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The annual report of the largest consumer finance company has attracted attention from the industry.

along withChina UnicomDisclosure of 2024 interim results, which is related toChina Merchants BankThe performance of its joint venture, China Merchants Bank Consumer Finance, was also made public. However, the "big brother of consumer finance" brought a "report card" with both revenue and net profit declining year-on-year.

In the first half of 2024, China Merchants Bank Consumer Finance achieved operating income of 9.268 billion yuan, a year-on-year decrease of 1.05%; net profit of 1.723 billion yuan, a year-on-year decrease of 7.47%.

The House of Finance noted that not only did revenue and net profit decline, but the asset size of CMB Consumer Finance also experienced a rare contraction. As of the end of June 2024, the total assets of CMB Consumer Finance were 157.801 billion yuan, a decrease of 18.6 billion yuan from the end of last year, a month-on-month decrease of 8.91%; the total liabilities were 135.71 billion yuan, a decrease of 13.04% from the end of last year.

Does the performance of CMB Consumer Finance represent the industry trend or just an isolated case? When compared with the other two bank-affiliated consumer finance companies, it is found that the situation is different from that of CMB Consumer Finance.

In the first half of 2024,Bank of NanjingIts subsidiary Nanyin BNP Paribas Consumer Finance Co., Ltd. had total assets of 46.11 billion yuan, operating income of 2.049 billion yuan and net profit of 72 million yuan, up 103.44%, 102.57% and 54.38% year-on-year respectively, with strong growth momentum.

Bank of JiangsuIts subsidiary Suyin Kaiji Consumer Finance Co., Ltd. had total assets of 44.644 billion yuan as of June 2024, an increase of 5.99 billion yuan compared to the end of 2023; the loan balance was 43.142 billion yuan, a year-on-year increase of 20.2%.

As the "big brother" of consumer finance, China Merchants Bank Consumer Finance has actually shown signs of fatigue in recent years: the scale of new loans has shrunk, loan interest rates have declined, and non-performing assets have increased.

Judging from the annual loan growth, China Merchants Bank Consumer Finance has a clear trend of reducing the scale of new loans. From 2020 to 2023, the total loan balance growth of China Merchants Bank Consumer Finance will be RMB 16.055 billion, RMB 43.591 billion, RMB 14.833 billion and RMB 14.521 billion, respectively.

From 2020 to 2023, the average loan interest rates of China Merchants Bank Consumer Finance were approximately 18.03%, 17.8%, 17% and 15.94% respectively.

From 2020 to 2023, the overdue loans of China Merchants Bank Consumer Finance were RMB 3.086 billion, RMB 5.281 billion, RMB 6.729 billion and RMB 7.887 billion, respectively; the balances overdue for more than 60 days were RMB 1.944 billion, RMB 2.790 billion, RMB 3.723 billion and RMB 4.453 billion, respectively; and the non-performing rates were 1.78%, 1.83%, 2.22% and 2.45%, respectively.

Regarding the year-on-year decline in both revenue and net profit in the first half of this year, a relevant person in charge of CMB Consumer Finance responded recently that "the consumer finance industry as a whole suffered certain challenges in the first half of the year due to multiple factors such as the economic situation, market environment, and adjustments to the asset structure of the financial industry. As a leading consumer finance company, CMB Consumer Finance looks ahead to risks and responds scientifically. By dynamically adjusting its business strategy, strengthening digital service innovation, and building a fortress-like risk compensation capability, it has achieved balanced development in scale, efficiency, and quality, and has used technology to help reduce fees and increase profits, and continue to demonstrate operational resilience."

But this obviously cannot dispel the industry's doubts.

CMB Consumer Finance was established in March 2015 with a registered capital of 10 billion yuan, with China Unicom and China Merchants Bank holding 50% of the shares respectively. According to the official website, CMB Consumer Finance has two major consumer finance product systems, "Haoqidai" and "Credit Pay".

On April 12, the Shenzhen Regulatory Bureau of the State Financial Supervision and Administration issued an announcement approving Chen Zhongyue's qualifications to serve as the director and chairman of China Merchants Bank Consumer Finance.

It is worth mentioning that Chen Zhongyue is the chairman and party secretary of China Unicom. So far, China Merchants Bank Consumer Finance has experienced four chairmen, and all four "top leaders" are from China Unicom.

The current general manager of CMB Consumer Finance, Zhang Yangqing, comes from China Merchants Bank, and he is also the first general manager of CMB Consumer Finance.

Public information shows that Zhang Yangqing graduated from Peking University with a bachelor's degree in 1990 and from the University of Science and Technology of China with a master's degree in 1993. He has served as deputy general manager of the Information Technology Department of China Merchants Bank, general manager of Shenzhen Rongbo Company, and general manager of Hangzhou CMB Rongbo Company. He is currently the director, general manager and legal representative of CMB Consumer Finance Company.

Faced with the year-on-year decline in revenue and net profit, the pressure was obviously on Zhang Yangqing.