"Investor Network" Ding Wanying
Since 2023, the strong supervision of the banking industry has continued. According to public data, in the first quarter, the three major regulatory authorities of the China Banking and Insurance Regulatory Commission, the People's Bank of China and the State Administration of Foreign Exchange issued a total of 836 fines to banking financial institutions and practitioners, with a total amount of about 627 million yuan.
In June, the Ningbo branch of Huishang Bank Co., Ltd. (hereinafter referred to as "Huishang Bank", 3698.HK) was fined 700,000 yuan for failing to manage the group's unified credit and illegally handling bill business without real trade background. Prior to this, the bank also received a fine of up to 4.31 million yuan from the Hefei Central Branch of the People's Bank of China.
However, what attracted more attention from the market and the media was the fall of its three chairmen, and the former chairman was arrested in May, pushing the bank's H-share big brother, Huishang Bank, to the "cusp".
Received a series of tickets
On June 1, the Hefei Central Branch of the People's Bank of China recently released an administrative penalty information announcement showing that Huishang Bank received a fine of up to 4.3133 million yuan.
Specifically, Huishang Bank's violations mainly include: failing to carry out continuous customer identification in accordance with regulations; failure to carry out re-identification of customers as required; Failure to carry out customer risk classification work in accordance with regulations; Failure to conduct enhanced due diligence on high-risk clients as required; Failure to manually analyze and identify abnormal transactions in accordance with regulations, unreasonable reasons for exclusion, or incomplete reasons for suspicious transaction reporting; To provide services to unidentified customers.
According to the fine, the bank's failure to carry out customer identification and provide services to unidentified customers as the main cause of the case. In addition, the four relevant responsible persons of the bank were also fined 10,000-30,000 yuan.
On June 12, shortly after the above-mentioned fines were announced, according to the administrative penalty information disclosure form published on the website of the State Financial Regulatory Administration, the Ningbo branch of Huishang Bank was fined 700,000 yuan for failing to manage the group's unified credit and illegally handling bill business without a real trade background (see figure below).
In its follow-up rating report issued in July 2022, CCXI mentioned that "cross-regional operation puts forward higher requirements for the bank's management capabilities, risk control and talent reserves." ”
Industry insiders believe that under the gradually improving financial regulatory framework and changing market environment, banking financial institutions should timely study and judge regulatory changes and policy orientation, promote compliance transformation from "passive compliance" to "active management", implement prudent operation rules in various business and management fields, implement behavioral supervision requirements at the institutional and employee levels, and continue to strengthen financial risk prevention and control capabilities.
The former chairman was found to be concerned
In fact, Huishang Bank's troubles don't stop there. Three former chairmen of the bank have been investigated in two years: On May 23, the Anhui Provincial People's Procuratorate decided to arrest Li Hongming on suspicion of accepting bribes and abusing power by personnel of state-owned companies, which attracted market and media attention.
The WeChat public account "Anhui Procuratorate" released a news that Li Hongming, former member of the Standing Committee of the Anhui Provincial People's Congress and former chairman of the Agriculture and Rural Affairs Committee of the Provincial People's Congress, was suspected of accepting bribes and abusing his power by personnel of state-owned companies, and the investigation by the Anhui Provincial Supervision Commission was concluded and transferred to the procuratorate for examination and prosecution. A few days ago, the Anhui Provincial People's Procuratorate decided to arrest Li Hongming on suspicion of accepting bribes and abusing power by personnel of state-owned companies (see figure below).
It is reported that Li Hongming was the third chairman of Huishang Bank. When reviewing the arrest, the procuratorate found that Li Hongming took advantage of his position as mayor of Huangshan City, secretary of the Suzhou Municipal Party Committee, and chairman of Huishang Bank to seek benefits for others and illegally accept bribes from others, and the amount was particularly large; During his tenure as chairman of Huishang Bank, he abused his power and caused serious losses to state-owned property. The case is being further processed.
Li Hongming was the third chairman of Huishang Bank. In the past year or so, including Li Hongming, three chairmen of Huishang Bank have "fallen from the horse", that is, the first, third and fourth chairmen of Huishang Bank have been investigated one after another.
In November 2021, Dai Hedi, the first chairman of Huishang Bank, was placed on file for review and investigation for serious violations of discipline and law, and at this time, Dai Hedi had been retired for nearly 9 years. According to his resume, Dai Hedi has served as the secretary of the party committee, chairman and supervisor of Huishang Bank since December 2005, and then served as the vice chairman of the financial and economic committee of the Anhui Provincial People's Congress and the supervisor of Huishang Bank since December 2008, and retired in January 2013. Subsequently, according to the judgment of the Maanshan Intermediate People's Court, Dai Hedi was sentenced to 12 years in prison, fined 750,000 yuan, and recovered his illegal gains.
In addition, Li Hongming's successor, Wu Xuemin, the fourth chairman of Huishang Bank, "fell from the horse" before Li Hongming was investigated. According to his resume, Wu Xuemin held important positions in the newspaper supplement department of CCB head office and the office of China UnionPay Corporation, and then joined Huishang Bank in September 2010 as deputy secretary of the party committee, director and president of Huishang Bank, and officially "took over" Li Hongming as chairman of Huishang Bank in December 2017.
After that, Wu Xuemin left Huishang Bank in April 2021 and was transferred to Anhui Credit Guarantee Group Co., Ltd. as the secretary of the party committee and chairman of the board. After a year, in March 2022, Wu Xuemin was subjected to disciplinary review and supervision and investigation for suspected serious violations of discipline and law.
Net interest margin continued to narrow
According to the official website, Huishang Bank is the first regional joint-stock commercial bank jointly reorganized and established by city commercial banks and city credit cooperatives in China, which was registered and established on April 4, 1997 and listed on the main board of the Hong Kong Stock Exchange on November 12, 2013.
According to the official website, Huishang Bank is the first regional joint-stock commercial bank jointly established by city commercial banks and city credit cooperatives in China, registered in April 1997, and officially merged 5 city commercial banks including Wuhu and Ma'anshan, and 7 city credit cooperatives in Lu'an and Huainan in Anhui Province in December 2005, and officially opened on January 1, 2006. On November 12, 2013, Huishang Bank's H shares were listed on the main board of the Hong Kong Stock Exchange.
According to public information, Huishang Bank is the first regional joint-stock commercial bank jointly reorganized and established by city commercial banks and city credit cooperatives in China, which was established by the merger of six city commercial banks in Hefei, Wuhu, Anqing, Maanshan, Huaibei and Bengbu and seven city credit cooperatives including Lu'an, Tongling, Huainan, Fuyang Science and Technology, Fuyang Xinying, Fuyang Yinhe and Fuyang Jinda, and was officially established on December 28, 2005. On November 12, 2013, Huishang Bank was listed on the Hong Kong Stock Exchange.
In terms of the bank's operating scale and performance, Huishang Bank generally increased steadily last year.
As of the end of 2022, the total assets of Huishang Bank were 1.580236 billion yuan, an increase of 14.21% over the previous year; Among them, the total amount of customer loans and advances was 764.309 billion yuan, an increase of 109.514 billion yuan, an increase of 16.72% year-on-year. total liabilities were 1.457414 billion yuan, an increase of 14.56%; Among them, the total amount of customer deposits was 894.156 billion yuan, an increase of 125.488 billion yuan, an increase of 16.33%.
In terms of performance, Huishang Bank's operating performance reached a new high in 2022, achieving an operating income of 36.23 billion yuan, an increase of 716 million yuan or 2.02% over the same period of the previous year; The net profit was 13.683 billion yuan, an increase of 1.898 billion yuan or 16.11% over the same period of the previous year (see the table below).
However, the data showed that the bank's net interest margin continued to narrow.
In addition, the pressure on the bank's capital replenishment has further increased. As of the end of March 2023, the bank's capital adequacy ratio was 11.75%, the tier 1 capital adequacy ratio was 9.36%, and the core tier 1 capital adequacy ratio was 8.50%.
CCX's 2022 rating report mentioned that Huishang Bank's "interest rate spread continues to narrow, provision pressure is greater, profit growth is facing certain challenges, core tier 1 capital replenishment pressure continues to exist, deposit structure needs to be optimized, interbank funds account for a relatively high proportion of liabilities, there is a maturity mismatch between assets and liabilities, and there is certain pressure on liquidity control". (Produced by Thinking Finance) ■