| There is no shortage of money on the books, so why do we need to continue to attract foreign investment?
Article | Shang Xiaoshu, researcher of Big Business Club
At the end of the middle of 2022, another shocking thing appeared in the turbulent financial world!
"President resigned", "stock price plummeted", "opened a new chapter", "reported the case"... In just a few days, the public opinion storm surrounding Bank of Nanjing continued to ferment, catching the investors and depositors behind it off guard.
There is always no storm without fire in the capital market. After opened on June 30, the share price of A shares of Bank of Nanjing fell rapidly, once hitting the limit , and fell 6.46% as of the close of the day.
(data from Oriental Fortune Network)
On the evening of July 1st, the Bank of Nanjing issued an announcement stating that the relevant information recently circulated on the Internet was malicious rumors, and it had been reported to the public security agency. There is a piece of news that "an analyst from Western Securities was fired".
(data comes from announcements of listed companies)
A "secret war" surrounding the leaders of domestic city commercial banks and the related forces behind them is breaking out, but the "whistleblower" was hastily dismissed soon after entering the battle, which can't help but make Chigua even more worried. The crowd was filled with imagination.
What happened to Bank of Nanjing?
After combing through the big business community, we found that in the past few years, this city commercial bank giant who has been known as a "good student" is not as stable and practical as people imagined. Instead, he has been punished by relevant departments, which can be said to be troublesome. Constantly?
1
For a banking system where "stability" is a priority, a sudden personnel "earthquake" usually means something big is about to happen.
According to the announcement of the Bank of Nanjing, Lin Jingran submitted a resignation report to the company's board of directors on June 29, requesting to resign as the company's director, chairman of the risk management committee of the board of directors, member of the development strategy committee, president, financial person in charge and the company's authorized representative position. His resignation will take effect from that day.
(data comes from listed company announcements)
announcement also showed that the reason for Lin Jingran’s resignation was “due to work needs and other appointments.”
Soon, the media revealed that Lin Jingran, the former president of the Bank of Nanjing after his resignation, "appeared" in the leadership column of Nanjing Southeast State-owned Investment Group Co., Ltd. (hereinafter referred to as Southeast Group), and his identity after assuming the new post was Southeast Vice Chairman and Party Committee Member of the Group.
(data comes from the official website of Oriental Group)
Many people may not be familiar with Lin Jingran’s next company, Southeast Group. According to information on the official website of
, Southeast Group is a wholly state-owned company established by the Nanjing Municipal Party Committee and Municipal Government to accelerate the development of Jiangnan functional zones such as Hexi New Town, Southern New Town, Xianlin University Town, and Qilin Science and Technology Park, with a registered capital of 5 billion. yuan. As of the end of 2021, the group's total assets were nearly 190 billion yuan and its net assets were approximately 62 billion yuan. â‘
Obviously, no matter in terms of asset size, business scope, development prospects, or industry influence, Southeast Group, which is located in a corner, cannot compare with Bank of Nanjing.
In fact, considering the special personnel organization structure of the banking industry, it is very common for senior executives to move within the banking system. Even the presidents of large state-owned banks have many "rotational" appointments.
For example, on February 5 last year, Bank of Chinaformer President Wang Jiang resigned from the bank's vice chairman, executive director, board strategic development committee member and president positions due to job transfer, and became president of China Construction Bank.
However, there are few cases like Lin Jingran, the former chairman of the Bank of Nanjing, who jumped out of the original financial system and became the second-in-command, supplying talents to a local state-owned enterprise.
Public information shows that Lin Jingran was born in 1974 and worked successively in branches, branches and sub-branches of Bank of China, Minsheng Bank and Bank of Nanjing. In May 2020, the Jiangsu Banking and Insurance Regulatory Bureau approved Lin Jingran’s qualifications as president of the Bank of Nanjing.
(Screenshot from Bank of Nanjing’s financial report)
In other words, Lin Jingran has only been the president of Bank of Nanjing for about two years, which is really surprising for a young cadre born in the 1970s who has just reached the pinnacle of his career.
It is worth noting that in addition to the major change of executives, another interesting thing happened at the Bank of Nanjing that day: the original seal was invalidated and a new seal was activated.
The announcement stated that due to "Bank of Nanjing Co., Ltd.". The seal has been used for a long time and has been severely worn. In order to facilitate the smooth progress of various tasks, it was decided to replace the seal. The name of the new seal remains unchanged and has been registered.
However, the media later checked the official website of the Bank of Nanjing and found that the announcement could not be found. , suspected to have been removed.
(Screenshot from the official website of Bank of Nanjing)
One wave after another -
The Bank of Nanjing’s “refutation of rumors” may be related to a WeChat group chat record that was recently posted online. Chat records show:
html On June 30, a group member named Fu Mingfei@Western Communications Chief (asking for support) said in a group chat, "The Bank of Nanjing is said to have a big hole" and "those who have deposits are advised to transfer them as soon as possible." It also reprinted a Weibo message that "Recently, Deng Zhiyi, president of Oriental Assets , has been appointed deputy mayor of Nanjing to assist in handling financial risks," as well as a screenshot of the stock price performance of Bank of Nanjing that day, which aroused heated discussion among members of the group
. The chat record was forwarded in large numbers and quickly spread on the Internet. On July 1, the official website of the Bank of Nanjing issued an announcement saying that due to the long life and serious wear and tear of the "Bank of Nanjing Co., Ltd." seal, for convenience. All work was carried out smoothly, and the bank decided to change the name of the new seal, which was registered at the Xuanwu Branch of the Nanjing Public Security Bureau. The original seal was invalidated and destroyed on the same day. Why did the president leave? Is the information true? Questions are coming one after another, and the doubts from the outside world have not yet been completely solved.
In just 72 hours, Bank of Nanjing has plunged itself into a crisis of trust...
2
After Lin Jingran resigned and "seal." After the "gate" incident came out, the share price of Bank of Nanjing once hit the limit.
On that day, the turnover rate and trading volume of Bank of Nanjing's A shares increased sharply, with the transaction volume reaching an astonishing 3.734 billion, more than 7 times that of the previous day. , showing that a large amount of money fled after hearing the news.
In addition to the short-term emotional catharsis caused by bad news, whether Bank of Nanjing has a "thunder" in financial indicators has also become the focus of people's attention and discussion.
According to the 2021 annual report, Bank of Nanjing achieved operating income of 40.925 billion yuan, a year-on-year increase of 18.74%; it achieved net profit attributable to shareholders of listed companies of 15.857 billion yuan, a year-on-year increase of 21.04%. Basic earnings per share are 1.54 yuan; it plans to distribute a cash dividend of 4.754 yuan (tax included) to all shareholders for every 10 shares, totaling 4.7573 billion yuan in cash dividends, accounting for 30% of the net profit attributable to shareholders of the parent company. ②
’s 2022 first quarter report released on the same day showed that Bank of Nanjing achieved operating income of 12.277 billion yuan in the first quarter, a year-on-year increase of 20.39%; it achieved a net profit attributable to shareholders of listed companies of 5.015 billion yuan, a year-on-year increase of 22.33%.
However, the two glamorous financial reports did not dispel investors' doubts about Bank of Nanjing. The reason seems to be that compared with listed companies in the same industry, the performance of Bank of Nanjing seems to be "good" and unrealistic.
According to the 2021 financial report data, the non-performing loan rate of Bank of Nanjing last year was 0.91%, and has remained below 1% in the past five years. This is almost much higher than the average level of A-share city commercial banks. Among all 42 listed banks, only Changshu Bank , Postal Savings Bank , Bank of Ningbo and Bank of Hangzhou have lower NPL rates than Bank of Nanjing. ③
At the same time, there are market rumors pointing out that based on Bank of Nanjing’s existing loan structure and the risk exposure of the corresponding sectors, the non-performing loan rate as low as 0.91% is too abnormal."About 40% of Nanjing Bank's corporate loans are real estate loans, and more than 50% of the loans are credits for industrial fund government projects."
However, when major commercial news agencies checked the financial reports and consulted media reports, they found that there was no data to support the relevant market rumors, but it is true that Bank of Nanjing's operating data is significantly "better" than its peers. As of the end of 2021, the bank's corporate loan balance invested in real estate was 37.415 billion yuan, an increase of 10.741 billion yuan from the end of the previous year, the proportion has increased, and the non-performing rate increased from 0.004% to 0.08%. During the same period, the non-performing rate of the real estate industry of Bank of Jiangsu was approximately 1.47%; the balance of personal mortgage loans was 81.983 billion yuan, and the non-performing rate was 0.38%. â‘Ł
It is worth noting that in the industry, it is not uncommon for listed banks to use various "financial techniques" to cover up bad debt problems and whitewash financial reports in order to achieve evaluation goals. For example, in January 2018, Shanghai Pudong Development Bank Chengdu Branch reported to 1,493 shell companies were granted credit of 77.5 billion yuan in exchange for the relevant companies' capital contribution to assume the bank's non-performing loans. The bank was punished by the Sichuan Banking Regulatory Bureau. In that year, the non-performing loan rate announced by Shanghai Pudong Development Bank was still as high as 1.92%. ⑤
In contrast, investors seem to have more reason to doubt whether the Bank of Nanjing, which looks glamorous but violates the laws of business development, is hiding something inside?
3
's strong earning power and high-quality credit assets are the labels surrounding this "good student" of Bank of Nanjing, but this seems to be in sharp contrast to its constantly collapsing reputation.
According to information from the official website of the China Banking and Insurance Regulatory Commission, Nanjing Bank and its branches have been subject to 41 administrative penalties since 2017, of which loan and interbank fund management and control issues accounted for 50%. It is clearly stated that illegal funds flow to restricted areas such as real estate, real estate, and securities. The number of penalties reached 12 times.
(Screenshot from the public account "Red Star Capital Bureau")
On the one hand, the regulators are mainly focused on rectifying the chaos in the banking market, and they continue to punish Bank of Nanjing for its unilateral pursuit of business expansion and failure of internal controls. On the other hand, the regulators On the one hand, Bank of Nanjing has been criticized verbally and writtenly by users for a number of products such as "Nanyin Financial Management", "Chengyidai" and "Xinmengxiang" that are suspected of infringing on consumer rights.
(Screenshot from Black Cat Complaint official website)
As of July 3, 2022, you can see a total of 440 results by searching for the keyword "Xin Mengxiang" on the Black Cat Complaint Platform, most of which point to its alleged illegal charges and high fees. Interest rates, false propaganda and other issues; a user said on the platform, "I took out a loan of 8,500 yuan on the platform. The contract clearly states that the annual interest rate is 7.5%, divided into 12 installments, but the repayment in each installment is 803.76 yuan, reaching an annual interest rate of 36%. The contract is clearly inconsistent with usury, and the interest is required to be refunded. "
(Screenshot from the official website of Black Cat Complaints)
At the same time, Qichacha data shows that Nanjing Bank is the plaintiff in 8,342 financial loan contract dispute judgment documents. There are 111 dispute cases and 60 loan contract and disputes. â‘Ą
This also seems to indicate from another aspect that because there are a series of obvious irregularities in the launch of personal loan products, and they have not been properly resolved, Nanjing Bank can only choose to go to court with consumers, and the price in exchange is The company's reputation risk is also gradually rising.
4
is based in Nanjing, deeply cultivates in Jiangsu, and reaps the dividends of "large quantity and high quality" of the regional economy. However, Bank of Nanjing has turned its own industry into the "back garden" of foreign shareholders.
Public information shows that Bank of Nanjing was established on February 8, 1996, and introduced International Finance Corporation and BNP Paribas as shareholders in 2001 and 2005. Recently, the Bank of Nanjing issued an announcement showing that the bank's largest shareholders, BNP Paribas and BNP Paribas (QFII), increased their shareholding ratio from 14.04% to 16.37%, an increase of 2.33%, exceeding 1%.
html On May 16, the Bank of Nanjing issued an announcement stating that the bank had recently received the "Reply from the China Banking and Insurance Regulatory Commission Jiangsu Supervision Bureau on the Equity Change of Bank of Nanjing and Related Shareholder Qualifications" (Su Yin Insurance Regulatory Reply [2022] No. 179), agreeing to BNP Paribas’ shareholder qualifications.
(data comes from listed company announcements)
(data comes from listed company announcements)
It is worth noting that BNP Paribas has been coveting the equity of Bank of Nanjing for a long time.
Since 2012, BNP Paribas has successively increased its holdings in Bank of Nanjing through QFII. From August 20, 2021 to September 6, 2021, BNP Paribas (QFII) used its own funds to increase its holdings of 94.45 million shares of Bank of Nanjing through centralized bidding transactions through the Shanghai Stock Exchange trading system. The holding ratio is 0.91%.
As the largest commercial bank in France, although BNP Paribas is very strong and large, it does not seem to be "friendly" to the impression of Chinese people.
Judging from the development trends in recent years, BNP Paribas has always been known as a "barbarian". It has been aggressive and skillful in participating in listed companies, acquiring shares of peers, and seeking capital appreciation, making its competitors within and outside the industry intimidated.
In 2009, BNP Paribas acquired 75% of the equity of Fortis Bank. In this eye-catching financial merger case, the major shareholder Ping An of China joined hands with thousands of small and medium-sized shareholders to resist. After half a year of struggle, After that, in the end, Ping An of China failed in vain at the expense of 's provision for Fortis's asset impairment.
On March 4 this year, BNP Paribas, in conjunction with Bank of Nanjing, once again played the role of "taking advantage of the situation" in domestic assets - the announcement showed that BNP Paribas and Suning.com signed the " Equity Transfer" Agreement ", reached an agreement on the transfer of Suning Consumer Finance 39% equity. Among them, Bank of Nanjing paid 340 million yuan to acquire a 36% stake in Suning Consumer Finance held by Suning.com; BNP Paribas paid 28.38 million yuan to acquire a 3% stake in Suning Consumer Finance. ⑦
You must know that consumer loans account for "half" of Bank of Nanjing's personal loans and are the core driving force for the company's personal loan growth. After obtaining a license through the acquisition of Suning Consumer Finance's controlling stake, Bank of Nanjing, as the acquisition subject, is bound to be able to significantly expand its business space and increase revenue and profits.
Against this background, BNP Paribas, as the largest shareholder of Bank of Nanjing, did not need to spend a lot of money to complete the acquisition (nearly costing 28.38 million yuan). At the same time, it used a smaller leverage to leverage The steady stream of long-term equity investment income is undoubtedly the biggest beneficiary of this capital operation.
People can't help but ask, as a representative of China's long-established and high-quality city commercial banks, Bank of Nanjing, which is on the national expansion route and has no shortage of money on its books, why does it have to flirt with foreign shareholders in the process of development?
Taking the hard-earned money from loan consumers and local companies on the verge of bankruptcy to support famous multinational capital brokers. Is this behavior of BNP Paribas consistent with business ethics?
we don’t know.
For financial institutions that rely on China's economic dividends to grow and develop, trust is like a wall. It needs to be built brick by brick and built seamlessly, but it can be overthrown and collapsed in an instant.
In recent years, various public opinions and cases in the banking industry have caused a crisis of trust. Some people in the banking industry believe that it is necessary to rebuild the credit of the banking industry from a systemic level to avoid unnecessary panic and losses.
However, when will the frightened Bank of Nanjing be able to calm down?
Note:
â‘ 2022.7.2, First Financial , "Why did Bank of Nanjing report the crime?" Western Securities has terminated the labor contract with analysts who made "false statements""
② 2022.4.19, Financial Associated Press, "Bank of Nanjing's 2021 annual report is released: double-digit growth in assets and liabilities, maintaining high-quality and steady development, and striving to become a listed bank" "High-achieving students"
③2022.5.1, Sina Finance, "Which of the 42 A-share listed banks is the best?" Full scan of the first quarter report is here》
â‘Ł2022.7.2, Sina Finance, "Why did Bank of Nanjing report the case?" Western Securities has terminated the labor contract with the analyst who made "false statements""
⑤ 2018.1.19, Red Star News, "Shanghai Pudong Development Bank Chengdu Branch was fined 462 million for illegal credit extension of 77.5 billion and the former president was fired"
â‘Ą 2022.3.11, Financial Tiger Net, " The balance of consumer loans of Bank of Nanjing exceeds 100 billion, and there are more than 8,000 loan-related judgment documents."
⑦2022.5.19, Time Weekly, "BNP Paribas increased its holdings, holding more than 15% of Bank of Nanjing, and promised not to transfer it within 5 years! 》
