-Xin Finance
In the development history of retail banks in China, ICBC and CCB are both representative.
Among all the big banks, ICBC's retail thought was the first to wake up-in 20065438+0, the head office of ICBC set up a personal financial business department, which changed the assessment target of retail business from a single deposit management goal to comprehensively improve operating efficiency.
By 2006, as the largest commercial bank in China, Industrial and Commercial Bank of China made every effort to implement the strategic transformation of retail business, striving to "build the first retail bank in China", and put forward the idea of realizing the strategic transformation of "Daikin" business pattern, that is, integrating all personal financial resources of the whole bank, enhancing the collaborative innovation and comprehensive development ability of retail business, and finally forming a unified customer service platform.
In the 20 19 financial report released at the beginning of this year, ICBC officially announced the new strategy of building "the first personal financial bank".
More than 600 million individual customers, more than 11000000 personal deposits and more than100000000 credit card users are also important reasons for Cosmic Bank to maintain its leading position in the banking industry.
In contrast, although the retail road of CCB started late, it is more active.
In 2005, after the introduction of strategic investors, the slogan of China Construction Bank changed from "Where there is construction, there is CCB" to "CCB builds modern life", marking the beginning of CCB's transformation from corporate business to personal business.
At that time, under the trend of foreign banks investing in the China market, China Construction Bank introduced the American retail giant Bank of America as an investor and carried out a thorough retail transformation, which was also the most representative of the trend at that time.
Even after Bank of America gradually faded out, CCB still firmly implemented the retail strategy. By 20 15, the contribution of CCB's personal banking business to profits exceeded that of corporate banking business for the first time and became a real profit engine.
20 17, under the background of accelerating the retail transformation of the global banking industry, CCB made persistent efforts and shouted the slogan of "retail priority". As of the latest data, CCB maintains the first advantage in loans, credit cards and other businesses.
In this context, retail banks may become the key to the wrestling of big banks.
The article shared today comprehensively compares the various indicators of the retail business of the two major banks, and presents its true face for us from the perspectives of scale, growth rate and health.
Enjoy it ~
Icbc VS CCB: the battle of Tianwangshan in retail finance
Text | Dong Yunfeng
Source | New Financial Nirvana in Fire
The competition between the two largest banks in China in the field of retail finance is escalating.
CCB formally established the retail priority strategy on 20 18, and then the retail business made full efforts. In the first half of this year, its retail business profit was close to 1000 billion yuan, the highest in the whole industry, accounting for 56%, which was equivalent to China Merchants Bank and Ping An Bank.
ICBC has always adhered to the strategy of balanced development, and its retail business is not inferior to CCB in volume, but there is a certain gap between asset quality and profitability. In the first half of this year, ICBC formally proposed to build the "first personal financial bank", trying to make up for the shortcomings and establish a leading position.
The battle of Tianwangshan in retail finance will directly affect the stability of Universal Bank. At present, CCB has the attitude of burning the bridge (sacrificing the interests of enterprises) and making a last-ditch effort. However, to what extent ICBC leans towards retail and how to balance the interests of retail and enterprises is also a difficult problem.
From incremental competition to stock competition, it is an increasingly obvious trend. This means that with the escalation of the retail war between the two banks, the retail expansion of other commercial banks will be directly affected.
China Merchants Bank, in particular, has a reputation as the king of retail, but it has a huge gap with ICBC and CCB in retail business volume. At this stage, the advantages of China Merchants Bank are relatively prominent-the proportion of young customers is high and the profitability is stronger, but big banks still need to pay enough attention to catch up.
1 Cost, revenue and bad debts
ICBC has obvious advantages in deposit scale. In the first half of the year, its personal deposit reached as high as 1 1.53 trillion yuan, which not only surpassed the Agricultural Bank of China, but also further widened the distance with China Construction Bank, and now it is 2.2 trillion yuan higher than China Construction Bank.
However, the overall deposit cost of CCB is low, which is due to the higher proportion of demand deposits-48.92%, which is 10 percentage point higher than that of ICBC, resulting in the overall cost of personal deposits of CCB being only 1.73%, which is 0.08 percentage point lower than that of ICBC.
CCB has an advantage in terms of loan end, especially loan income. The personal loan scale of ICBC and CCB is almost the same, but the average income of CCB's personal loan is 0. 13 percentage points higher than that of ICBC. The main gap is that in the composition of CCB's personal loans, credit card loans and personal consumption loans with higher returns account for a higher proportion.
The quality of CCB's personal loan assets is good, and the overall non-performing rate is 0.43%, which is 0.22 percentage points lower than that of ICBC. An important reason is that the non-performing rate of credit card loans of ICBC is high, reaching 2.65%, while that of CCB is only 1. 17%, which is the lowest level in the industry. In the first half of the year, ICBC provided 40.3 billion yuan for personal business, while CCB only provided 22.7 billion yuan.
To sum up, CCB has higher spreads, lower bad debts and stronger natural profitability. Although the personal business income of CCB in the first half of the year was 32.7 billion yuan less than that of ICBC, the total profit was 654.38+076 billion yuan higher.
2 personal business comparison
Personal housing loan is the core business of these two banks. At the end of June, the personal mortgage balances of ICBC and CCB were 5.49 trillion yuan and 5.59 trillion yuan respectively, accounting for about 8 1%, which is an irrefutable "ballast stone".
In the credit card business, CCB is better. The number of cards issued by ICBC ranks first in the industry, reaching 6.5438+59 million, 20 million more than that of CCB. However, CCB performed well in terms of transaction volume, loan balance and asset quality.
In terms of personal consumption loans, CCB expanded against the trend in the first half of the year and successfully surpassed ICBC, with a balance of 255.845 billion yuan. The balance of its flagship personal self-help loan "quick loan" was 234.995438 billion yuan, an increase of 665.438+845 million yuan compared with the end of last year. In the same period, the balance of personal consumption loans of ICBC was 19044 1 billion yuan, a decrease of 3.075 billion yuan compared with the beginning of the year, and its proportion in personal loans dropped from 3.0% to 2.8%.
In terms of private banking, CCB is better, but ICBC is growing faster. By the end of June, ICBC had 8 million or more individual customers with financial assets 105623, an increase of 17. 1% over the end of last year, and its assets under management182.99 billion yuan, an increase of17.7% over the end of last year; In the same period, the financial assets of CCB's private banking customers were1674.333 billion yuan, an increase of 10.93% compared with the end of last year, and the private banking customers were 153928 households, an increase of 7.84% compared with the end of last year.
As for debit cards, CCB used165438+62 million cards at the end of June, and ICBC issued 939 million debit cards in the same period, which is an important reason why CCB's personal demand deposits dominated. In this regard, CCB's financial report mentioned that the bank increased its innovation in the field of mobile payment, achieved systematic and networked customer acquisition, and further consolidated its debit card business foundation.
3 Retail profit ratio
In the first half of this year, ICBC's personal business income was 1 896,5438+75 million yuan, and its pre-tax profit was 78123 million yuan, both of which decreased slightly year-on-year. Pre-tax profit accounted for 465,438+0.3%, up 65,438+0.2 percentage points year-on-year, maintaining a steady and rising trend.
In the same period, the retail business of CCB continued to advance by leaps and bounds: the operating income was 65,438+0,564.74 billion yuan, up 65,438+07.36% year-on-year; The total profit was 95.742 billion yuan, up 65.438+065.438+0.47% year-on-year, accounting for 56.73%, up 65.438+065.438+0.80 percentage points year-on-year.
At present, the retail share of CCB has been equivalent to that of China Merchants Bank and Ping An. In this sense, CCB can be regarded as "China Merchants Bank Plus" to a certain extent.
It should be pointed out that the soaring proportion of retail profits of CCB is also the result of poor performance in public business. In the first half of the year, the company's business income was 65.438+043.805 billion yuan, the provision reached 82.207 billion yuan, and the total profit was only 32.425 billion yuan, down 2.6 10% year-on-year.
In contrast, ICBC appears to be quite balanced and steady. In the first half of the year, its business income was 205.897 billion yuan, and its pre-tax profit was 776./kloc-0.3 billion yuan, accounting for 465.438+0.0%, a slight decrease of 0.8 percentage points year-on-year. Under the pressure of "letting profits" this year, it has shown good resilience.
Battle of 4 Tianwangshan
It can be seen that ICBC's main advantage is the total amount of deposits, and the gap between the two loan scales is very small, while CCB has a higher spread, better risk control and stronger profitability.
Therefore, the conclusion is that ICBC has scale advantage and lacks quality advantage.
Next, in order to build the first personal financial bank, ICBC needs to reduce the cost of personal deposits by increasing the proportion of demand deposits, improve the yield of personal loans by expanding credit cards and consumer loans, and reverse the disadvantage of asset quality as soon as possible to reduce the risk cost, thus improving the development quality of retail business in all directions.
Whether it is the increase in the proportion of demand deposits or the expansion of credit card and consumer finance business, the core is to improve the level of digital operation and capture more young customers.
For a long time to come, the battle of Tianwangshan in retail finance will be the key variable that affects the valuation of ICBC and CCB.
Nevertheless, under the impact of this year's epidemic, the industry began to reflect: the proportion of retail business can not be overemphasized, and the higher this data, the better. Just as ICBC is a universal bank, the reason why JPMorgan Chase keeps ahead lies in its comprehensiveness.
Sharing is also a kind of strength.