Financial figures ｜ Jin Jiankang, president of Shaoxing Bank, was promoted to chairman, and set up a platform with the new president of ABC.
Source: Xinhua Rong Media sees finance and economics
Author: Li Na
Recently, the leadership of Shaoxing Bank has undergone major adjustments. On December 23rd, official website of Shaoxing Bank disclosed that on December 22nd, Shaoxing Bank held a board meeting and shareholders’ meeting, at which Jin Jiankang was elected as the chairman of Shaoxing Bank. Elect Chen Jun as the director and vice chairman of Shaoxing Bank, and appoint him as the president of Shaoxing Bank; Xu Jiangjun was elected as the deputy secretary of the Party Committee and nominated as a director. The qualifications for the above positions shall be approved by the regulatory authorities.
According to the data, Jin Jiankang is a financial veteran with more than 30 years’ experience. Previously, he mainly worked in China Bank and Wenzhou Bank. After working as the vice president of Wenzhou Bank for one year, Jin Jiankang was appointed as the president of Shaoxing Bank in April 2019. After a year and a half, he has now been promoted to the chairman of Shaoxing Bank. Chen Jun, the new president who succeeded him, was selected by market, and was previously the vice president of Shaoxing Branch of Agricultural Bank of China.
Dongfang Jincheng Rating Report pointed out that in recent years, due to the pressure of impairment losses, Shaoxing Bank’s profitability is average, its profit retention is limited, and it faces a more urgent demand for capital replenishment. Since 2020, the bank has improved its capital adequacy ratio through capital increase and share expansion and the issuance of secondary capital bonds. According to the third quarterly report, as of September 30, 2020, the capital adequacy ratio of Shaoxing Bank was 11.97%, the tier-one capital adequacy ratio was 8.99% and the core tier-one capital adequacy ratio was 8.99%. With the decision of the new chairman and president, the important task of Shaoxing Bank’s future operation and development falls on the shoulders of the new team.
The leadership of Shaoxing Bank has been greatly adjusted.
According to information from official website, Shaoxing Bank, formerly known as Shaoxing City Commercial Bank, was established on December 31, 1997, and changed its current name in 2009. It is a local joint-stock commercial bank with first-class legal person qualification, and its largest shareholder, Shaoxing Financial Investment Co., Ltd., holds 18.54% of the shares. The head office of Shaoxing Bank is located in Shaoxing City, Zhejiang Province, and its business mainly covers Shaoxing City, Jiaxing, Zhoushan, Taizhou and other cities. By the end of June 2020, it had opened 5 off-site branches, 64 branches (including the business department of the head office) and 17 community branches, with a total of 86 outlets.
The reporter noted that in order to enhance the brand image, during the National Day this year, Shaoxing Bank just launched a new bank logo. Near the end of the year, many senior executives of Shaoxing Bank once again heard the news of personnel changes, and a new leadership team was established.
According to the news released by Guan Wei, on the morning of December 22, the bank held a meeting of cadres of the whole bank to announce the decision of the municipal party Committee on adjusting the leadership of Shaoxing Bank. At the meeting, the leaders of the Organization Department of the Municipal Party Committee read out the documents of the Municipal Party Committee. The Municipal Party Committee decided that Jin Jiankang was appointed as Party Secretary of Shaoxing Bank and nominated as Chairman of Shaoxing Bank; Chen Jun was appointed Deputy Secretary of Party Committee of Shaoxing Bank, and was nominated as Director, Vice Chairman and President of Shaoxing Bank; Xu Jiangjun was appointed Deputy Secretary of the Party Committee of Shaoxing Bank and nominated as a director of Shaoxing Bank.
The reporter learned that Jin Jiankang was originally the president of Shaoxing Bank. Official website of Shaoxing Bank shows that in April 2019, Jin Jiankang was appointed as Deputy Secretary, Vice Chairman and President of Shaoxing Bank. In June 2019, Zhejiang Supervision Bureau of China Banking and Insurance Regulatory Commission, China issued an announcement, approving Jin Jiankang’s qualifications as vice chairman and president of Shaoxing Bank. During his tenure, Jin Jiankang was responsible for the operation of the whole bank and presided over the management work.
Jin Jiankang is a financial veteran with more than 30 years of banking experience. According to the data, Jin Jiankang was born in August 1967 in Zhuji, Zhejiang, and joined the work in August 1989. Jin Jiankang mainly worked in the banking system of China in his early years, and served as a loan officer, deputy chief of credit unit, director of Anchang Branch and office director of Shaoxing County Branch of China Bank. Deputy Director of Corporate Business Department of Shaoxing Branch of Bank of China; Vice President (presiding) and President of China Bank Wenzhou ouhai district Sub-branch; Director of Retail Business Department and Director of Personal Finance Department of Bank of China Wenzhou Branch; Vice President of Quzhou Branch of Bank of China. After Jin Jiankang entered Wenzhou Bank. He used to be the president of Hangzhou Branch of Wenzhou Bank and the supervisor of Wenzhou Bank. On June 21st, 2018, the former Zhejiang Supervision Bureau of China Banking Regulatory Commission approved Jin Jiankang’s qualification as vice chairman and vice president of Wenzhou Bank Co., Ltd..
That is, Jin Jiankang, the vice president of Wenzhou Bank for only one year, was transferred to Shaoxing Bank. In another year and a half, Jin Jiankang was promoted to be the chairman of Shaoxing Bank.
According to the disclosure, the new president Chen Jun was selected by the market. According to the data, Chen Jun has the background of Agricultural Bank of China. On June 25th, 2018, Shaoxing Banking Insurance Regulatory Bureau approved Chen Jun’s qualification as the vice president of Shaoxing Branch of Agricultural Bank of China. According to Tianyancha information, from December 2012 to May 2018, Chen Jun was the legal representative of Shaoxing Ke Qiao Sub-branch of Agricultural Bank of China.
The reporter learned from official website of Shaoxing Bank that since October 2014, the post of president of Shaoxing Bank, which has always been appointed administratively, began to be openly recruited for the society. "Personnel reform is one of the key points of Shaoxing Bank’s current reform. From now on, the municipal party committee and the municipal government will only have one chairman and party secretary, and the president and other management personnel will be selected by market, and the original administrative level will be abolished and they will be positioned as professional managers." The relevant person in charge of Shaoxing SASAC said. The establishment of modern corporate governance structure is an important measure for internal reform of Shaoxing Bank.
Regarding the changes in the senior management lineup of Shaoxing Bank, officials of the Standing Committee of the Municipal Party Committee and the Organization Department pointed out that this personnel adjustment is an important personnel decision made by the Municipal Party Committee after comprehensive consideration and careful study, which reflects the concern and attention of the Municipal Party Committee to the construction of the leading group of Shaoxing Bank. Jin Jiankang said that he will unite and lead the staff of the whole bank, seize the opportunity, gather strength, work hard, and strive to find a new way in reform and innovation with the sense of responsibility and mental state of "taking orders from the DPRK and drinking ice in the evening". Chen Jun said that he will be familiar with the situation as soon as possible, integrate into the Shaoxing Bank family as soon as possible, and work together with everyone to make Shaoxing Bank bigger and stronger under the leadership of Chairman Jin in accordance with the decision-making arrangements of the municipal party committee and municipal government.
The historical burden is not small, and the new leadership team shoulders heavy responsibilities.
At the meeting on December 22, officials of the Standing Committee of the Municipal Party Committee and the Organization Department put forward four requirements for the next development of Shaoxing Bank: First, we should strengthen the awareness of development and maintain creative tension; Second, we should strengthen the awareness of taking the lead and stimulate the motivation of reform; Third, it is necessary to establish risk awareness and improve prevention and control capabilities; Fourth, it is necessary to strengthen team consciousness and unite the joint efforts of officers.
The reporter noted that at present, Shaoxing Bank is under certain pressure mainly in terms of capital. According to the requirements of the regulatory authorities, the core tier 1 capital adequacy ratio of commercial banks shall not be less than 7.5%, tier 1 capital adequacy ratio shall not be less than 8.5%, and capital adequacy ratio shall not be less than 10.5%. Judging from the financial report data of Shaoxing Bank in the past three years, the above three indicators are close to the regulatory red line, and the Tier 1 capital adequacy ratio at the end of 2019 is only 0.12 percentage points away from the minimum regulatory requirements.
According to the latest third quarterly report, as of September 30, 2020, the capital adequacy ratio of Shaoxing Bank was 11.97%, the tier-one capital adequacy ratio was 8.99% and the core tier-one capital adequacy ratio was 8.99%. The improvement of capital adequacy ratio is related to the bank’s capital increase and the issuance of capital replenishment tools.
On February 27th this year, China Banking and Insurance Regulatory Commission official website announced that Shaoxing Bank’s capital increase and share expansion plan had been approved. In April 2020, Shaoxing Bank increased its registered capital by 1.2 billion yuan through capital increase and share expansion. This is the sixth time that the bank has increased its capital and shares since its establishment. According to industrial and commercial information, the registered capital of Shaoxing Bank is currently 3.538 billion yuan. The total shareholding of state-owned shareholders of the bank accounted for 57.47%, an increase of 19.03 percentage points over the beginning of the year.
In addition, on May 13th this year, China Banking and Insurance Regulatory Commission official website disclosed that the Zhejiang Supervision Bureau of China Banking and Insurance Regulatory Commission agreed to Shaoxing Bank to issue tier-two capital bonds of no more than RMB 3 billion, which will be included in the tier-two capital of Shaoxing Bank in accordance with relevant regulations. It is understood that the bank has issued 1 billion yuan of Tier 2 capital replenishment tools in August and October 2020. The reporter noted that China Money Network recently announced that Shaoxing Bank plans to issue the third phase of Tier 2 capital bonds with a total amount of RMB 1 billion in the national inter-bank bond market. It is expected that the capital adequacy ratio will be further improved in the future.
In terms of asset quality, the reporter noted that in recent years, the non-performing loan ratio of Shaoxing Bank has been rising continuously for a period of time. The data shows that from 2015 to 2017, the balance of non-performing loans of Shaoxing Bank was 624 million yuan, 749 million yuan and 843 million yuan respectively, and the non-performing loan ratio in the same period was 1.68%, 1.73% and 1.78% respectively. At the end of 2018, the non-performing loan ratio of Shaoxing Bank rose to 2.2%, reaching its peak in recent years. In the same year, the bank’s provision coverage ratio dropped to 125.48%, which was lower than the regulatory standard.
In the latest announcement on the issuance of tier-2 capital bonds, Shaoxing Bank said that after reduction and verification at the end of 2019, it was found that there were non-performing loans and non-clean transfer of non-performing assets, and the historical burden of non-performing assets was heavy. After the above-mentioned off-balance-sheet NPLs are returned to the balance sheet, in 2020, the Bank will dispose of NPLs through collection, sale and transfer, capital increase and write-off of provisions. As of June 30, 2020, the non-performing loans and non-performing assets that were not included in the bank have all been reflected and disposed of. At the same time, firmly grasp the operation, improve profits, and increase provision. By the end of June 2020, the non-performing loan ratio of Shaoxing Bank had dropped to 1.44%, and the provision coverage ratio was 176.49%. Shaoxing Bank said that it would further improve the credit supply and disposal of non-performing assets to control the scale of non-performing assets.
The 2019 annual report shows that as of the end of last year, the total assets of Shaoxing Bank were 128.329 billion yuan. In 2019, it achieved revenue of 2.381 billion yuan, a year-on-year increase of 21.98%; The net profit was 472 million yuan, a year-on-year increase of 21.34%. Based on good performance, Shaoxing Bank has set the main business objectives for 2020 as follows: total assets reach 142 billion yuan; The balance of various deposits reached 101.6 billion yuan; The balance of various loans reached 78.2 billion yuan; The non-performing loan ratio of the five-level classification is less than 1.5%; Bad deviation should be controlled within 100%; The yield is over 97.5%; The profit before provision reached 1.65 billion yuan.
According to the third quarterly report in 2020, as of September 30, 2020, the total assets of Shaoxing Bank were 150.336 billion yuan. From January to September this year, the operating income of Shaoxing Bank was 2.22 billion yuan, with a total profit of 709 million yuan and a net profit of 641 million yuan.
At present, whether Shaoxing Bank can achieve its set goals as expected remains to be disclosed in the 2020 annual report. The next stage of development will fall on the shoulders of the new team.
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