As the recognized "King of Retail" in the industry, China Merchants Bank's retail financial business has always been a benchmark in the industry. With the help of its credit card business, China Merchants Bank earned 92.8 billion last year.

Written by Zhang Haodong

Produced by | Payment Encyclopedia

In recent years, the transformation of retail banks has been a hot topic Topic: In the transformation of bank retail business, the most beautiful financial report data is basically the credit card business, and China Merchants Bank, which regards credit cards as its core business, has extremely gorgeous credit card data.

Among CMB’s net profits of RMB 92.8 billion, operating income from credit card business was RMB 79.988 billion, accounting for a large proportion of CMB’s total profits. In other words, the credit card business has become the main business of CMB. The top priority of the business.

So far, more than 20 A-share listed banks have disclosed their 2019 performance reports, among which China Merchants Bank’s data is eye-catching. Data show that China Merchants Bank's credit card business income was 79.988 billion yuan, a year-on-year increase of 19.9%, of which interest income was 53.999 billion yuan, a year-on-year increase of 17.44%, and credit card non-interest income was 25.989 billion yuan, a year-on-year increase of 25.42%. Credit card income achieved double-digit growth.

In the past decade or so, commercial banks have relied on the huge domestic market space to achieve rapid growth in credit card business. The number of card issuances has increased from 186 million to the current hundreds of millions. After a qualitative leap, major banks have made great efforts to seize the credit card market.

CMB made early efforts in credit card and retail business and became the first bank among many banks to deploy in the credit card field. Therefore, it has accumulated a large number of customers. In addition, CMB’s model It is also more mature.

While major banks are facing an increase in serious overdue obligations, China Merchants Bank’s asset quality continued to improve in 2019. The balance of non-performing loans decreased by 52.275 billion yuan year-on-year, a year-on-year decrease of 1.33 billion yuan, and the non-performing loan ratio was 1.16%, a year-on-year decrease of 0.2 percentage points.

With the continuous advancement of consumption upgrades, there is still a huge market space for the credit card business. China Merchants Bank has already tasted the sweetness of credit cards, and its strategy of continuing to develop credit cards will not change.

Since its listing in 2002, China Merchants Bank has undergone three very significant strategic transformations. The third one was the promotion of "light banking" in 2014. "strategy. Every transformation brings new breakthroughs to China Merchants Bank.

However, in the face of the sudden epidemic, all major bank credit cards have been seriously affected, and China Merchants Bank is no exception. Users have lost their source of income, resulting in a significant increase in credit card overdue rates. Tian Huiyu, President of China Merchants Bank, even bluntly said: "The epidemic has had the greatest impact on the credit card business."

In 2019, China Merchants Bank At the results conference, Tian Huiyu, President of China Merchants Bank, said that the epidemic has had an impact on CMB’s customer acquisition, deposits and loans, net interest income, intermediary business income, and asset quality.

In February, affected by the epidemic, many users had problems with capital turnover. They did not have enough funds to repay credit cards, and their willingness to repay was also reduced. Take China Merchants Bank as an example. In February, the overdue rates of CMB’s credit cards, mortgage loans, and small businesses increased significantly year-on-year.

In addition, China Merchants Bank also faces another problem. Usually, when users are overdue, the bank will collect money. However, currently 40% of the collection capacity of China Merchants Bank credit cards is in Wuhan, which makes China Merchants Bank credit cards Half of the collection efforts are at a standstill, and collections are severely restricted.

Now as the situation improves, credit card transactions will return to normal levels, and bank credit card overdue situations will also be effectively controlled.