On April 29, Shanghai Pudong Development Bank released its 2023 annual report and 2024 first quarter report at the same time.
Zhang Weizhong, Secretary of the Party Committee and Chairman of Shanghai Pudong Development Bank, said at the results conference held on April 30 that after the formation of the new leadership team in the fourth quarter of last year, intensive discussions, research and exchanges were conducted, and based on the current macro environment of the banking industry and the genes of Shanghai Pudong Development Bank itself, the key decision to fully implement the digital intelligence strategy was made, focusing on the "five tracks" of science and technology finance, supply chain finance, inclusive finance, cross-border finance and treasury finance.
The results are already beginning to be seen in the first quarter of this year. In the first quarter of 2024, SPD Bank achieved operating income (group caliber) of 45.328 billion yuan and net profit attributable to shareholders of the parent company of 17.421 billion yuan, a year-on-year increase of 10.04%.
It is worth noting that after excluding the one-time impact of the sale of the equity of CIC Morgan in the same period last year, the operating income of SPD Bank in the first quarter increased by 1.490 billion yuan year-on-year, an increase of 3.40%. In addition, in terms of net profit, the net profit after deducting non-recurring gains and losses that can reflect the profitability of the core business in the first quarter was 17.214 billion yuan, an increase of 4.030 billion yuan or 30.57% year-on-year.
In addition, in terms of risk control, as of the end of 2023, SPD Bank has achieved a double decline in NPL amount and NPL rate for four consecutive years. At the end of the first quarter of this year, the non-performing loan ratio of SPD Bank was 1.45%, down 0.03 percentage points from the end of the previous year. Liu Yiyan, Executive Director, Vice President (in charge of operations) and Chief Risk Officer of Shanghai Pudong Development Bank, said that Shanghai Pudong Development Bank has always adhered to the principle of "controlling the new and reducing the old" at the same time, and continued to reduce the stock risk.
"Five Tracks"
Go deeper and regroup
With the general trend of digitalization and intelligence in the financial industry, combined with the "five chapters" of national financial development and the important mission of Shanghai's "five centers", as well as its own resource endowment, SPD Bank has formed a strategic "design map" focusing on the "five tracks" of technology finance, supply chain finance, inclusive finance, cross-border finance and treasury finance, transforming and reshaping traditional businesses through digital intelligence, so as to discover new customers and gain insight into new needs.
Zhang Weizhong introduced that the first three tracks, namely science and technology finance, supply chain finance, and inclusive finance, are actually based on the original advantages of corporate business, continue to expand and sink, so as to serve more market players and better help the real economy.
In terms of science and technology finance, SPD Bank has created a "commercial bank + investment bank + ecology" model, providing integrated services of "stocks, loans, debts, insurance, leasing, incubation, matchmaking, and linkage", launched a new "Puke" product series, and provided enterprises with "5+7+X" combination products (5 fist products, 7 key products, and X customized products) such as "Puchuang Loan" and "Puxin Loan", providing diversified and relay financial services for science and technology enterprises throughout the life cycle, and continuously deepening the brand building of "SPD Science and Technology". As of the end of the first quarter of 2024, SPD Bank served more than 60,000 technology-based enterprises, with a balance of more than RMB530 billion in technology-based financial loans.
In terms of supply chain finance, SPD Bank focuses on industrial chains such as automobiles, new energy, and high-end manufacturing, enriches the application scenarios of supply chain financial services, and continues to strengthen the application of new technologies such as blockchain, Internet of Things, big data, cloud computing, and artificial intelligence. As of the end of the first quarter, SPD Bank had served a total of 2,023 core customers in the supply chain and 22,200 customers in the upstream and downstream supply chains.
In terms of inclusive finance, SPD Bank has realized the online transformation of inclusive offline loans through technology empowerment, and created standardized, efficient and online mortgage products "Puhui Loan" and "Home Loan Quick Loan", as well as credit products "Puhui Easy Loan". As of the end of the first quarter, the balance of inclusive loans was 439.9 billion yuan, an increase of 17.5 billion yuan from the end of the previous year.
Cross-border finance is the key business direction chosen by SPD Bank based on Shanghai as the forefront of reform and opening up. Zhang Weizhong emphasized that cross-border finance needs to serve customers to "go global" and "bring in", and SPD Bank will give full play to its advantages in the relevant licenses of free trade zone business and offshore financial licenses, play a role in the process of national reform and opening up, and play a role as the main force in the process of Shanghai's reform and opening up.
In terms of cross-border finance, SPD Bank has launched the "6+X" cross-border financial service system, relying on the advantages of scenario-based and integrated financial services such as corporate business, financial market, treasury management, and cross-border custody, to escort Chinese enterprises to "go global" and overseas enterprises to "bring in". As of the end of the first quarter, SPD Bank had 27,000 cross-border active customers and 129 CIPS foreign and overseas interbank customers, maintaining its leading position as a joint-stock bank. In the first quarter of 2024, SPD Bank handled 1.2 trillion yuan of cross-border business, with a year-on-year increase of 42% in the number of agency settlement business and a 105% year-on-year increase in settlement amount.
In terms of treasury and finance, SPD Bank accelerated the construction of a platform-based operation base, customer operation and service system, product service system, data operation management system, intelligent operation system and risk management system, and improved the energy efficiency of online and offline treasury services. As of the end of the reporting period, there were 160 million individual customers (including credit cards), the balance of AUM personal financial assets (including market value) was 3.76 trillion yuan, and the balance of personal deposits was 1.44 trillion yuan.
After the promotion of the new strategy, the debugging and tuning of the institutional structure must also keep up. It is understood that the Shanghai Pudong Development Bank has recently carried out institutional reforms. At the results conference, the management explained the logic of the change in the organizational structure:
First, it is necessary to see that the logic of the overall financial operation development and reform is now changing further. "We talk about the political nature of finance, the nature of the people, and the 'five major articles' of finance, which requires us to further improve the service ability of social and people's livelihood and further improve the customer-centric ability. Zhang Weizhong explained that the recent institutional reform of Shanghai Pudong Development Bank is generally to further reset according to this logic, putting customers first, focusing on customer service to develop business, resetting the front office department, and increasing relevant settings and configurations.
Second, the relations of production must be adapted to the development of the productive forces. "How can we reinvent the management system, and how can we make our responsibilities clearer? For example, we have set up a research institute to lead new quality productivity research, market research, customer research, etc. Zhang Weizhong hopes that based on this, the entire business capacity can be further improved.
At the same time, the functions of the Inclusive Finance Department have also been repositioned and designed, and the Cross-border Finance Department has reintegrated the cross-border and offshore departments on the basis of the original international business department, hoping to further improve the level.
Improve quality and efficiency, and reach a new high
In terms of loans, at the end of the first quarter, the total assets of SPD Bank were 9.05 trillion yuan, an increase of 46.221 billion yuan or 0.51% from the end of the previous year. Among them, the total amount of corporate loans (excluding bill discounting) was 3.03 trillion yuan, an increase of 188.605 billion yuan or 6.64% from the end of the previous year, accounting for 58.42% of the Company's domestic and foreign currency loans, an increase of 1.80 percentage points from the end of the previous year, and the incremental growth rate ranked among the top in the joint-stock industry.
"In the first quarter, the scale of corporate loans increased by nearly 190 billion yuan, and the investment intensity was relatively large, and the balance was made in both quantity and quality. Liu Yiyan emphasized at the results conference.
In terms of loan structure, SPD Bank has stepped up its investment in key areas. Taking corporate loans in 2023 as an example, the balance of medium and long-term loans in the manufacturing industry was 278 billion yuan, an increase of 27.35% from the end of the previous year. The balance of green credit was 524.6 billion yuan, an increase of 22.82% from the end of the previous year. The balance of loans to science and technology enterprises exceeded 500 billion yuan, an increase of more than 30%. The balance of inclusive loans was RMB422.4 billion, up by 12.15% from the end of the previous year.
In terms of the control of interest payment costs, Liu Yiyan said that the interest payment rate of RMB general deposits decreased by 12bps year-on-year, which effectively improved the rigid expenditure of interest payment, especially the reduction of high-cost liabilities such as large-amount certificates of deposit.