The big retail sales of Merchants Bank increase the profit accounted for 3%

According to the current development of China's banking industry, capital constraints are increasing, and the strategic position of retail business is becoming more and more prominent. In the face of the increasingly fierce retail competition, China Merchants Bank, the first to start in the retail bank, is also seeking to change, while maintaining the steady growth of the scale, focusing on improving the pricing ability of retail business, improving the structure of retail business and establishing a new management structure.　　This also is the key point of "two times transition" of retail business of CMB.　　November 5, in Shenzhen Merchants Bank Building meeting room, vice President Ding Wei for this newspaper outlines the major retail management system reform, and detailed the three major retail development strategy. The three strategies of retail business 21st century: The first three quarters, the retail business development status of the CMB?　　CMB earlier proposed that the future retail loans accounted for the total loan balance of the target is 40%, how quickly to achieve this goal? Ding Wei: This year, according to the Weihua president of the "two transition" strategic concept, the overall upgrade of management level, operating performance increased significantly. At the end of the three quarter, the total amount of loans and advances amounted to about 1.3 trillion yuan, retail loans accounted for 35.42%, when the new 90 billion yuan.　　We planned to achieve a 40% per cent retail loan target in 5 years, which could be achieved this year without the pressure of capital constraints. Retail loans brought in 60% of the retail sector, and the retail intermediary business contributed 40%.　　In the previous September, fees and commissions net income accounted for 15.87% of the revenue, while the best international banks accounted for about 35% to 40% of the median business, and the potential of the bank was great.　　21st Century: What is the sustainable growth retail intermediary business of the Merchants Bank? Ding Wei: Mainly has the credit card, the agent insurance and the fund sale, the finance business and so on.　　Last year, we represented 399 million of our insurance revenue, which has grown to 590 million by the end of August, and is expected to achieve a target of 800 million per cent by the end of this year, up 100% from last year. In the first half, the number and amount of financial products were increased by more than 30% over a year earlier. Private banking we started two years ago, and now it is growing very fast, adding more than 300 households in September, currently managing 240 billion of personal assets, the total number of clients has reached 12,000, and the average asset is 20 million. The business has been profitable for 6 million yuan in the first half.　　It is expected that sales of financial products to private bank customers throughout the year can achieve revenue of 300 million, very considerable. The credit card was profitable last year. By the end of September, 3.3 million new cards had been issued this year, with a total of 32 million cards and more than 17 million valid cards. Originally our development is happy enclosure, now not allowed.　　The two core competencies of CMB's credit card are management risk and business risk.　　"21st century": with the bank's business transformation, retail banking competition is increasingly fierce, the strategic focus of CMB? Ding Wei: three major strategies. One is to build the best retail banking team, which is the key. Merchants Bank to create a sufficient quantity, reasonable structure, excellent quality, professional ability, recognition of the silver culture of retailTeam。　　This is the core competitiveness of the future retail Bank of CMB. Second, to have a high-quality customer base. From the beginning of a card, we have laid a very good customer base, now a card card issuance volume has reached more than 55 million, credit cards reached more than 32 million, the two groups of customers cast a strong foundation for retail.　　This year, China Merchants Bank's high value customers grew quickly, at the end of September, the total assets of more than 500,000 retail customers added 81,900, although affected by the market, we get customers slower than expected, but in the same industry is the fastest. Third, electronic. This is a key factor in deciding whether CMB can compete with big banks.　　In the first half of this year, CMB launched the "I Financial", November 4 and China Unicom jointly released the "iphone Phone bank." CMB's electronic has been more perfect, professional version of the effective customer over 5 million, electronic banking business replacement rate reached 82%. What concept? Without electronic means, we will have to add 450 more outlets and 2600 people to solve these operations. Electronic focus on "sending customers home" can save huge expenses.　　I recently put forward the "two general" requirements of any electronic solution to the business, we must let customers to solve the electronic solution; any business that can be solved through a remote bank will not be allowed to solve in the physical network, which would greatly enhance the contribution of the electronic.　　"21st century": in the optimization of the cost of the net, CMB has any measures? Ding Wei: Recently we put forward the concept of "new concept bank", that is, set up electronic equipment on the first floor, Dot move to the second floor, this model is two branches in Guangzhou pilot. Can be a simple account, one of the branches, the first floor rent per square metre of 380 yuan a month, the second floor rent is only 80 yuan, the difference is 4 times times more; another branch of physical network moved to the second floor, the rental costs from 600 yuan per square metre straight down to 100 yuan. Now the retail profit contribution is low, the reason is that the network cost is too high, the network cost of 70% are amortized to the retail line.　　In the future, the network set to change the concept, both the need for large outlets, but also the need for new concept Bank of this network.　　Retail Headquarters Integration Resources "21st century": it is said that CMB recently set up a retail headquarters, decided to vigorously integrate retail business. Ding Wei: We have recently set up a retail financial headquarters and have started to run. Why should retail headquarters be set up? We want to maximize the benefits of all resources in the retail line. The original retail has a number of lines, sometimes resources can not be integrated, such as on your birthday, you may receive the credit card department to send you the information, may also receive the information sent by the retail department, a loan customers can also receive a credit line information, which causes the waste of resources.　　After the establishment of the headquarters, we target a customer, providing a full range of retail financial services, rather than a single product line services. After the establishment of retail headquarters can also be consolidated bills, such as credit card bills, personal assets bills.　　Through the electronic Bill integration, the annual Merchants Bank can save 18 million yuan cost. "21st century": someIs it difficult to integrate with different services in the retail sector? Ding Wei: The credit card center and the retail banking department are not fully integrated.　　We put forward "two cards, one network and one loan", to the customer group to subdivide, and cross sales. In the near period, we must unify the customer resources, the integration information system, the integration management and the service backstage. At present, hardware integration is no problem. The unification of the database should be brought out early next year. Private banking Software Integration program has been introduced, the integration of private banks will be unified brand, unified standards, unified products, unified training, the past many branches are their own training of customer managers and design products, a little "fragmented", now the system to change, not allowed to do so.　　After the reform, the quality of the product, the degree of risk can also be greatly reduced.　　"21st century": how to Subdivide customers before cross-selling? Ding Wei: We will study the habits of our customers according to the data, especially the study of consumption habits.　　For example, by looking at your consumption data, we know that you are like to buy books, stereos, or like to travel, for your habits to recommend more relevant products, provide more relevant services, so that the targeted sales are strong. Cross-selling is not a person selling multiple retail products, but professional people do professional things, mainly through the Customer Manager "referral" to do, because the data and information systems are shared.　　For example, CMB private bank account manager, it is impossible to do everything, he has a team behind the support of a variety of professionals to provide professional support.　　"21st century": what institutional reforms will be involved in this retail headquarters? Ding Wei: Mainly including the whole line of personnel training, talent standards, product development, etc., these should be unified by the retail headquarters to grasp, and finally achieve the management of the Matrix.　　This is different from the business department, we do not carry out separate accounting, just analog accounting, the system of the Bank of ICBC or three-tier structure. In fact, for China's retail banks, there is no best model, only the most suitable for their own model. The Business Department system has both advantages and disadvantages, benefits in the "smooth", but its biggest problem is that the cost is too large, resources are not optimized, we do not engage in the department of Business is this truth. The retail financial headquarters of CMB will be under the unified leadership of the head office, personal belongings. It is a quasi-business unit system, the advantage of which is the approved cost.　　The core of the "two-time transformation" of the Bank is to improve the management level and enhance the cost-effectiveness.　　"21st century": then whether the Bank of the bank to calculate the establishment of retail headquarters to invest how much cost, how much benefit? Ding Wei: It has been calculated that retail revenue accounted for 40% of the total income of CMB, but the profit contribution is not high, currently only 23%.　　Our goal is to increase the profit contribution by 3% each year, our vision is to achieve the goal of 40%, when to achieve, also need to be measured.　　Because it is the integration of the existing lines, do not have to invest in what costs, will be more and less investment.　Loan Adjustment Path 21st century: What is the new increment of CMB's loan this year?　Ding Wei: Last year, China Merchants Bank added a loan of 150 billion yuan, in the 23-year history of the CMB for the first time over the public loans, which in the joint-stock banks are not. This year, the total number of new loans is estimated at 100 billion yuan, the end of the three quarter has reached 90 billion yuan.　　China Merchants Bank non-performing Loans is the lowest in the Chinese banking industry, the end of the three-quarter non-performing balance of only 490 million yuan, non-performing rate of 0.12%.　　21st Century: What is the loan structure of CMB after the influence of the mortgage on the regulation policy? Ding Wei: The mortgage did shrink. Non-mortgage business, we do a large number of consumer loans, car loans, operating loans, increase diversification, pricing level is very high. This year, the bank's mortgage rates are priced higher than the average price of the national banking sector, and the pricing capacity of non-mortgage loans in the CMB is also very high.　　For example, operating loans, the interest rate this year rose 100 more than BP last year. The recent central bank interest rate hike is good for CMB.　　In the deposit structure of China Merchants Bank, 55% is current, and income increases after interest rate hikes.　　21st Century: Will the loan structure continue to adjust in the next year?　　Ding Wei: In keeping with the development of the non-mortgage business, the mortgage can not be completely done, because the regulation of capital requirements is high, and the mortgage is relatively only half of the capital consumption. We need to design a reasonable proportion next year if we still manage by capital. Generally speaking, the ratio of home loans to non-mortgage loans to 6 4 is reasonable.