On February 14, Ping An Bank released its 2019 annual report. As a pioneer in retail transformation, Ping An Bank’s performance has attracted much attention.
According to the financial report, in 2019, Ping An Bank’s operating income was 137.958 billion yuan and net profit was 28.195 billion yuan, of which retail financial business operating income was 79.973 billion yuan, accounting for 58% of the total operating income and net profit was 19.493 billion yuan. Yuan, accounting for 69.1% of the total net profit.
It can be seen that retail business maintains a large proportion of Ping An Bank’s performance contribution. However, compared with 2018, retail business accounted for 53% of operating income and 69% of net profit. It can be seen that Although the contribution of the retail business to revenue continues to increase, the growth in net profit contribution is limited.
The non-performing rate of consumer finance business has increased across the board, and the mortgage loan business has risen
The financial report shows that at the end of 2019, the number of credit cards in circulation of Ping An Bank reached 60.3291 million, an increase of 17.1% from the end of the previous year. ; The balance of credit card loans was 540.434 billion yuan, a year-on-year increase of 14.2%; the total credit card transaction amount in 2019 was 3.336577 billion yuan, a year-on-year increase of 22.5%.
Compared with the first half of 2019 annual report data showing that the total amount of credit card transactions was 1,618.718 billion yuan, a year-on-year increase of 34.1%, the growth rate of the total transaction amount of Ping An Bank's credit cards declined in the second half of 2019.
The total amount of new issuances of Ping An Bank’s representative consumer credit product “Xinyidai” also declined. According to the financial report, in 2019, the new loan amount of "Xinyidai" was 112.033 billion yuan. According to the data, the new loan amount of "Xinyidai" in 2018 was 112.23 billion yuan, a year-on-year decrease of 0.1%.
According to the financial reports of U.S. listed companies, in the first three quarters of 2019, 360 Finance has facilitated loans of nearly 150 billion yuan, Lexin has facilitated total loans of 83.1 billion yuan, and the new disbursement amount of "New First Loan" is the same as the top Mutual financial companies are comparable and already inferior to 360 Finance.
At the end of 2019, the balance of "New First Loan" was 157.364 billion yuan, an increase of 2.4% from the end of the previous year.
In the second half of 2019, Ping An Bank’s auto finance business volume increased compared with the first half of the year.
The financial report shows that in 2019, Ping An Bank’s new auto finance loan amount was 156.674 billion yuan, and the balance of auto finance loans at the end of 2019 was 179.224 billion yuan, an increase of 4.2% from the end of the previous year. According to the financial report for the first half of 2019, Ping An Bank’s new auto finance issuance amount was only 68.4 billion yuan. As of the end of June 2019, the auto loan balance dropped by 3.6% from the end of the previous year.
And Ping An Bank’s mortgage loan business is beginning to rise. In 2019, Ping An Bank issued a total of 193.045 billion yuan in personal housing mortgages and certified mortgage loans; at the end of 2019, the balance of personal housing mortgages and certified mortgage loans was 411.066 billion yuan, an increase of 32.3% from the end of the previous year; of which, the balance of housing mortgage loans was 199.371 billion yuan Yuan, an increase of 9.3% compared with the end of the previous year. This means that the growth in the home loan business was mainly contributed by mortgage loans.
The non-performing rate of consumer finance business continues to rise.
According to the financial report, Ping An Bank’s non-performing rate in 2019 was 1.65%, a decrease of 5.7% from 2018. However, the non-performing rate of personal loans (including credit cards) increased from 1.07% in 2018 to 1.19%, a decrease from 2018. up 11.2%.
Broken down, the non-performing rate of credit card accounts receivable was 1.66%, an increase of 0.34 percentage points from the end of the previous year. Excluding caliber adjustment factors, it increased by 0.01 percentage points; the non-performing rate of "Xinyidai" loans was 1.34%, It increased by 0.34 percentage points from the end of the previous year, and increased by 0.01 percentage point after excluding caliber adjustment factors; the non-performing ratio of the auto finance business was 0.74%, which increased by 0.20 percentage points from the end of the previous year, and increased by 0.06 percentage points after excluding caliber adjustment factors.
Ping An Bank’s consumer finance business is implementing the strategy of moving its customer base upwards, which is also the common sense of many leading consumer finance institutions this year. The financial report stated: “In view of the downward pressure on the domestic macro-economy, Ping An appropriately raised the threshold for credit cards and new loans to promote the improvement of the quality of the target customer group.
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The “Customer Introduction Model” performs amazingly and strives for open banking
The strategies of major retail banks have important reference significance for the industry. Open platform was a hot word in the financial technology industry last year. There is also the participation of Ping An Bank. The financial report shows that it launched an open platform in 2019, using API/SDK as a means, combined with traditional intervention methods such as direct connection between banks and enterprises, to create an exclusive platform. At the end of 2019, Ping An Bank opened its bank. 1,072 customers are connected through API, SDK, H5 and other methods
In addition, Ping An Bank’s new customer acquisition model-MGM (Customer Introduction Customer) model is booming, and in 2019, “New First Loan” exceeded Half of the loans are issued under this model.
According to the financial report, Ping An Bank conducts comprehensive financial services through the MGM (customer introduction) model. In 2019, the loans issued by "Xinyidai" through this model were 686.82. billion, accounting for 61.3% of the total issuance of "New First Loan"; 54.676 billion yuan of auto finance loans were issued through this model, accounting for 34.9% of the total auto finance loans issuance; 4.8765 million credit cards were issued through this model Zhang, accounting for 34.1% of the new card issuance volume.
Furthermore, the asset quality of the customer base under this model also performed well. The financial report shows that at the end of 2019, “Xinyidai” passed the MGM model. The defective rate of the acquired customer group was 0.69%, which was 0.65 percentage points lower than the overall defective rate; the defective rate of the related credit card customer group was 1.46%, which was 0.20 percentage points lower than the overall defective rate; the defective rate of the related auto finance customer group was 0.74%, which was 0.74%. The overall non-performing rate remained flat and at a low level.
The MGM model is quite similar to that of Ping An Insurance Group. As we all know, Ping An Insurance has always been famous for its agent marketing model, which involves digging into employee resources and then introducing people around them. As agents, this model is repeated to expand the customer base and deepen loyalty; Ping An Bank also seems to have achieved amazing results by applying it to loan products.
An industry insider told us: "It is a taboo in the industry. Commissions are directly given to customers for referrals, so they will use the broker-agent model for secondary and tertiary marketing. Ping An Bank’s online products also seek traffic from Internet companies and public accounts with big Vs to attract traffic, under the account manager responsibility system. , also need to do overdue collection. ”
Consumer Finance Times has previously reported on ZTE Feidai’s three-level rebate model. Later, according to Xinliu Finance, Feidai achieved exponential growth in monthly loans with this business.
The "agent model" has been successively verified by the good performance of Feidai and Ping An Bank. However, the aforementioned reports also mentioned that on the other hand, the "agent model" may have data leakage, personal information trading issues, internal operational risks of the company, There is a lot of controversy over business compliance risks.
Whether this double-edged sword can be used and how to make good use of it may be a new topic in the consumer finance industry in 2020.
In 2019, the industry faced huge challenges due to various reasons such as policies. Ping An Bank’s annual report mentioned that 2020 is the beginning of a new phase of Ping An Bank’s retail transformation. I believe that amid continued changes, 2020 will also be a breakthrough year for the consumer finance industry. .