Author | Li Haixia
Source | Unicorn Finance
Two chairmen were sentenced to death, several ups and downs, as one of the 12 joint-stock banks Hengfeng Bank Co., Ltd. (hereinafter referred to as "Hengfeng Bank"), the road forward can be described as tortuous.
On April 13, Hengfeng Bank Kunming Branch received a fine from the Kunming Central Branch of Chinese Bank.
According to the contents of the fine, hengfeng Bank Kunming Branch was fined 485,000 yuan and the relevant responsible person was fined 33,000 yuan for failing to perform customer identification obligations in accordance with regulations, failing to submit large suspicious reports or suspicious transaction reports in accordance with regulations, and violating the relevant provisions of the Implementation Measures for the Protection of Financial Consumer Rights and Interests of Chinese Minmin Bank.
Screenshot source: Chinese Min min bank Kunming branch official website publicity
Anti-money laundering has been the focus of regulatory attention.
According to the data of the Enterprise Early Warning Pass, in the whole year of 2021, the whole system of the Banking and Insurance Regulatory Commission issued a total of 4,027 fines to the banking industry, of which 15 penalties exceeded 10 million yuan, with a total of 1.869 billion yuan in fines and forfeitures, and the penalties were far stronger than in 2020.
In January 2022, the Central Bank, the China Banking and Insurance Regulatory Commission (CBIRC) and the China Securities Regulatory Commission jointly issued the Administrative Measures for Customer Due Diligence and Customer Identity Information and Transaction Record Preservation of Financial Institutions, which came into effect on March 1.
On January 16, 2022, the central bank held a video conference on anti-money laundering work, proposing to promote the revision of the Anti-Money Laundering Law and the "Anti-Money Laundering Inter-ministerial Joint Conference System" to improve the anti-money laundering system and strengthen the work coordination mechanism.
In addition, Hengfeng Bank has received a number of fines so far in 2017.
1
Divesting assets, the registered capital soared
Since the listing of Bohai Bank on July 16, 2020, Hengfeng Bank and Guangfa Bank have become the only two banks in the 12 that have not been listed.
Founded in 1987, the bank, headquartered in Jinan, Shandong Province, was the earliest of the 12 joint-stock banks, second only to China Merchants Bank, China CITIC Bank and Shenzhen Development Bank (later acquired by Ping An of China and renamed Ping An Bank). In 2003, with the approval of Chinese Minmin Bank, it was restructured into Hengfeng Bank Co., Ltd.
From 2008 to 2017, it was the darkest 9 years of Hengfeng Bank. The two chairmen of the previous and subsequent chairmen have seriously deteriorated their asset quality due to violations of laws and regulations. In 2013, former chairman Jiang Xiyun was investigated for the whale swallowing case, and Cai Guohua succeeded him. Four years later, history repeats itself, and in November 2017, Cai Guohua was investigated for serious violations of discipline and law, and Chen Ying took over.
In 2018, the balance of non-performing loans of Hengfeng Bank reached 163.561 billion yuan, and the non-performing loan ratio was as high as 28.44%.
2019 has become a turning point for Hengfeng Bank. According to Tianyan, on October 30, 2019, Hengfeng Bank officially relocated its registered place to Jinan, the capital of Shandong Province, while the registered capital increased from 1.69 billion to 11.21 billion. The largest shareholder is Shandong Luxin Group.
At the end of 2019, Hengfeng Bank issued 100 billion shares of common stock in a non-public manner, and sold non-performing assets at one time through market-oriented prices. In the end, Central Huijin Investment Co., Ltd. invested 60 billion yuan to subscribe for most of the new shares, becoming the controlling shareholder, and Shandong Finance contributed 36 billion yuan as the second shareholder.
So far, the registered capital of Hengfeng Bank has increased from the original 11.21 billion yuan to 111.209 billion yuan, which is only lower than the four state-owned banks of the Bank of China, the Agricultural Bank of China, the Industrial and Commercial Bank of China and the Construction Bank, ranking fifth in the country.
2
The non-performing loan ratio is higher than the warning line of commercial banks
According to the 2021 annual performance report released by Hengfeng Bank, the asset scale in 2021 exceeded 1.2 trillion yuan, achieving operating income of 23.879 billion yuan and net profit of 6.381 billion yuan, an increase of 20.17% year-on-year.
The performance growth is gratifying, but there is a big gap compared with the China Merchants Bank and Ping An Bank established in the same period. In 2021, the net profit of China Merchants Bank was 119.922 billion yuan, an increase of 23.2% year-on-year, and the net profit of Ping An Bank was 36.336 billion yuan, an increase of 25.61% year-on-year. The scale of the two banks' business has been aligned with that of state-owned banks, and they have long been different.
Bohai Bank, which has just been listed, is also the youngest joint-stock bank, with total assets of 1.58 trillion yuan and net profit of 7.680 billion yuan at the end of 2021, an increase of 2.47% year-on-year. The same unlisted joint-stock bank Guangfa Bank has not released its 2021 annual report so far, and from the 2020 annual report, Guangfa Bank has total assets of 3.03 trillion yuan in 2020 and achieved a net profit of 13.812 billion yuan.
Deposit absorption is the main source of funds for Hengfeng Bank. According to the financial report, hengfeng bank absorbed a total of 669.862 billion yuan in deposits in 2021, accounting for 60.92% of the group's total liabilities, an increase of 0.99 percentage points over the end of the previous year.
The non-performing loan ratio is seen as a core indicator of a bank's credit risk. Since 2019, Hengfeng Bank's non-performing loan ratio has declined for three consecutive years, 3.38%, 2.67% and 2.12% respectively, but it is still higher than the warning line of 2% of the non-performing loan ratio of commercial banks.
Screenshot source: Hengfeng Bank official website annual report
The excessively high non-performing loans of banks mean that they face greater credit risks, lack of stability in operation, and to a certain extent reflect their insufficient operating capabilities.
Zhou Maohua, an analyst in the financial market department of Everbright Bank, believes that if some banks face excessive non-performing loans for a long time, it is bound to affect the bank's liquidity management, internal talent management, business development and other aspects. The disposal of non-performing loans requires the consumption of capital and profits, which directly affects the expansion of the asset-side business.
3
I have been fined many times and still have many problems
Under the rapid running, there are many problems on the B side of performance growth, such as the Kunming branch we mentioned at the beginning of the penalty for poor anti-money laundering.
Source: Canned Gallery
Anti-money laundering, on the one hand, depends on the information management system commensurate with its scale, organizational structure and complexity, timely, accurate and complete collection and recording of information required for anti-money laundering work, and continuous identification, assessment, monitoring and reporting of money laundering risks; on the other hand, it relies on inspector inspection, through the use of data access, on-site observation, data screening, system penetration testing, etc., with the anti-money laundering system as the main body of inspection, radiating to the core business system, channel system, product system and other related systems. Review its underlying functionality.
According to the 2021 annual report of Hengfeng Bank, a new anti-money laundering system was launched during the reporting period, and a full set of suspicious transaction monitoring models and customer risk rating indicators were updated.
Not long ago, on March 25, the China Banking and Insurance Regulatory Commission issued a penalty against Hengfeng Bank. He was fined 4.8 million yuan for 18 violations of laws and regulations in the data quality and data reporting of the regulatory standardization data (EAST) system.
In addition, on December 14, 2021, the Yunnan Supervision Bureau of the China Banking and Insurance Regulatory Commission also issued a fine to the bank. Due to the failure of the "three investigations" of the loan and the non-compliance with the pledge of the certificate of deposit, the Kunming branch of Hengfeng Bank Co., Ltd. was fined 300,000 yuan; the relevant three responsible persons were warned and punished.
Up to now, Hengfeng Bank has 182 complaints in the black cat complaints, and there is generally no reply to resolve. Complaints are mostly malicious collection, credit card repayment, deduction, etc.
According to the annual report, in 2021, Hengfeng Bank issued a total of 967,400 credit cards, an increase of 33.72% over the end of the previous year. The increment is mainly through online customer acquisition, and is issued in various forms such as co-brand cards and scene cards.
Judging from the content of the black cat complaint, Hengfeng Bank credit card has problems such as false publicity, arbitrary deductions, and poor service attitude, and the subsequent explanation and service of the credit card need to be strengthened.
Although the light was first seen, it was still foggy. In the face of many problems, how does Hengfeng Bank break the game? Welcome to leave a message to discuss.