Original title: Lanzhou Bank, the first bank stock scheduled to build a well-known specialty boutique bank in 2022
The overall development of the Chinese economy is the common result of the economic development of various regions, and the development of the regional economy cannot be separated from the strong support of the local financial industry. As a key force in financial services to the regional economy, city commercial banks strongly support local economic development. In recent years, the capital strength of my country’s city commercial banks has increased significantly, the scale of assets has grown rapidly, and the profitability has increased rapidly.
As the first local joint-stock commercial bank with independent legal person status in Gansu Province, Lanzhou Bank was established in 1997. After 24 years of development, it has grown into the largest city commercial bank in Northwest China in terms of deposits and loans.
Advantages highlight the double-digit growth in performance
In recent years, the economy of Gansu Province has been operating steadily, the financial institution system has been gradually improved, and the banking industry has also achieved steady development. The steady economic growth of Lanzhou and Gansu also brought significant opportunities for the development of Bank of Lanzhou.
Lanzhou Bank has firmly established a market position of “serving locals, serving entities, serving private enterprises, and serving residents”, actively exploring corporate banking, personal banking and treasury businesses, and has success in the field of small and medium-sized enterprise customers, community finance, and personalized financial services. The experience and relative competitive advantage of the company have gained wide recognition from customers and the market.
In the ranking of the “Top 1000 Global Banks in 2021” published by the British “The Banker” magazine, Bank of Lanzhou ranked 324th, an increase of 35 places over the previous year. In 2020, he won the Best Financial Digital Transformation Practice Award from the Financial Digital Development Alliance, and won the Provincial Governor’s Financial Award for ten consecutive years.
The wide distribution of outlets has laid a solid foundation for the rapid development of Bank of Lanzhou. As of June 30, 2021, it has 1 head office business department, 15 branches, 165 sub-branches, and 1 holding financial leasing company. The total number of institutions is 182. It is not only the most densely distributed business network in Lanzhou. One of the largest financial service institutions has realized the gradual optimization of the regional strategic layout, reaching full coverage in Gansu Province, and the market influence of Lanzhou Bank is continuing to expand.
According to the “Monthly Report on Money and Credit Statistics of Financial Institutions in Gansu Province” of the People’s Bank of China Lanzhou Central Branch, as of June 30, 2021, Bank of Lanzhou ranked No. 1 in terms of loan balance among small and medium-sized commercial banks in Lanzhou and Gansu Province, with market share They were 11.98% and 9.96% respectively; the deposit balance market also ranked first, with market shares of 21.77% and 13.44% respectively.
The region’s leading deposit and loan scale provides endogenous motivation for the continuous growth of Lanzhou Bank’s total assets. In the first three quarters of 2021, the Bank of Lanzhou issued loans and advances of RMB 208.609 billion, an increase of 10.37% from the end of 2020; and the total assets reached RMB 40.701 billion, an increase of 10.59% from the end of the previous year, successfully breaking the 400 billion mark.
It is worth mentioning that from January to September 2021, the bank achieved operating income of 982 million yuan, an increase of 30.75% over the same period of the previous year; net profit attributable to owners of the parent company was 1.254 billion yuan, an increase of 108.86 over the same period of the previous year. %. Combining current market trends and the company’s actual operating conditions, it is estimated that Lanzhou Bank’s annual operating income in 2021 will be 7.815-7.932 billion yuan, an increase of 7.00%-8.60% year-on-year; it is expected to be owned by the parent company after deducting non-recurring gains and losses. The net profit was 1.587-1698 billion yuan, a year-on-year increase of 79.38%-91.85%.
Based on this calculation, the P/E ratio of Lanzhou Bank’s issuance is about 12 times, which is at the same level as other bank stocks listed in recent years. From the perspective of P/B, the P/B of Lanzhou Bank’s issuance is 0.82 times, which is basically the same as the average P/B in the secondary market of small and medium banks.
Focus on small and medium-sized financial service experts
Gansu Province, as an important strategic platform for opening to the west, a regional trade and logistics center on the Silk Road Economic Belt, and a demonstration base for industrial cooperation, the local financial industry is developing rapidly. As of December 31, 2020, the deposit and loan balances of financial institutions in Gansu Province have reached 2,099.267 billion yuan and 2,215,941 million yuan, a year-on-year increase of over 6%.
Over the past 24 years, Lanzhou Bank has been rooted in Gansu, and has always been committed to supporting local economic construction and building a harmonious society, and using this as a fertile ground for development, giving full play to its location advantages, and achieving rapid and healthy development in various businesses. At the same time, the bank has a deep understanding of the regional status quo of many small and micro enterprises in Gansu Province, insists on “returning to the source”, and vigorously supports the development of small and micro enterprises.
This coincides with national policies and industry trends in recent years. Since 2021, the state and relevant administrative departments have paid more and more attention to solving the problem of “difficult financing and expensive financing” for small and micro enterprises, continued to increase financial support for small and micro enterprises, and continuously refined the content of policies to guide the banking industry to upgrade small and micro businesses. The level of corporate financial services. Just recently, the People’s Bank of China issued a notice to implement the continuous conversion of two direct tools, the Inclusive Small and Micro Enterprise Loan Extension Support Tool and the Inclusive Small and Micro Enterprise Credit Loan Support Plan, starting from January 1, 2022.
In the process of focusing on financial services for small, medium and micro enterprises, Lanzhou Bank is also constantly launching innovative products and services for small, medium and micro enterprises. Shorter, more efficient in decision-making, can quickly find and meet the financial needs of small and micro enterprises.
Since 2011, the Bank of Lanzhou has clearly defined “becoming the most competitive medium, small and micro financial expert” as its basic positioning. In recent years, it has resolutely implemented the national inclusive financial policy and has been proactive under the specific guidance and guidance of the government and regulatory authorities. As a result, continue to improve the quality and efficiency of financial services for small, medium and micro enterprises.
With long-term persistence and hard work, small, medium and micro businesses have become the core force for the development of Lanzhou Bank. According to the prospectus, in the past three years, Lanzhou Bank’s loans to small, medium and micro enterprises accounted for more than 75% of the company’s total loans. “The problem.
At the same time, focusing on financial services for small, medium and micro enterprises has also created a differentiated competitive advantage for Lanzhou Bank, giving it a good customer structure, strong bargaining power and strong resistance to systemic risks.
Forced transformation of technology to support business development
Developing the digital economy, accelerating the pace of digital industrialization and industrial digitization, and promoting the deep integration of the digital economy and the real economy are the unswerving direction of my country’s economic development in the new decade, and it is also an inevitable move to achieve the goal of building a digital China.
The Bank of Lanzhou attaches great importance to the construction of information technology. After years of continuous construction and improvement, it has gradually established a technologically advanced and industry-leading infrastructure platform and application platform system that supports the development of the entire bank’s business.
Since 2012, the Bank of Lanzhou has identified the development of Internet finance business as an important strategic goal, speeding up the promotion of innovative applications of new technologies, optimizing business processes, improving customer experience, and improving the efficiency of business processing; since 2014, it has vigorously implemented the platform strategy, focusing on The three basic data of “users, transactions, and credit” will build a scene-based financial application platform integrating industry applications, e-commerce, the Internet, and big data.
In 2017, the bank began to build a financial technology ecosystem integrating payment, wealth management, credit, e-commerce, big data, supply chain, cash management, etc. on the basis of its platform strategy; since 2019, it will deeply integrate financial technology and business. Strengthen the empowering role of financial technology.
It is understood that the bank actively explores digital financial services based on ecological scenarios, reconstructs the transaction banking service system, and builds an upgraded treasury E-management platform. The platform relies on a comprehensive system of “products + services + channels”, integrates the traditional corporate business of banks and adds characteristic demand elements to form a one-stop service, which can support multi-channel access such as enterprise ERP and open banking. Deeply expand the connotation of “smart finance” with “online, scenario, and platformization”, and provide corporate clients with all-round and one-stop services such as account management, payment and settlement, investment and wealth management, electronic bills, treasury management, and online financing. The comprehensive financial services of the company have realized the digital transformation and upgrading of transaction banking business from “account + payment” to “scenario + finance”.
In terms of services for small and micro enterprises, Lanzhou Bank is also actively promoting digital construction, such as using modern technology to carry out intelligent risk assessment, establishing a credit risk model for enterprises in the bank, realizing system automatic risk control management, and improving the level of credit risk prevention and control for small, medium and micro enterprises. At the same time, the new “artificial intelligence-based supply chain financing services for small and medium enterprises” project launched by the bank and Gansu Resources Group has also been successfully included in the “supervision sandbox” of the People’s Bank of China, becoming the first in-box project in Gansu Province.
Landing will soon build a characteristic boutique bank
On January 5, the Bank of Lanzhou officially launched the subscription, intending to issue 570 million new shares at 3.57 yuan per share, with a net fund-raising amount of about 1.968 billion yuan. In 2022, the first bank stock is about to land in A shares.
After deducting the issuance costs, the funds raised from the Lanzhou Bank’s issuance will all be used to enrich the capital in order to increase the level of capital adequacy, enhance comprehensive competitiveness, and enhance shareholder value.
In the future, Lanzhou Bank will focus on the theme of innovation and transformation, highlight the three major centers of financial technology, small, medium and micro businesses, and “agriculture, rural areas, and farmers”, strengthen the three key points of structural optimization, risk management and control, and service improvement, and promote the leapfrog listing, refined management, and talent team The five key points of construction, corporate culture improvement, and integrated operation are to expand service targets, consolidate service platforms, innovate service models, improve service quality, achieve a double improvement of business scale and operating efficiency, and double leap in asset quality and liability structure. Well-known specialty boutique bank. (Cis)
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