Economic Observer Network Reporter Huang Lei On March 31, Agricultural Bank of China (SH: 601288; HK: 1288, hereinafter referred to as "Agricultural Bank of China") held the 2019 results conference. At the meeting, Cui Yong, Vice President of Agricultural Bank of China, responded to the situation of personal housing loans.
Cui Yong said that in terms of interest rate execution, Agricultural Bank of China combines customer needs and delivery conditions, including customer classification, to price interest rates differently for different regions and customer groups from several dimensions. The interest rate of the new personal housing loans issued by the Agricultural Bank of China in 2019 is 5.58%, which is 3.1 percentage points higher than in 2018. However, it is different in the first and second half of the year, mainly based on demand. In the first half of 2019, the overall market demand was relatively weak, so the housing mortgage loan interest rate was appropriately lowered slightly. It rebounded overall in the second half of the year. The weighted interest rate of housing loans fell from 5.7% in January to 5.48% in July. In the second half of the year, it gradually It rose back to 5.6% month-on-month, and the final average was 5.58%.
As of the end of 2019, Agricultural Bank of China’s personal loans increased by 726.602 billion yuan compared with the end of the previous year, an increase of 15.6%. Among them, the bank's personal housing loan balance was 4,162.431 billion yuan, an increase of 501.857 billion yuan or 13.7% from the end of the previous year, accounting for 31.2% of all loans, 77.2% of personal loans, and 78.4% of personal loans at the end of 2018. % has declined. At the end of the reporting period, the non-performing balance of personal housing loans was 12.3 billion, with a non-performing rate of 0.3%, a decrease of 0.01 percentage points from the previous year.
From an investment perspective, Cui Yong said that the incremental loans in first-tier cities were 50.4 billion, accounting for 10.1% of the net increase in 2019; the incremental loans in second-tier cities reached 173.6 billion, accounting for 34.9%; the third- and fourth-tier cities mainly invested in large domestic leaders Developer's customers. As for the possible difficulty in applying for a mortgage, Cui Yong believes that it may be regional, and the investment structure in different regions is different, so some regions may be a little nervous, but in most regions, the Agricultural Bank of China basically guarantees supply.
The new pricing mechanism is applied to existing housing loans. What impact will it have on the Agricultural Bank of China? Cui Yong said that when implementing the Agricultural Bank of China, it still follows the regulations of the central bank and the requirements of the announcement. When converting personal housing loan interest rates, it must keep the overall level of interest rates unchanged. When designing the plan, it is also in full compliance with the unified requirements of the central bank. Consider the customer's receptivity. The overall actual conversion work is generally progressing well. Most of the conversion work is done online and automatically based on customer needs. During the epidemic, offline operations were not opened, but all offline conversion work is also qualified. The main consideration is the epidemic. Please do not gather during this period. If the interest rate remains unchanged at the time of conversion, the impact on Agricultural Bank of China's pricing level will be relatively limited. He said that on the one hand, ordinary people will not spend more money, and on the other hand, from the perspective of bank income, it is basically controllable. Judging from the implementation during this period, it is basically in place.
Cui Yong said that the core of the Agricultural Bank of China's housing loan strategy in 2020 is to implement various regulatory requirements around regulatory policies to ensure that the policy positioning of "houses for living, not for speculation" is adhered to, and more differentiated housing credit policies must be implemented. These differentiated It also formulates different housing credit policies based on the situation of the house developers, including regional financial resources, including customer groups, implements classified regulation, implements policies based on regions, and continuously optimizes the structure of personal mortgage loans, including access policies.
In this process, we will pay special attention to customers' needs for mortgage loan withdrawals, improve the efficiency of approval, and continue to support residents' reasonable needs for self-occupation and home purchase. Agricultural Bank of China comprehensively guarantees reasonable self-occupancy needs, strictly controls speculative home purchases, and focuses on supporting first-home home policies, including second-hand home improvement policies. At the same time, due to the characteristics of its customer base, Agricultural Bank of China is also increasing its efforts to meet the housing purchase needs of farmers in cities, and overall promotes the steady and healthy development of personal housing credit business.
