Perseverance
Source: Fortune Unicorn
Shanghai Pudong Development Bank, which has assets of more than 9 trillion yuan, has performed poorly in its first year.
Recently, Shanghai Pudong Development Bank released its 2023 annual performance report, with an annual operating income of 173.434 billion yuan, a year-on-year decrease of 8.05%, and a net profit attributable to shareholders of the parent company of 36.702 billion yuan, a year-on-year decrease of 28.28%. In this regard, Shanghai Pudong Development Bank explained that "due to the impact of asset repricing, downward market interest rates, capital market fluctuations, as well as insufficient corporate credit growth momentum and business structure adjustment, the company's efficiency indicators are under pressure for a period of time."
It is worth mentioning that this is the third consecutive year that SPD Bank has experienced a decline in revenue and net profit. Among the 10 A-share listed banks, Shanghai Pudong Development Bank's net profit attributable to the parent company fell first, and it is also the only listed bank in China that has "double-declined" for three consecutive years.
Investors may not be surprised by the performance of Shanghai Pudong Development Bank last year, after all, there is a "personnel earthquake" behind it.
Since the second half of 2023, SPD Bank has undergone an intensive "blood change", with "directors, supervisors and senior executives" including the chairman, president, vice president, and chairman of the board of supervisors being adjusted, and the new cadres are all "parachuted".
In addition, Shanghai Pudong Development Bank has also frequently received huge fines, and the amount of fines is measured according to "small targets", and the credit card business has also been subject to intensive complaints, and has been named the "king of complaints".
How the new head drives this giant ship has become the focus of the whole market.
01
营收、利润三连降，业绩“失守”
According to public information, in October 1992, Shanghai Pudong Development Bank was initiated by 18 units including the Shanghai Municipal Bureau of Finance and Shanghai International Trust Co., Ltd. to establish a joint-stock commercial bank in the form of private placement, and was officially listed on the Shanghai Stock Exchange in 1996.
However, in recent years, SPD Bank's operating performance has been declining at a rate that is visible to the naked eye.
In 2023, SPD Bank will achieve operating income of 173.434 billion yuan, a year-on-year decrease of 15.188 billion yuan, a decrease of 8.05%, and a net profit attributable to shareholders of the parent company of 36.702 billion yuan, a year-on-year decrease of 14.469 billion yuan, a decrease of 28.28%, returning to ten years ago "overnight". In 2021, revenue and net profit attributable to the parent company fell by 2.75% and 9.12% to 190.982 billion yuan and 53.003 billion yuan respectively, and in 2022, it fell by 1.24% and 3.46% to 188.622 billion yuan and 51.171 billion yuan.
Source: Shanghai Pudong Development Bank 2023 Annual Results Express.
In terms of assets, the total assets of SPD Bank exceeded RMB9 trillion at the end of 2023, reaching RMB9,007.247 billion, an increase of RMB302.596 billion or 3.48% from the end of the previous year, the total loans amounted to RMB5,017.754 billion, an increase of RMB117.092 billion or 2.39% from the end of the previous year, the total liabilities amounted to RMB8,274.363 billion, an increase of RMB276.487 billion or 3.46% from the end of the previous year, and the total deposits were RMB49. 84.630 billion yuan, an increase of 158.152 billion yuan or 3.28% from the end of the previous year.
Source: Shanghai Pudong Development Bank 2023 Annual Results Express.
Fortunately, in terms of risk management, SPD Bank has adhered to the principle of "controlling the new and reducing the old", and continued to increase the disposal of existing non-performing assets, and the balance of non-performing loans and the ratio of non-performing loans have achieved "double decline" for four consecutive years. As of the end of 2023, the balance of the last three types of non-performing loans of SPD Bank was 74.198 billion yuan, a decrease of 421 million yuan from the end of the previous year, the non-performing loan ratio was 1.48%, a decrease of 0.04 percentage points from the end of the previous year, and the provision coverage ratio was 173.51%, an increase of 14.47 percentage points from the end of the previous year.
Shanghai Pudong Development Bank also admitted in the third quarter report of 2023 that the reasons for the fluctuation of performance are also related to its strengthening of the resolution and disposal of non-performing assets, increasing provisions, and high risk cost consumption.
02
Repeatedly stepping on the red line has become a "frequent customer of fines", and the credit card business has become the "hardest hit area" for complaints
In addition to the continuous decline in performance, Shanghai Pudong Development Bank has also been fined frequently, and has been fined nearly 2 small targets for more than 3 years.
On April 17, the State Administration of Financial Supervision and Administration announced a fine of 2.3 million yuan for five violations, including failing to issue real estate development loans according to the progress of the project. In February, the Beijing branch of Shanghai Pudong Development Bank was fined 1.5 million yuan for the "three crimes" of major deficiencies in the risk management and control of cash clearing outsourcing, negligence in the supervision and inspection of cash clearing outsourcing activities, and serious imprudent cash management activities. This is also the first fine received by Zhang Weizhong, the new chairman of Shanghai Pudong Development Bank.
In fact, these are just the tip of the iceberg of the frequent fines of SPD Bank and its branches. Since 2021, SPD Bank has been fined nearly 2 small targets.
According to incomplete statistics, in 2021, SPD Bank received more than 40 fines from financial regulators, with a total fine of nearly 100 million yuan, involving all aspects of loan business, including million-level fines, and in 2022, the regulators issued nearly 3,000 fines to the banking industry, with a fine of more than 1.9 billion yuan, of which SPD Bank was fined 64 with a fine of more than 60 million yuan In 2023, SPD Bank was "named" by the regulatory authorities 15 times, with penalties ranging from 350,000 yuan to 2.015 million yuan each time, with a cumulative amount of more than 10 million yuan.
Among them, the largest single fine was issued by the State Administration of Foreign Exchange in September 2022. Shanghai Pudong Development Bank was fined 9.33 million yuan and confiscated 3.3469 million yuan of illegal income for handling forward foreign exchange settlement business, option trading in violation of regulations, overseas loan business under domestic guarantees, real estate commission collection and foreign exchange settlement business in violation of regulations, and misreporting of foreign exchange settlement and sales statistics.
Behind the fines, it is revealed that the internal control and management of SPD Bank are not in place.
Among the many fines received by SPD Bank, credit cards have become the "hardest hit area", so it has the title of "king of complaints".
According to the "Circular on Consumer Complaints in the Banking Industry in Shanghai in the First Half of 2023" issued by the Shanghai Supervision Bureau of the State Financial Supervision and Administration of the People's Republic of China, the number of complaints filed by the Shanghai Branch of Shanghai Pudong Development Bank in the first half of 2023 was 124, the highest among joint-stock banks, and it was also the only joint-stock bank with more than 120 complaints. In addition, the number of complaints from the credit card center of Shanghai Pudong Development Bank is also relatively high, with 3,679 complaints in the first half of last year, ranking third among licensed credit card and consumer finance companies in Shanghai.
By searching for the keyword "Shanghai Pudong Development Bank" in the Black Cat complaint platform, there were nearly 40,000 complaint records as of April 18, among which it is not uncommon to be complained about credit card business.
Source: Black Cat Complaint Platform.
The management was also in turmoil at this time. In September last year, Shanghai Pudong Development Bank announced that Zheng Yang, the former chairman and executive director, and Pan Weidong, vice chairman, executive director and president, resigned from relevant positions due to job transfers. On the same day, Shanghai Pudong Development Bank nominated Zhang Weizhong, Secretary of the Party Committee of the Company, and Zhao Wanbing, Deputy Secretary of the Party Committee, as candidates for directors of the Company, and agreed to appoint Kang Jie as Vice President of the Company.
In addition to the chairman and president, the "directors, supervisors and senior executives", including the vice president and the chairman of the board of supervisors, have also changed frequently.
It is reported that Zhang Weizhong, a master's student, has worked in CCB for nearly 30 years, and has served as the President of the Development Zone Branch of the Dalian Branch of the China Construction Bank, the Chief Auditor and Director of the Inner Mongolia General Audit Office of the China Construction Bank, the Secretary of the Discipline Inspection Committee, the Vice President and a member of the Party Committee of the Hubei Branch of the China Construction Bank, the General Manager of the Inclusive Finance Department (Small Business Department) of the China Construction Bank, and the Director of Corporate Business of the Construction Bank.
Zhang Weizhong's report card delivered at the beginning of his tenure is obviously insufficient, and how to lead SPD Bank to create a new development pattern has become the top priority, and it has also become the focus of attention in the industry.