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Private Banks: Transition and Breakthrough Need to
Published:7/5/2019 4:09:39 PMViews: 97
"The number of small and micro enterprises served by Internet commercial banks has increased tenfold in the past three years, reaching 17.46 million households." On June 24, Hu Xiaoming, president of Ant Golden Clothes and chairman of Internet Business Bank, revealed at the Qianjiang Guanchao Small and Micro Finance Industry Summit.
Like Internet commercial banks, since the first pilot projects in 2014, private banks have actively explored differentiated market positioning from the starting point of serving "long tail customers" such as Xiaowei. Most of them have achieved good performance and good growth.
Recently, the Financial Services Report of China's Small and Micro Enterprises (2018), issued jointly by the People's Bank of China and the China Banking and Insurance Regulatory Commission, pointed out that small and micro enterprises are an important source of fostering new economic momentum and play an important role in promoting economic growth, promoting entrepreneurship and employment, and stimulating innovative vitality. Industry experts expect that with the attention of the state to consumer finance and inclusive finance, private banks, mainly small and micro enterprise loans and consumer loans, may usher in new development opportunities.
Net interest margin narrowed but still outstanding
In the first half of this year, private banks generally operated smoothly with controllable risks. From the data since its opening, the net interest margin of private banks is obviously higher than that of other types of banks. In the first half of 2018, the net profit of 17 private banks reached 2.9 billion yuan, with a net interest margin of 4.25%, much higher than the average level of 2.10% of commercial banks.
"The net interest margin of private banks is obviously higher than that of other types of banks, which indicates that the loan interest rate of private banks is relatively high. Especially for the private banks positioned by the Internet, the main business is on-line micro-consumer loans and micro-enterprise loans, and the loan interest rate is obviously higher than that of traditional commercial banks." Yang Huimin, an analyst at Rong360 Data Research Institute, told the Financial Times.
However, since the second half of last year, the net interest margin of private banks has declined, and the gap with other types of banks has been narrowing. Data show that by the end of 2018, the net interest margin of private banks was 3.49%, falling below 4% for the first time, which is only 0.47 percentage points higher than that of agricultural and commercial banks with the second highest net interest margin.
In this regard, Yang Huimin believes that in the first half of this year, this data will continue to narrow. The decline in net interest margin of private banks is mainly due to the gradual disappearance of the dividend of Internet loans. More and more non-bank institutions such as Internet financial enterprises enter the online consumer credit market. Competition becomes more fierce, and the pricing right of loan interest rate also loses. To the advantage of previous years.
The overall asset profit margin of private banks is 1.02%, which is only slightly higher than the average level of the banking industry and lower than that of large state-owned commercial banks. "This may be related to the narrow source of funds, the high cost of funds and the high cost of infrastructure investment in the early stage." Zeng Gang, deputy director of the National Laboratory of Finance and Development, said that.
Recently, a number of private banks announced their operating performance in 2018. Specifically, among the first five private banks, Weizhong Bank still holds the position of "Big Mac". By the end of 2018, its total assets had reached 220 billion yuan, more than 12 billion yuan than the second-place online commercial bank, and its assets scale has maintained a rapid growth rate, with an increase of 169% in 2018. That's a 23% increase.
At the same time, the non-performing loan rate of private banks is also at a low level in the industry, and even some non-performing loan rates are still zero, which is expected to remain the trend in the first half of this year. However, in the view of experts, this does not mean that the asset quality of private banks must be better than that of other types of banks, especially because some private banks were established late, the risks are not fully exposed at present.