Xinhua Finance Shanghai, May 1 (Yang Zihua) With the end of April, the 2023 annual reports of listed banks have been disclosed, and in the complex domestic and foreign economic environment, multiple factors have compressed the net interest margin of bank deposits and loans. With the release of the first quarterly report, the "report card" of each bank has attracted more public attention than in previous years. Among the many performance data, the net profit of Shanghai Pudong Development Bank in the first quarter "returned to positive" is eye-catching. From the planning transformation in 2023 to the "good start" in the first quarter of 2024, SPD Bank is expected to usher in a new life after a "year of establishment".
Catching up, SPD launched the "performance defense war"
On April 29, Shanghai Pudong Development Bank released the first quarter report of 2024, achieving 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%. If we look back at the performance of SPD Bank in the past three years, we will understand the special significance behind this set of data.
Since 2021, the growth of Shanghai Pudong Development Bank, which has been among the top three joint-stock banks with its "corporate business", has been slightly "weak". Since the formation of a new management team in September 2023, the situation has changed rapidly. At the end of last year and the beginning of this year, Shanghai Pudong Development Bank launched the "100-day attack" and "spring attack", and launched the "performance defense battle" from top to bottom.
The results are reflected in the figures, quarterly, the net profit decline in the fourth quarter of 2023 is significantly narrower than that in the first three quarters, and the net profit in the first quarter is off to a more encouraging start. After deducting non-recurring gains and losses, SPD's net profit attributable to its parent company increased by 30.57% year-on-year, with a significant single-quarter profit growth rate.
As for the reasons for the growth of net profit, SPD Bank gave five logics: first, the company adheres to the working idea of "seeking progress while maintaining stability, first establishing and then breaking", continuously increases the supply of high-quality finance, realizes the connotative and intensive growth of assets and liabilities, and the decline in net interest margin is significantly narrowed; second, the company continues to increase credit delivery, and the credit increment ranks in the forefront of the joint-stock industry, and the effect of improving the amount of energy to resist the downward trend of market interest rates is gradually emerging; third, the company strengthens the integrated overall management of liabilities and adopts flexible varieties, durations, and Fourth, the company formulated an effective investment strategy in combination with the trend of the financial market, actively grasped investment and trading opportunities, actively increased investment income, and increased investment income mainly in bonds; fifth, the company's non-performing loan ratio decreased compared with the beginning of the year, and the consumption of risk costs decreased year-on-year.
Phased results do not mean that you can "take a break and breathe a sigh of relief". At the performance meeting on April 30, Shanghai Pudong Development Bank introduced a new round of transformation and upgrading measures.
With net interest margin declining, how can joint-stock banks break through?
Net interest margin refers to the ratio of net interest income to average interest-bearing assets, which is one of the core efficiency indicators of banks. In recent years, the net interest margin of commercial banks has continued to decline, which has been a common problem faced by the banking industry. According to data disclosed by the State Administration of Financial Supervision and Administration, from the first quarter to the fourth quarter of 2023, the net interest margin of commercial banks showed a downward trend, which was 1.74%, 1.74%, 1.73%, and 1.69%, respectively.
Net interest income, as the main business income of banks, has narrowed interest margins, compressed profit margins, and the days of "lying down to earn" are gone. Compared with products, services, and marketing, the competition between banks tends to be fierce. Taking inclusive financial products as an example, Zhang Weizhong, chairman of Shanghai Pudong Development Bank, said: "The current situation is like a 'sandwich', but we are caught in the middle. He introduced that on the one hand, the inclusive business of large state-owned banks has been fully sunk, and on the other hand, small banks have consolidated their customer base with localized operation and intensively cultivated professional and characteristic businesses. "As a joint-stock bank, we are thinking about how to accurately position SPD and build its own model. ”
After extensive research, SPD Bank launched the transformation of the "Digital Intelligence Strategy", with the specific implementation system of "5-5-5-4-3", that is, focusing on the "five tracks" of science and technology finance, supply chain finance, inclusive finance, cross-border finance and treasury finance, building a new "five digital" business model of digital infrastructure, digital products, digital operation, digital risk control and digital ecology, building "five systems" of customer operation and service, data operation and management, intelligent operation, product innovation and service, and risk management, and implementing regional, industry, The "four major strategies" of online and digital innovation, and the construction of the "three major guarantee systems" of organization, resources and policies.
Xinhua financial analysts believe that the choice of the "five tracks" of Shanghai Pudong Development Bank reflects its strategic deployment of policy orientation combined with its own development reality. In line with the "Five Major Articles" on the construction of a financial power, SPD Bank chose "Science and Technology Finance", which is strongly related to the construction of Shanghai's "Five Centers", in the first place. Cross-border finance, supply chain finance and treasury finance also have strong regional characteristics in Shanghai, and at the same time, it also provides an entry scenario for SPD Bank to give full play to its advantages in free trade zone licenses and corporate business. Financial inclusion is a necessary supplement to the long-tail customer base.
It can be seen from the setting of the "five numbers" business model and the "five systems" that under the guidance of the "digital intelligence strategy", SPD Bank connects different departments through digital technology, breaks down the barriers of "blocks", and enhances the collaborative operation capability of the whole bank, so as to achieve the rapid advancement and effective implementation of the strategic system.
Take advantage of the momentum to "get off to a good start" and promote "long-term red" with innovation
To improve efficiency and reduce high-risk business, SPD Bank has used a good medicine to make its performance rebound in the short term, and it has also made the outside world have more expectations for its future trend.
At the results meeting on April 30, SPD Bank announced that its business strategy for 2024 is to focus on the "five tracks", consolidate the three basic markets of "corporate, retail and financial markets", strengthen the two core indicators of "efficiency and quality", and improve the level of "one foundation" management refinement and leanness, so as to maintain a spirit forever.
Focusing on the "Five Tracks", SPD Bank has launched a series of new products aimed at building long-term impact. For example, in terms of technology finance, it has launched online financing products such as "Puchuang Loan" and "Puxin Loan" for technology enterprises to create a "Puke 5+7+X" product system, in terms of supply chain finance, Puliantong has served 62 core enterprises and 282 suppliers, and in terms of inclusive finance, it has launched products such as "Preferential Loan" and "Preferential Flash Loan" for individual customers.
"It's especially important how you build your product to make it a golden sign. At the performance meeting, Zhang Weizhong specifically mentioned that the Shanghai Pudong Development Bank Research Institute will be established to carry out research on key industries, and customize and optimize products according to industry conditions and customer needs. "In terms of digital and intelligent operation, we can't just build it, we also have to build a new type of operation in an all-round way. Customer-centric, deliver easy-to-use products to the market, and then through its own operation to do a good job in services and achieve digital intelligence. ”
"Innovation is in the DNA of SPD Bank. Zhang Weizhong said. From a geographical point of view, the key businesses of SPD Bank are distributed along the Yangtze River Delta and the central axis of the Yangtze River, as well as in the Beijing-Tianjin-Hebei region, Guangdong-Hong Kong-Macao region.
Editor: Lam Cheng Hong
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