Source: Huaxia Times
Reporter Lu Mengxue Ran Xuedong reports from Beijing
Ye Ying, who was once in charge of the corporate business of Chang'an Bank and later transferred to Shaanxi International Trust and Investment Co., Ltd. (hereinafter referred to as "Shaanxi Guotou") for more than 4 years, will return to Chang'an Bank and be proposed to be the president.
On May 16, Shaanxi Provincial People's Government website disclosed a number of personnel appointment and removal notices. According to the notice, Ye Ying, Chairman of the Board of Supervisors of Shaanxi Guotou Investment Co., Ltd., will be the new President of Chang'an Bank.
Chang'an Bank is a provincial legal person city commercial bank established by new merger under the leadership of Shaanxi Provincial Party Committee and Shaanxi Provincial Government. The former president Wang Zuoquan resigned in December 2023, while Ye Ying, a veteran of Chang'an Bank, served as the vice president of Chang'an Bank when it was established in 2009, and then transferred to Shaanxi Guotou in 2019.
Since its establishment more than ten years ago, the overall business performance of Chang'an Bank has remained stable. By the end of 2023, the operating revenue has reached 9.779 billion yuan, an increase of 11.06% year on year; The net profit was 2.445 billion yuan, up 8.63% year on year.
However, in 2023, the bank's loan loss provision was 10.257 billion yuan, an increase of 1.81 billion yuan over the previous year, or 21.44% over the same period last year. The non-performing loan ratio rose slightly, and the income from intermediary business was negative year after year.
The return of the "veteran" in charge of the company's business
In December 2023, Wang Zuoquan, the former president of Chang'an Bank, resigned as the president, and assumed the new chairman of Shaanxi Financial Holding Group in January this year.
Wang Zuoquan was born in 1968 Bank of China Have a long working experience. When Chang'an Bank opened in 2009, Wang Zuoquan served as the vice president of the bank, and later became the president in 2018, becoming the third president of Chang'an Bank.
Ye Ying, born in 1965, worked in Shaanxi Provincial Branch and Xi'an Branch of the People's Bank of China in his early years. He once served as the head of the supervision department of urban commercial banks and the head of the first off-site supervision department of the former Shaanxi Banking Regulatory Bureau, and also had nearly ten years of work experience in Chang'an Bank. Before the opening of Chang'an Bank, the People's Government of Shaanxi Province determined the candidates for the chairman and president of the Bank, among which Ye Ying, who was born in the regulatory system, became the candidate for the vice president.
After the opening of Chang'an Bank, as one of the vice presidents, Ye Ying was in charge of the business department, capital operation department, accounting and settlement department, and information technology department of the company, and served as executive director, secretary of the board of directors, etc. in the first board of directors.
In November 2019, with the consent of the People's Government of Shaanxi Province, Ye Ying will no longer serve as the Vice President of Chang'an Bank. Later, Ye Ying entered Shaanxi Guotou and was elected as the employee director of the company, and became the candidate for the supervisor of Shaanxi Guotou in May 2022.
When evaluating Ye Ying's performance, Shaanxi Guotou said that Ye Ying led the board of supervisors of the company to make outstanding contributions in improving corporate governance efficiency, strengthening internal control management, effectively preventing and resolving risks, promoting the construction of the "big supervision" system, and safeguarding the interests of the company and shareholders.
In the past four and a half years since November 2019, Chang'an Bank has focused on its main business and experienced rapid development. In terms of asset size, it jumped from 287.737 billion yuan at the end of 2019 to 502.283 billion yuan at the end of 2023, an increase of 42.71%; In terms of net profit, it increased from 1.752 billion yuan to 2.445 billion yuan, an increase of 28.34%.
By the end of 2023, Shaanxi Yanchang Petroleum (Group) Shaanxi Coal Industry Chemical Industry Group, holding 19.04% and 18.71% respectively.
In addition, Chang'an Bank has 1 head office business department, 10 branches, 17 sub branches directly under it, and 251 business outlets. The Bank also initiated and controlled the establishment of Shaanxi Changyin Consumer Finance Co., Ltd., the first consumer finance company in Shaanxi Province, and set up four village banks.
Loan loss reserves increased by 21.44% year on year
Under the leadership of Shaanxi Provincial Party Committee and Provincial Government, Chang'an Bank introduced strategic investors on the basis of merging and restructuring the original five city commercial banks and city credit cooperatives in the province, and was approved by the former CBRC to establish a new provincial corporate city commercial bank in the form of merger.
From the information disclosed in the annual report of 2023, the revenue and net profit of Chang'an Bank in 2023 have increased significantly, of which the operating revenue is 9.779 billion yuan, an increase of 973 million yuan over the previous year, or 11.06% year-on-year; The net profit was 2.445 billion yuan, an increase of 175 million yuan or 8.63% over the previous year.
The increase of net interest income and investment income is the main source of the growth of Chang'an Bank's revenue. The two incomes in 2023 will be 9.246 billion yuan and 608 million yuan respectively, an increase of 468 million yuan and 326 million yuan over the previous year.
In terms of intermediary business income, the net income of service charges and commissions of Chang'an Bank in 2023 will continue to suffer losses for many years, with a net loss of 268 million yuan in 2023.
From the specific category of intermediary business, in 2023, the income from wealth management intermediary business and custody intermediary business of Chang'an Bank will decrease the most, with a year-on-year decrease of 51.1165 million yuan and 21.0904 million yuan, respectively, 11.52% and 126.82%.
In terms of asset quality and risk compensation, the financial report shows that the non-performing loan ratio of Chang'an Bank will be 1.82% in 2023, which is the same as the previous year; The provision coverage rate was 191.15%, an increase of 7.08 percentage points over the previous year, and the asset quality and risk compensation ability were further improved.
However, it is worth mentioning that Chang'an Bank mentioned in its 2023 annual report that its loan loss reserve was 10.257 billion yuan, an increase of 1.81 billion yuan over the previous year, or 21.44% over the previous year.
What is the reason for Chang'an Bank to increase loan loss reserves? Facing the increase of loan loss reserves, what risk management strategies or plans does Chang'an Bank have in the future to deal with possible credit losses? On May 22, the reporter of Huaxia Times wrote to Chang'an Bank for interview on the above issues, but no reply has been received as of press release. At the same time, the reporter repeatedly called Chang'an Bank, but no one answered.
Yuan Shuai, the executive director of the high-quality development promotion project for specialized and special new enterprises, believed in an interview with the Huaxia Times that the bank may predict that the economic environment or industry conditions will change, leading to an increase in credit risk, so it has increased the provision for loan losses to deal with potential risks. On the other hand, it may also be that banks are more prudent in risk management and actively increase loan loss reserves to better cover risks, which does not necessarily mean the expectation of subsequent asset quality decline.
"Improving loan loss reserves can enhance banks' ability to resist risks, and also reflects banks' prudent attitude in risk management," he said.
In its annual report, Chang'an Bank said that in 2024, its main business objective is to achieve total group assets of 530 billion yuan and net profit of no less than 2.308 billion yuan. The bank's daily average net increase in deposits was 15 billion yuan, and the net increase in loans was 20 billion yuan. The non-performing loan ratio was controlled within 2%, and the net profit was no less than 2.033 billion yuan.
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