The new three board "Big Mac" QilubankStanding at an important juncture. As the most profitable commercial bank in the New Third Board, Qilu Bank has fully opened its journey back to A. However, as the financial environment changes, the rise in non-performing rates and how to carry out strategic layout are also issues of concern. In the eyes of the industry, Qilu Bank must form differentiated competition with the national big banks in the future. Therefore, it actively arranges inclusive finance, explores new ideas in the financial direction of small and micro enterprises encouraged by the state, explores new ideas, expands and tries to make new ones. The financial business to improve the overall financial ecological layout should be the focus of development.
Urgent planning for A-share listing
On November 2nd, Qilu Bank issued 6 announcements to show the market's determination to urgently plan the listing of A shares. The announcement shows that in order to enrich the capital replenishment channels, optimize the capital structure, enhance market competitiveness and risk resilience, and promote long-term development, Qilu Bank intends to publicly issue A shares and go public. On November 5, the bank's stock entered a phase of suspension of the transfer, preparing for the transfer of the IPO. Since the beginning of this year, Shandong ProvinceQingdao BankIn addition to the successful listing of “A+H”, Qingdao Rural Commercial Bank and Weihai Bank suffered setbacks. Qilu Bank, another bank that sprints A shares in Shandong Province, has also attracted much attention in the industry.
Qilu Bank’s return to A is just the right time. In recent years, Qilu Bank’s achievements have been outstanding. According to public information, Qilu Bank was established in June 1996. It was formerly known as the 16 city credit cooperatives and one city letter agency in Jinan in 1996. The Jinan City Cooperative Bank, which was established on the basis of the society, implements a first-level legal person system. In the context of the difficulty of listing on the main board and the long review time, Qilu Bank planned the new three board market as early as 2014. After nearly one year of review by the former China Banking Regulatory Commission and the CSRC, Qilu Bank finally landed on the New Third Board in 2015.
During the 2015-2017 period of the listing of the New Third Board, the bank's total assets continued to grow, 152.881 billion yuan, 207.167 billion yuan, and 236.295 billion yuan. According to the bank's data report for the third quarter of 2018, as of the end of September, Qilu Bank's total assets reached 254.9 billion yuan, operating income was 4.535 billion yuan, net profit was about 1.5 billion yuan, and it was firmly positioned as the "leading boss" in the new three-board listed banks. According to Qilu Bank's 2017 financial report data, the bank's various deposits and personal deposits ranked first in the inner city of Shandong Province, with personal deposit increments in Jinan.Regional financeRanked first in the organization, accounting for more than 40% of the city's financial institutions. According to informed sources, the business layout of Qilu Bank still accounts for a large proportion in the province of Shandong Province. Moreover, most enterprises with a background in Shandong state capital have opened a public account at Qilu Bank. The public business and institutional business are the main directions of the bank in the early period.
“With the help of the new three-board platform, small and medium-sized banks can not only finance, but also qualify for the transfer, which undoubtedly provides a new way for small and medium-sized banks to raise funds.” According to Zhao Yiyang, senior researcher at Suning Financial Research Institute, “ However, due to the comprehensive effects of various factors, the initial set-up functions of the New Third Board, especially the convenient financing channels and transfer boards, have encountered relatively large obstacles in practice. Therefore, Qilu Bank chose to list A shares for equity financing. The channels are smoother, and the relatively better financing environment for A-shares is conducive to the raising of related funds."
Bad rate of pressure
After a year of flatness, this year's small and medium-sized banks' A-share IPOs have warmed up. So far, five banks have successfully passed the SFC review. However, the regulators have maintained high concerns about the operational stability and non-performing rates of the listed banks.
Beijing Business Daily reporter combed the bank that had successfully met this year (Changsha BankAfter the situation at the trial meeting, Jiangsu Zijin Rural Commercial Bank found that the problem of non-performing rate was highlighted by the supervision.
The Qilu Bank is also facing a lot of pressure. In terms of asset quality, the data of the third quarterly report shows that as of the end of September, the non-performing loan ratio of Qilu Bank was 1.69%, an increase of 0.15 percentage points from the beginning of the period. However, the bank did not disclose the reasons for the rise in the non-performing loan ratio. At the same time, Qilu Bank's provision coverage ratio was 187.83%, which was 19.25 percentage points lower than the initial 207.78%.
The increase in the non-performing rate also tests the bank's risk control ability and the underlying assets. According to industry statistics released by the Banking Regulatory Commission, the average non-performing rate of the city's commercial banks in the second quarter was 1.57%. “The non-performing rate of Qilu Bank is above average. This may become a key issue for the SFC's audit committee." Zhao Yiyang said.
During the listing of the New Third Board, Qilu Bank completed two orientations.Additional issuance. In August 2015 and December 2017, Qilu Bank raised funds of 1.5 billion yuan and 5 billion yuan, and the total amount of funds raised exceeded 6.5 billion yuan. It can be seen from the announcement of the calendar year that Qilu Bank’s frequent “blood” originated from the downward pressure on the bank’s capital adequacy ratio. In 2012-2014, Qilu Bank's capital adequacy ratio was 13.07%, 11.64%, and 11.15%, respectively, which continued to decline. After the blood supplement, the capital adequacy ratio of Qilu Bank has increased. According to the latest data, Qilu Bank’s core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio and capital adequacy ratio were 10.02%, 11.15% and 13.83% respectively at the end of the third quarter of 2018. Compared with the beginning of the period, it decreased by 0.26, 0.39, and 0.66 percentage points. Although the regulatory requirements were met, there was still some capital replenishment pressure.
From other operating data, Qilu Bank's operating income for the first three quarters was 4.535 billion yuan, an increase of 14.01% year-on-year; net profit was 1.551 billion yuan, an increase of 5.2%. However, it is worth noting that the growth rate of net profit of 5.2% has dropped by 17.46 percentage points compared with 22.66% in the same period of 2017.
Lu Suiqi, a professor of finance at Peking University School of Economics, said in an interview with Beijing Business Daily that many banks are facing the dilemma of capital shortage. In the case of insufficient market liquidity, returning to A listing can alleviate the capital pressure of banks, but For other commercial banks that have already been listed, Qilu Bank still lacks.
He pointed out that the current macroeconomic situation is not good, corporate profitability declines, and all commercial banks' non-performing rate will rise. The increase in non-performing rate will increase the pressure on banks to write off non-performing loans, and it will also affect investors' alignment with Lu Bank. Valuation.
In response to the specific progress of the return to A, the Beijing Business Daily reporter sent an interview outline to Qilu Bank. As of press time, no reply was received.
Business upgrade to development focus
As for shareholders, as of the end of the third quarter of 2018, the Commonwealth Bank of Australia was the largest shareholder of Qilu Bank with a shareholding ratio of 17.88%, and the second largest shareholder was Jinan State-owned Assets Operation Co., Ltd., with a shareholding ratio of 10.25%.Yanzhou Coal IndustryThe shareholding ratios of Co., Ltd., Jinan City Construction Investment Group Co., Ltd. and Chongqing Huayu Group Co., Ltd. were 8.67%, 6.3% and 6.18% respectively.
On December 4, 2017, Qilu Bank obtained the equity of 15 village banks held by the Commonwealth Bank of Australia, with a share of 80% or 100%. At present, Qilu Bank has 21 holding and shareholding companies, and also new Set up Binzhou and Dongying branches, and build Rizhao and Yantai branches. The number of outlets (including preparations) of the whole bank reached 132. It is understood that Qilu Bank's business channels mainly include traditional banking networks and e-banking channels, among which e-banking channels include online banking, mobile banking, telephone banking, direct banking, WeChat banking and self-service banking. Qilu Bank also disclosed in its 2017 annual report that its income was mainly derived from interest income, commission and commission income and investment income.
However, the Beijing Business Daily reporter noted that in the first three quarters of this year, the bank’s net commission income accounted for only 5.97% of its operating income. An industry insider who did not want to be named told the Beijing Business Daily that the fee and commission net income accounted for a relatively low proportion, indicating that Qilu Bank relied mainly on deposit and loan spreads to make profits, and the development level of intermediary business needs to be improved. With the changes in the financial environment and fierce competition in the industry, more and more banks are making strategic arrangements and adjustments, shifting from institutional business to large retail business, and increasing the proportion of intermediate business revenue.
For Qilu Bank, after returning to A, how to carry out strategic layout is also a problem worthy of attention. Zhao Yiyang emphasized that as a city commercial bank, the future strategic layout must form differentiated competition with the national big banks. Therefore, it actively distributes inclusive finance, explores new ideas in the financial direction of small and micro enterprises encouraged by the state, explores new ideas, expands and tries to To do new financial business and improve the overall financial ecological layout should be the focus of development.
(Article source: Beijing Business Daily)