Author | Zhou Gu
Source | Laser Finance (leishecaijing)
After completing the equity acquisition of the consumer finance license, Bank of Nanjing began to promote the outward expansion of the consumer finance of the Bank of China, France and Brazil.
"Laser Finance" exclusively learned that the Bank of South China-France-Pakistan Consumer Finance intends to set up offline direct sales centers in Hefei, Chengdu and other places, and develop the national consumer finance business through direct sales teams.
At the same time, the consumer finance (CFC) business line of Bank of Nanjing has strengthened the business linkage with the consumer finance of Bank of China, France and Brazil. Sources also said that the offline team of Bank of China BNP Paribas Consumer Finance participated in the promotion of Chengyidai, CFC's flagship consumer loan product.
"The Xinmengxiang team in the Consumer Finance Center of the Bank of Nanjing may also be transferred to the Consumer Finance Department of the Bank of Nanjing." Xinmengxiang is an online loan service platform launched by the Consumer Finance Center of the Bank of Nanjing. Its products include Chengyidai and Geekdai , Carpenter Loan, Maker Loan, the interest rate range is 10.8%-19.8%.
A practitioner close to Nanjing Bank's consumer finance business revealed that Nanjing Bank's Chengyidai product has loose entry requirements among similar products and a high pass rate. Some salesmen can put 15 million yuan a month. "The product advantages in the early stage can create conditions for the Bank of China, France and Brazil to open up the market for consumer finance."
According to public information, Nanjing Bank’s Consumer Finance Center (CFC) is a direct operating organization of Nanjing Bank specializing in consumer finance business. It is jointly operated and managed by Nanjing Bank and BNP Paribas. Multi-family branch consumer finance center.
Previously, since Bank of Nanjing acquired the controlling stake in Suning Consumer Finance, Zhang Weinian, general manager of Consumer Finance Center of Bank of Nanjing, served as the chairman of the consumer finance company, and Bai Bin, the deputy general manager, served as the general manager of the consumer finance company. The weight of consumer finance companies in the consumer finance business of Bank of Nanjing has increased.
Bank of Nanjing also said that after the acquisition of Suning Consumer Finance, the consumer finance center will focus on integrating traditional offline and online customer acquisition channels to enhance core competitive advantages, release growth potential in the national market, and create a new model for Nanjing Bank’s business development and profit creation. growth point.
It can be seen that relying on consumer finance licenses to carry out offline direct sales business will be an important step for Nanjing Bank's consumer finance to expand nationwide. This is also similar to Bank of Ningbo's strategy to promote the expansion of Bank of Ningbo's consumer finance. In fact, the current leading consumer finance company Xingye Consumer Finance has obvious advantages in offline direct sales business, and China Merchants Union is also trying to explore offline business.
In view of the offline business layout plan of Bank of China's BNP Paribas consumer finance, as well as the business planning of Bank of Nanjing CFC and Bank of China's BNP Paribas, "Laser Finance" sought confirmation from Bank of Nanjing. Bank of Nanjing stated that at present, the Bank of South China-France-Pakistan Consumer Finance has released recruitment plans for different cities through recruitment channels, and the recruitment work is progressing steadily.
Dismantling Nanjing Bank's consumer loans
As a leading city commercial bank, Bank of Nanjing is also a typical stock player in the field of consumer finance. It not only has strong capital support, but also has technology, business development experience and team advantages. When the Bank of South China-France-Pakistan Consumer Finance expands its assets across the country, it will also feed back the profit growth of Bank of Nanjing and increase the proportion of consumer financial assets in interest-earning assets.
According to the 2022 semi-annual report, the main profit of Bank of Nanjing comes from interest income. As of the end of June 2022, the interest income of Bank of Nanjing reached 33.687 billion, a year-on-year increase of 6.62%. Interest income is mainly contributed by interest-earning assets, of which personal loan interest income is 8.183 billion, accounting for 24.29%, second only to corporate loans.
Looking specifically at the loan business structure, Bank of Nanjing’s total loans in the first half of 2022 were 903.617 billion, an increase of 113.295 billion or 14.34% from the beginning of the year. Among them, corporate loans and advances were 652.520 billion, an increase of 100.480 billion or 18.20% from the beginning of the year; personal loans were 251.097 billion, an increase of 12.816 billion or 5.38% from the beginning of the year.
In the personal loan business, consumer loans accounted for the highest proportion. During the reporting period, Nanjing Bank’s credit card overdraft was 9.603 billion, accounting for 3.82%; housing mortgage loans were 85.272 billion, accounting for 33.96%; consumer loans were 127.181 billion, accounting for 50.65%; operating loans were 29.041 billion, accounting for 11.57%.
In terms of consumer loan business, Bank of Nanjing mainly relies on the four major business segments of Nihao e-loan, consumer finance (CFC), Internet finance, and credit card. During the reporting period, the balance of Nihao e-loan loans was 30.9 billion, the balance of online financial consumer loans was 51.833 billion, and the balance of credit card overdrafts was 9.603 billion.
The balance of consumer finance (CFC) consumer loans was 43.7 billion, an increase of 1.8 billion from the beginning of the year, and a total of 23.56 million customers were served. In terms of business development methods, on the one hand, CFC conducts offline business through its direct sales team, and on the other hand, connects to Duxiaoman, JD Finance, Vipshop Finance and other online channels to carry out loan assistance business. After acquiring the controlling stake in Suning Consumer Finance, CFC will focus on the mid-end customer base and focus on the national market.
In addition to the consumer finance center business, Nanjing Bank's credit card business also maintained a growth momentum. Bank of Nanjing promotes the upgrade of N Card credit card, and creates a growth point for the comprehensive income of N Card credit card by introducing the concept of paid membership. As of the end of the reporting period, Bank of Nanjing issued a total of 1,820,500 credit cards, an increase of 283,400 from the beginning of the year, of which 849,300 N Cards were issued, an increase of 265,400 from the beginning of the year, and N+ members exceeded 120,000.
Compared with the top city commercial banks, excluding the credit card business, Bank of Nanjing's consumer loan volume is second only to Bank of Jiangsu and Bank of Ningbo, surpassing Bank of Shanghai (117.968 billion in the same period) and Bank of Beijing (100.624 billion in the same period).
While maintaining an advantage in volume, Bank of Nanjing’s consumer loan asset quality also ranks among the top among city commercial banks. Nanjing Bank's personal loan non-performing ratio was 1.16%, an increase of 0.28 percentage points from the beginning of the year. Among the distribution of non-performing personal loans, the non-performing rate of credit card overdraft is the highest, reaching 2.33%; the non-performing rate of consumer loans is 1.57%; the non-performing rate of operating loans is 1.08%; the non-performing rate of housing mortgage loans is 0.44%.
Consumer finance is an important support for Bank of Nanjing's retail financial business. Bank of Nanjing said it will accelerate the development of specialized consumer financial institutions and acquire a controlling stake in Suning Consumer Finance. With the "Troika" strategy of retail loans, promote the coordinated development of retail housing loans, consumer loans and operating loans.
Right now, the consumer finance of Bank of China, France and Brazil has become the core strategic fulcrum of the consumer finance business of Bank of Nanjing. Using the consumer finance license and direct sales team, Bank of Nanjing is expected to expand its advantages in consumer loan business, and remove obstacles to cross-regional development and attacking sinking markets.
Judging from the loan distribution of Bank of Nanjing, the current regional characteristics are relatively obvious, and there is an urgent need for consumer gold licenses to expand nationwide. Nanjing Bank’s loans are mainly distributed in Jiangsu. As of the end of June 2022, Nanjing Bank’s loan balance in Jiangsu was 751.761 billion, accounting for 83.20% of the total loan balance; areas outside Jiangsu are also concentrated in Shanghai, Beijing, and Zhejiang.
Bank of Nanjing initiated the equity acquisition of Suning Consumer Finance at the beginning of this year. In March, it completed the signing of a 41% equity acquisition agreement for Suning Consumer Finance. In August, the China Banking and Insurance Regulatory Commission approved Bank of Nanjing’s transfer of Suning Consumer Finance Co., Ltd. held by Suning.com Group. 36% equity and 5% equity held by Jiangsu Yanghe Distillery.
At present, Suning Consumer Finance has completed the equity change, and the company has changed its name to Nanyin Faba Consumer Finance and has become a holding subsidiary of Bank of Nanjing. In September, Bank of Nanjing announced a directional capital increase in the consumer finance of Bank of China, France and Brazil. Bank of Nanjing plans to increase capital by 2.914 billion, and the capital contribution ratio will increase from 56% to 65%. BNP Paribas plans to increase capital by 1.486 billion, and the capital contribution ratio will increase from 3% to 30.08%.
After the capital increase, the registered capital of BOC-Public Consumer Finance increased from 600 million to 5 billion. Bank of Nanjing and its shareholder, BNP Paribas, together hold 95.08% of the equity of BOC-Public Consumer Finance. At the same time, the shareholding ratio of Suning.com and other shareholders is less than 2%, which means that Bank of Nanjing has further concentrated its control over Bank of China, France and Brazil's consumer finance through capital increase.
When the upper limit of the consumer finance of the Bank of China, France and Pakistan is expanded, coupled with the linkage between banks and consumer finance companies, the vision of Nanjing Bank's consumer loan business to become bigger and stronger is expected to be accelerated.