With the departure of core executives and the continuous rise in the non-performing rate, what happened to Xinwang Bank?
As the third Internet private bank in the country, Xinwang Bank has attracted much attention because it is backed by star enterprises such as Xiaomi and New Hope. However, the giant-backed bank has had a bad year this year, not only with the departure of core executives, the continuous increase in the non-performing rate, but also the repeated consumer complaints and many serious challenges.
According to the data, as of June 2023, the total assets of Xinwang Bank exceeded the 100 billion mark, reaching 100.71 billion yuan, achieving a historic breakthrough. However, although the total assets exceeded the 100 billion mark, the departure of core executives and the frequent auction of equity during the same period still cast a big shadow on the bank.
In July this year, the news of the resignation of Xu Zhihua, the core executive vice president and chief risk officer of Xinwang Bank, spread far and wide, attracting a lot of attention.
Since its establishment, Xu Zhihua has served as the chief risk officer of Xinwang Bank, and the salary he receives is not low. According to the 2022 annual report, Xinwang Bank paid up to 39.06 million yuan in remuneration to directors, supervisors and senior executives. Among them, the remuneration of directors was 7.6 million yuan, and the senior management team received 26.77 million yuan. That's not a low figure for any of the bank's executive teams. It is precisely because of this that Xu Zhihua's quiet and voluntary resignation this time has led many people to speculate that this may be related to the sharp increase in the non-performing rate of Xinwang Bank.
As of the end of 2022, Xinwang Bank's capital adequacy indicators have declined across the board. Among them, the core Tier 1 capital adequacy ratio decreased to 11.17% from 17.2% in 2020, and the Tier 1 capital adequacy ratio and capital adequacy ratio were 11.17% and 12.28%, respectively, down 3.01 and 2.98 percentage points from the beginning of the year. At the same time, the bank's non-performing loan ratio continued to rise, with 0.11%, 0.39%, 0.6%, 1.19%, 1.05%, and 1.73% respectively from 2017 to 2022, showing an overall upward trend, reaching a record high in 2022.
In addition to facing asset quality problems, Xinwang Bank's frequent auctions of equity are also worrying many investors. In the first half of this year, Xinwang Bank's equity was auctioned twice within one month.
According to the information disclosure of Ali's judicial auction platform, at the end of June this year, a 3% stake held by Sichuan Xiongchuan Trading Co., Ltd., the original shareholder of Xinwang Bank, was auctioned by Chengdu Jianguo Automobile Trade Co., Ltd. at the highest price. A month later, the 3% stake held by Nanchong Jiamei Printing and Dyeing Co., Ltd. was taken over by Chengdu Guanming Sports Culture Communication Co., Ltd. at a transaction price of 193.4 million yuan. Last year, Xinwang Bank's shareholders also sold their shares, but in the end, it ended in an unsuccessful auction because no one signed up. However, Xinwang Bank said that the equity change had no impact on the business.
Although the majority shareholder is strong, in recent years, Xinwang Bank has deficiencies in internal control and risk control. Not only did he receive frequent fines, but he also received repeated consumer complaints. As of December 10, 2023, Xinwang Bank has received a total of 5,868 complaints on the Black Cat complaint platform, including: encountering disguised head cuts, arbitrary deductions, violent collection and illegal lending, etc.
On November 28, some users reported that they had borrowed a sum of money from Xinwang Bank before, and now they have paid it off, but until recently, the credit check showed that the balance was "0", and there was no "settled", and the customer service phone could not be connected and could not be contacted. Now it has seriously affected his application for a mortgage from the bank again in the future. It is required to cancel all accounts of Xinwang Bank and update the credit investigation to "settled".
On November 26, some users complained that they had applied for a loan of 10,000 yuan on the Juduoduo platform, but they needed to purchase or deduct the membership fee of 499 yuan before the repayment application, and the Xinwang Bank could only lend the loan.