Written by | Duoke
Source | Bedo Finance
On August 30, Bank of Beijing released its 2023 semi-annual report. Bank of Beijing is based on the new development stage, implements new development concepts, and serves to build a new development pattern. It uses digital transformation to guide the "five major transformations" of development model, business structure, customer structure, operating capabilities, and management methods, and fully promotes the construction of "Digital Bank of Beijing". It has taken more solid steps on the road of high-quality development and delivered an excellent mid-term performance answer sheet to investors.
The financial report shows that as of the end of June 2023, Bank of Beijing's total assets were 3.63 trillion yuan, an increase of 7.22% from the beginning of the year, and it maintained the first place among city commercial banks in scale; it achieved a net profit attributable to the parent company of 14.238 billion yuan, an increase of 4.89% year-on-year, and its operational quality and efficiency continued to remain listed. The level of banks is relatively good; retail AUM (asset management scale) reached 1,009.4 billion yuan, successfully entering the "trillion club" for the first time; the non-performing loan rate was 1.34%, which has been declining for four consecutive quarters; the provision coverage ratio was 217.65%, a year-on-year increase 22.72 percentage points, asset quality is stable and improving, and risk compensation capabilities continue to improve.
High dividends, low valuations and improving fundamentals have led to many securities firms including BOC International Securities, Huatai Securities, Industrial Securities, etc. being actively optimistic and maintaining their "overweight" rating on Bank of Beijing.
Bank of Beijing keeps up with the new trends of technological innovation, industrial upgrading and demographic changes, continues to deepen the new layout of differentiated development, activates new driving forces for characteristic operations, and strives to build an "investment bank-driven commercial bank" to serve the real economy and create high quality again. Develop new achievements.
1. Build a solid foundation for investment banking business and build a diverse cooperation ecosystem
Bank of Beijing actively promotes the increase and quality improvement of bond underwriting business and builds a solid foundation for investment banking business. The data is the best proof. In the first half of the year, the Bank of Beijing's bond underwriting scale was 133.822 billion yuan, a year-on-year increase of 106%. The overall market ranking improved by 9 places to 14th, and the ranking in Beijing increased by 10 places to 2nd. The underwriting scale of Kechuang Notes Ranked first among city commercial banks. There were 162 new syndicated loans issued, amounting to 19.197 billion yuan (excluding internal syndicates), a year-on-year increase of 11.718 billion yuan, with a growth rate of 156.68%. Seizing the opportunity of the comprehensive registration system reform, 13 new M&A loans were issued, amounting to 10.302 billion yuan, a year-on-year increase of 8.7 billion yuan, with a growth rate of 542.87%. Launched the bank’s first Pre-IPO private equity investment business.
Guided by investment banking thinking and led by channel connectivity capabilities, Bank of Beijing promotes the transformation of the business model from "sitting business" that passively meets demand services to "traveling business" that proactively provides value services, creating an "investment bank-driven-resource integration-asset appreciation-wealth" Management-Customer Service” value chain.
Huo Xuewen, Chairman of Bank of Beijing, also gave specific measures at the 2023 semi-annual performance briefing: Within the group, we will actively leverage the advantages of multiple financial licenses such as funds, insurance, leasing, and wealth management to form a portfolio of financial services. Outside the group, we work with leading securities firms, VC/PE, M&A Association, Beijing Stock Exchange, Shanghai Stock Exchange, Shenzhen Stock Exchange, etc. to explore a normalized mechanism for customer mutual recommendation, build a customer resource sharing platform, and continuously open up channels to reach new customers. .
In addition, at the 2023 Global PE Forum held on September 4 with the theme of "Shared Development and Shared Future - Equity Investment Helps High-Quality Development of the Industry", Huo Xuewen introduced how commercial banks can play their due role in equity investment. The Bank of Beijing’s exploration and practice in supporting the development of equity investment was also stated, “Innovate the ‘investment bank-driven’ business model and strengthen integrated services for investment, business and private sectors. Create value with investment banking thinking and strive to build an ‘investment bank-driven commercial bank’.
In the future, Bank of Beijing will continue to improve the investment banking driving system and drive the coordinated development of all business sectors.
2. Build a full life cycle financial service system and fully support the high-quality development of public REITs
Publicly raised REITs are an important measure for the capital market to serve the real economy and high-quality development. They are also a powerful tool for deepening the structural reform of the financial supply side and supporting the implementation of major national strategies. They are becoming another important financing option after stocks and bonds. market.
As a major innovation in infrastructure investment and financing mechanisms, Bank of Beijing will also support the construction of the public REITs market as an important area to serve the development of the real economy, and gradually build a full life cycle financial service system for public REITs.
Relying on multiple financial licenses such as wealth management subsidiaries and public funds to strengthen its portfolio of financial services, Bank of Beijing has integrated the group's financial service resources and launched a full-process service plan for public REITs to help the virtuous cycle of "raising, investing, managing and exiting" infrastructure. Build a full life cycle financial service system for public REITs. At the same time, Bank of Beijing also gives full play to its advantages in customer resources and peer resources, and works with ecological partners such as securities firms, lawyers, and evaluation agencies to jointly help companies issue public REITs and build an "ecosystem" for public REITs.
In the first half of the year, the Bank of Beijing, the Dongcheng District People's Government, and CICC jointly hosted the Beijing Infrastructure REITs Industry Development Conference 2023, achieving full coverage of the market's initial public offering REITs project investments, landing 3 Pre-REITs businesses, and landing the first deal in the market "Green + Science and Technology" dual-labeled REITs, participated in 4 single strategic allocation investments, including 1 single expansion REIT investment, and successfully locked 9 REITs trustee banks to realize strategic allocation, expansion, offline investment, fund sales and accounts It provides multi-role services such as operation management and strives to create "the most friendly bank for REITs".
At present, the Bank of Beijing has initially explored a practical path for commercial banks to innovatively serve public REITs. In the next step, it will give full play to its comparative advantages and fully support the high-quality development of public REITs from three aspects.
The first is to deepen the "asset side" and continuously provide high-quality assets for the continuous issuance of public REITs; the second is to strengthen the "custody side" to make custody operations "more efficient, safer and more convenient"; the third is to work hard to expand the "fund-raising side" ”, creating a business development model that takes REITs as the starting point and expands all-round investment and financing needs.
In the future, Bank of Beijing will continue to innovate and practice, deeply explore the field of infrastructure public offering REITs, work with all parties to jointly create a good REITs ecological environment, and follow the development path of REITs with Chinese characteristics.
3. Rely on “quick-win projects” to enhance full-chain and programmatic service capabilities in key industries
Bank of Beijing fully responded to the "dual carbon" strategy, actively grasped the new trends of industrial transformation and technological change, and launched the first phase of "Quick Win Projects", focusing on the three major industries of wind, solar energy and storage, and selected more than 1,200 target customers in the clean energy industry. List marketing. As of the end of June 2023, Bank of Beijing has implemented a total of 452 "quick-win project" businesses in the clean energy industry, with an amount of 41.551 billion yuan.
Han Xu, deputy governor of the Bank of Beijing, said, “We have focused on transformation and development, actively promoted the reform and optimization of the business environment, published 16 industrial chain and industry research reports, innovated the approval model for quick-win projects in the Yangtze River Delta, established a differentiated approval mechanism, and formulated and Implement differentiated post-investment and loan management work plans and build a more professional, refined and agile risk management and control mechanism.”
Of course, the Bank of Beijing also gave its own "answer": taking industry research as the guide, establishing an agile industry research team, improving industrial thinking and industry cognition capabilities, and deploying industries in advance; using risk control as a guarantee, establishing a quick win in the Yangtze River Delta The project approval model drives high-quality advancement of “quick-win projects” in the clean energy industry.
In the second half of the year, Bank of Beijing will launch the second phase of the "Quick Win Project", focusing on expanding key industries to automobiles, parts, and high-end equipment manufacturing, and gradually realizing "quick wins" to drive "long-term wins."
Looking forward to the future, Bank of Beijing will conscientiously practice the political and people-oriented nature of financial work, improve the professionalism of financial services, strive to create markets, create customers, create products, create services, and create value, continue to increase support for the real economy, and actively build Characteristic operating advantages, strengthen comprehensive risk management capabilities, and contribute more to Chinese modernization with its own high-quality development.