On November 27, Financial Associated Press reported (journalist Shi Sitong) that under the continued release of retail crediting risks, banks are accelerating the handling of personal non-performing assets.

On November 27, in the non-performing loan transfer zone of the Silver Transfer Center, China Citic Bank Corporation continues to disclose non-performing loan transfer projects. The Financial Associated Press reporter noted that recently, China Citic Bank Corporation has densely released announcements for transfer projects, with 11 personal non-performing loan transfer projects reported in just one day yesterday, involving a total unpaid principal and interest amount of approximately 0.669 billion yuan.

Industry insiders believe that since the beginning of this year, the crediting risks associated with small and micro businesses and retail in the banking industry have generally been on the rise. Currently, retail trade asset risks are still in the release phase, with ongoing pressure to improve subsequent asset quality indicators; however, along with stronger measures for non-performing write-offs and disposals, as well as new loans diluting retail loan non-performing rates, a stable trend may continue.

China Citic Bank Corporation accelerates the transfer of personal non-performing loans.

According to the Financial Associated Press, based on the organization from the Silver Transfer Center, the recent non-performing loan projects listed for transfer by China Citic Bank Corporation involve multiple branches including the Peking branch, Shenzhen branch, and Chongqing branch, with the majority consisting of personal consumer and operational non-performing loans, aside from a few corporate non-performing loan projects.

Industry perspectives indicate that the risks of retail loans are related to macroeconomic fluctuations and the recovery of individual financial conditions. Banks are accelerating the handling of personal non-performing loans mainly due to the pressure of non-performing ratios. "Currently, the asset quality in the retail end of the banking industry is generally under pressure, and accelerating the disposal of non-performing assets through market-oriented means is beneficial for banks to alleviate asset quality pressure and solidify the foundation for stable operation," stated Zheng Jiawei, chief analyst of fixed income at Yongxing Securities.

In response, the Vice General Manager of Risk Management at China Citic Bank Corporation, Tang Shuhui, clearly stated during the bank's third quarter earnings conference when asked about the main sources of asset quality pressure that the overall pressure on retail asset quality in the banking industry is a general market trend, influenced by the recovery of the economy being less than expected.

At the same time, he further stated that china citic bank corporation has already strengthened management in a targeted manner, enhancing differentiated management of regions, customer groups, channels, and products, strengthening management of late-stage and collections, expanding disposal channels, and the effectiveness of management has initially emerged, indicating a decline in new bad loans for individual loans and credit cards on a monthly average in the third quarter compared to the first half.

The financial news reporter noted that china citic bank corporation's third quarterly report did not provide specific disclosures regarding bad loans in the retail sector. However, from an overall asset quality perspective, china citic bank corporation's non-performing loan ratio slightly improved in the first three quarters, but the forward-looking risk indicators have increased.

Data shows that as of the end of September, china citic bank corporation's non-performing loan balance was 65.981 billion yuan, an increase of 1.181 billion yuan compared to the end of last year; the non-performing loan ratio was 1.17%, a decrease of 0.01 percentage points compared to the end of last year; the attention rate was 1.69%, an increase of 0.12 percentage points compared to the end of last year. Among them, due to the cooling of the real estate market and the slowdown in economic growth, the bank's personal housing mortgage loan non-performing rate has further risen by 0.11 percentage points to 0.61% since the beginning of the year.

The risk of retail assets in banks is still in the phase of release.

In fact, since the beginning of this year, the overall asset quality of the banking industry has remained stable, but the personal non-performing loan ratio has generally increased. In addition to china citic bank corporation, several other banks such as minsheng bank and bank of hangzhou have recently mentioned retail crediting risks at their earnings conferences, and some banks, including china construction bank corporation, are also accelerating the disposal of personal non-performing loans.

For instance, minsheng bank's credit management department general manager Guo Dai bluntly stated that this year, the credit risk of comparable small micro and retail sectors in the industry as a whole is on an upward trend; bank of hangzhou's vice president Pan Huafu indicated that the new bad loans mainly result from the risk classification downscheduling of specific real estate clients, increased pressure of small micro credit risk exposure, and an increase in the scale of internet credit risk generation.

In this regard, Zheng Jiawei told the financial news reporter that the recent decline in social financing growth, along with the gradual withdrawal of previous small micro support policies, may impact the asset quality of banks' retail sectors, exacerbating the pressure of retail risk exposure and further leading to an increase in retail non-performing loan rates.

Data shows that as of the end of the third quarter of this year, the non-performing loan ratio and attention rate of commercial banks were 1.56% and 2.28%, respectively, with the non-performing rate remaining flat compared to the end of the previous season and the attention rate increasing by 6 basis points. In this regard, everbright believes that the banking industry's forward-looking risk indicators experienced slight fluctuations in the third quarter, mainly influenced by factors such as the continued high pressure from retail bad loan generation.

At the same time, Ma Tingting, the chief analyst of the financial industry at Guosheng Securities, further pointed out that among banks continuously disclosing quarterly retail loan non-performing rate data, no turning point has been observed in the upward trend of retail risk in the third quarter. Looking ahead, the risk of banks' retail assets is still in the release stage, and the pressure for subsequent improvement in asset quality indicators still exists. However, with stronger measures for non-performing loan write-offs and disposals, as well as new loans diluting the retail loan non-performing rate, a relatively stable situation may continue.

Looking ahead at the annual trend of asset quality, Tang Shuhui stated that China CITIC Bank Corporation "is confident in ensuring a smooth conclusion of asset quality." He mentioned that in terms of the external environment, the current macro-control policies have been continuously issued, providing strong support for stabilizing the economy and mitigating risks. Internally, the bank will vigorously control new and clear old, deepen the "Five Strategies in One," promote precise entry and exit of industries and customers, and optimize the crediting structure; strengthen the retail business risk control system, strictly manage customer admission, optimize risk control models, and enhance the efficacy of retail business risk control; systematically strengthen post-loan monitoring and risk early warning, expand disposal channels, and improve the efficiency and effectiveness of problem asset disposal.