On the evening of March 21, Bank of Chongqing disclosed its 2016 annual performance report in Hong Kong. The report shows that as of the end of 2016, the total assets of the Bank of Chongqing reached 373.104 billion yuan, an increase of 16.7% from the end of the previous year; the deposit balance was 229.594 billion yuan, an increase of 15.2% from the end of the previous year; the total loans were 151.021 billion yuan, an increase of 15.2% from the end of the previous year. At the end of the previous year, it increased by 21.0%, while the non-performing loan rate was 0.96%, a decrease of 1 BP from the end of the previous year. In 2016, the bank achieved a net profit of 3.502 billion yuan, an increase of 10.5% over the previous year.
The picture shows the scene of Bank of Chongqing’s 2016 annual performance conference
In the current environment of my country’s slowing economic growth and rapid advancement of interest rate liberalization, the banking industry as a whole is facing a severe operating situation, and the “slight increase” in net profit has become a major issue. However, the Bank of Chongqing has suddenly emerged, achieving double-digit growth in major indicators such as total assets, deposits and loans, and net profit. What is the successful strategy behind its "leading" performance?
Strategy One: Policy Strategy
Policy factors have a permanent impact on the financial market. Taking advantage of policy opportunities to deploy timely strategies is a wise move by the Bank of Chongqing. On November 7, 2015, the third inter-governmental cooperation project between China and New Zealand was launched in Chongqing. Leveraging the national policies of the China-Singapore project, the Bank of Chongqing made timely strategic arrangements. During the project implementation process, Bank of Chongqing successfully implemented 9 projects, with an amount of 3.8 billion yuan, accounting for 13%; among them, as a senior lead manager, it participated in 2 overseas bond issuances, with an amount of 1.8 billion yuan, accounting for 7.8%; it led International There were 27 commercial loans, with an amount of 2 billion yuan, accounting for 35%. Assisted enterprises to obtain US$600 million in foreign debt quota from the National Development and Reform Commission (of which US$42 million came from the National Development and Reform Commission), accounting for approximately 20%, ranking among the best among Chinese banks. At the same time, the ranking of Bank of Chongqing in the cross-border settlement market has risen rapidly. According to statistics from regulatory agencies, the Bank of Chongqing ranks 6th among the 44 designated foreign exchange banks for cross-border RMB receipts and payments, and 9th for cross-border receipts and payments, up 14 places and 7 places respectively from 2015. In this Sino-Singapore project, Bank of Chongqing seized the opportunity to develop cross-border financing of capital projects from a strategic perspective, strengthen cooperation with peers, and innovate business models, which played a decisive role in the long-term development of the business.
Strategy 2: Comprehensive business strategy
The diversification of the current financial market and the diversification and individualization of corporate and residential customer needs require commercial banks to provide comprehensive financial services, and financial services such as banking, securities, insurance, and funds should be cross-integrated. The era is coming. The approval of Chongqing Yiyu Financial Leasing Co., Ltd. is a phased achievement of Bank of Chongqing's comprehensive business strategy. Chongqing Yiyu Financial Leasing Co., Ltd. was jointly invested and established by the Bank of Chongqing, TusHoldings Co., Ltd., Longkou Tianshun Wall Materials Co., Ltd., and Chongqing Yijin Aluminum Co., Ltd. The company's registered capital is RMB 3 billion, Chongqing The bank's shareholding ratio is 51%. The establishment of Financial Leasing Company has expanded the bank's business scope across the country, consolidated the bank's strength in the financial leasing business with development potential, expanded its sources of income, and ultimately enhanced its shareholder value. At the same time, it is conducive to further enriching the financial service product system, achieving strategic synergy and sharing of advantages, building a comprehensive financial service platform, and promoting the bank's own strategic transformation and improvement of market competitiveness.
Strategy Three: Small and Micro Financial Strategy
From the perspective of market capacity, China's small and micro enterprises account for more than 90% of the total number of enterprises, and have huge potential for demand for financial services. Coupled with the encouragement of supervision and industrial policies, small, medium and micro enterprises Enterprises were once recognized as the blue ocean business of the banking industry, and the small and micro financial strategy for small, medium and micro enterprises has naturally become one of the key business strategies of the Bank of Chongqing. At the beginning of 2016, the Bank of Chongqing jointly developed the "Good Enterprise Loan" product by building a credit evaluation system for small and micro enterprises based on big data and trying to establish an online loan process for automated approval."Haoqidai" has realized the portrait of small and micro customers through the application of big data, eliminating the barriers of information asymmetry between traditional banking financial institutions and customers; through the application of Internet technology, it has innovated the online loan business process and improved the The efficiency of traditional commercial banks in serving small and micro financial customers directly addresses the pain points of difficult and expensive financing for small and micro enterprises, and has found an important breakthrough for promoting the transformation of traditional banks. As soon as the product was launched, it attracted widespread attention from all parties and enjoyed a good reputation in the industry. Since it was put into trial operation on July 18, as of December 19, Haoqidai has approved a total of 659 loans, with a credit amount of approximately 253 million. yuan; a total of 643 loans were issued, with a cumulative scale of approximately 247 million yuan.
It can be seen from the three major strategies decrypted above that the Bank of Chongqing, based on its own characteristics, formulates personalized strategic management, effectively serves the scientific layout of business development, and fully utilizes the differentiated cycle hedging capabilities of the strategy to ensure ensure the stable development of performance. The author believes that the strategic thinking of the Bank of Chongqing is worthy of reference by various city commercial banks.
