Summary
√ As of the end of 2021, the national credit card and debit card combined card has increased by 2.83% year-on-year, a decrease of 1.43pct compared with 2020, which is the lowest growth rate in the past six years.
√ In terms of credit card scale, major state-owned banks and joint-stock banks such as China Construction Bank, China Merchants Bank , and Ping An Bank are all in an absolute leading position.
√ In terms of incremental scale, major city commercial banks including Bank of Nanjing , Bank of Guizhou and other major city commercial banks have continued to make efforts and firmly occupy the first place in the growth rate of each indicator.
√ Joint-stock banks such as Ping An Bank and China Merchants Bank reflect the important position of their credit card business in the overall credit business in terms of the proportion of credit card loan balances. Among them, Ping An Bank’s credit card loan balance accounted for 20.29%. Produced by
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from Lingyi Think Tank | Zhu Meiyin
Catalog
1. Cumulative credit card issuance: Five banks have exceeded 100 million, and Bank of Nanjing has grown by more than 90%
(1) Cumulative credit card issuance volume
(2) Cumulative credit card issuance volume Growth
2. Credit card loan balance: The ladder effect is obvious, Ping An Bank attaches great importance to credit cards
(1) 2021 bank credit card loan balance scale
(2) Credit card loan balance growth
(3 ) Proportion of credit card loan balance
3. Credit card transaction volume: China Merchants Bank is outstanding
4. Credit card non-performing rate remains around 2%, and the cumulative number of customers is less disclosed
5. Summary
In recent years, under the background of banks' digital transformation , consumer credit and other retail businesses have also become the main areas of bank digitalization. The scale, growth rate and risk profile of personal credit business have also become important criteria for considering the optimization of bank operations.
Credit card, as one of the basic tools for the personal credit business of various banks, is an important support for the bank's retail business and assumes the important task of spearheading the retail transformation. However, under the impact of the epidemic in the past two years, the retail and credit card businesses of various banks have encountered certain operating pressures. On the other hand, in December 2021, the China Banking and Insurance Regulatory Commission issued the "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business (Draft for Comments)", which put forward requirements for strengthening supervision in many aspects such as the compliance operation of credit cards, the quality and efficiency of financial services, and consumer rights.
Central Bank statistics show that as of the end of 2021, the stock of credit cards and debit cards nationwide has reached 800 million, a year-on-year increase of 2.83%, but the growth rate is significantly lower than the 4.26% in 2020, which is the lowest growth rate in the past six years. The credit card business of various banks is seeking a new path of transformation.
This article is based on the 2021 annual report data of domestic listed banks, and analyzes the different development situations of different banks in the credit card business by sorting out the relevant indicators of each bank's credit card business. The total sample of banks selected is 59 domestic banks listed on the A-share market and H-share market. The focus is on observing multiple indicators including the cumulative number of credit cards issued by each bank, credit card loan balance, credit card transaction volume, non-performing rate, etc., and comparing the stock and increment of each indicator.
table 1 Selected 59 bank samples and bank nature
Data source: Lingyi Think Tank
1. Cumulative credit card issuance: five banks exceeded 100 million, and Bank of Nanjing grew by more than 90%
(1) Cumulative card issuance volume
Cumulative card issuance volume is a relatively standardized indicator of the overall size of the credit card business of each bank. However, due to different disclosure standards of different banks, some banks did not reflect this data in their annual reports. According to statistics, a total of 41 out of 59 banks have disclosed this data. It is worth noting that the disclosure standards of large state-owned banks and joint-stock banks at this level are significantly higher than that of rural commercial banks and city commercial banks. In particular, only 5 rural commercial banks have disclosed specific data.
Figure 1 Cumulative credit card issuance/circulation volume of each bank as of the end of 2021 (unit: 10,000)
Data source: Bank’s 2021 annual report, Lingyi Think Tank
Note:
1, the disclosure caliber of each bank is different , in addition to "cumulative card issuance volume", China Merchants Bank and Shanghai Pudong Development Bank use "credit card circulation volume", Bank of Communications is "registered card volume", Postal Savings Bank is "balanced card volume", Huishang Bank is "cumulative effective card volume", for the purpose of intuitive comparison, they are compared with the same dimension, and there may be errors in the specific rankings.
In terms of cumulative card issuance scale, the overall ladder effect is obvious. ICBC , China Construction Bank, Bank of China , China Merchants Bank and CITIC Bank occupy the first echelon, with cumulative issuances exceeding 100 million, of which ICBC ranks first with 163 million. The second echelon is China Everbright Bank, Bank of Communications, Ping An Bank, Minsheng Bank, etc., with cumulative issuance reaching tens of millions. The first two echelons are mainly occupied by state-owned banks and joint-stock banks. It is worth noting that Shanghai Bank is the only city commercial bank with a cumulative issuance of tens of millions of cards. The third echelon is mainly city commercial banks and rural commercial banks, which are relatively small in scale. Among them, the highest Jiangsu Bank has issued 5.1 million cards.
(2) Growth in cumulative credit card issuance
Statistics from Zero One Think Tank show that among the above 41 banks that disclosed the cumulative issuance of credit cards in 2021, 4 banks did not disclose the total in 2020. Expose this data (Shanghai Rural Commercial Bank, Jinshang Bank , Xiamen Bank and Dongguan Rural Commercial Bank) and compare the growth data of the remaining 37 banks. The specific situation is as follows:
Table 2 Growth in the cumulative issuance of credit cards of each bank in 2021
(unit: 10,000)
Data source: Bank’s 2021 annual report, Lingyi Think Tank
Note:
1. The banks in the table are arranged in descending order according to the year-on-year growth rate of . The growth rates of
2, China Merchants Bank, Bank of Communications, Shanghai Pudong Development Bank, and Postal Savings Bank are calculated based on "credit card circulation volume/number of registered cards/number of balance cards" and have certain errors.
Judging from the growth rate of cumulative credit card issuance, city commercial banks have greater advantages. Ranked by growth rate, 16 of the top 20 are city commercial banks. Among them, Bank of Nanjing’s cumulative card issuance topped the list with a growth rate of nearly double. Bank of Nanjing, Gansu Bank and Bohai Bank have growth rates of more than 50%. Among them, Bohai Bank is the fastest growing joint-stock bank, and the rest of the joint-stock banks are generally less than 20%.
From the perspective of growth , China CITIC Bank has become the "king of credit card issuance" in 2021 with 8.7 million new cards issued in 2021. At the same time, the scale of credit cards has exceeded 100 million for the first time. In addition to CITIC Bank, China Merchants Bank has also reached the billion-level scale with 2.8844 million new card issuances.
Figure 2 The growth rate data of the top 14 companies in terms of cumulative growth (unit: 10,000 cards)
Data source: Bank’s 2021 annual report, Lingyi Think Tank
On the other hand, if we look at the credit cards with higher stock on the market (the cumulative number of credit cards issued reaches 10 million, that is, the former 14) compared their growth, it can be seen that there is a certain negative correlation between the stock and increase of credit cards. Among them, Hua Xia Bank, Bank of Shanghai, Postal Savings Bank and Shanghai Pudong Development Bank will grow rapidly in 2021, with growth rates exceeding 10%. In addition, China CITIC Bank and Ping An Bank have also reached 9.4% and 9.15% respectively.
2. Credit card loan balance: The ladder effect is obvious, and Ping An Bank attaches great importance to credit card
(1) 2021 bank credit card loan balance scale
Bank's credit card business, in addition to the key indicator of cumulative card issuance, the credit card loan balance can further reflect the business scale and usage of each bank's credit card, and is also an important indicator for measuring the credit card business.
A total of 50 out of 59 banks have disclosed the balance of credit card loans. The disclosure standards are relatively standard and the disclosure ratio is also high. The specific data is ranked as follows:
Figure 3 Credit card loan balances of various banks in 2021
(1-14 people, unit: 100 million yuan)
Data source: Bank 2021 annual report, Lingyi Think Tank
Figure 4 Continued table of credit card loan balances of various banks in 2021
(15-50 people, unit: 100 million yuan)
Data source: Bank's 2021 annual report, Lingyi Think tank
Note:
1. The chart is split into two parts in this article, mainly because of the large difference in levels. If the banks are sorted in the same chart, it is impossible to make an intuitive comparison between banks ranked lower.
2. The disclosure standards of each bank are different. In addition to "credit card loan balance", there are also "credit card overdraft balance", "credit card asset balance", "credit card accounts receivable balance" and other calibers. For the sake of intuitive comparison, they are compared with the same dimension. There may be errors in the specific rankings.
3 and Bank of China data are data from mainland China.
4. Most of the credit card loan balances in this article are the data of our bank. Some banks do not disclose the data of our bank and use group data. There may be certain errors in the specific rankings.
Similar to the indicator of cumulative credit card issuance, there is also a certain ladder in loan balances. Major state-owned banks and most joint-stock banks have reached a credit card loan balance of hundreds of billions. Different from the ranking of cumulative card issuance, China Construction Bank ranked first with a loan balance of 896.222 billion yuan, and China Merchants Bank ranked second with 840.331 billion yuan. In terms of city commercial banks and rural commercial banks, the scale of loan balances has been significantly reduced compared to the top banks. The highest credit card loan balance of Bank of Shanghai is 38.661 billion yuan, which is only about a quarter of Hua Xia Bank. The highest credit card loan balance of rural commercial banks, Shanghai Rural Commercial Bank, is 11.065 billion yuan, and the lowest is less than 100 million yuan. Unlike the fierce competition among leading banks across the country, city commercial banks and rural commercial banks focus on the development of credit card business in the region.
(2) Credit card loan balance growth
Relevant statistics on the credit card loan balance data of 50 banks in the past two years show that only Jiangyin Bank and Jinzhou Bank have not disclosed the data of credit card loan balances in 2020. Finally, the growth of credit card loan balances of 48 banks is presented:
Table 3 Growth of credit card loan balances of listed banks in 2021
(unit: 100 million yuan)
Data source: Bank’s 2021 annual report, Lingyi Think Tank
Note:
1, 2021 data and 2020 data are based on the same statistical caliber.
2. The banks in the table are arranged in descending order according to their year-on-year growth rate.
In 2021, Guizhou Bank and Lanzhou Bank have credit card loan balance growth rates exceeding 100%. Among them, Guizhou Bank has increased by 2.4 times compared with 2020. It is worth noting that its growth rate in 2020 is also as high as 374%, which is enough to show that Guizhou Bank is achieving rapid development of credit card products. Compared with major banks, city commercial banks and rural commercial banks continue to maintain a rapid growth trend. Among joint-stock banks and major state-owned banks, the Postal Savings Bank has the highest growth rate, with a growth rate of 20.9%. This is mainly due to the Postal Savings Bank’s vigorous improvement of the innovation capabilities of credit card products in 2021, and strengthening of business district scene construction and brand marketing efforts.
is different from the positive growth trend of most banks. Five banks have experienced zero or negative growth. Among them, Dongguan Rural Commercial Bank ranked last with a negative growth of 18.97%. Although Shanghai Rural Commercial Bank has the largest credit card loan balance among rural commercial banks, it has experienced a negative growth of 5.6% compared to 2020.
Figure 5 Growth rate data of the top 14 credit card loan balances
(unit: 100 million yuan)
Data sources: Bank 2021 annual report, Lingyi Think Tank
Same A separate comparison of banks with large credit card loan balances (the top 14 banks with credit card loan balances reaching 100 billion yuan) is different from the sample for the indicator of cumulative card issuance in that Shanghai Bank was excluded, while Agricultural Bank of China was included in the comparison sample because it did not disclose the cumulative card issuance volume but disclosed the credit card loan balance. All 14 banks showed a growth trend. Except for the Postal Savings Bank, which achieved a growth of 20.9%, the growth rates of Ping An Bank, Agricultural Bank of China, China Merchants Bank, and Shanghai Pudong Development Bank all exceeded 10%. On the other hand, comparing the loan balance data in 2020, Postal Savings Bank and China CITIC Bank will overtake Hua Xia Bank and Bank of China in credit card loan balances in 2021 respectively due to their high growth rates.
(3) Credit card loan balance proportion
Credit business, as the key business of banks, can be subdivided into various product types such as corporate loans and personal loans, and credit card credit, as one of them, also bears the mission of bank credit business growth. On the other hand, by counting the proportion of credit card loan balances and total bank loan balances, the structure and value of each bank's credit card business can also be fully reflected. The specific data on the proportion of credit card loan balances are as follows:
Table 4 The ratio of credit card loan balance to total loan balance of each listed bank in 2021 (unit: 100 million yuan)
Data source: Bank's 2021 annual report, Lingyi Think Tank
Note:
1. In the table, the banks are arranged in descending order according to their proportion of credit card loan balances.
2, "credit card loan balance" and "total loans and advances" have the same caliber and range for calculation.
3. Total loans and advances = enterprise/company loans + personal/ retail loans + bill discount , excluding accrued interest and other indicators.
4. There are differences in the disclosure standards of individual banks, and there may be certain errors in the specific rankings.
By comparing the proportion of credit card loan balances of various banks, Ping An Bank's credit card loan balance is as high as 20.29%. The annual report shows that this ratio is close to the proportion of housing mortgages and certified mortgage loans (21.4%). China Merchants Bank's credit card loan balance has also reached 15.09%. It can be seen that Ping An Bank and China Merchants Bank are highly invested in the credit card business. The credit card aspect also reflects the fierce competition between the two banks as the "King of Retail". In addition to Ping An Bank and China Merchants Bank, China Everbright Bank, China Minsheng Bank and China CITIC Bank accounted for more than 10%. At the same time, the top eight in this proportion are all joint-stock banks, which can give a full glimpse of the advantages of joint-stock banks in the credit card structure.
Among the major state-owned banks, as the proportion of each business is more even, they are not prominent in the credit card structure. Bank of Communications ranked 9th with 7.51%, China Construction Bank ranked 14th with 5.02%, and the figures for other banks were all lower than 5%. At the level of city commercial banks and rural commercial banks, the overall proportion is not high. There are 9 banks with credit card loans accounting for less than 1%, and they are all city and rural commercial banks. On the other hand, due to differences in main products, city commercial banks are more suitable for the layout of credit card business than rural commercial banks, and their rankings are also higher. However, Ruifeng Bank, as a rural commercial bank , ranks first among city and rural commercial banks with a share of 5.71%, and is also among the top ten in competition with major banks.
3. Credit card transaction volume: China Merchants Bank is in a league of its own
Credit card transaction volume is the basis for each bank's credit card revenue generation, and to a certain extent also reflects the volume of credit card business. A total of 24 banks have disclosed corresponding data in this dimension, mainly state-owned banks and joint-stock banks and some city commercial banks. Among rural commercial banks, only Shanghai Rural Commercial Bank has disclosed it. The specific transaction volume and growth are as follows:
Table 5 Credit card transaction volume and year-on-year growth rate of each bank in 2020-2021 (unit: 100 million yuan)
Data source: Bank's 2021 annual report, Lingyi Think Tank
Note:
1. In the table, the banks are arranged in descending order according to their credit card transaction volume in 2021.
2, 2021 data and 2020 data are of the same caliber.
3. The disclosure standards of each bank are slightly different. For example, Bank of Communications, Industrial and Commercial Bank of China, Postal Savings Bank, Changsha Bank , Zheshang Bank use "credit card consumption amount", while China CITIC Bank and Shanghai Rural Commercial Bank use "credit card transaction volume."
From the perspective of credit card transaction volume, not many banks have disclosed data in 2021, but 14 banks with large credit card businesses have fully disclosed this data. The credit card transactions of these banks in 2021 The transaction volume has also reached a scale of one trillion. Among them, China Merchants Bank far exceeds other banks with a credit card transaction volume of over 4.7 trillion. It is also the only bank to reach the 4 trillion level. There are three banks with a 3 trillion level, seven with a 2 trillion level, and a total of three with a 1 trillion level. It is worth noting that although Ping An Bank ranks second behind China Merchants Bank in terms of size, its growth rate is already slightly higher than that of China Merchants Bank, and it has great potential to catch up.
Looking at different types of banks, state-owned banks and joint-stock banks are larger in size, and the top 14 are still all state-owned banks and joint-stock banks. In terms of growth rate, the state-owned Postal Savings Bank of China will vigorously develop credit cards in 2021 and show initial results, with a growth rate of 14.11% higher than other state-owned banks, while Bohai Bank accelerated to catch up with the other joint-stock banks with a growth rate of 45.2%. City commercial banks generally have a larger growth rate, with five of the top six city commercial banks alone. The highest Qingdao Bank reached 54%. The only rural commercial bank that disclosed data, the growth rate of Shanghai Rural Commercial Bank, also reached 18%. In addition, a total of 5 of the 24 banks experienced negative growth in credit card transaction volume, and they are all large state-owned banks and joint-stock banks, namely China Construction Bank, Hua Xia Bank, Industrial and Commercial Bank of China, Bank of China and Zheshang Bank, but the overall decline was not high.
4. The credit card non-performing rate remains around 2%, and the number of cumulative customers is less disclosed.
In the credit card business of each bank, in addition to key indicators such as cumulative card issuance, credit card loan balance, and credit card transaction volume, there are also indicators such as credit card loan non-performing rate, credit card business income, and credit card customer stock and increase, which can further analyze the credit card loan business of each bank. Therefore, this article selects two indicators: the non-performing rate of credit cards of each bank and the cumulative number of credit card customers to make a simple analysis of credit card asset quality and audience level.
Table 6 Credit card loan non-performing ratio of each bank in 2021
Data source: Bank 2021 annual report, Lingyi Think Tank
Note:
1. Credit card loan non-performing ratio = credit card business non-performing loans/credit card loan balance
2. The banks in the table are arranged in ascending order according to the credit card loan non-performing ratio.
7 banks disclosed credit card non-performing indicators, and the non-performing rates were all less than 5%. Among them, Bank of Chengdu had the lowest rate of 0.46% and Jinshang Bank had the highest rate of 4.52%. Most banks have controlled their non-performing ratios at around 2%. Only Bank of Tianjin and Shanxi Commercial Bank have a higher than 3% rate. The four banks with a lower than 1% rate are Bank of Chengdu, Bank of Jinzhou, Bank of Chongqing and Guizhou Bank, and they are all city commercial banks. The lowest for state-owned banks is 1.33% for China Construction Bank, and the lowest for joint-stock banks is 1.65% for China Merchants Bank.The overall non-performing rate has decreased compared with 2020, and asset quality has been improved to a certain extent. The "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business (Draft for Comment)" issued at the end of 2021 may further improve banks' credit card risk control in the future. Figure 6 Cumulative number of credit card customers (unit: 10,000 households)
Data source: Bank’s 2021 annual report, Lingyi Think Tank
Note:
1, China Merchants Bank discloses the “number of circulating customers”, Hua Xia Bank discloses the “number of effective customers”, the actual accumulated customers should be more, so for the convenience of comparison, we compare them together.
2, Bank of Beijing data are calculated based on the number of new customers and growth rate.
Regarding the situation of credit card customers, although it can statically reflect the scale of credit card use of each bank, since each bank does not have unified disclosure requirements for this indicator, only 7 data are counted according to the annual reports of each bank, among which many major banks such as Industrial and Commercial Bank of China and Ping An Bank have not made corresponding disclosures. However, it can be seen that the relationship between large banks and city commercial banks is a geometric multiple. As a joint-stock bank, China Merchants Bank still has the ability to compete with the large state-owned banks in terms of customer number.
5. Summary
This article provides a glimpse of the current development of bank credit card business in 2021 by comparing the stock and increment of key indicators such as the cumulative card issuance volume, credit card loan balance, and credit card transaction volume of domestic listed banks.
In terms of scale comparison, 14 major state-owned banks and joint-stock banks including China Construction Bank, Industrial and Commercial Bank of China, China Merchants Bank, Ping An Bank, and CITIC Bank are in an absolute leading position. Among them, the large state-owned banks have the best scale, while among the joint-stock banks, two "alternatives", China Merchants Bank and Ping An Bank, have emerged, which beat all major state-owned banks in terms of credit card transaction volume and other aspects. Both city commercial banks and rural commercial banks are far smaller in scale than major banks. Only Bank of Shanghai has issued tens of millions of credit cards in total, which can rival major banks. This also further shows that the layout of retail business requires more investment, and the development of business requires high refinement and standardization, which requires long-term accumulation. The current main force in retail business is still large banks.
In terms of the increment of various indicators, major city commercial banks have continued to exert their efforts and firmly occupy the first place in the growth rate of each indicator. Bank of Nanjing, Bank of Gansu, Bank of Guizhou, and Bank of Qingdao have all achieved rapid development in credit card business. Among the joint-stock banks, Bohai Bank has achieved remarkable growth, and its cumulative card issuance volume and credit card transaction volume growth are at the forefront of all banks. The growth rate of city commercial banks is significantly higher than that of large banks. On the one hand, this is because the credit card business of city commercial banks started late, with a low base of various indicators, and they have continued to make efforts in recent years. On the other hand, based on the rapid development of the Internet in recent years, the customer acquisition scenarios and user data analysis capabilities of Internet platforms are the advantages that city commercial banks value more, and city commercial banks have gradually become the driving force for the growth of credit card business.
At the same time, from the perspective of the proportion of credit card loan balances, joint-stock banks reflect the important position of their credit card business in their overall credit business. Ping An Bank's proportion reached 20.29%, China Merchants Bank and China Everbright Bank also reached 15.09% and 14.21% respectively. With the multiple advantages of information technology empowerment, credit card business diversification, and wide application ecology, these credit cards are not only the focus of banks' credit business, but also the preferred demand point of current card users.
It is worth noting that due to repeated epidemics and strict supervision, the overall growth rate of credit card scale has slowed down in 2021. In the future, as information technology further matures, faster, stronger, and wider network transmission capabilities will create new connections, and the breadth, depth, and breadth of financial services will be greatly improved. At the credit card level, it is expected that banks can use digital and information tools to present new forms that are more in line with the current context.
End.
