Huancheng rural commercial banks profit in the first half of the year showed negative growth, and the chairman replaced in the first quarter

category:Finance
 Huancheng rural commercial banks profit in the first half of the year showed negative growth, and the chairman replaced in the first quarter


On the first half of the years revenue, net profit and potential risks of asset quality, China Times reporter called Huancheng rural commercial bank. The relevant staff of the bank told our reporter: we are not clear about these questions. We need to ask them and the leaders are answering them. But up to the time of publication, the reporter did not receive a reply from the bank.

It is worth mentioning that when the reporter inquired about the relevant information, the chairman of Huancheng rural commercial bank was replaced in the first quarter of this year, and the former president Hong qiubing received the reply from the takeover department and became the chairman of the bank.

Both revenue and net profit decreased

According to the second quarter report, in the first half of this year, the total assets of Huancheng rural commercial bank reached 23.388 billion yuan, and the total liabilities were 21.412 billion yuan, up 3.398 billion yuan and 3.4 billion yuan respectively compared with the beginning of the year. The growth of scale mainly comes from the promotion of deposit and loan. As of the end of the second quarter, the banks balance of deposits was 18.514 billion yuan, a net increase of 3.279 billion yuan or 21.53% over the beginning of the year, and the balance of loans was 15.425 billion yuan, an increase of 2.829 billion yuan or 22.46% over the beginning of the year.

From the above data, we can see that the banks loans accounted for 65.95% of the total assets. Obviously, the income source of Huancheng rural commercial bank is only interest income. According to the income statement, in the first half of this year, the banks interest income reached 497 million yuan with a year-on-year increase of 12.19%. At the same time, the proportion of deposit balance in total liabilities was higher, reaching 86.47%. With the growth of deposit taking in the first half of the year and the impact of interest rate marketization, the banks interest expenditure also rose to 307 million yuan, an increase of 50.49% over the same period of last year. Under the combined effect of interest income and expenditure, the banks net interest income in the first half of the year was only 191 million yuan, a decrease of 20.08% year-on-year. In addition, in the first half of the year, the banks investment income also fell by 31.11% to 62 million yuan.

As the main component of operating income, the net interest income and investment income have both declined, which makes it difficult for the rural commercial bank around the city to maintain its profit growth. By the end of the second quarter, the banks operating revenue was 260 million yuan, a year-on-year decrease of 24.71%.

Lets look at the operating expenses. By the end of the second quarter of 2020, Huancheng rural commercial bank has reduced the business and management expenses to 94 million yuan, a year-on-year decrease of 8.74%. As a result, the banks operating expenses decreased by 6.42% to 102 million yuan in the first half of the year.

The above data show that although the banks operating expenses have declined, the net profit of the bank in the first half of the year was only 119 million yuan, a sharp drop of 32.98% compared with the same period of last year.

Moreover, the asset quality of Huancheng rural commercial bank is mixed.

According to the semi annual report, by the end of June 2020, the total amount of concerned and non-performing loans in the five level classification of the bank was 192 million yuan. Among them, the book balance of non-performing loans was 113 million yuan, decreased by 564200 yuan compared with the beginning of the year; the book non-performing ratio reached 0.73%, decreased by 0.17 percentage points compared with the beginning of the year. The balance of special interest loans was 80 million yuan, 20 million yuan lower than that at the beginning of the year.

However, the overdue loans of Huancheng rural commercial bank increased sharply, which laid hidden dangers for the banks asset quality. By the end of June 2020, the actual overdue loans of the banks core system were 746 million yuan, an increase of 342 million yuan or 84.8% over the beginning of the year. By the end of June 2020, the maturity loan recovery rate of the bank was 95.26%. However, at the end of the first quarter of 2020, the actual overdue loans of the core system of Huancheng rural commercial bank were 465 million yuan, 62 million yuan higher than the beginning of the year, an increase of 15.24 percentage points. By the end of March 2020, the maturity loan recovery rate of the bank was 95.17%.

The leader changed in the first quarter

Jilin Huancheng Rural Commercial Bank Co., Ltd., formerly known as Jilin Huancheng rural credit cooperative association. In July 2013, with the approval of Jilin banking regulatory bureau of the former China Banking Regulatory Commission, the former Jilin Huancheng rural credit cooperative association was restructured to establish Jilin Huancheng Rural Commercial Bank Co., Ltd.

According to the annual report, as of the end of December 2019, the chairman of Huancheng rural commercial bank is Bao Wen, and the president is Hong qiubing. However, on January 8, 2020, the reply of Jilin banking and Insurance Regulatory Bureau on the approval of Hong qiubings post qualification showed that the request of Jilin Huancheng Rural Commercial Bank Co., Ltd. on the examination of Hong qiubings post qualification (Jihuan Nongshang Yinfa [2019] No. 458) has been received. According to the relevant provisions of the measures for the implementation of administrative licensing matters of rural small and medium-sized financial institutions of the China Banking and Insurance Regulatory Commission, Hong qiubings qualification as the chairman of Jilin Huancheng rural commercial bank was approved.

The reporter found that in addition to serving as the chairman of Huancheng rural commercial bank, Hong qiubing is also a shareholder of several companies. Among them, Hong qiubing holds 5% of the shares of Beijing Zhongguo Fuqiang Equity Investment Fund Management Co., Ltd., which is the fifth largest shareholder of the company.

According to the national enterprise credit information publicity system, Beijing Zhongguo Fuqiang Equity Investment Fund Management Co., Ltd. was established on July 23, 2014 with a registered capital of 100 million yuan. The business scope includes: business scope: investment management and consultation of non securities business (not allowed to engage in the following businesses: 1. Granting loans; 2. Publicly trading securities investment or financial derivatives trading; 3. Raising funds in a public manner; 4. Providing guarantee for enterprises other than the invested enterprises). Project investment; investment management; asset management; investment consulting; enterprise management consulting. (enterprises shall independently select business projects and carry out business activities in accordance with the law; for projects subject to approval according to law, they shall carry out business activities according to the approved contents after being approved by relevant departments; they shall not engage in business activities of projects prohibited or restricted by industrial policies of the city. )

According to the information of shareholders and capital contribution, Hong qiubing is among them. Tianyancha disclosed that on October 27, 2014, Hong qiubing was a natural person shareholder of Beijing Zhongguo Fuqiang Equity Investment Fund Management Co., Ltd., with a capital contribution of 5 million yuan and holding 5% of the shares, becoming the fifth largest shareholder in the company. Interestingly, Tianyan inspection shows that Hong qiubing is not only a shareholder of Beijing Zhongguo Fuqiang Equity Investment Fund Management Co., Ltd., but also Hangzhou Zhiran equity investment partnership (limited partnership), Gongqingcheng anyong investment management partnership (limited partnership), Gongqingcheng Xingyuan investment management partnership (limited partnership) and Jilin Yongji rural commercial bank Shareholders of joint stock limited companies have 5.33%, 1.94%, 4.76% and 0.12% respectively. Source: China Times editor in charge: Li Zhaoyuan_ B7890

Interestingly, Tianyan inspection shows that Hong qiubing is not only a shareholder of Beijing Zhongguo Fuqiang Equity Investment Fund Management Co., Ltd., but also Hangzhou Zhiran equity investment partnership (limited partnership), Gongqingcheng anyong investment management partnership (limited partnership), Gongqingcheng Xingyuan investment management partnership (limited partnership) and Jilin Yongji rural commercial bank Shareholders of joint stock limited companies have 5.33%, 1.94%, 4.76% and 0.12% respectively.