(ATF) – According to the China Securities Regulatory Commission, the retail banking sector has become the main business line for major joint-stock lenders. For some, the segment already accounts for as much as half of their operating income and profit.
The recent release of 2019 annual reports suggests as such.
Last year China Merchant Bank's retail financial business realised a pre-tax profit of 66.4 billion yuan ($9.5bn), up 14% year-on-year, and accounting for 56.7% of total pre-tax profit. Operating income reached 144.7bn yuan, up 15% and accounting for 53.7% of the bank's operating income.
Ping An Bank's retail business revenue was 80bn yuan, up 29.2% and accounting for 58% of bank revenue. Meanwhile, net profit at its retail business reached 19.5bn yuan, up 13.8% and accounting for 69% of total net profit.
For Everbright Bank, the story was similar: retail banking earned 54.7bn yuan, an increase of 8.2bn yuan or 17.6% and accounting for 41.2% of total operating income.