Investigation on rumors of collective pay cut in banking industry

 Investigation on rumors of collective pay cut in banking industry

As the golden rice bowl of the financial industry, banking practitioners have recently become the focus of market attention.

Interface news reporters then to countries have big banks, stock banks, city commercial banks to verify. Generally speaking, people in the banking industry generally say that wage reduction is normal, and even some grass-roots employees lament that it has been impossible to reduce.

Among them, China CITIC Bank and China Construction Bank, which were named for the pay cut, did not respond. Some people from the head office of China CITIC Bank said that they had not received formal notice of a 20% pay cut.

Some insiders of CITIC Bank told reporters on the interface that since this year, wages have been significantly reduced, and housing subsidies, travel expenses and other benefits have been cancelled.

In addition, according to the exclusive information from the interface news, CITIC Group, the parent company of China CITIC Bank, has carried out the special work of increasing revenue and reducing expenditure, reducing cost and increasing efficiency, and required to achieve the target of increasing revenue by 5 billion yuan and reducing cost by 10 billion yuan in 2020.

CITIC Group will cut costs by 10 billion yuan this year, but CITIC Bank did not respond to a 20% pay cut

Interface news also learned that some branches of a large state-owned bank had invisible wage cuts. The Shanghai Branch of the bank told reporters on the interface that the leaders had made it clear that there would be no year-end bonus this year; people from Jiangsu and Zhejiang provinces said that there had been no obvious adjustment in salary, but many benefits had been cancelled.

In addition to direct salary reduction and benefit reduction, the bank should make good use of the discount mode. The base salary is originally small, and 40% is put into the reserved year-end bonus. Few people get it every month, and the year-end bonus may not be paid normally.. Some people in the industry said.

In addition to the big banks, stock banks and some city commercial banks have a hard time.

A listed stock bank personage said to the interface news that it had received a notice to reduce salary by 10%.

The Beijing Branch of another Shanghai stock bank said that affected by the decline in performance, the bonus for bank celebration in the middle of this year had been greatly reduced, and the salary was only 1500 yuan in June.

The customer managers of many city commercial banks in Jiangsu and Zhejiang said that the assessment method had been adjusted, which was obviously a disguised salary reduction. According to a person from a city commercial bank, the salary has dropped by about 1 / 3.

When a number of banks are in a howl, there are also a number of people from a large state-owned bank said to the interface news that since this year, there has been a significant increase in pay adjustment.

This year, affected by the epidemic, the banking industry is one of the few industries with positive growth.

Data show that in the first quarter of this year, Chinas GDP growth was - 6.8% year-on-year, but bank profits achieved a positive growth of 5.62%. The CBRC disclosed that by the end of the first quarter of this year, commercial banks had realized a cumulative net profit of 600.1 billion yuan, an increase of 5% over the same period of last year. The net profit of the six major banks in the first quarter was 271 billion yuan, with a growth rate of 1.8% - 8.5%.

Under such circumstances, the banks are facing great pressure from public opinion. Wang Liang, vice president of China Merchants Bank, said frankly at the general meeting of shareholders of the bank.

At the executive meeting of the State Council held on June 17, it was clearly proposed that the financial system should make reasonable profits of 1.5 trillion yuan to various enterprises throughout the year. Recently, the CBRC also stressed that it is necessary to make greater efforts to make profits out of the real economy.

Have you found that there are fewer and fewer bank outlets around you? On July 11, Beiqing Beijing headline reporter checked the financial license information platform of the CIRC and found that 1318 branches of commercial banks had been closed in the first half of this year (January 1, 2020 to June 30, 2020), and 63 outlets had withdrawn from the market from July 1 to July 3.

276 outlets that withdrew from the market in the first half of the year belong to subcontractor banks

It is worth noting that 276 outlets closed in the first half of this year belong to the original contractor banks. On April 30 this year, nearly one year after being taken over according to law, the risk disposal of the subcontractor bank ushered in the final critical step. The newly established Mongolian Commercial Bank will acquire and undertake the relevant business, assets and liabilities of the head office of the subcontractor bank and the branches in Inner Mongolia Autonomous Region; the branches outside the Inner Mongolia Autonomous Region will be undertaken by Huishang bank.

Excluding the outlets of subcontractor banks, in the first half of this year, a total of 1042 branches of Chinas commercial banks closed down, compared with 1177 in the same period last year. It can be seen that the closing speed of bank outlets has slowed down, and it does not increase as some media say.

Six major banks shut down one third of the total

According to Beiqing Beijing headline reporter statistics, in the first half of the year, the number of outlets closed by the six state-owned banks accounted for one third of the total. Specifically, there were 125 Agricultural Bank of China, 88 Bank of China, 82 China Construction Bank, 76 Bank of communications, 68 postal savings bank and 48 industrial and Commercial Bank of China, with a total of 487 bank outlets, accounting for 36.95%.

In terms of region, 27 commercial bank outlets were closed in Beijing and 11 in Shanghai in the first half of the year. The largest number of closures were in the following provinces: 103 in Guangdong, 83 in Shandong, 84 in Zhejiang, 49 in Jiangsu, and 319 in Guangdong, Shandong, Zhejiang and Jiangsu, accounting for 24.2% of the total number of outlets closed by commercial banks in China, close to a quarter.

From the point of view of the types of outlets, community sub branches are the focus of each bank. In the first half of the year, a total of 318 community branches withdrew from the market, including 59 from Minsheng Bank, 26 from Industrial Bank and 18 from Everbright Bank.

Last year, the average delisting rate of banks was close to 90%

For the significant reduction of physical outlets in the banking industry, industry insiders generally believe that the most important reason is the electronic banking business. As most of the business can be handled online through electronic channels, customers no longer need to visit the outlets in person.

The key quantitative index to evaluate the business situation of banks through electronic channels is the rate of bank delisting. It refers to the ratio between the business volume handled by customers leaving the counter and the total business volume of the bank. The higher the ratio, the more customers will handle business through network, mobile payment and electronic self-service channels. Chinas more and more low dependence on the bank outlets indicates that the degree of business leaving the bank is increasing significantly.

According to the data released by the China Banking Association, the average delisting rate of banking financial institutions in 2019 reached 89.77%, 1.1 percentage points higher than that of 88.67% in 2018, while the average delisting rate of banking industry in 2013 was 63.23%. Many state-owned banks and joint-stock banks have replaced over 90% of the counter transactions, and some banks have even exceeded 95%.

The most direct manifestation of the rising off counter business rate is the rapid growth of e-banking transaction volume. Data shows that in 2019, the number of online banking transactions of banking financial institutions reached 163.784 billion, a year-on-year increase of 7.42%, and the transaction amount reached 1657.75 trillion yuan; the number of mobile banking transactions reached 121.451 billion, with a transaction amount of 335.63 trillion yuan, a year-on-year increase of 38.88%; the number of transactions on e-commerce platforms reached 83 million, with a transaction amount of 1.64 trillion yuan; the delisting rate of the whole industry was 89.77%.

With the decrease of the number of bank outlets, the number of bank employees also changes. According to the annual report, the number of employees of ICBC, ABC, BOCOM and BoC will decrease to varying degrees in 2019, with a total of 16319 employees in the four major banks. Among them, Agricultural Bank of China had the largest reduction of 9680 employees, followed by industrial and Commercial Bank of China with 4190 employees. It is understood that by the end of 2019, the Agricultural Bank of China has reduced more than 16000 counter staff posts, and a large number of these employees have transferred to other posts.

The number of bank outlets will be reduced and more high-tech

Lianxun securities research report pointed out that outlets are the most expensive channel resources for banks. Whether the effective return can be achieved will determine the overall performance level of the bank. However, it is obvious that the ability of listed banks to absorb deposits has declined significantly. On the other hand, the rent and labor costs of outlets, hardware maintenance costs and equipment renewal investment demand also rose passively under the pressure of competition, further increasing the profit pressure of outlets. These are the factors that must be considered when the bank adjusts the network layout.

Wu Wen, a senior researcher at the financial research center of BOCOM, believes that with the in-depth application of financial technology, the pace of comprehensive transformation of outlets will be accelerated. In addition to the decrease in the number of outlets, it will also become a trend for outlets to further combine traditional banking services with financial technology.

Some people in the industry also pointed out that the scale shrinkage of traditional banking outlets is a trend, but it will not disappear. Traditional outlets should take advantage of the characteristics of offline channels, such as more customer contact time, good interaction effect and high bank participation, to play the marketing, consulting and service functions.

A senior person from a city commercial bank in the Yangtze River Delta stressed to Beiqing Beijing headline reporter that although everyone is focusing on the development of online business, the value of offline outlets can not be ignored. Small banks, in particular, have no advantage in acquiring customers online. They need outlets as physical carriers to contact customers more closely and establish relationships. It is not necessarily to pull deposits. It is very convenient to guide customers to download app and open online banking. For another example, banks need to carry out some customer activities frequently. It is certainly safer and more reassuring in their own outlets than in hotels or clubs, which can reflect the characteristics of banks.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }Source: Voice of Securities Daily Author: Yu Junyi, editor in charge: Kang Ruixin_ NB16727