Qilu Bank Loans Bad Debt Risk or High Enterprises to Companies in Litigation

category:Finance
 Qilu Bank Loans Bad Debt Risk or High Enterprises to Companies in Litigation


In 2018, Qilu Bank Co., Ltd. (hereinafter referred to as Qilu Bank) was successfully selected into the Top 100 List of China Banking Industry in 2017 of China Banking Association.

However, behind the performance growth of Qilu banking industry, its problems can not be ignored. Since 2017, its hematopoietic ability has declined significantly, and there are loopholes in Qilu Banks wind control, so the risk of bad debts can not be ignored.

Qilu Bank, founded on June 5, 1996, is the first city commercial bank in Shandong Province and the fourth city commercial bank in China to achieve Sino-foreign cooperation.

From 2014 to 2018, Qilu Banks business income was 3.531 billion yuan, 4.232 billion yuan, 5.154 billion yuan, 5.426 billion yuan and 6.402 billion yuan, respectively. From 2015 to 2018, Qilu Banks business income increased by 19.84%, 21.79%, 5.27% and 18% respectively.

From 2014 to 2018, the net profit of Qilu Bank was 1.095 billion yuan, 1.196 billion yuan, 1.654 billion yuan, 2.026 billion yuan and 2.169 billion yuan, respectively. From 2015 to 2018, the net profit of Qilu Bank increased by 9.27%, 38.22%, 22.51% and 7.06% respectively.

The net income of handling fees and commissions is one of the important components of Qilu Banks non-interest income. From 2014 to 2018, the net income of handling fees and commissions of Qilu Bank was 247 million yuan, 373 million yuan, 508 million yuan, 472 million yuan and 365 million yuan, respectively. From 2015 to 2018, the net income of handling fees and commissions increased 51.1%, 36.06%, 7.1% and -22.7% respectively.

Although the performance of Qilu Bank is good, on the contrary, the hematopoietic capacity of Qilu Bank has declined significantly. From 2014 to 2018, the net cash flow generated by the operation activities of Qilu Bank was 17.955 billion yuan, 19.531 billion yuan, 16.129 billion yuan, 5.347 billion yuan and 8.01 billion yuan, respectively. Since 2017, Qilu Banks hematopoietic ability has declined sharply.

In addition, the non-performing loan rate is the key factor of the banks profitability. From 2014 to 2018, the non-performing loans of Qilu Bank were 1.057 billion yuan, 1.525 billion yuan, 1.455 billion yuan, 1.551 billion yuan and 1.943 billion yuan, respectively. From 2015 to 2018, the non-performing loans increased by 44.31%, 4.56%, 6.54% and 25.31% respectively. During the same period, the non-performing loan rates of Qilu Bank were 1.72%, 2.19%, 1.68%, 1.54% and 1.64% respectively.

Not only is its non-performing loan balance and non-performing loan rate high, but also Qilu Banks key profit indicators deserve our attention.

According to the main regulatory data released by the CBRC, the non-performing loan rates of urban commercial banks in China were 1.48%, 1.52% and 1.79% in 2016-2018, respectively.

According to Ernst & Youngs Review of Chinas Listed Banks in 2018 and Prospects for the Future, the non-performing loan rates of Chinas listed city commercial banks are 1.35%, 1.32% and 1.43% respectively from 2016 to 2018.

In terms of reserve coverage, from 2016 to 2018, the reserve coverage of Qilu Bank was 205.27%, 207.08% and 192.68% respectively.

According to the main regulatory data released by the CBRC, the reserve coverage of urban commercial banks in China was 219.89%, 214.48% and 187.16% in 2016-2018, respectively.

According to Ernst & Youngs Review and Future Prospects of Chinas Listed Banks in 2018, the reserve coverage of Chinas listed city commercial banks is 241.84%, 243.2% and 245.81% respectively from 2016 to 2018.

That is to say, from 2016 to 2017, the non-performing loan rate of Qilu Bank is higher than that of the city commercial banks and listed city commercial banks in the same period, and its reserve coverage rate is lower than that of the city commercial banks and listed city commercial banks in the same period. However, by 2018, the non-performing loan rate of Qilu Bank was higher than that of listed city commercial banks in the same period, and lower than that of listed city commercial banks in the same period; its reserve coverage rate was higher than that of listed city commercial banks in the same period, and lower than that of listed city commercial banks in the same period.

From 2016 to 2018, the amount of write-off of non-performing loans of Qilu Bank was 850 million yuan, 837 million yuan and 1.111 billion yuan, respectively. During the same period, the amount of transfer of non-performing assets (excluding interest) of Qilu Bank was 223 million yuan, 693 million yuan and 876 million yuan, respectively. Thus, from 2016 to 2018, Qilu Bank annually cancelled more than half of the balance of non-performing loans in that year.

Qilu Bank believes that in recent years, the company has continuously improved the risk management mechanism, strengthened the five-level classification management and post-loan management of loans, strengthened the pre-loan investigation, loan-time review and post-loan inspection of loans, introduced more credit risk control measures and increased the liquidation and write-off of non-performing loans, effectively controlling non-performing loans. Payment rate level.

Behind the massive write-off of non-performing loans, how about the credit wind control ability of Qilu Bank?

Risk of bad debts or high companies lending to companies in litigation

In fact, the problem of Qilu Bank goes far beyond that.

According to document No. 19 [2018], the previous branches of Qilu Bank have been fined 300,000 yuan by Shandong Supervisory Bureau of China Banking Regulatory Commission for granting loans to real estate projects in violation of regulations.

According to document No. 20 [2018], the branch of Jinan Zhangqiu of Qilu Bank was fined 500,000 yuan by Shandong Supervisory Bureau of China Banking Regulatory Commission (CBRC) for handling bills business in violation of regulations.

According to document No. 21 [2018], the Liaocheng Linqing Branch of Qilu Bank was fined 100,000 yuan by Shandong Supervisory Bureau of China Banking Regulatory Commission for charging irregular fees to credit-granting clients.

According to document No. 22 [2018], Han Zhigang, the former head of Zhangqiu Branch of Qilu Bank, was punished by Shandong Supervisory Bureau of China Banking Regulatory Commission for five years for canceling the qualifications of senior managers for handling bills business in violation of regulations.

In addition to collecting tickets for business development, the bank has been soft-handed. In terms of credit examination and lending, Qilu Bank once lent money to companies with previous record of breach of contract, and now the company has become a lao lai.

According to document No. 4961 of Lu1502 in early Republic of China, on August 12, 2016, Shandong Zhongke Energy-saving Transformer Co., Ltd. (hereinafter referred to as Zhongke Energy-saving Company) was involved in a legal dispute because of a loan contract. As one of the respondents to the case, Shandong Yanggu Shenghui Cable Factory, Shandong Green Lantern Cable Co., Ltd., and Shandong Yang were involved in the dispute. Guhengtai Industrial Co., Ltd. and other enterprises, together with Liaocheng High-tech Zone Luxi Small Loan Co., Ltd. were applied for freezing bank deposits of 4.2 million yuan, or seizing the property of its corresponding value.

According to document No. 6 (2017) Lu 1521, on February 21, 2017, Qilu Bank and China Coke Energy Conservation Company signed a loan contract No. 0010 with the loan number of 120061 Law in 2017. The loan amount is 5 million yuan. The contract expires on February 20, 2018. The contract stipulates that the purpose of the loan is to repay the loan number 0015 of 12061 Law in 2016. Loans owed under the loan contract of Qilu Bank No. 0023.

On February 21, 2019, China Science Energy Conservation Company was listed as Lao Lai because it violated the property reporting system.

In addition, Qilu Banks lending companies are now lao lai, and their risk of bad debts is high.

According to document No. 3687 of Lu0104 in the early Republic of China, Shandong Dasanyuan Food Co., Ltd. (hereinafter referred to as Shandong Dasanyuan) borrowed RMB 1 million from Qilu Bank on July 29, 2016. Shandong Dasanyuan was listed on the list of discredited Executees on September 26, 2017.

According to document No. 5106 of Lu0103 in the early Republic of China, on August 31, 2015, Shandong Reiter Fine Chemical Co., Ltd. (hereinafter referred to as Reiter Chemical) borrowed RMB 16.68 million from Qilu Bank, while Reiter Chemical was listed on the list of discredited executors on July 4, 2016.

According to document No. 405 of Lu1428 at the beginning of the Republic of China (2017), on July 3, 2014, Shandong Fengyu Edible Fungi Co., Ltd. (hereinafter referred to as Fengyu Edible Fungi) borrowed RMB 30 million from Qilu Bank, while Fengyu Edible Fungi was listed on the list of discredited executors on July 14, 2015.

In addition, seven of the top ten non-performing loan borrowers of Qilu Bank were listed as Laolai, with a total outstanding amount of 710 million yuan. This means that Qilu Banks risk of recovering non-performing loans is high.

Source: Liable Editor of Jin Zhengyan Research Institute: Liu Song_NBJ9949