Hengfeng Bank, a national joint-stock bank whose headquarters has been moved to Jinan, Shandong, disclosed its 2019 annual report after the strategic reorganization was settled. The Bank’s last disclosure of the annual report was the disclosure of the 2016 annual report three years ago.

Hengfeng Bank ’s 2019 annual audit report released on April 29 showed that in 2019, Hengfeng Bank ’s operating income reached 13.765 billion yuan, a year-on-year decrease of 14.17%; Profit was 599 million yuan, an increase of 4.36% year-on-year; the net profit attributable to shareholders of the bank was 661 million yuan, an increase of 23.55% year-on-year. In 2019, Hengfeng Bank’s net interest margin was 0.91%, a year-on-year decrease of 0.14 percentage points; the net interest margin was 0.99%, a year-on-year decrease of 0.04 percentage points. As of the end of 2019, Hengfeng Bank’s total assets were 1.03 trillion yuan, a year-on-year decrease of 1.69%; total loans and advances amounted to 443.245 billion yuan, a year-on-year decrease of 22.91%; deposits received were 557.435 billion yuan, a year-on-year decrease of 6.99%.

At the end of 2017, Cai Guohua, the then chairman of Hengfeng Bank, was investigated. The bank was faced with many risks such as illegal executives, chaotic equity, poor asset quality and tight liquidity. In response to this, the Shandong Provincial Party Committee and the Provincial Government have determined the three-step reform path of Hengfeng Bank’s “divestment of non-performing loans, introduction of war investment, and overall listing” to promote market-oriented reforms.


Disposal of non-performing assets reduces the ratio of non-performing loans by 25.06 percentage points

In terms of asset quality, as of the end of 2019, Hengfeng Bank ’s 2019 non-performing loan ratio It was 3.38%, a year-on-year decrease of 25.06 percentage points; the NPL provision coverage ratio was 120.84%, an increase of 66.13 percentage points year-on-year; the loan provision ratio was 4.08%, a year-on-year decrease of 11.48 percentage points.

According to Xinhua News Agency reported on January 12, the divestiture of non-performing assets was the first step in the reform and reorganization of Hengfeng Bank, so Hengfeng Bank negotiated with Shandong Asset Management Company Consistently, according to the audit and evaluation results of the intermediary agencies, the non-performing assets will be sold at a market price at a time to improve the quality of the assets.

In terms of the industry distribution of loans, Hengfeng Bank said that the bank continued to promote differentiated credit policy with guaranteed tenure, focused on the development of the real economy and people ’s livelihood, and increased resource allocation Therefore, the credit structure of the industry has been steadily optimized.

Among them, at the end of the reporting period, Hengfeng Bank WaterProfits, environment and public facilities management accounted for an increase of 8.35 percentage points in credit input from the beginning of the year, while wholesale and retail industries accounted for a decrease of 4.4 percentage points from the beginning of the year. In addition, the balance of personal consumption loans increased by 193% compared with the beginning of the year, including personal mortgage loans increased by 241%.

From a geographical perspective, Hengfeng Bank ’s credit area is mainly distributed in the economically developed areas such as the Yangtze River Delta and the Bohai Rim. At the end of the reporting period, loans in the Yangtze River Delta and Bohai Rim regions accounted for 69.66% of the total, of which the Yangtze River Delta region accounted for an increase of 2.22 percentage points from the end of the previous year.


Introducing a strategic investment of 100 billion yuan to achieve a capital adequacy ratio from negative to positive

As for the capital adequacy ratio index, as of the end of 2019, Hengfeng Bank ’s core The tier one capital adequacy ratio, tier one capital adequacy ratio and capital adequacy ratio are 9.68%, 9.68% and 12.26%, while in 2018 they were -13.65%, -13.65% and -11.14%, respectively. Realized from negative to positive.

In this regard, Hengfeng Bank said that during the reporting period, the bank actively expanded external capital replenishment channels and introduced investors to replenish capital of 100 billion yuan to ensure sufficient capital. The rate continued to meet regulatory requirements, which greatly improved risk resistance and did not use secondary capital instruments to supplement capital.

In December 2019, the first extraordinary general meeting of shareholders of Hengfeng Bank in 2019 reviewed and approved the proposal of a non-public offering of 100 billion ordinary shares. Among them, Central Huijin Investment Co., Ltd. and Shandong Financial Asset Management Co., Ltd. respectively subscribed for 60 billion shares and 36 billion shares. Singapore United Overseas Bank Co., Ltd. and seven other shareholders increased their holdings by 4 billion shares.

Specific shareholder and share changes

According to the annual report, as of now, the top ten shareholders of Hengfeng Bank are: Central Huijin Investment hasLimited liability company (holding 53.95%), Shandong Financial Asset Management Co., Ltd. (holding 32.37%), Singapore United Overseas Bank Limited (holding 3.00%), Nanshan Group Co., Ltd. (holding 2.35%), Yantai Blue Sky Investment Holdings Co., Ltd. (holding 2.07% of the top ten shareholders), Fuxin Group Co., Ltd. (holding 0.85%), Shanghai Zuoji Investment Management Co., Ltd. (0.83%), Junkang Life Insurance Co., Ltd. The company (holding 0.33%), Shanghai Guozheng Investment Management Co., Ltd. (holding 0.28%), Shanghai Guozhijie Investment Development Co., Ltd. (0.27%).

The current top ten shareholders ’shareholding table

According to Xinhua News Agency quoted Chen Ying, chairman of Hengfeng Bank on January 12, Hengfeng Bank completed the reform and reorganization, the risk was resolved, and the next step will continue Improve corporate governance, strengthen risk management and control, promote the steady development of business, further improve the quality and efficiency of business management, and strive for listing within five years.