source | Lingyi Finance
author | Yao Chonghui
Among various banking businesses, the credit card business has the characteristics of high returns and high risks, and competition among commercial banks is fierce. Among various types of commercial banks in my country, the proportion of credit card loans of China Banking Bank is generally higher than that of major state-owned banks, city commercial banks and China Rural Commercial Banks (see the Lingyi Think Tank report "The Most Complete! Comparison of Credit Card Indicators of 59 Listed Banks, Who is King in the Credit Card Business?"). The following summarizes the credit card business of 10 listed joint-stock banks in the first half of 2022 from the perspectives of scale, proportion, growth, transaction volume and non-performing rate.
In the first half of 2022, affected by the reduced consumption willingness caused by repeated epidemics, the growth of credit card business of joint-stock banks as a whole decelerated, including Ping An Bank , CITIC Bank , Zheshang Bank and Minsheng Bank. The bank's credit card loan balance has experienced negative growth compared with the end of 2021; among joint-stock banks that have bucked the trend of growth, Bohai Bank and Industrial Bank have higher growth rates. The end-of-period credit card loan balance increased by 12.75% and 4.43% respectively compared with the end of 2021. In terms of scale, the two major credit card banks China Merchants Bank and Ping An Bank continue to lead, with credit card loan balances reaching 854.562 billion yuan and 595.148 billion yuan respectively, accounting for 14.41% and 18.45% of total loans and advances respectively.
At the same time, various joint-stock banks that disclosed relevant data saw their credit card loan non-performing ratios increase to varying degrees in the first half of the year. Among them, Industrial Bank increased by 0.44 percentage points from the end of 2021 to 2.73%.
Credit card loan scale: Growth slowed down in the first half of the year, with China Merchants Bank and Ping An Bank continuing to lead in scale.
html Among the 110 joint-stock banks, two major credit card banks, China Merchants Bank and Ping An Bank, continued to lead in scale, among which China Merchants Bank The credit card loan balance of Ping An Bank is 854.562 billion yuan, accounting for 14.41%, and the credit card loan balance of Ping An Bank is 595.148 billion yuan, accounting for 18.45%. The proportion of credit card loans of these two banks is also the highest among the 10 joint-stock banks, showing that their retail business attaches great importance to the credit card business. Two relatively "young" joint-stock banks, China Zheshang Bank and Bohai Bank, have relatively small credit card businesses, with credit card loan balances of 17.255 billion yuan and 5.321 billion yuan respectively, and their proportions are also relatively low, 1.17% and 5.94% respectively.Table 1 Credit card loan balance, proportion and growth of each joint-stock bank in the first half of 2022 (unit: 100 million yuan)
Data source: 2022 semi-annual report of each bank, Lingyi Think Tank
Note:
1, Bohai Bank's credit card loan proportion is calculated based on the credit card loan balance, retail business loan balance, and corporate business loan balance disclosed in the semi-annual report.
2, China CITIC Bank and Hua Xia Bank are all "our bank". The proportion of credit card loans is calculated based on the credit card loan balance, corporate loan and advance balance, personal loan and advance balance or the total amount of loans and advances disclosed in the semi-annual report.
3. The banks in the table are arranged in descending order according to their credit card loan balances.
In the first half of 2022, affected by the epidemic and other factors, the overall growth of credit card loan balances of the 10 joint-stock banks slowed down, and some banks experienced negative growth. Among them, Bohai Bank, with a lower base, has a higher growth rate, and its credit card loan balance increased by 12.75% from the end of 2021 to 5.321 billion yuan; followed by Industrial Bank, which increased by 4.43% from the end of 2021 to 455.812 billion yuan; while Ping An Bank, China CITIC Bank, Zheshang Bank and China Minsheng Bank The balance of credit card loans of banks has experienced negative growth. Among them, the balance of credit card loans of Ping An Bank was 595.148 billion yuan, a decrease of 4.2% from the end of 2021; China CITIC Bank, Zheshang Bank and Minsheng Bank decreased by 2.02%, 1.66% and 1.37% respectively from the end of 2021.
html Among the 110 joint-stock banks, Zheshang Bank and Bohai Bank were established relatively late. Among them, Zheshang Bank was established in 2004 and Bohai Bank was established in 2005. Both of them are at a "latecomer disadvantage" in the credit card business. From the perspective of business growth rate and proportion, the two joint-stock banks have adopted different strategies for the credit card business. The former chose to "lay flat" while the latter was "catching up."Credit card transaction volume: Various joint-stock banks have increased and decreased. China Merchants Bank continues to lead
Credit card transaction volume serves as the basis for each bank's credit card income generation and also reflects the volume of credit card business. The 10 joint-stock banks, Hua Xia Bank and Bohai Bank, did not disclose the amount of credit card transactions. Among the remaining eight joint-stock banks, China Merchants Bank continues to lead in terms of scale, with transaction volume in the first half of the year reaching 2,387.983 billion yuan, followed by Ping An Bank and Industrial Bank, with transaction volumes of 1,790.306 billion yuan and 1,399.5 billion yuan respectively.
Table 2 Credit card transaction volume and year-on-year growth rate of each joint-stock bank in the first half of 2022 (unit: 100 million yuan)
Data source: 2022 semi-annual report of each bank, Lingyi Think Tank
Note:
1. The banks in the table are arranged in descending order according to the credit card transaction volume in 2021.
2. The disclosure standards of each bank are slightly different. For example, Zheshang Bank uses "credit card consumption amount" and CITIC Bank uses "credit card transaction volume."
In the first half of the year, affected by factors such as the recurrence of the epidemic, the credit card transaction volume of various joint-stock banks increased or decreased year-on-year. Among them, Zheshang Bank's transaction volume dropped significantly, down 20.12% year-on-year to 25.382 billion yuan. Minsheng Bank and Ping An Bank also experienced year-on-year declines of 5.35% and 1.2% respectively; while Shanghai Pudong Development Bank and Industrial Bank bucked the trend and achieved double-digit growth, with year-on-year growth of of 612.24% and 10.1% respectively.
NPL ratio: Many joint-stock banks have increased
html Among the 110 joint-stock banks, China Everbright Bank, , Hua Xia Bank, Zheshang Bank and Bohai Bank did not disclose the non-performing ratio of credit card loans in their semi-annual reports. Affected by factors such as the recurrence of the epidemic, the credit card non-performing rates of the other six joint-stock banks have increased to varying degrees in the first half of 2022. Among them, the non-performing rate of Industrial Bank's credit cards increased by 0.44 percentage points to 2.73% from the end of 2021, which was the highest increase among the six joint-stock banks; the non-performing rate of Minsheng Bank's credit cards was the highest at 2.95%, which was the same as the end of 2021; China Merchants Bank's credit card had the lowest non-performing rate at 1.67%.Table 3 Credit card loan non-performing rate of each joint-stock bank in the first half of 2022
Data source: Bank 2022 Semi-annual Report, Lingyi Think Tank
At the same time, the credit card non-performing rate of each joint-stock bank is higher than the overall non-performing rate of retail loans , showing that the risk of the credit card business is relatively high.
From the perspective of the strategies of major credit card banks, risk control and asset quality management, as well as digitalization are the two core aspects. China Merchants Bank disclosed in its 2022 semi-annual report that in the future, credit cards will continue to promote the "stable and low volatility" transformation strategy, focus on acquiring valuable customer groups, increase the operation of medium and low-risk assets, create a more stable asset portfolio, and achieve the "quality, efficiency, and scale" of the credit card business. "Dynamic and balanced development; in terms of online and intelligent credit card services, China Merchants Bank launched the credit card client mobile life App in 2010. As of the end of June 2022, the number of active users was 42.1298 million. Ping An Bank disclosed in its 2021 annual report that "the bank's credit card business continues to implement the full-process risk management concept, making full use of advanced quantitative tools to effectively manage and control risks." In its 2022 interim report, it proposed to deepen the transformation of the credit card business and actively promote "digital drive, intelligent access, platform thinking and refined management."
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