-employed customers, relying on the scene, it strives to build a new brand of “Hao Kuai” digital products, and launched “Hao Kuai”. Inclusive financial products such as Haoyuan Quick Loan, Haofang Quick Loan, Haobao Quick Loan, and Good Niu Quick Loan, the balance of inclusive small and micro loans increased by 50.15%, and inclusive agriculture-related loans increased by 56.05%.
In terms of retail finance, a new customer relationship management system was launched to accelerate the online product innovation of retail business. Significant progress has been made in the strategy of “bigger retail”: retail effective customers increased by 16.7%; personal loans increased by 42.75%; net worth wealth management accounted for 49.63%, an increase of 27 percentage points compared with the beginning of the year; fund sales nearly tripled in the previous year, and credit card issuance The amount increased by 33.72%; it has successively been approved to establish a wealth management subsidiary and a private bank specialized institution.
In the financial market, the Company strengthened its quantitative trading capabilities and empowered business development with technology. The first batch of transactions was completed on the first day of the “Southbound Connect”. The volume of spot foreign exchange transactions increased by 67% compared with the same period of the previous year. A 68% increase over the same period last year. The capital operation center was also inaugurated in Shanghai in February this year.
The qualitative change in the development of Hengfeng Bank is inseparable from the strong support of corporate governance and internal management. In 2021, Hengfeng Bank will adhere to the leadership of party building, continue to promote the organic integration of party leadership and corporate governance. Include the performance evaluation of directors, supervisors and senior executives who are members of the party committee. According to the new “Corporate Governance Guidelines” issued by the China Banking and Insurance Regulatory Commission, we will revise and issue systems such as the evaluation measures for the performance of directors, supervisors and senior executives, and the management measures for information disclosure, to create a scientific and agile decision-making mechanism, and to improve a legal and complete supervision mechanism. The annual report discloses in detail the performance of duties by the board of directors, the board of supervisors and the senior management, especially the work carried out by the special committees of the board of directors and the board of supervisors, including various proposals and reports reviewed, various tasks of supervision and research, and various aspects. The data is very detailed. It can be seen that two years after the share reform and reorganization, the bank’s corporate governance system has gradually become “both physical and spiritual”, and various systems have become increasingly mature and finalized.
It is worth mentioning that Hengfeng Bank has also invested heavily in financial technology. The annual report shows that in 2021, Hengfeng Bank’s technology investment will reach 2.111 billion yuan, accounting for 8.85% of its operating income, which is basically more than double the industry average. This shows the bank’s determination and strength in promoting digital transformation. . At the end of 2021, the bank’s new-generation enterprise-level full-featured system, the Perseverance System, was put into operation. This is the first core system of a joint-stock commercial bank in the country to achieve a one-time overall upgrade of business and systems. After the new system goes online, the core processing capacity has increased by 6.38 times. , many businesses have achieved intelligent and automated processing, the bank’s data governance and application capabilities have been greatly improved, digital financial products have been accelerated to market, and digital transformation results have begun to emerge. At the same time, in terms of talent support, the bank has initially established a digital talent team of more than 2,300 people, focusing on areas such as data analysis, model and algorithm analysis, and data asset design, and introduced nearly 300 domestic large and medium-sized banks and well-known Internet companies. Experienced digital talent.
In October last year, Hengfeng Bank released a new strategy of “building a first-class digital agile bank”, and its new approach of agile organization and digital transformation has attracted much attention from the outside world. According to public reports, in 2022, Hengfeng Bank will make every effort to fight the “ten tough battles”, stick to the “ten bottom lines”, and strengthen the “ten leading guarantees”, and the realization path of the new strategy will be further refined. In general, two years after the share reform and reorganization, Hengfeng Bank has been on the right track in an all-round way, and many indicators have returned to the mainstream level of joint-stock banks. With the gradual increase in technology investment and the implementation of new strategies, the future development space is broad.