Ping An Bank lost a lot! The illegal income was 1848.67 yuan, and the fine was 34.925 million
Abstract: Money is not easy to earn, disaster is not alone, large fines are issued, and the number of complaints has soared (welcome to pay attention to leverage games)
Written by|Zhang Yinyin & Editor|Gladly
Ping An Bank has been doing a lot lately.
It is another line change, and the number of complaints in the first quarter of 2023 has also skyrocketed. Recently, on the evening of July 7, Ping An Bank, together with two giants, Ant (Alipay) and Tencent (Tenpay), received a fine from the central bank.
Screenshot source|Central Bank website (thanks in advance)
By the way, there are also postal savings banks and PICC property insurance. In addition to PICC property insurance, although the amount of fines imposed by Ping An Bank and Postal Savings Bank is not as large as that of Ant and Tencent, it is also a large fine, often tens of millions of yuan.
Ant (Alipay), Tencent (Tenpay) things, rod friends are very familiar, Ping An Bank has a lot of things recently, today's leverage game focuses on Ping An Bank.
1. The illegal income was 1848.67 yuan, a fine of 34.925 million yuan, and a penalty of 12 people
I don't know what to say about Ping An Bank, big is big, small is small. But the penalty is not light.
1) First of all, the regulation says this about Ping An Bank:
1. Violation of account management regulations; 2. Other violations of laws and regulations that endanger the stable operation of payment institutions, harm the legitimate rights and interests of customers, or endanger the payment service market; 3. Violation of anti-counterfeit currency business management regulations; 4. Occupying financial deposits or funds; 5. Violating credit information collection, provision, inquiry and related management provisions; 6. Failure to perform customer identification obligations in accordance with regulations; 7. Failure to submit large-value transaction reports or suspicious transaction reports as required; 8. Transactions with unidentified customers; 9. Violation of consumer financial information protection management regulations; 10. Violation of financial marketing publicity management regulations.
While not all of these 10 sounds scary, some of them at least feel grim.
However, the punishment is: warning, confiscation of 1848.67 yuan of illegal gains, and a fine of 34.925 million yuan - yes, there is no mistake, the illegal income is only 2,000 yuan, but the fine is nearly 35 million yuan.
Screenshot source|Central Bank website (thanks in advance)
In addition to dealing with Ping An Bank, there are also penalties for those specifically involved.
2) Shi (then assistant to the general manager of the operation management department/security department of Ping An Bank Co., Ltd.): 1. Violation of account management regulations; 2. Other violations of laws and regulations that endanger the stable operation of payment institutions, harm the legitimate rights and interests of customers, or endanger the payment service market.
As a result, he was warned and fined $200,000.
3) Xie Mouying (then Vice President of Retail Network Finance Division of Ping An Bank Co., Ltd.): Violation of account management regulations.
In a warning, a fine of 100,000 yuan.
4) Xu (then General Manager of Operation Management Department/Security Department of Guangzhou Branch of Ping An Bank Co., Ltd.): Violation of account management regulations.
He was given a warning and fined $100,000.
5) Ding [then general manager of the public customer department (later merged into the private banking and wealth management department) of Ping An Bank Co., Ltd. Guangzhou Branch]: Violated account management regulations.
He was given a warning and fined $100,000.
6) Zhang Mouxiang (then a staff member of the product operation team of the Internet platform team of the Auto Consumer Finance Center of Ping An Bank Co., Ltd.): Violation of credit information collection, provision, inquiry and related management regulations.
He was fined 183,000 yuan.
7) Yu (then a staff member of the post-loan management office of the Retail Risk Management Department of Ping An Bank Co., Ltd.): Violated credit information collection, provision, inquiry and related management regulations.
He was fined $10,000.
8) Ren Moulong (then the account manager of Tongzhou Comprehensive Team of Ping An Bank Co., Ltd.'s Auto Consumer Finance Center Beijing Branch): Violated credit information collection, provision, inquiry and related management regulations.
was fined 5,000 yuan.
9) Sun Mouqiang (then manager of the channel platform planning team of Ping An Bank Co., Ltd.): Violated credit information collection, provision, inquiry and related management regulations.
He was fined 5,000 yuan.
10) Jin Mouyang (then Deputy General Manager of the Legal and Compliance Department of Ping An Bank Co., Ltd.): 1. Failure to perform customer identification obligations in accordance with regulations; 2. Failure to submit large-value transaction reports or suspicious transaction reports as required.
He was fined 45,000 yuan.
11) Li (then President of the Internet Finance and Wealth Management Division of Ping An Bank Co., Ltd.): 1. Failure to perform customer identification obligations in accordance with regulations; 2. Failure to submit large-value transaction reports or suspicious transaction reports as required.
He was fined 60,000 yuan.
12) Wang Mouhui [then Executive Vice President of Retail Operation and Consumer Loan Division of Ping An Bank Co., Ltd. (in charge of department work)]: 1. Failure to perform customer identification obligations in accordance with regulations; 2. Failure to submit large-value transaction reports or suspicious transaction reports as required.
He was fined 60,000 yuan.
13) Fan Mouyan (then General Manager of Operation Management Department/Security Department of Ping An Bank Co., Ltd.): 1. Failure to perform customer identification obligations in accordance with regulations; 2. Transactions with unidentified customers.
He was fined 45,000 yuan.
The above-mentioned targets were the heads of Ping An Bank's business departments and relevant staff, and a total of 12 people were punished. The amount of money suspected in this matter itself is not large, but the fine is high and the number of people punished is quite large.
Previously, the leverage game noticed that financial supervision has been continuously strengthened in recent years, and tens of millions of large fines have been issued at every turn. This highlights the importance of compliance today, and of course there is some discussion about today's economic situation...
2. The disaster is not alone: a large fine has been issued, and the number of complaints has also soared
Ping An Bank was punished because of compliance issues, and it was previously written that not long ago, on June 15, 2023, the State Financial Regulatory Administration disclosed the "Notice on Consumer Complaints in the Banking Industry in the First Quarter of 2023".
In the first quarter of 2023, the median number of complaints from joint-stock commercial banks was 2,489.0. Among them, Ping An Bank had the highest number of complaints with 4,649, accounting for 16.0% of the total number of complaints from joint-stock commercial banks.
In comparison, the number of complaints from Ping An Bank in 2022 is still 2,948, and this year 2023 is really a bit fierce.
Unlike the surge in complaints, in the first quarter of 2023, Ping An Bank's performance did not soar, but declined: revenue during the period was about 45.1 billion yuan, down 2.4% year-on-year, which seems to be the bank's first year-on-year decline in revenue in the first quarter in 10 years.
The second place Shanghai Pudong Development Bank had 3,616 complaints, accounting for 12.5%. SPD Bank's ranking in terms of complaint volume seems to have been high for a long time, with the division's 4,280 complaints in 2021 also being second, and 4,192 complaints in 2022 also second. In the first quarter of 2023, the number of complaints decreased year-on-year, but it still ranked second due to the overall decline in the number of complaints from joint-stock commercial banks.
You can see that compared with Ping An Bank, the number of complaints from Pudong Development is 1,000 less than that...
Chart source|State Financial Administration official website (thanks here)
It is worth mentioning that 2 years ago, Ping An Bank's number of complaints was not among the top 5 in the stock bank.
For example, in 2021, the top 5 complaints from joint-stock banks are still China Merchants Bank, Shanghai Pudong Development Bank, China CITIC Bank, Everbright Bank, and Minsheng Bank; In 2022, it will become Industrial Bank, Shanghai Pudong Development Bank, China Merchants Bank, Ping An Bank, and China CITIC Bank; In 2023, it will be Ping An Bank, Shanghai Pudong Development Bank, Everbright Bank, Minsheng Bank, Industrial Bank, and China Guangfa Bank.
Among them, China Merchants Bank has made the greatest progress, and the number of complaints has decreased visibly, from 4,805 in the first quarter of 2021 to 2,039 in 2023, which is excellent.
Industrial Bank also improved, ranking first with 4,806 complaints in the first quarter of 2022, and falling to fifth with 2,833 complaints in the same period of 2023. In contrast, Ping An Bank is a bit of...
Where there is progress, there is regression.
The number of complaints from Minsheng Bank increased slightly, from 2,635 in the first quarter of 2022 to 2,833 in the current period, and the department had a higher number of complaints in 2021 at 3,648, which was still in the context of its declining revenue.
As Ping An Bank wrote above, the number of complaints soared.
It is worth saying that unlike the year-on-year increase in the number of complaints from large state-owned commercial banks, the overall number of complaints from joint-stock commercial banks in the first quarter of 2023 is declining. The median number of complaints in this category was 2,635 in 2022 and 3,391 in 2021, both higher than in 2023.
The reason for the increase in the number of complaints from some banks is related to complaints about personal loan business and credit card business. Among the complaints involving joint-stock commercial banks, there were 19,132 complaints about credit card business, accounting for 65.9% of the total number of complaints from joint-stock commercial banks.
Among them, 75.5% of the complaints of Ping An Bank were related to credit card business, and 80.6% of complaints about such business of Industrial Bank respectively, and more than 70% of credit card complaints of Everbright Bank, Minsheng Bank, China Guangfa Bank and Huaxia Bank.
They are all adults, everyone understands, behind the soaring number of complaints, some may not be Ping An Bank's own problems.
3. Money is not easy to earn
After writing about the large penalties caused by compliance issues, complaints soared, and finally leveraged the game to talk about the latest results of Ping An Bank.
In 2022, Ping An Bank's revenue slowed down significantly, and the year-on-year revenue growth rate dropped to 6.21% to 179.9 billion yuan, and it was good that the profit growth rate was slightly maintained, and the attributable net profit increased by 25.26% year-on-year, only slightly lower than the 25.61% in the same period of 2021.
In the first quarter of 2023, Ping An Bank's revenue growth continued to decline. According to the financial report data shown in the figure below, the bank's revenue during the period was about 45.1 billion yuan, down 2.4% year-on-year, which seems to be the bank's first year-on-year decline in revenue in the first quarter in 10 years.
During the period, the growth rate of net profit attributable to Ping An Bank also slowed down significantly, falling from 26.83% in the same period of 2022 to 13.6%, or about 14.60 billion yuan.
In addition, Ping An Bank's net cash flow from operating activities in the first quarter of 2023 also declined significantly, falling by 25.8% year-on-year to RMB109.156 billion.
Having said that, it is not uncommon for banks' revenue growth to decline in the first quarter of 2023, with Big Mac Industrial and Commercial Bank also falling by 1.09% year-on-year, and China Merchants Bank falling by 1.47% year-on-year.
However, there are also increases, such as Bank of Communications, whose revenue increased by 5.51% year-on-year in the first quarter of 2023, Minsheng Bank's revenue increased slightly by 0.38% year-on-year to 36.77 billion yuan, and regional banks, representing Zheshang Bank, which increased by 2.53% year-on-year.
From the perspective of revenue growth, many banks, including Ping An Bank, are under obvious pressure in the first quarter of 2023.
Looking closely at the data, the leverage game reveals that some of the changes are subtle.
As shown in the financial report above, in the first quarter of 2023, Ping An Bank's net interest margin and net interest margin narrowed year-on-year. Among them, the net interest margin decreased to 2.57% from 2.76% in the same period in 2022; Net interest margin will be 2.63% from 2.80% in the same period last year.
On a month-on-month basis, Ping An Bank's net interest margin and net interest margin also narrowed, with these two figures of 2.59% and 2.68% respectively in the fourth quarter of 2022. Net interest margins continue to narrow, which means that banks' profit margins continue to be compressed.
In the first quarter of 2023, Ping An Bank's average deposit absorption ratio rose year-on-year, rising to 2.20% from 2.05% in the first quarter of 2022, which was also higher than 2.15% in the fourth quarter of 2022. Among them, time deposits among personal deposits increased the most, from 563.437 billion yuan in the first quarter of 2022 to 811.146 billion yuan in the same period this year, an increase of about 44% year-on-year.
On the other hand, Ping An Bank loan yields are falling. As shown in the figure below, the average yield on loans and advances issued by Ping An Bank in the first quarter of 2023 was 5.79%, a year-on-year decrease of 31 basis points.
Among them, the largest decrease was the average yield of personal loans, which fell from 7.59% in the first quarter of 2022 to 7.07% in the same period of 2023; The average yield on corporate loans rose a little higher, at 4.13%.
It can be seen that although the loan interest rate has dropped a lot on the personal side, the loan balance has not increased significantly. As shown in the figure above, the average daily balance of personal loans of Ping An Bank in the first quarter of 2023 was 2.028 trillion yuan, an increase of about 6.7% over the same period in 2022. Interest income on the contrary, it declined, from 35.585 billion yuan in the first quarter of 2022 to 35.344 billion yuan in the same period of 2023.
From the specific business level, a closer look at the 2023 quarterly report of Ping An Bank shows that the weakness of Ping An Bank's consumer finance part can be clearly felt.
Personal loans will not be repeated above, mainly due to the year-on-year decline in interest income.
In terms of credit cards: the number of credit cards in circulation of Ping An Bank was 68,652,100, down 0.5% from the end of the previous year; In the first quarter, the total transaction amount of credit cards was 730.725 billion yuan, and the balance of credit card accounts receivable was 561.390 billion yuan, down 3.0% from the end of the previous year;
"New loan" of consumer loans: the balance was 2.165927 billion yuan, down 4.9% from the end of the previous year;
Chart source|Zhongtai Securities (Thanks in advance)
Auto Finance Loans: The balance was 319.769 billion yuan, down 0.4% from the end of the previous year, mainly due to the insufficient consumer demand in the auto market and the intensification of competition in the auto finance market. However, new energy vehicle loans performed well, with new issuances of 7.045 billion yuan in the first quarter, an increase of 48.2%.
Personal housing mortgages and licensed mortgages increased slightly, with a balance of RMB817.970 billion, an increase of 4.4% over the end of the previous year, of which the balance of residential mortgage loans was RMB285.176 billion, an increase of 0.3% over the end of the previous year.
In addition, in the first quarter of 2023, the scale of Ping An Wealth Management, a wholly-owned subsidiary of Ping An Bank, also declined, and the balance of wealth management products under management was 810.556 billion yuan, down 8.6% from the end of the previous year. Ping An Wealth Management's main business is the issuance of public and private wealth management products, financial advisory and advisory services.
With narrowing profit margins and weak business in some businesses, Ping An's current situation may reflect the current pressure on most banks. After the new president takes office, will Ping An Bank have new surprises?
The charts and graphs not indicated in this article are derived from the relevant announcements of Ping An Bank, and are hereby explained and acknowledged
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