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With the appointment of the post-70s doctor,China Everbright BankThe "gilding effect" of this 7 trillion-level joint-stock bank has once again attracted attention. On July 8, the board of directors of China Everbright Bank announced that it agreed to appoint Hao Cheng asChina Everbright BankPresident. After the relevant procedures are completed,Hao Cheng will become the 12th president of China Everbright Bank and the bank's seventh president in 10 years.This national joint-stock bank is therefore known as an important base for the training and output of financial executives.

However, as a financial central enterprise, China Everbright Bank lacks "hard work" in performance and its key data are under pressure.Whether it has become a veritable "Whampoa Military Academy" in the financial circle remains a question。

Seven presidents took office in ten years, and China Everbright Bank has become a "gilded stone"

Looking back at the timeline, the president of China Everbright Bank has changed frequently in the past decade.

Nanduwan Finance reporter noticed that the presidents of Everbright Bank were basically from large state-owned banks, and they were more like a "gilded stone" for the selection, training and output of senior cadres of large state-owned banks.China Construction BankVice PresidentZhao HuanTransferred to China Everbright Bank as president; in January 2016, thenBank of ChinaVice PresidentZhang JinliangHe succeeded Zhao Huan as president of China Everbright Bank; at the end of 2016,ABCHeilongjiang Branch PresidentGe HaijiaoHe was transferred to serve as deputy general manager of China Everbright Group and became president of China Everbright Bank two years later.

In January 2020, then Vice President of the China Development BankLiu JinTransferred to China Everbright Bank as president.

At the beginning of 2019, the business director who had worked at Bank of Communications for 25 yearsFu WanjunHe was transferred to the position of deputy general manager of Everbright Group. Two years later, in April 2021, he became the president of Everbright Bank; in March 2023, he was the vice president of Bank of China.Wang ZhihengHe served as president of China Everbright Bank until this timeHao ChengTake up a new post.

What is even more noteworthy is that in the past decade, six consecutive presidents of China Everbright Bank have been reappointed:Zhao HuanAppointedChairman of China Development BankIn March this yearZhang JinliangAppointedChairman of China Construction Bank,Last AprilGe HaijiaoAppointedChairman, Bank of China。Liu JinHas been appointedVice Chairman and President of Bank of China，Fu Wanjun appointed as deputy director of the State Financial Supervision and Administration BureauIt is worth mentioning that this year, 51 years oldWang Zhiheng has recently been appointed as the President of Agricultural Bank of ChinaWhen he took over as president of China Everbright Bank, he was only 49 years old, the youngest president of a national joint-stock bank; now he has become the youngest president of a state-owned bank.

In fact, there are many more cadres who have risen to prominence in this way.financialAll senior executives started at China Everbright Bank and have worked there for a long time. In May 2024, the former vice president of China Everbright BankLiu Jun becomes president of ICBC；Wu Fulin became the chairman of the Export-Import Bank of China two years ago.。

However, Everbright has not been silent on the frequent changes in the core management. As early as the performance conference held in 2021, the former chairman of Everbright Group (also chairman of Everbright Bank)Li XiaopengZeng responded that a company's strategy has a certain degree of stability and will not undergo major changes due to changes in individual leaders.Even though there have been some changes in our management, every management and every president has made their own contribution to the faithful implementation of this strategy.。”

Under the leadership of Li Xiaopeng, China Everbright Bank once proposed a three-step strategy of "advancing to the first place in three years, taking a step forward in five years, and becoming first-class in ten years". However, this bold statement has not yet been fulfilled. On April 5 last year, the Central Commission for Discipline Inspection announced that Li Xiaopeng, former Party Secretary and Chairman of China Everbright Group Co., Ltd., was suspected of serious violations of discipline and law and was under investigation.

Financial talents emerge in large numbers, and performance remains stable

However, while exporting senior financial executives, China Everbright Bank's performance "basics" have remained stable.

In 2023, China Everbright Bank will achieve revenue of 145.668 billion yuan.A year-on-year decrease of 3.92%; Net profit attributable to shareholders was RMB 40.792 billion,A year-on-year decrease of 8.96%It is worth noting that this is the largestThis is the first time that both revenue and profit have declined year-on-year.Nanduwan Finance reporter noted that the poor performance affected the secondary market. On March 28, the day after the annual report was released, China Everbright Bank's stock price plummeted by 7%, and once approached the limit of decline during the trading session.

It is observed that China Everbright BankPB (price-to-book ratio) valuation is 0.41 times, ranking at the back tier among listed banks, highlights the capital market’s lack of confidence in it.

Regarding the rare decline in net profit, a key indicator, China Everbright Bank explained that "it was mainly because the Group increased its provision for asset impairment losses by 2.96% year-on-year in order to consolidate the foundation of asset quality control." Data showed that in 2023, the bank's provision for asset impairment losses was 52.105 billion yuan, an increase of 1.496 billion yuan year-on-year.

The asset quality behind the decline in revenue has also been under pressure. As of the end of 2023, China Everbright Bank's non-performing loan ratio was the same as at the end of the previous year, at 1.25%. At the end of the same period, the balance of non-performing loans was 47.476 billion yuan, an increase of 2.802 billion yuan from the end of the previous year. From the perspective of the distribution of non-performing loans in the industry, the real estate industry has the heaviest "burden",The overall non-performing loan ratio of real estate is also high among joint-stock banks.According to the report, as of the end of last year, the balance of non-performing loans of Everbright Bank in the real estate industry was8.833 billion yuan, an increase of 27.06% from 6.952 billion yuan at the end of 2022. The proportion of total non-performing loans was 18.60%, up 3.04 percentage points from 15.56% at the end of 2022.

In early March this year,China Chengxin InternationalIn the "2024 Financial Bond (First Phase) Credit Rating Report" issued to China Everbright Bank, it is pointed out that China Everbright Bank is facing many challenges, includingThe macroeconomic recovery is slower than expected, which has an adverse impact on its business operations and asset quality; interest rate liberalization and market fluctuations have a certain impact on profits; the debt structure needs to be improved, etc.。

In addition to weak performance, China Everbright Bank has repeatedly received fines for financial non-compliance issues. According to incomplete statistics, as of May this year, China Everbright Bank has received a total of 15 fines in 2024, involving a fine amount of more than 11 million yuan, which is basically the same as the scale of the whole year last year. Judging from the penalty information, many of the fines are related to violations of loan business.

Industry analysts pointed out that the above problems are to some extent related to the frequent personnel changes in the management of Everbright Bank. For Everbright itself, the benefit of talent flow is the continuous influx of fresh blood, but it also shortens the tenure of senior executives and makes it difficult to implement strategies, which ultimately affects the stability of the organization and the efficiency of business execution.

In addition, insufficient compliance and internal control will reduce the capital market's confidence in Everbright Bank's investment, ultimately leading to a decline in the competitiveness of the bank's business and bringing risks to its operations.Balancing the two "coordinates" of talent cultivation and performance improvement may be a major challenge for the new president。

Governance ecology is a challenge

Shrouded in the halo of the world's top 500 companies and large state-owned enterprises,The fall of former chairman Li Xiaopeng is a microcosm of the governance ecology of the “Guangda system” and the financial anti-corruption stormAccording to the observation of Nanduwan Finance reporter, three chairmen of Everbright Group have been dismissed, including Zhu Xiaohua, Tang Shuangning and Li Xiaopeng. The three of them have been in charge of Everbright Group for 18 years.

Some analysts pointed out that the reason behind the "Huangpu Military Academy" genes of financial cadres is not because of their "strong fundamentals" but their status as a central financial enterprise. In addition to the six state-owned banks, there are currently three banks under the large central enterprise financial holding group, includingChina Merchants Bank、CITIC BankFor reference, other joint-stock banks are mostly controlled by local governments, such as FujianIndustrial Bank, Hua Xia Bank in Beijing, Pudong Development Bank in Shanghai, etc. Analysts said that with such a background, Everbright Bank has taken on the responsibility of training financial cadres.

However, as a reference,The core executives of the two banks under the China Merchants Group and CITIC Group are relatively stable, and their performance is relatively more eye-catching.。

Referring to the past, it is still impossible to predict the length of the term of office and the next stop of Hao Cheng, the new "head" of China Everbright Bank. However, for him and the current core team, "supporting China's modernization construction with high-quality financial services" is a mission that must be accomplished. Boosting performance and preventing risks, rectifying the governance ecology, resolving the impact of frequent high-level shocks, and making great efforts to eradicate financial corruption are all "compulsory courses" in the process of fulfilling the mission.

How China Everbright Bank, with total assets approaching 7 trillion yuan, can maintain the safety bottom line of internal control management in a complex competitive environment also remains to be tested.

Written by: Nanduwan Finance reporter Lu Liang and intern Li Ziyi