Merchant Bank's revenue grew the fastest, up 48% year-on-year

In March 2014, the pilot program for private banks was officially determined. Since then, domestic private banks have been established one after another, and to date, 19 private banks have been active in the financial market, which has become an important supplement to traditional commercial banks and has played an important role in promoting the development of inclusive finance.

The interim reporting period was settled, and the reporter of Nandu Bay Finance Society combed and found that 8 of the 19 private banks announced specific operating data such as revenue and net profit. From the perspective of profitability, among the eight private banks, the number of companies with net profit growth and decline is exactly half of the total, with 4 companies each.

MYbank has the highest revenue

Yealink Bank's revenue declined

Revenue is an important observation indicator of business operation, and the reporter of Nandu Bay Finance Society sorted out 8 private enterprises that announced revenue data to observe the current situation of the industry.

Up to now, according to wind data, MYbank ranks first with a revenue of 10.076 billion yuan. This total revenue even exceeds the combined revenue of the other seven private banks. This shows MYbank's position in the industry.

It should be noted that in the comparison of 2023 financial reports, MYbank only ranks second in terms of revenue of private banks, and there is a big gap between it and the leading WeBank. However, WeBank has not released the 2024 semi-annual report data, and whether the gap between the two is closed remains to be seen in the annual report data.

After MYbank, Xinwang Bank ranked second in the revenue list with 2.988 billion yuan, and Fumin Bank ranked third in the revenue list with 1.089 billion yuan. The two private banks in the southwest region demonstrate the financial vitality of the Sichuan-Chongqing region.

From the perspective of change, Meizhou Merchant Bank in the Bay Area is growing the fastest. As the first private bank in Guangdong Province, Merchant Bank achieved operating income of 466 million yuan in the first half of 2024, a year-on-year increase of 48.01%, making it the fastest private bank in terms of revenue growth.

After Merchant Bank, Xinwang Bank and MYbank ranked second and third respectively with a year-on-year revenue growth rate of 27.19% and 20.57%. It should be noted that Yealink Bank became the only one of the eight private banks with a decline in revenue.

The overall net profit of private banks declined

a year-on-year decrease of 200 million yuan, down 1.94%

From the perspective of net profit, there are obvious differences among the eight private banks, of which 4 banks show an increase in net profit, and the remaining 4 banks show a decline in net profit.

From the perspective of total volume, MYbank ranked first with 1.443 billion yuan, and was much ahead of the second place. Xinwang Bank ranked second, with a total net profit of 399 million yuan. This was followed by 267 million yuan from China Commercial Bank and 227 million yuan from Fumin Bank.

From the perspective of net profit changes, focusing on banks with declining net profits, Yealink Bank topped the list with a decline of 70.04%.

In addition, banks with declining net profits include Wenzhou Minshang Bank and Sichuan Xinwang Bank, but the overall decline of both is within 10%.

In addition to the above-mentioned private banks, Huatong Bank, Zhongguancun Bank, Merchant Bank, and Fumin Bank all saw year-on-year growth in net profit. Among them, Huatong Bank ranked first with an increase of 245.11%. Compared with the four banks with declining net profits, the four private banks with increased net profits have lower overall net profits.

In fact, judging from official data, private banks have experienced a decline in overall net profit in the first half of 2024.

On August 9, the State Administration of Financial Supervision disclosed the 2024 main indicators of commercial banks by institution category (second quarter). Among them, the net profit of private banks was 10.1 billion yuan, a year-on-year decrease of 200 million yuan, a year-on-year decrease of 1.94%. It is reported that this is also the first time that the net profit of private banks has declined since the release of the above data.

Regarding the decline in the net profit of private banks, Liao Yuanyuan, director of the Statistics and Risk Monitoring Department of the State Financial Supervision and Administration of the People's Republic of China, explained at a series of press conferences on the theme of "promoting high-quality development" held by the Information Office of the State Council on August 21, "In the first half of this year, private banks were generally profitable, but the net profits of several private banks declined year-on-year, mainly because these banks significantly increased their provisions compared with the same period last year, which directly affected the current profits and led to a phased decline in the net profits of private banks." ”。

observe

MYbank's net profit declined for the first time in recent years and it was fined 7.35 million yuan for violating laws and regulations, which is the second largest fine for private banks since 2024

As the first place in both total revenue and total net profit, MYbank's revenue growth rate and net profit growth rate are in stark contrast.

In the first half of 2024, MYbank achieved a 20.57% increase in operating income and a 31.19% decline in net profit. Obviously, it has fallen into a situation of "increasing revenue but not increasing profits".

The reporter found through wind that the year-on-year growth rates of MYbank's reported net profit since 2021 were 79.09%, 65.69%, 28.49%, and -31.19% respectively. This means that MYbank has experienced a decline in net profit for the first time in recent years. Regarding the decline in net profit, MYbank did not announce the relevant situation.

Looking back at MYbank's previous 2023 financial report, at that time, the company's non-performing loan ratio reached 2.28%, which exceeded that of leading competitors such as WeBank.

It is worth noting that the non-performing loan ratio published by banks is usually based on 90 days overdue, while MYbank publishes the non-performing loan ratio based on 30 days overdue. However, from the perspective of MYbank's own changes, from 2021 to 2023, the company's announced non-performing loan ratio has increased year by year, from 1.53% to 1.94% and then to 2.28%.

In addition, the Zhejiang Supervision Bureau of the State Administration of Financial Supervision disclosed an administrative penalty in August, which directly pointed to 13 violations of laws and regulations in MYbank.

Specifically, the 13 facts of violations of laws and regulations include: 1. Failure to timely disclose major changes in corporate governance; 2. Major related-party transactions continue to be carried out without review and approval; 3. Change of business premises without approval; 4. Late reporting of information on criminal cases; 5. Failure to publicize service price information in accordance with regulations; 6. The management of personal loans is not prudent, and the loan funds are misappropriated for other purposes; 7. Non-clean transfer of credit assets, false off-balance; 8. Raising the deposit interest rate in violation of regulations; 9. Failure to determine the entrusted payment limit of loan funds and failure to implement the regulatory requirements for entrusted payment; 10. Non-standard management is not prudent; 11. Credit risk-weighted assets of bill transfer discounting business that are not fully measured; 12. The review of trust products sold on behalf of the agency is not strict; 13. The accounting subjects of the investment business of wealth management products are used incorrectly.

MYbank was also fined 7.35 million yuan for the above 13 violations, which is reported to be the second largest fine for private banks since 2024.

Yealink Bank's revenue and net profit fell first for violating the regulations on preventing new types of violations and crimes in telecommunications networks, and was heavily fined 7.5834 million yuan

In the first half of 2024, Yealink Bank's operating income fell by 4.94% and net profit fell by 70.04%. This means that Yealink Bank has experienced a decline in revenue and net profit, and the decline is the first among private banks that have published data.

The reporter found through wind combing that in the data of Yealink Bank's 4 semi-annual reports during the 2021-2024 period, there were 3 declines in net profit, namely 2021H1, 2022H1, and 2024H1. In the 2023 semi-annual report, Yealink Bank achieved a net profit increase of 42.20%, the only positive growth in the past 4 years.

Among the three reporting periods with declining net profit, the decline of 70.04% in the first half of 2024 ranked first, which means that Yealink Bank recorded the worst net profit growth in recent years.

In fact, in addition to its poor performance, Yealink Bank also received a large "fine" from the regulator during the year.

On March 12, the Jilin Branch of the People's Bank of China released a public notice form for administrative punishments. According to the content, Yealink Bank was heavily fined 7.5834 million yuan for three violations, and Sun, an expert from the Wealth Innovation Department at the time, was also fined 255,300 yuan.

Specifically, Yealink Bank's three illegal provisions include: 1. Violating the provisions on matters related to the prevention of new types of illegal crimes in telecommunication networks; 2. Failure to fulfill customer identification obligations in accordance with regulations; 3. Failure to submit large-value transaction reports or suspicious transaction reports as required.

Among them, the so-called "new type of illegal crimes in telecommunications networks" refers to the illegal crimes carried out by criminals using telecommunications, the Internet and other technologies to trick (steal) the victim's funds into remitting (depositing) into the bank accounts under their control by sending text messages, making phone calls, implanting Trojan horses, and other means.

Co-ordinator: Li Ying

Written by: Wu Hongsen, reporter of Nandu · Bay Finance Agency