Good afternoon. Welcome all the guests from online and offline to today's Ping An Bank 2021 Corporate in Risk Investor Day. I am the GM of Finance Accounting Department and the Corporate CFO, Kevin Zhu. Thank you for giving me this opportunity to be the host of today's Investor Day. We didn't look for a professional external host.
That's some minor contribution to the bank's cost income ratio. I don't know what your feelings are after that short clip. I joined Ping An Bank for around 4 years. All those pictures on the screen, I have experienced most of the time for the Retail 1.0 transformation stage. So when I look at those pictures, I'm still very heartfelt for those moments.
We have been hold to the calls from the Central Party and State Council and hold on to our 12 words strategic direction. During this process, we have shown our performance with the data and metrics. We delivered our words and corporate risk played very important role along this process. Now we are turning to the 2.0 stage with all the environments are changing for regulatory market demand and technology application. So during this time, how can we hold on to this retail breakthrough and retail priority strategy and play the role of risk and the corporate well.
So this is what we want to talk about for today's Investor Day. That's the core, corporate and risk. How can they play an even better role for the retail transformation? So today we have 4 parts. First, we will have President Hu to deliver the main report.
Next, we will have 3 sub reports regarding integrated finance technology led transaction banking and the risk control. And at the end of the report the Investor Day, we will have Chairman, Xiaoying, to deliver conclusion remarks. So today, we want to, together with all the guests here, review on the past and look forward to the future. Now let's start the first part of today's conference. Let's welcome President, Hu Yifei, to deliver the main report.
Good afternoon, everyone. Welcome all the guests from online and offline to join us in today's Corporate and Risk Investor Day. Based on the Board Office arrangement, so I will deliver the main report at beginning. My understanding is for this report to deliver all the framework that we have for the corporate business and to answer some of the key concerns that you have, for example, why we want to do this. And for detailed information, we will have President Guo, Board Secretary Zhou and GM of Transaction Banking Li Yue to deliver their reports.
So for my report, the title is to construct the new drivers for corporate business and to start a new growth curve. Now let's look at our results first. We think we had a relatively good momentum and let's look at the roots. There are 5 we concluded. And to look to the future, where should we head into?
Where should we promote our corporate business? 1st, results. Yesterday, I believe you have all read our 3rd quarter report. And on the desk, I noticed there is a presentation slide to present you all the key metrics we had for the Q3 report. For the 1st 9 months of Corporate Business, we had a very good momentum and the growth is there to see noticeably improved.
For customer base, it improved noticeably and corporate deposits both optimized for the balance and cost. And back to the customer numbers, it increased by 33% compared to that in 2019. And incremental for the 1st 9 months is 2.19 times of that in last year of the same period. And for the effective customer deposit balance, it was over RMB 255,000,000,000 and for the daily average contribution is already exceeded half. And there is one figure I want to show you is for deposit per account, we rank the 2nd place in among our joint stock banks.
You say that we have the increasing deposit and which is more than 200,000,000,000 yen. And still, you can say that our deposit on daily basis still grow by 8.8% if we take the downsized part into our balance sheet. And you can see our deposit on daily basis already reached a very high double digit growth number. Well, regarding the current account deposit on daily basis was growing by 23% and 4% higher than the same period of last year. And also, we simplified and optimized the structure.
You can see that the income from the strategy has been improved. And also, we have good course being made from our new strategies. Here is a new set of the data. You can even calculate it even if we disclose a set of the number, but it can all be calculated in our financial report. The non credit business also brings very good income to the company, which means around 20% of the revenue are related to assets, where around 80% of the total revenue are the non asset business.
What you can see in the 1st 9 months is our corporate business productibility has been improved by 12.3% compared with 2020, while the corporate finance mechanism has been further upgraded with PN characteristics. And we deep dive into the integration of our 2 ecosystems. In the 1st 9 months, our total investment is already improved greatly and which help us to have a daily deposit of RMB 117,000,000,000 up by 29% and around 50% of them are the current account deposits, where at the same time, on the auto financial loans perspective, the size already reached RMB 250,000,000,000 ranking 1st in China. Well, regarding the supply chain financing, the size is already RMB 220,000,000,000, ranking 2 in the society. And we served more than 62 OEMs now in the auto industry.
And we accounted for 82 of the OEM in China, and we accounted for 30 of them, where we also served more than 8,700 4S stores. In China, we have around 20,000 4S stores in total. You can see we cover around 70% of the auto OEM and around 30% of the 4S stores. And this mechanism also helped to boost the rapid growth of this industry. And we have the industrial banks taking the lead.
Trading banks help to provide the service, investment banks to help to place the right targets and the corporate finance to help to take care of the business. So you can say that we are growing very robustly. So we are very happy that our bank loans would be grow improve and greatly, where the bank insurance also be supported by around 40.8%. Technological empowerment improved the operational efficiency, which can help to release a great momentum for future development. Based upon Digital Bank, Eco Bank and Platform Bank, these three very important name cards will help the company to further expand our service scenarios, improve the service quality and then to bring more empty room for future development.
We have the digital bank with more than 10,000,000 of the devices being connected, and it already supported 130,000,000,000 of the financing, where the EcoBanks has already made more than 5,000 API and serving more than 30,000 clients, the total trading volume is around 90,000,000,000,000 in the 1st 9 months of this year, where the platform banks means that we now have around 6,590,000,000 registered users. And on daily basis, we have more than 40,000,000 of the transactions. And the pocket bank register is more than 6.59, which was increased by 5.3x compared with the beginning of this year. These are all the very good results being harvested by us, but let's take a look at the reasons. What are those fundamentals to help to further sustain our growth in the near future?
I think this is also a great concern for many of the investors. So let's take a look at the 5 factors which help us to make a good scorecard. First of all, we have the right strategy to lead our business. As being said in the short video and we have the 3 plus, 2 plus 1 strategy, including our industrial banks, trading banks and the integrated finance, where 2 means 2 major customers, including our strategic customer base and SMEs. And we also stick to the asset quality improvement.
It's been taken as our lifeline, and we're also building the AUM plus LUM plus platform operation model. For example, we have the 5 cards strategy that are helping us to further improve our business. All those strategies help to sustain our business and sustain our development momentum. The second factor is our very steady asset quality, which can lay a very solid foundation for our business take up. In the financial report, we also disclose you some of the information regarding the asset quality.
Here are 2 key criteria. Our corporate business, NPR is only 0.89 percent and the corporate NPR formation rate is only 0.26%. You can see compared with other peers, we are still the well performing in this market. With such a good asset quality, it will undoubtedly leave more room for us to further develop our business. While with such a good asset quality, it also tells our capacity of managing the risks, and we believe this in return will also support our future development.
The third point is successful transformation of the retail business also helped to leave more room and space for the corporate business development. In the interim result announcement, when we were conducting the meeting and we shared with you many retail business data and also the Q3 report, still see improvement on our performance. You can see that our retail loans and its profit contribution revenue contribution are all major contributors to the total revenue of the bank, and it's all more than 60%. So you can say that the successful retail transformation reform leaves more room and more space and more time for the corporate business. Because of the successful retail business transformation reform, it can also help us to digest the historical burdens and make sure that we can truly make a good development momentum with a very positive performance, while at the same time, we leverage the corporate strength to actually grow our AUM and RUM.
You can say that we have already total invested and financed RMB 930,000,000,000. In other words, in our corporate business, we have around TRY 1,000,000,000,000 on balance sheet. So if we grow our business again, you can say the AUM and RUM, because of the corporate resources and the strength, we can still grow it with very robust momentum. And in the 1st 9 months, the size has already reached RMB 940,000,000,000. So you can see the integrated finance is actually a very solid foundation for us to further develop our corporate business.
The face factor is a well organized team. As you see from the video, after more than 4 years or nearly 5 years calibration and work and we made some very strategic deployment on our team, our teams being greatly resched and being greatly improved. So you can say that our team also cherish this opportunity to develop our corporate business further. They are also very confident to further develop the corporate business. Well, for this well organized team, we have the leading product ability per capital.
We have the industrial product expert, technological expert and the business expert, making sure that our team is going to collaborate more smoothly with their own expertise being shared and be contributed to the general business. Well, after taking a look at all the factors, it was talking about the fast, but let's look into the future. Let's see. The market is changing. The environment is also changing.
The need and the choice made by the customer is also changing. And for sure, our corporate business model also needs to be changed accordingly. So as investors of Ping An Bank, I think all of you sitting here probably already noticed our development changes happened for the past 1 to 2 decades. Around 2 decades ago, at that time, we were just providing business based upon the credit product or other product. So at that time, we fully rely on the product to work for the client.
Many of our business are on the credit life giving, and we leverage our social relationships and loans to maintain good relationship with the customer. Around 1 decade ago, we shifted to the product based model where at the time, we started to have some industrial product solution and the platform. I still remember at that time, we were frequently discussing some new platforms being established by the bank and to remove the part of the business to the cloud end, for example, the supply chain business and finance being used to serve the auto industry and also leverage Internet as a very important platform for such a service. And we also have some Internet based platform service for the e commerce industry. At that time, we were actually providing the service based upon the industrial platform.
Well, for the past 1 decade, to be more precisely speaking, in the past 5 years, the banking industry is now embracing a key word that is ecosystem. Ecosystem means we have the data based business model, We have the scenario and the data based model and then to provide the corresponding service. More importantly, we are actually taking care of the demand and the scenario from each industry and then to provide our service. We're focusing more on efficiency and professional service. For example, the digitalized bank, B2B Bank, B2C Bank and Open Bank are becoming the trends.
So you can see that the environment and the customer needs are changing. So that's a reason. I think there will be some 2 major variables. The first one is industrial digitalization and the structural changes for social financing. Industrial digitalization is going to reshuffle all the fundamental elements for the company's future development.
It's going to break down the account trading and customer concept. And in the past, we only work for a single product or single client, but now we open our ecosystem to provide diversified product volume for a group of the customer. Trading banks are leveraging the platforms to make sure that we can provide better service. Well, the structural changes of the social financing is also help to reshuffling the traditional finance sheet. Direct financing and the capital market development is going to bring us new business development opportunities.
And you can see industrialized yet investment oriented and dual light strategy will help us to harvest more in the near future. So let's take into the future. In the next four slides, I'm going to share with you more data, especially helping you to understand we are facing those changes and what countermeasures are there in our minds. How we're going to take multiple actions to improve our performance? We have the following 3 presentations to give you a detailed explanation.
First to change the customer management logic and to reshape a new customer value system. And today we will have a part that is to release the white paper for the customer value. With the Nebula platform, open banking platform and digital pocket, all those new channels, we are upgrading, diversified and the batch of acquisition to reach customers from all parts and to transform from to serve platform companies to serve platform users. And we are creating this conversion path for users to become our customers and to have a massive customer base for corporate business. So in this system, there are 3 key words.
1st, user reach 2nd, customer conversion and 3rd, value enhancement. To put it simply, customer reach is that you will see them and to fill them and customer conversions that you can bring the flow in and to earn money by increase their value. We connected to platform banking, open banking and to integrate the risk control models and to serve our customers along the upstream and downstream to increase our capability to reach them. Later on, Li Yue will share more information on this part. And for customer conversion, we will talk product, enrich benefit and to refer customers to activate those users we have and to promote the conversion.
And the work is being implemented smoothly. In our white paper, they're very detailed expression. So you can have a look on that. And for the customer value enhancement, we will transform from the traditional deposit loan and the ForEx business to manage your AUM and manage their liability AUM, so that their value can be gradually enhanced. We will use our limited in balance sheet resources to grow our off balance sheet business.
And we have been doing this very well from letter of credit, those traditional again. And in the report I delivered at that time, I shared with my colleagues a set of numbers that is our LUM to serve our bank's customers. The volume is 3.4x to that of the in balance sheet loan volume. So to a great extent, this doesn't rely on the corporate credit lending business. So this is a massive change
for
us. And the next page to the industrial digitalization, we are restructuring the business model for transaction banking and we aim to build the best transaction banking with technology empowerment. We take digitalization as the grasp, the starting point and we centered on the accounting account system, transaction and the risk logic of the transaction banking to link this industrial chain. And we rely on digital account to set up the connection with consumer side, industrial side and government side for those platform ecosystem. So we want to enhance our core capability to serve this digital based economy.
So 3 keywords here, account, transaction and risk control. In this age of industrial digitalization, the transaction service of banks have been changing. For example, let's look at the changes happening to account system. In the past, you have to visit the branch to open an account. You have to verify yourself face to face.
And this account is relatively close. You can only use this account in the bank system or you can only use this account in the counter services more accessible. And we are transforming from serving a single account to an ecosystem based customer segment. So this will bring us the economy of scale. And the second coming to transaction in the past, transaction services are more centered on financial products, but now those services we will use more digital assets.
Digital or digitalization will be the effective assets for transaction, where the numbers are, the transaction can happen. And in the future, based on contracts, invoice, order, tax, taxation or labor, Internet of Things or the carbon neutrality will all be the benchmark for transaction or trading. So this will expand the boundary for transaction banking. And risk of control, the last one. In the past, it was more focused on the credit of entities.
But in the future, you will see more digital color on that. So this is a transformation as well. Based on big data risk, we set up our risk models and we will construct a new standard for credit judgment. And to some extent, it will replace the entity credit rating and the digitalization or numbers will be the most important factor we consider when we do the risk assessment. And next page, facing the capital market and direct financing, we will have more differentiated advantage.
In 2020, our bond issuance volume was over KRW50 1,000,000,000,000. And for 8 share equity financing, the volume was around JPY 2,000,000,000,000,000 and M and A over JPY 1,200,000,000,000. And the rapid growth of direct financing in capital markets created great demand for complex investing and financing, and we have even more opportunity to take premium assets and to serve premium companies. And for Ping An Bank, when we talk about this part, we really focus on complex investing and financing. Why complex?
Because for the simple ones, normal banks can cover this business as well. But for complex investing and financing, we target at high end customers and their complex demand because we have this advantage in integrated finance, for example and also channel product, funds and professionalism. All those differentiated advantage helped us to serve our customer better. For other banks, they probably is going to be difficult for them to provide those services. In that case, this business, we centered on 3 core factors.
1st, we have new customer targets. In the future, we will focus on new technology, new energy and the new infrastructure. And second, we will focus on new product system. For example, refinancing, deleveraging, mix ownership, reform and M and A. And the last factor is for the funds.
We will provide more diversified choices to serve our customers' demand. We are now constructing those differentiated advantage system. And later on, Board Secretary, Mr. Zhou, will give everyone a very detailed presentation. We have the confidence to serve more premium customers based on the unique industrial banking framework because Ping An Bank, we have 6 business unit or business departments.
This is very unique in the industry. We have been doing this for 7 years, some even 8 years. They have been digging into each sector or industry thoroughly. So with that, we are also digging into the ecosystem of each industry and constructing the industry plus finance alliance platform. Board Secretary will show some real examples with us.
And we have the capability to cover even more demand. We are all kinds of funds. With the bank and the group's subsidiaries, we can provide diversified products and service portfolios to provide customers our unique services so that their demand for liquidity deleveraging or cost cutting will be satisfied. And next page for the new situation we are facing now, we are utilizing risk control capabilities, the smart risk control to empower us and to prove to safeguard our business growth. President Guo, in his report, will tell us what we have been going through from the traditional risk control to this smart risk control system.
In the past, it was more like a defensive position, but now it will help business grow to serve as an assistant to help business grow faster. And now here, I will only touch upon 3 aspects. First is the big data smart risk control will provide help to earn the proactiveness. And the third one is for the highly efficient smart due diligence and approval system can improve the communication said is only on the ground I laid for President Guo's report. After his report, you're probably going to have even better understanding on the smart risk control platform, smart warning system and the due diligence approval, etcetera.
You will understand why they can support the 3 aspects I mentioned. So please be awaited for his report. And you will know the logic down the road. And the last page I want to share with you is for Corporate Business, why we are saying that in the past 4 years during this transformation, according to Chairman Sheih's words, this team is still here and it has been going through a lot of trials and they can win in a hard battle. And now we are starting restarting this business.
How can this team win even more battles in this environment? Here, I want to show you how we can guarantee that this team will have the momentum. Four aspects I want to share. First is for the organization. We will keep the organization energized.
We compared it to 1 body and 2 wins and with 3 war zones and the 6 PMOs. So one body is for the committee, the corporate committee and the 2 wins means transaction banking and complex investing and financing business departments.
Many of our business development are actually based upon both business lines. Both business lines provide professional service and serving the customer with their robust capacity. So that can help us to build a very good competency too in this market. And the three heads means our 3 battlefield and which means our 3 geographic locations. We have a command in 3 geographic locations, and these are all of our senior management members.
The first one is Mr. Yang Zhejun, who is taking care of the investment business. And we also have Wei Ping from Beijing branch and Mr. Xu Weiping, who is actually in charge of the Northern Area of China. And Mr.
Yang was in charge of the Southern Area and we also Mr. Zhang, who is also the VP of the Shanghai branch, who is in taking care of the Eastern China business. So you can see these are being called as the 3 battlefield or geographic area. And the 6 arms means we are supporting our business development with 6 PMO teams. And the 6 PMO teams altogether have 42 dedicated full time staff.
These PMO teams are actually responsible in development and support of major projects and also responsible in the engagement and the planning of the major strategies. While for our 6 PMO teams, they are also interconnected with each other. For example, the PMO leader for our 3 geographic locations are the vice director from our central banks, and then they are responsible in taking care of the 3 geographic location LLC and also working as PMO senior managers. So in this way, we can make sure that our headquarter and the different geographic branches can actually have a very smooth communication to reduce the disputes. We are talking about the PMO for our double wings And our PMO for 3 geographic locations and the business lines has periodic basis for engagement and for communication, especially on some major user cases for the bank's development.
And the PMO team is not only to do the business promotion, but also responsible for the education. So I can say that for our team, we are also becoming more professional and young, Well, for this year, we have already appointed 136 group leaders. And currently, we have more than 6.60 small teams, which means that around 1 in 6 of the new staff has been appointed for this year. Average range is only 36 years old. Those business operate a year and also see rapid innovation starting from those teams.
We also see diversified and ever changing customer needs from the market. So we can see lending capacity also play a decisive role to a team. That's the reason to have a young yet professional team. And Thailand is the key for us to further educate our team and to make sure they still gain a very good business development momentum. From the data driving perspective, you can see that for the past 9 months, our IoT interconnected terminal device increased by 33 times and the momentum still going to continue.
Well, for open banks, the customer number was growing by 129% in the 1st 9 months of this year. And we also have a smart corporate management system. For example, we have the real time performance dashboard and the business crew and system and the mobile business platform. These are all the tools in supporting our digitalized business and supporting our business management. While from the resources allocation perspective, you can see for banks, as being disclosed by our announcement, many of the investors were also wondering and how we're going to have a right resource allocation for retail business and the corporate business.
We're still going to have a 40% to 60% strategy and not only for the credit resources but also for the capital resources. And this is also the reason for the past 3 years, we're trying to downsize the NPR, while at the same time, we can see more growth on the resources allocation perspective. This can actually help us to restart the development momentum for the corporate business. We're talking about the parent company resources. You can see in the 1st 9 months, we have already realized the size of investment and financing is more than RMB 940,000,000,000.
Therefore, you know that every year, the newly aided investment is around RMB 400,000,000,000 to RMB 500,000,000,000. This new investment would become a very good resource for our corporate business. All those investments means that banks are there to find the right customer, to find the right assets. Well, in return, we call it how we can leverage the integrated finance and the group finance to reach those customers. These are the direct customers that we can reach.
These are the resources that no other banks can randomly enjoy. We are talking about innovation leading. On yearly basis, especially for the past 3 years, every year, we spare 50,000,000 innovation farms to incentivize the innovation project and innovation teams. This has been down for 5 consecutive years in the past. Every year, we have 2 new competitions to help to award those innovative project and innovative personnels.
And I still remember the first prize of this competition will be awarded with RMB 2,000,000. Well, I can say that among other awards being granted by the government, they won't be able to give such a high amount of the incentives and awards. So looking to the near future, we're going to leverage our technological empowerment and integrated finance, working on all big momentums to help to revitalize our strengths and then to build the scientific oriented yet data driving corporate business and then to start a new growth curve for our future business. Thank you very much. Thank you.
Thanks for Mr. Hu. I think after this presentation, you may have your own understanding and the integration of this presentation, talking about the core engines, our trading banks and integrated finance. And there is a backbone in between. That is a customer centric approach.
You can see that in China, our investment financing service are still the real resources, but it is also a structural scarcity product for the customer from financing from investment or from industrial settings. They need commercial banks to provide the comprehensive, yes, a full basket of the service. And also technology can make our service more user friendly, more effective and working better for different industries. So these are the two highlights I got from Mr. Wu's presentation.
Coming next, I would like to welcome PM Bank Board Secretary, Mr.
Zhou, to
be on the stage to walk you through the integrated financing. Let's welcome. Dear investors, good afternoon. I'm the Board Secretary. My name is Joe Chang.
Today, I have a new identity. And because I pass on my host authority to Mr. Pei and coming next, I'm going to walk you through the investment financing business. Well, I only have 20 minutes, so let me walk you through my presentation very quickly. My topic for today, the first part, we call ourselves as a good use with 5 merits.
We have 5 labels. And how we grow our business, we also choose 3 very important tactics in 3 industries to share with you. We are a young man with 5 more rates. You can see that for our complicated investment and financing business, we call ourselves as a young man. Let's work you through the profiling of these young men.
Well, for our investment and financing business, we have the following distinctive features. For Ping An, our business, we have a feature of occupying less assets to be light.
We are
with this precondition. We have 5 featured labels. First of all, more, fast, good and also index. Let's talk about what do we mean more. We have more resources.
Secondly, it means faster and we also have faster development. The third one is we can actually make sure we utilize the resources better. And in-depth means we are working in the key industrial ecosystem to have the in-depth impact there. And also broad means we can copy the successful story in a broader sense. So you can see this actually show the distinctive features of our Investment and Financing business.
First of all, let's talk about more. We have more dual line assets and resources to maximize our environment. Why should we call ourselves in this way? You can say it's because of our background. We have a big mining site, and we also have a very consolidated corporate business.
Only the banks has a very complete system and also more than 4,000 account managers, and this is serving as engine for the corporate business. So we are actually the leading executor of the corporate business. Well, let's take a look at the right side. You can see by the end of this year, we foresee the business size of this year would be more than KRW 1,200,000,000,000, just like the FPI concept proposed by the Commercial Bank of China. But KRW 1,200,000,000,000 is the business account for this year only rather than the balance number.
So you can see from the structural perspective, around 48,486,000,000,000 are for the parent company investment financing product size and around less than 10,000 are actually the newly aided loans and investment. We're leveraging less than RMB 100,000,000,000 of the RWA to serve multiple clients at the same time. It can also serve the following data. First of all, corporate deposit ratio, you can see that when we benchmark our peers and we are the one with the lowest value, while at the same time and the productivity per capital because we well utilize the resources, so our productivity capital improved by 25%, ranking the number 1 in our industry. We'd like to really build our real investment bank model, leveraging less resources and capital to serve the customer with a maximized approach.
So we see leveraging our greater parent company and our other brother companies, we can still serve the client with very good capacity. Second, the label is being faster. And we are a company with a faster development. We not only have a business size, but also great growth momentum. Since 20 90 and we find out we are the leading executor of the investment financing project.
So you can see that for the past 2 years, and we see a very good growth for our business size. And in 2019, the number is already more than JPY 200,000,000,000. Well, for this year, we're still going to see a 20% CAGR, especially if you take a look at the right side, there are few assets classes are saying great investment. And the attributable investment size increased by 5 times and the asset securitization including rates, the size improved by 2 times. And these are always the business that is hard to be covered.
For example, those products, it's us and our peers harder to access to those businesses. But how can we do with it? So you can see this with the resources and increase. It can further replenish our capacity in serving the customer. This is also a great difference between us and other peers.
And the 3rd label has been good, and we can actually leverage the resources in a better yet more seamless approach. And people said you have a very good dual line model to grow your business. But how can you make sure that the resources can be used by the bank? How can you verify you are better than someone else? In the backdrop, actually, we have a very good mechanism to quality rate the resources.
We call it 6thram and 6thrage. And 6 Ram and 6 Range, I think I'm not going to elaborate on this point. But the core changes that we have the cross subsidiary collaboration.
Now we need to upgrade to the 2.0 integrated finance integration and the concept for the whole team. In the past, it was where you have extra energy, you can help us. But in Nanyang Bank, we mentioned that we have 6 complete business departments. So those departments will be the lead for integrated finance projects and be the manager. In the past, product that haven't been managed now, we have the industry departments to arrange in a consistency of income, etcetera.
So this is a mechanism we have now to better utilize the dual light resources. And the 4th pack we have is the dual light I mentioned. We will approach from the 4 in-one model to have even more performance. There are 2 main parts. First, we have the integrated finance plus investment banking plus transaction banking plus the industrial departments as one body.
And the second is for industrial ecosystem. These 4 modules are all centered around the industrial ecosystem to provide the services. And with this 4 in 1 model, we have several differentiated, specialties. First, we have even more complete structure. We have 2 things more compared to others.
1 is the integrated resources for financing and investing from the group. And the second, we have the lead industrial departments. And next page, it is not a loose structure. It's more close than before. We have some, we call it business units, battle business units covering 13 sub companies in infrastructure, property refinance, deleveraging, mix ownership, reform and merge and acquisition, etcetera.
So we are fully utilizing the resources from the subsidiaries to reconstruct and to play out the effect even better. And next page, we are connecting with Investment Bank, which I'm also in charge of. We integrated these 2 modules to make it into 1 consistent business module to focus on the 6 industrial ecosystem and to form 1 to 2 flagship product or models for property ecosystem. We are doing the syndicated loan for infrastructure. We are issuing bonds and for the medical.
We are doing M and A. And third, we connect transaction banking as well under the 1 plus in strategy. Complex investing and financing focus on the 1 and transaction banking focus on the end. To strengthen this synergy between transaction banking and the industry departments, we formed 6 battle business units to approach the ecosystem based scenarios and form competitive models in car ecosystem, medical and etcetera. We now have several case example models in the market.
And probably you have noticed that in the 4 in-one model, we have mentioned a lot of about the battle business units. This is a unique aspect for our model because it's very agile and can get things delivered quickly. And next page, we have 6 industry ecosystems. And the key point here is to we want to dig deeper into customers' pain points and to set up case example to have even better effect for those business models. And next page, we want to cover and to promote those business models.
We have 18 methods or 18 we call products or manners to do this business well. So that frontline can better copy those model. And this year, we upgraded 18 methods to 36 schemes. For each case, it has a real example just porting it. Here, you can see the upgrade from 18 to 36.
All those are real examples that we have implemented. So to copy the model of OnePlus N it will be easier for frontline people to follow through. And no matter is 18 or 36 schemes, we further concluded that we have 4 differentiated advantages. First is we have unique solutions. We can make our programs better than others.
We work even closely and we make innovations in product portfolio so that we have models that others cannot easily copy or to solve their customers' pain points. And second, we have higher efficiency. We can move faster than others. And third, our price is more competitive. And the last one is, we can provide even more comprehensive projects so that our income is more complete.
I will not elaborate on those advantages, but what I want to say is that we can copy those models and so that others cannot easily do that. What I just said is the first part of my report. And in the second part is for the detailed approaches we have for the investment and the financing business. How to do that? Here, we have all those dual light resources.
We will put it under the 4 in 1 model plus C Site framework. First, let's talk about car ecosystem. We have a definite advantage in the market. It's not just a simple expression. Actually, no matter in C side or consumer side or in the corporate side, we have the number one market share for the consumer side.
And for the business side, our financing volume altogether for this year is over RMB 350,000,000,000 and we rank the number 2 in the B side. And we have very good foundation to work deeper in this ecosystem. So our approach here is B plus C. It's like an all front coverage for the industry. We take the 4 in 1 body, this model as the carrier to cover downstream and upstream vendors and distributor.
And for Investment Banking, we will solve the demand for the main manufacturer and the distributor. And our market shares have been leading the market for the number 1 or number 2. And integrated finance, we cooperate with Ping An P&C. And for bank, our coverage now is less than 10%. So still very huge room to dig.
And for the C side, we will think about how to cooperate better with retail side to have the 2.0 stage that is for the new energy car. We are thinking about new models to enter this market. And now in the market, we are the very first bank to think of a new model to connect the C side with B side. And we made several breakthroughs in this market. We have Ping An has very unique advantages.
Let's look at some specific examples. For example, we cooperate with a car company and we cover all the scenarios along the ecosystem chain. And for the business we did, the banking acceptance business, the balance was RMB 14,000,000,000. And for the short financing insurance is RMB 3,200,000,000. And for the corporate partners, we have over 400.
The market share is 40%. And for referred distributor and also the implemented distributor, we have 50 of them. And the P and C, the insurance volume was over 10,000,000. In the first half, we issued around 580,000 loans and the volume was 3,800,000,000. And with that, the contribution from this company deposit was 23,000,000,000 and revenues it contributed over RMB 300,000,000.
And for its upstream and downstream clients, we now have 400 of them that we are cooperating with. The next page, the 3 year goal, we want to be the leading investment and financing bank in the car ecosystem. So in 2023, we want to make the supply chain transaction volume to JPY 500,000,000,000, that's up 70% compared to 2020. And for the daily average deposit, we want to make it JPY 150,000,000,000 in 2023 and that's up 50%. We want to be the number one investment in the financing bank in the car sector.
And second example is for property, which you are very concerned with. Actually, we are the earliest bank that set up its property business department. And we are the only bank that has been issuing white paper on property financing for 8 years consecutively. The white paper has now become a very important intellectual property in the industry. And the key focus we have for property sector, well, the environment now for property is quite tightened.
So what should we do? We're not set idly, but to focus more on doing the light wave business, to issue less, but to focus more on deposit, to transform all this advantage we accumulated to risk free deposit income. So how can we do that? The core is to along this industry chain and to focus on 4 important parts. That's the land acquisition, development, sales and operation.
We have 6 new models or business products along these four aspects. I'll take 2 examples. First is the guarantee deposits for the land And it was settlement over RMB 10,000,000,000. And with the resources or advantages we have with the group, we can easily win over others in this business. And for, the partners we are cooperating with, it already contributed a lot of contribution to, the deposit we have.
And you know that for mortgage is a very scarce resource for all banks. It's kind of like a gold. And for the projects of key property developers are covering all regions, a lot of regions in the country. So we are enhancing the synergy between corporate and retail. For retail, they provide special mortgage credit line to the property clients of the group.
And that's as the hook or resource to bring in deposits. And we're also enhancing the synergy between the branch and sub branches. With the property business department, they will lead and to integrate all the resources of branches and subsidiaries so that they can earn the cooperation opportunity and to enhance deposit with multiple leverage. We provide all life circle services to our customers. And with all these resources we have, we can solve the pain points of customers and win their preference and be their primary bank.
Some metrics to share. Now we have over 10,000,000,000 deposits back to the bank and we have extra 2,000,000,000 deposits and some even more funds from other banks. So with that, we achieved quite good progress.
So in the property market, we're not only working on improving the mortgage and we're leveraging the integrated finance to get more risk free deposit. In recent years, we have already improved our daily deposit by more than 10,000,000,000, where by 2023, by being selective on the clients, we'd like to improve it by another 60,000,000,000 yen and make it JPY 240,000,000,000, many of them are the current deposits. Current deposit ratio would be increased from 58% to 70%. We hope that we can further refine our strategy to make sure that more yields could be actually harvested from our existing service. Well, for the infrastructure ecosystem, I think the significance is already there.
The government invested a lot in the infrastructure construction. And you can see that regarding liability investment is actually the one with the highest investment. It used to be 38% for last year, where on equity investment in 2,009, we established the In 2019, we established the Ping An Construction Investment with a professional team. And the third party, that infrastructure is actually a place with a fierce competition. And without improving our business, we will be able to survive in this market.
So what can we do? We're leveraging the 4 positions and integrated body plus construction investment. And once we have a construction investment, we'll be able to have the investment financing, construction and operation of full value chain solution and then to leverage RUM to support AUM to improve our returns. You can see RUM, driving AUM have a 3 characteristics, first
of all.
And we can leverage the integrated finance to get more primary customer, where other financial institutions want to be able to extend the finance to different industries and to cover all the participants. You can see we have the product in almost every industry. And more importantly, we have a long tail chain with more investment. So we have more accounts, more settlements being made and more deposits being settled. And AUM is also a very liquid native number to all of us.
Let me give you a specific example. A specific example. A Metro Lai is the largest SOE in 1 city in the past. They were only working with 4 major state owned banks and the national development banks. But how can we work with them since last year on?
Last year now, we are actually working with Japan Asset Management of providing KRW 6,000,000,000 plus 5,000,000,000 of protected liabilities and then to provide the real equity plus liability financing solutions to their inventory and the construction project. Only in this way, we started to become the 1st and also the principal investment strategic partners with them. And we also see that our bills and also the financing solution to their customer. And you can see for this customer, deposit is already more than KRW 3,000,000,000. And we also expanded into the upstream and downstream to make a good performance.
Well, for A, MetroLine is only one typical case where since last year, we leveraged the integrated finance to pioneer the road, leveraging RUM to work on the AUM, working with SOEs for the corporation. And our deposit and loans are all more than KRW 100,000,000,000. This is actually a very important sector for the corporate business, where we are actually at the very beginning part for the FPA. So you can see that currently, our infrastructure revenue and profitability will later be grow dramatically. We have a very clear target in the next 2 years in the infrastructure industry.
We hope that our FDA would rank as top 2 in this industry among other stock banks to make sure that for the next 3 years, we are going to have a 50% CAGR. We're still very confident in this industry. Due to the time reason, I only chose 3 major ecosystem to share my insights with you. And we also have similar approaches in other ecosystem and with very aggressive targets. We believe in 6 ecosystem, we'll be able to harvest more value.
Coming next, let me go back to the scoring system. We leverage light assets to help to improve our resources and also going to harvest a CAGR of more than 30% to grow our business by having the 6 from and the 6 range to further support our business and focusing on 6 ecosystem to make sure we are run above the average growth of the industry and making sure the successful story could be also copied to other of our BU. And this can also show our promising future. We are truly confident that for our FPA, as a young man with 5 features in such a good window of opportunities, we were undoubtedly to become a leader in this industry. Then it can also make a new contribution for the business and corporate business for the whole bank.
Thank you very much. Thanks for your support. Should I answer the question now? And the model is different than last time. So I'd like to keep Mr.
Zhou on the stage again. Let's take the questions from the audience and our friends from the media. Okay. Hello? I think probably we need to change to another microphone.
Hello? Hello. I'm from Zheosang Research Institute. I'm Mr. Ji.
Mr. Zhou, I listened to your presentation. And for Pian Bank, I know you have undoubtedly unique advantage in FPA. You have the license advantage, resources advantage. Well, after hearing your presentation, I find out if you take a metaphor, if all those resources being taken as a mining site, you still need those workers to do the mining process.
How Ping An Bank can actually leverage your team members and especially the staff from the parent company to help to do the mining process? I know that for Ping An, you are KPI oriented culture, but you can see that for all the business departments also needs a team to support it. So how can you mobilize your team members, especially to motivate your team to make sure that all the teammates are actually taking care of this business with dedicated efforts? Thank you very much. Thanks, Mr.
Well, for sure, integrated finance is our key and distinctive difference compared with other peers in this industry. Well, personally, I understand the development of Ping An Bank is actually the development history of the integrated finance, and we're also upgrading our business. It's not easy to do integrated finance, especially for the synergetic effect. You have to step out of your comfortable zoom so that it can have the 1 plus 1, more than 2, synergetic effect. And I think there are 2 very important points here.
First of all, motivation secondly, actual execution. Motivation means that you have to put yourself in the shoes of different party to help them to resolve their issues so that we can have long term yet long acting mobilization and incentivized systems. We have 6 POM. And the 6 POM teams, they have their own unique license, but they are not actually being differentiated based upon the license. They are taking care of the customer pain points, infrastructure, properties and the different ecosystem.
We take a centric customer centric approach rather than product centric approach and then to integrate all the resources in a very compliant approach. You notice that for our subsidiaries, we have our different operational business and license, but in some key industry in some key directions, they also have made some good investment. And in certain focused areas, and we see fierce competition from the client side. So you see that it's also very likely for the subsidiaries to help to further integrate resources from the parent company, especially on the key accounts and the key projects, and they need the resources to support their business. So our POM, Special Task Force, is more like providing a platform for the resources to be shared.
And why can we help to take care of the motivation issue? From the labor perspective, the management of the subsidiaries is a leader for each ecosystem. For example, any of the construction and infrastructure related product and ecosystem will be taken care of by the construction investment financing company. In this way, we can have a smooth operation. While regarding KPI for key account and the key projects, they are the main body of our KPI and the core of the API.
And undoubtedly, you see that if you can help those subsidiaries to accomplish their projects with a key account, you're helping them to well perform their KPI. For example, there is a metro line whose local investment is more than 30,000,000,000 yen. We can't cover that by a single subsidiary, then our infrastructure construction task force internally built a special task force. And this special task force started to talk to the customer to generate a solution and then to do the quotation and ultimately to take this project and then subsidiaries would be benefited differently. So you can say in the past, we have to supply the capacity to take care of other things.
But nowadays, if you do more, you will be benefited more, too. Then the second part is on execution. For integrated finance, there are some concrete problems, for example, coordination, who's going to take the leads and how's going to take care of the disputes. For example, how can we make sure that there was a very clear assignment of the task? How can we settle down the interest internally?
And also, how can we make sure we form a comprehensive solution to our customer? In the past, no one's taken care of that. So the coordination is hard to be done. But nowadays, we have a very clear strategy. And our business you have 200 people who is dedicated for the coordination work.
We are in our business system. We have you have 200 people who is
dedicated for the coordination work,
where in our business system, we have our integrated finance and trading banks and investor banks. It's 3 business lines to support the general business growth. And so you leverage the BU to help to take care of the project. It can actually take care of the so called project execution by coordinating resources within the group. We have our special task force, and we have the BU to take care of each project.
So that's the reason in our integrated finance, the synergy and coordination has been already done. So that's why in the past 2 to 3 years, we see a very dramatic growth on the business side. I think this should also attribute to the coordinated efforts. I know that the bulk of the medium still need to be perfect in the near future, but we'd like to spare more efforts to make sure that as we are making more contribution to the group and some of the well performed parts can also be translated into real and concrete income and revenues. Thank you.
Let's welcome Mr. Shen, please. Madam Shen, thank you. I come from Huatai Finance. My name is Shen Jun.
I'd like to ask you a question regarding the corporate business. You mentioned about 6 PMO and which actually done a very unique process. So I'd like to ask you for another 3 business units. From the bank's perspective, what's your comment? So for other 3 industrial business units, what's their tactics and what's their strategies?
And what's your outlook into the future, especially for the 3 major BU? What's their expectations? Thank you. Due to the time reason, I just choose 3 major BUs to share their cases with you. But for other BU, they also have a very clear strategy for development.
And also, they have a very aggressive development plan with more than 10% of the CAGR on their integrated income and revenue. Let me just walk you through other ecosystems.
One is for medical ecosystem. We have been the leader in the M and A and the privatization. And in this industry, all those years, M and A, you will see Ping An's presence. So we are the main player in this battleground. And that's and Industrial Department.
So this year, revenues from M and A, last year, it was JPY 380,000,000 and this year is JPY 830,000,000. So very good growth and that has everything to do with the special mechanism Ping An has. And Ping An, the group is putting a lot of resources in the planning of medical field and that will translate into the value of the bank and will be better reflected in our balance sheet. And another example is for TNT. Our key customers are listed or about listed companies.
We are not focusing on traditional loans, rather we focus on the equity related business for these customers segment. For example, IPO or convertible bonds or targeted the equity financing or the ESOP scheme, etcetera. We have been doing a lot of researches on that. And now it helped us to open the channel for fans and to cooperate even closer with our research team. And that will laid a very good foundation for next year's growth.
And the 3rd example is for Green Finance. A lot of people are competing in this field. But for Ping An, we are doing this business like an industry. We set up a green office green finance office and already formed a long term and the short term development plans. And green, let me explain a little bit, is not an independent or new industry, but rather actually the standard is whether the loans to the green industries.
So it is scattered in all business. So in the 6 business departments we have, they will all have some part in them. And for new energy car finance, for example, we are the leader. And to the Central Bank's standard, we our growth speed is even quicker. As of September, we already doubled the growth and next year we can expect more.
So apart from the 3 ecosystems I mentioned in my report, we all have specific plans for the other 3. Every year, we want 10% of comprehensive income growth. Our target is to be a leader in each ecosystem. That's our target. So with the advantage of the 4 in-one model, we want to see even more value to be implemented and to make a contribution to our business.
Due to the time limit, let's have the last question for your report. Welcome. Thank you. I'm Zhuwei Hou from the Southern Fund. Thank you for the sharing.
My question is that as President Hu mentioned, 80% of corporate profits comes from noninterest income. And for loans or in balance sheet business, the contribution the proportion may be even less and less. So what's your preposition for your corporate loan business regarding the interest rates are going down? And overall, how do you evaluate the comprehensive income you mentioned, especially in the integrated finance part? Well, I think your question is about how much contribution the dual line strategy can contribute to your overall income.
With the ecosystems I mentioned, 4 in-one model I mentioned, we already saw some results in other ecosystems. We all have ambitious goals. Dual light resources we have, especially from a group, are playing great role and also makes us different from other banks. For example, like equity investment or Mizzeng investment, those are our differentiated advantage. And that can help us to acquire more deposits as well.
For example, apart from the ecosystem that we mentioned, apart from the results we made from those ecosystems, for the loan issuance we have every year from a perspective of closed loop management. We hope that the issuance from all the issuance from the group will be brought back to the bank. In the 1st 3 quarters, you already brought back, 60,000,000,000 to 70,000,000,000 deposits. And with that, we hope in future you can bring even more. To look at our loan issuance alone, we don't have that much advantages.
But if you're adding the group's advantages together, we can now get into some clients once we are unable to enter before. For the 1st 3 quarters, for the KRW 300,000,000,000 we issued for corporate loans, 20% has is closely linked to the advantage in integrated finance. And the third part I want to mention is more fee income. When the group do invest this investment, they want the custodian business to be with the bank. So that will help our custodian business as well.
Another slide is for the investment banking for the underwriting business and the fee income in broad. For example, the bond ecosystem, we are every year, we have a KRW 1,500,000,000,000 balance, and every year, we have incremental KRW 400,000,000 to KRW 500,000,000,000. So very good performance already. And next year, we believe we can have even better growth. So investment will be a key contributor to our free comm as well.
And another part is for the cross border M and A. Most of part from that business is fee income. Last year, it was $830,000,000 and now it's $104,000,000 $550,000,000 So quick growth as well. So to put to summarize, with the 4 in-one model and customer value system we have now, in the future, we can see even more results and contribution on our balance sheet. And for the operating metrics, you will see even quicker growth, for example, more deposits, more loans and more fee income.
Thank you. Thank you, Mr. Zhou. My feeling is that Mr. Zhou is 5 married young people as well.
He explained very well about our complex investing and financing business. After all these reports, if you have further questions, you can ask in the Q and A session. Next, let's welcome the GM of Corporate Business and President for Transaction Banking, Mr. Li Yue, to deliver a report. For whichever report he did, he wore a T shirt because he want to pass on his energetic spirit.
But today he was in suit. He's in suit but without time. So I believe everyone here who knows him knows about him and will understand that he is a tech background people and let's welcome him. Thank you, Kevin. Hello, everyone.
I'm Li Yu. In President Hu's report, he explains clearly about the future approaches of corporate business. He talked about new drivers and new curve. And standing from the perspective of transaction banking, our key focus is how to deliver it. So my talk today is to redefine the concept of transaction.
So your impression about transaction banking, I think the most part is we set a satellite to the universe. I was the lead of that project. I was in Wenchang of Hainan Province on-site. To be honest, when I saw the Yantas River to carry our satellite and set to the universe, I was very proud.
At the
time, a lot of media friends have been doing some advertisement or wrote some articles about that or to forward this news in the friends circle. All those memories are very fresh and even until now I want to express my gratitude to that in this opportunity.
But a
lot of people are still asking what next? After this satellite, what next? And with that satellite, you did make a lot of number ones. But why does a commercial bank wants to set a satellite to launch a satellite? This is a hard topic for everyone.
Well, not long ago, in a weekend, our Chairman asked me, I received a message and saying from Larsa and that you launched those satellites. What does that mean? I said it's a good news. That means our satellites can cover most part of the country and can even send you a message from Lhasa. Well, I have a colleague here to test the signal from the city as well.
Take this opportunity. I want to show you, even though the satellite is in the universe, you probably can't see that. And this is a land sample, test sample for the end equipment. Is relatively similar size of your phone. And on top of it, there are 2 connections.
1 is for GPS and the other is for our communication signal. What's behind this equipment? Well, actually, we had a very concise but very talented tech team. They come from all kinds of background like TP Link or traditional Internet companies. It's around 10 people.
Very small investment. But within less than half an hour, half a year, they developed at least in China is a very good equipment to communicate with satellite. It's a very good news to us. We launched the satellite not only it's not for advertisement, but in fact, we want to know deeply about each industry, know about their business models. Only until you understand this better, you can truly find the scenarios or technologies or the points for them to combine together.
And that can help you develop your business. You can search this simple communication equipment in any online market. And market. And the market is
very much a
good market. And cost. And so we're very excited about the progress we're making. And so we're very excited about
the
progress we're making. And so we're to tell. But now we are trying the best to understand technology and to apply it into finest scenarios with all those investments. We can translate those unique or even sometimes cheap data to help the business transformation.
So you can say that with such a terminal, it helped to mapping our strategic thinking. Internally, I think many of our peers already see this slide already. We have a vision, and we have satellite in the sky. And also, the IoT on the ground level, we also have millions or tens of the millions of the terminals to collect the data. We have our industrial insights and technological insight.
We can further reduce the cost. And then to have some very unique data with a very low cost, we're also building the account as an entrance to serve tens of the millions of the customers in the real economy, I think, which has already been mentioned by Mr. Hu in his presentation. Ultimately, the data and the content need to be translated into income. We'd like to rebuild the trading system to make sure that we can help to take care of even trillions of the digital financial assets.
So what do we need to do? Based upon this vision, we're actually building the largest metrics and the most robust trading bank. And there are 3 so called most, to be specific, for the past 1 tier, tier, there are some peers and the Internet company who came to us and talked to us. And they, to some extent, are truly convinced by our transaction bank. They believe that all the corporate business has been integrated into the transaction bank business.
So if you know banks well, you know many of the banks started to build their transaction bank business, but many of them are only in the commodity financing and for the supply chain. But for us, payment and the collection and the settlement can all be done. Bills also included. And our bills is not only in the corporate, the bills, but also other kinds of the business and bills are also being integrated. At the same time, some of the offshore license and the cross border OSA account are also being built in.
So to be specific, when some of the peers talk to us, they are truly convinced. Only with Ping An, we will be customer centric and strategic centric to take care of the needs. While at the same time, and they also envy us and because they have a very robust team. And in this middle desk, we recruited many of the development. So they are working together to help to build this very unique data power.
And undoubtedly, I think this is a leading one in our industry. Well, another envy we have is that we're actually having the yet collaboration. And our IT and the risk control development are working as a joint team. So we're working together to make sure that we take care of each project and then to take care of the traditional development. We will be able to sit down together.
And you can see that sometimes the issue is being proposed by our IT technician. So with such a robust team, you can see it's also not easy for us to reach what we are here today. And I'd like to thank Mr. Xin and especially from the past to now. And this is also a very good snapshot of our transformation for the past 5 years and how those strategies been translated into concrete measures, where you can see at different departments, we have already become customer centric, taking the transformation and be fragile.
And be fragile means that it's more like a physical structure optimization. It was in need of a very robust team to help us to take care of those strategies. So within our metrics, we have aggressive, hard core yet diversified team. Their average age is 33 years old. And if you take a look at the financial industry, probably 33 years old is quite young.
But if all of them with a postgraduate degree, they're working with 7 to 9 years, and they also have a wide experience and quite aggressive. So with such a team, let's say, it's only talking about the technology. In our technology team, we have people with tech background accounted for 50%. But in our business team, we have the big data and model talent. They are quite rare to be seen in the market.
While our technology to business MIM ratio, for example, if I have a project manager, there will be 3 IT technicians to support the product manager. The ratio is 3:1. Well, within our teams, around 48 of them has the Internet industry background. So this is a very young, very motivated, hard core and diversified team. So you can see with a very robust strategy and a very good team, What kind of accomplishment are we making?
From the market share perspective, in the top 100 Internet platform, you can see the customer coverage rate for us is 60%. While within our team, we create very aggressive development. And if we save the development, and we believe the platforms are there and the scenario we're going to serve are in this. So we need to be mobilizing all the resources to cover those platforms and even to have a so called enclosed loop capacity or competency. Let me just coin a phrase from well known Internet companies.
We're not here to get in the order for the digitalization, but I think we are the one who is very near to what is going to happen in this industry. Where in our traditional financial business, for example, offshore business, our market share is already 35%, and our business volume is higher than the top 2 and the top 3 players combined. And we're also ranking number 1, especially as in the beer market, we also have a market share of more than 8%. And you can see that for the discounted bill business and because of the listed company reason, I'm not here disclose those data, we also have a very strong customer acquisition, even 30 times higher than that of the traditional branch. And the current account deposit and daily rate is more than 30%.
And for the whole year, the current account deposit for 1 year contribution would be JPY 100,000,000,000 to JPY 200,000,000,000, where for Transaction Bank next year is going to contribute another JPY 150,000,000,000 of the current deposit. And we also have 30% for the bill discounted bill market growth, while at the same time, our NPR ratio is very limited. So I'd like to thank Mr. Go, thanks for the risk control team of working with us to guarantee a very robust growth. Well, last but not least, with all those developments being made, the growth is being maintained there.
Well, because of some reason, I think many investors may be more cautious on the following points when making the budget nowadays. Well, for next year, we have multiple teams to work together. And the team with performance would still have a revenue of less more than RMB 2,000,000,000, where at the same time and the KPI for the weakest team would still more than RMB 10,000,000,000. So with such a robust team and a clear strategy, and you see that we are actually continues to battle. So with all those well performance and this has already been passed, we're in the near future what we are marching towards, especially we are a team led by Mr.
Hu. And Mr. Hu reminds us all the time and telling he is not the father of the supply chain. So you can see that how can we take care of that. And here are some kind of discussion.
What's the nature of the transaction bank? Probably the transaction bank, as far as I see, and it was helping the client to realize the value transfer between different bank accounts. In this process, the customer enjoyed the optimal experience. Here are two words. First of all, you need to have an account first and then to do the value transfer.
We'll call it a transaction. So you can see no matter how this business grow, and this is a nature which is kept unchanged, this is also the pioneer in the supply chain mentioned at this point. So what are those variables? I think in such a data driving society in China, as we are facing the whole society and the industry is being further digitalized, how can we leverage data to reiterate the development? This is a key.
Actually, the day before yesterday, there is a program talking about digital China. And to be more specific, let's first take a look at account. What is the definition of an account? Traditionally speaking, especially for the corporate account, it's already become an KPI account. For example, bank with a newly opened account of more than 60,000, if the parent company asked me to make this number more than 80,000, it's opened account for the account opening reason.
But what's the nature of the account nowadays? Why should the banks have account? According to my understanding, the reason is because consumers, if they really want to transfer the value, they need to set up an account. It's not necessarily to be a settlement account or the principal account. And the value transfer can happen at anywhere in any format and in any scenario, especially in an embedded scenario.
That's the reason we see the ever changing demand in this regard. So that's the reason we believe we need to redefine this event. And why they should be financial account, not a non financial account? Only by taking care of all those needs, we need to understand account is an entrance. As long as a customer can get used to us, as long as we can provide a service to the customer to get access to the customer, that's been put as an account.
We believe that's the nature of the account. So by having such an understanding on mind, we were also discussing nowadays we are facing digitalized economy. And data will be generated automatically where for majority of the time, it's a waste or sometimes. If we are working with some Internet platforms, some of the information will be taken by those platforms. So based upon the account, we should also upgrade that data is a part of the assets.
It's already been recognized by the federal central government, but no one knows how to leverage data as a 5th production element. So we believe where there is data, we can leverage transaction leveraging transaction to help to pioneer how the data could be translated into assets. This is our common sense. After that, we built a platform and working with the platforms to output our service. We call it as a very robust development strategy.
Nowadays, you can see that working on this, we have 3 major products covering more than 1,000 platforms for the top gear platforms. So that's the reason we say we have the best competency in this market. While with all those account products, We should also have an open account in the back office. You need to make sure your capacity could be delivered to the customer. Then the customer will be able to enjoy your service in an intangible approach in their own settings.
Many banks are doing so. So what's being added advantage, we have the most number of the interface. All of our corporate business, no matter you have to open a bank account or not, you need to leave an API interface there. It's already been well prepared. Well, behind that, we should also have a very important mechanism that is for the win win result.
When we were thinking about exporting our service, we're not actually having a 0 zone game with our client. We need to make sure how we support the clients who make their money Only in this way, we can work with the customer. So that's the reason we're not having such a higher coverage over so many platforms. We have a clear model to help the clients to make money, where only in this way, we have a very robust growth and coverage. To be more specific, for example, in a traditional business, bills.
And this Open Bank, the bills being launched for more than 6 months, we served 50 core platforms with 6,000 premier customers. And the discounted bill amount is RMB 46,900,000,000. I can say that because of our new understanding over the Open Bank and we're still leading the whole market in terms of the growth. So for example, commercial BIO discount, it was growing by 3 times. And we're also growing our discounted BIO customer with a very robust development.
But for sure, we need to also have the big data yet AI anti fraud technologies be embedded.
Just now, we were talking about that. And now let's talk about transaction. Well, it's a process of value transfer. It's not purely financial services. It's not only a supply chain financial service.
Our deeper thinking is how to solve the pain points of customers in their operation and in financing to make financing cheaper for them and easier for them. For companies, why they there are a lot of fraudulent cases because it's hard for them. If you can make things easier for them, things will be easier to solve. So for Ping An Bank, we provided them a very useful tool that's Digital Pocket. In the app side, banks you already ask customers come to the counter and go to the online, the Internet banking app.
It's only a tool, but not solving customers' long term problems fundamentally. So for Ping An Bank, we have 2 speciality. First, based on their scenarios, we provide suitable products. For example, in car sector, in manufacturing, in merchants, in infrastructure, we will discern what they really need and provide services accordingly. And the second is for non financial services like taxation, purchasing, etcetera, because we have this advantage for services they need, we can provide in this digital pocket altogether.
So that's why our MAU increased from increased to 500,000 this year with this new business model. Because it's no longer a simple connection or forcing customers to visit counter or to visit online mobile bank app. Now it's a totally new business model. So MAU increased quickly. This targeted to SMEs.
And for big or medium sized companies, we provided them digital treasury platform. We want to be the invisible CFO for them to embed our services into the flow of their transaction. And 3 speciality here, first is complete. We almost cover all the corporate product and services and that we can output those capabilities in a modularized way. For those top companies, they rely more heavily on our bills module instead of the supply chain module.
And second, we started quite late and we input a lot of resources. That's why our structure is new and is light. We can manage to roll out a service or function as fast as one day. And the last one is intelligence. In the past, we were only managing customers' fund, but now we are managing their operation as well to empower clients' business operation.
Especially Ping An Group, all those years accumulated a lot of experience. We integrate all those experience and output to our clients. And another characteristic is the asset pool. We can help customers to link their AUM and RUM side. Some unique functions we have compared to our peers.
First, we are totally online. And second, domestic and foreign currency is integrated. So that we can help customers to manage their funds in a better way. And several examples here to show you. First, customers can use our app to directly purchase some services in a cost in a very preferred price.
And in the future, you will see even more services providers on our app. And for corporate, for supply chain or bills, we have around 200 to 300 of partners. And another part I want to mention is for car zone. The benefit of this zone is that we can integrate all the information
of customers.
That's for external and for internal empowerment, it can empower the frontline to manage their customers with this online platform. Because in the past, they have to go offline and talk with their clients or sometimes they have to go dinner together. So this app or the function can empower business in the right way to integrate resources and to empower the business so that business owners can solve their business problems in a busy way. And next page, data, a keyword here.
Recently,
the government has a very similar expression that is to cut customers' time on road and the lab data do more work. As we improve our data base and to replace the traditional labor work with online or artificial intelligence, we will reach even more customer and to release higher productivity. Apart from the online app or systems, we want to use data to one specific industry. So under this logic, our business is sustainable and we can cut costs in a sustainable way. And next page, Nebula IoT.
They already covered 300 3,500 words. And for every day, the incremental data record is over 400,000,000. And for the equipment we already linked is over 10,000,000. And for the financing volume, it's over 100 and and 30,000,000,000, covered 6 industrial scenarios. We have been discussing one topic internally.
That is how to monitor the warehousing. One colleague said if there is something happened, I will go there and to block the place. But I said, no, no one can go there. So how will you sell the place up? And they can also take the sales away.
And for a modern warehouse, actually, there are a lot of sensors and the data can be transferred or passed via those sensors. It can be easier. It can be convenient as long as you have the technology to accumulate together this data. With Ping An's technology, we greatly improve the productivity. In the past, probably one people can only go visit 3 warehouse, but now you can visit over 30.
So that's a great help to the productivity. Another very important aspect to how to transfer our data into mid office capability. We mentioned about that before. We hired a lot of talents in each sector like risk marketing product and AI, etcetera. I will not elaborate more about those stories about how to improve the approval efficiency, etcetera.
But the effect we want to have is to make things faster, make things easier and to save the cost. And with the cost we saved, we can feed them back to our customers, give them back. And on the data level, we have several examples. One is that with technology, we talked to 1 platform and linked to 2 customer managers and loan issuance customer number was over 8,000 and cumulatively, we issued KRW 3,000,000,000. If we go with the traditional way, things will not be that easier to do and we will not have these good numbers.
So this enhancement or improvement was due to the technology we have. We did an experiment before. A traditional customer manager can only serve 70 customers,
but
now increased to 160 customers. So this is the things that are happening right now. So just now I shared our understanding on account in transaction and data, some simple idea to share with you. Ultimately, I want to say those are not for decoration, but indeed we are applying this technology with to bring out the synergy between this new model and our traditional business. In President Hu's report he mentioned in this digitalization operation age.
So what's your new thinking for the customer value system? Well, actually in your takeaway gift back, there is a white paper book called Digitalization Value System because we believe every company's behind it, there is a massive industry chain and platform ecosystem. And on that, there's massive customer. They are generating valuable data and reflecting their genuine financial health and their operation situation. So every second, this data are there.
We mentioned account. What does it solve? Actually, it helped us to cover more customers. And what does transaction solve? We can serve our customers in a deeper way, not just to issue loans.
And for the bank, our investment in the traditional business, how can we better leverage that and to empower the new business? So all those have been solved by the new business model we have now to increase customer value, to monetize all the technology I mentioned. So those are the explorations Ping An Bank has made. Traditionally speaking, when we evaluate a company, we already look at how many how much assets he has and what's his market position, market share and what's his contribution to the bank. For example, what's your contribution in our UA?
And under our new logic, we added some several new standards. From single income, we now look at comprehensive income. And from user value, we now look at ecosystem based comprehensive income, the value. And from the spot value, we look at the whole life circle value. And some several new factors we consider now like data assets, that's the source and behavior, conduct and business operation, revenues contribution and ecosystem premium.
So I would go 1 by 1. So data asset, we will look at, for example, the frequency and holding situation for their data assets. And for the behaviors, we will look at their behavior online and their activity rate, their retention rate. In the past, those doesn't those didn't exist. But with the data big data team, we found their activity rate and can have a better client profile and give it to branch.
I think this
so that's the reason from the operational perspective, we need to broaden it to 5 dimensions so that we can help to evaluate the value of the company. Then evaluating the value of the company, it is for the bank only, actually not. It's beneficial to those enterprises first. These are It's beneficial to those enterprises first. These are some of the new value explorations we made.
On the right side, you can see by leveraging IoT device, we will be able to take a look at the current usage by the equipment of this enterprise. By authorization from the client, it can also be accessible from our pocket app. And once being licensed, we were also based upon these data to provide better loans to the customer. Well, besides loans, what can we use this data? We have the existing data.
We can actually give it back to the customer with zero cost. And those data are in the Pocket app, and therefore, we can provide an operational dashboard to the client. They can take a look at their real time operation of the equipment. For example, it is an SME entrepreneur. And when they have spare time, they can take out their phone, take a look at the pocket app to see whether the equipment is running and whether the team is working.
So this is how we re feedback to those clients by monitoring those data. It's not only for operational dashboard only. If their data if their equipment has been broken, it's just like the medical record of the individual personnel. And the upstream equipment vendor can also help those enterprises to repair and maintain the equipment. So these can So these can actually be acquired through the development.
It is fair, and it can be used very well. So based upon that, we can, therefore, build a secondhand equipment market. In this way, gradually speaking, we're no longer taking care of the financing, and we are supporting the enterprises of building an Internet finance ecosystem to help them to reduce operational cost and take care of the difficulties in their operation. We hope that by this model, we can truly generate value from the data to leverage the data with human care to provide the financial service with human touch. And we're still embarking this great journey.
We believe we are the leading one. Just now, we were talking about how can we evaluate a single customer regarding their value, but how can we demonstrate our operational value? We believe as long as we gather all the customer together, ultimately, it will become the value of our corporate business operation. So ladies and gentlemen, I'm going to show you a basic logic for this value translation. At least in the near future, for our corporate business and for our development, these are some fundamental logics.
First of all, we need to build a bigger sized team. And RU and GTV are the key priorities for us. We hope that we can have more than 110,000 RU and more than 5,000,000,000 GTV. And in the translation stage, we need to improve the GMM. In the past, probably we need to open 50,000 new accounts in corporate business.
But now I would like to see if your service be mounted to a big industrial platform and weighs around 500,000 merchants on that. We hope that the penetration ratio for the 1st year would be 10%, which means we need to get access to around 50,000 customers on that industrial platform. If we have more than 100 1,000,000 clients, then in the initial stage, 10% of MGM is quite important. And then we do the transaction translation. And then we can actually provide our invent our service to improve the service being served or be provided by each.
And then we communicate together, it will ultimately help to build a better value for the whole bank. This is the general operational ideas we have. Ultimately, as I mentioned, just like what Mr. Hu mentioned, we need to have a new definition of account and transaction. And correspondingly, it also works with our 3 major banks.
And Eco Bank, a digitalized bank and an industrial bank. By so doing, we hope that we can leverage the power of technology to help to draw promising blueprint and growth curve for our transaction bank. And we see that the galaxy of digital economy is a great market for us to explore. We will always live up to your expectation. Thank you.
Okay. According to the agenda, it's the Q and A time. So I'm happy to take your questions if there's any. Mr. Tang from Southern Daily.
One question from me. I find out you mentioned you are the Internet platform based service. Currently, you have more than 10,000,000,000 devices there and also to empower the rail economy, JPY 530,000,000,000 investment. So would you mind to comment on such a set of the statistics, how it's going to me, to PM Bank and to the whole industry? And just now you also mentioned some good concepts.
Is it possible for you to share with us some user case on innovation? Okay. Well, for IoT, I think internally, we have a BI dashboard. Later, let's see whether we can show you this BI dashboard on our official website. I think our action is quite meaningful to the bank And with such a foundation, we will be able to see how can we get access to the data, because in the past, and all the operation nowadays is based upon data.
We found out the industrial development is always higher than our expectation. At the very beginning, we believe probably after 3 years' efforts, we can have 1,000,000 devices being installed. But you can see after 2 to 3 years, the device number is already more than 10,000,000. Where at the same time, we also find out our team is becoming more pioneering and eager to challenge to be the number one. We never thought it's easy to launch a satellite, but you can see the industrial development is as fast as what we can see nowadays because we are in the financial industry.
And you can see with such a good user case, we'll be able to try some new technology, some new kind of scenarios in this market. This is the screenshot from our internal network. This is the real time Galaxy for constellation platform. It seems that we have a few more nodes. And currently, we have more than 17,000 of the device.
Please help me to switch to the satellite image. This is the status quo of the satellite. We have 6 satellites now. Please go to satellite 1. It's probably not in China.
Yes. The satellite now is in the Eastern Asia Pacific Ocean, marching towards the air of the U. S. And I think you are using the acceleration image. This is the trajectory of the orbit of this satellite.
And if you'd like to communicate with a satellite, you have to make sure that the satellite is within the air of China. But nowadays, we have multiple satellites. So once a while, there will be satellite that can be communicated. This is number 1 satellite. I think every time I was keeping an eye on it, it's not within Chinese territory.
So this is the trajectory or the orbit of this satellite. We also have the height of the orbit and position of the satellite. I think probably let's take a look at the vehicle. A few vehicles, These are the so called the 7,500,000 vehicle data. Let me just show or choose the specific period of the time.
We have around 10,000,000 car GPS information. We can search for them very easily. And you can also review the history according to the time period. This is a car who is making a double trip. And you can see the speed and the GPS precession being shown on the screen.
You can take a look at all the vehicle information in real time. And now we also have the oceanic shipping or vessel information. Let's see what are those visible information I can show you. Let's take a look at braiding and the horse boundary. This is braiding and the horse boundary.
There are few video clips in Mongolia, and it is a real time camera footage. It's a cattle farm. You see something different. You see the milking device is totally different from what we can imagine. Let me just show you the camera footage.
We probably need to wait for a few seconds. It was in the milking process. And this is a tank installing the milk. You have to make sure the cow is standing on a plate and then to do the milking directly. This is what's quite interesting.
You can take an image of that. And I actually see the milking process of the cow on the Ping An Bank. The corporate business investor day meeting. And this is how we show on that. You can see behind each of the device, for example, behind the braiding and the hosfoundry, we have a lot of very good projects there.
And behind each project, we probably use a yearly label from the tablet itself. And when you reach certain stage, you will also be able to notice which technician it is and how many liters of the milk is being done. And by through some lab test and the temperature from the year label, they will be able to know whether the cow is safe or not. And also getting to know the weight changes and even better than you know your own weight. Okay?
Last but not least, let me also show you the urban revitalization and the carbon reduction. So in order to reach the carbon neutralization strategy, this is a key mountain, and we have some sensors embedded into the soil. These are some atmospheric data, including the pH value of the soil and the electricity conductivity. These are the temperature in the local area. So you can roughly understand what would be the production of these house.
Let's also take a look at the carbon emission and the carbon reduction. We don't have such devices too much. It's still in the operational stage. This is a client from Shanxi province. It's the real time data in showing the carbon dioxide, the velocities and humidities.
And if some concrete measures have been taken by the government for carbon trading and carbon reduction, undoubtedly those data will become a very important way of guaranteeing the quota of the carbon trading for each of the company. So we have a lot of such data. And then this is actually a screen we have. It was helping you to work you through all the assets and the process you may have.
Well, this is the operation center. You can take a look. Here, for every equipment, we can see the access situation on this platform. And here, there are a lot of customer data. So I will not click into each one because of the privacy issue.
So taking this opportunity, actually a lot of bosses here, the banks, leaders here, their first time to see this platform. Let's welcome an investor to ask one question. Well, do you think? Well, there is a lady who has been raised her hand quite often. Well, thank you for this opportunity.
I am Sun Yi from HSBC. My question is, your report is to redefine Transaction Banking. So the keyword is new. Transaction Banking in your corporate business, I think, is one of the most unique businesses. So the new, where does it show?
And for myself, I care about supply chain a lot. So your supply chain is the 1+N model. That is the 1 core enterprises plus core companies, subsidiary and upstream and downstream vendors and distributors. So how can you break through the barrier of the strong reliance on the industry chain. Well, the new I mentioned, there are 6 words, Chinese words.
That's the key here. I said before, now I want to take a new perspective from customers' view for supply chain or integrated finance. Where is the new? Well, 1st, instead of focusing solely on loan business, because traditionally speaking, the banks always think about loans when they do supply and chain finance. But with that, they may stuck themselves into the dilemma of the traditional way.
But the core pain points of clients were not solved with that method. For example, they want to solve more problems far more than only phones. Sometimes core platforms, they have massive vendors and consumers or Upstream, they have those suppliers. So account system is the main problem they want to solve. How can they make the fund flow smoothly in the platform or to give to the upstream suppliers related all kinds of transaction issues.
If we can solve this problem better in a compliant way, clients will be very willing to cooperate with us. Apart from that, sometimes we can solve more problems like taxation or liquidity, etcetera. So naturally their deposits will be segmented in our platform. And at the same time, we can provide some, you know, senseless loan or financing services to them. That will be easier to get a so that's from the perspective of customers.
From the perspective of core companies or the core enterprises, the main focus here is how can you make them feel that during the process, what can they get and what should they give out? When we do the business with them, if we can use IoT method to bring down the risks for them or with open banking method, we can help core enterprises to earn some benefits. They will be more willing to share their vendors and distributors volume to us without taking too much risks. So this is the main thing we are solving right now. Due to time limit, thank you, Mr.
Li Yu. And now we will have a brief release part for the white paper. We are cooperating with the Chinese Academy of Social Science and with the National Financial Development Laboratory. Today, we are honored to invite the Deputy of the CAS and the National Finance and Development Laboratory, Mr. Jiangmin, to join us.
Let's welcome. Distinguished guests, Well, first is to look for the unchanged things in this changing environment. There is a volatile environment, especially in the economy side. So how can we, during this time, to look for relatively long term certain things? There are several words to share with you.
1st, dual circulation new pattern. There are 2 pillars. 1st, how to make finance serve the real economy better. And second, how to solve the systemic financial risks. In the first perspective, there are 3 sectors we should pay more attention.
1st is digital economy. That's the topic for today. And second, green finance. In the future, I think several decades, it will become a keyword as well. And third, how to realize the commonwealth.
It includes but not limited to inclusive finance. With that, the futures direction actually put a huge challenge to financial institutes. And that brings to my topic of Ping An Bank. It has been doing this transformation for 5 years. In 2015, I was the Chief Economist for Ping An Securities.
As an outsider, I kept a very close eye on the change Pingel Bank has made. It adjusted very quickly and is very decisive and it moves very quickly. During President Hu's report, especially in the corporate side, there are a lot of progress made. My impression on the deposit, that's the non loan generated deposit accounted for 80% of corporate deposit. That impressed me a lot.
That means you have very strong capability in the upstream and downstream chain management and second, you have strong business capability. Well, now let's talk about the white paper. My team worked together with Mr. Li's team together and co wrote this white paper. That book is mainly about under this big data age, how can we restructure the system of customer value?
How can we better use all kinds of data and to integrate it with the customers' value to bring out customers' value in a better way. On back of it, it reflects all the technology accumulation Ping An has been doing for all those years. It has been investing hugely into technology R and D. It's not a perfect book, but we did put our heartfelt work on that. And we welcome all kinds of discussion.
And dear Ping An guest, all guests here, I wish you a happy and healthy life. Please stay with us here. Let's welcome President Hu and to reignite the release official release part for the white paper. Welcome. Dear guests, you all know that for all these years, Ping An Bank's asset quality has been attained quite well.
All kinds of metrics have been leading among peers. Risk Alliance has played a 3rd important role. So the 3rd sub report will be presented by President Guo. Let's welcome.
My dear investors and friends from the media, good afternoon. And the risk control has already become our core competitiveness. And you can see that our asset quality has already helped us to be further improved. The risk management work is always helping to inject new dynamics into our competition. I have 3 points to work you through.
First of all, and take each steps to go across the so called circle, just like Mr. Ben said, we have to further improve our performance for the past 5 years in this ever changing economic trend. And our industry is pioneering this whole market for proactive adjustment. In 2017, the government actually released the mining industry emission limit. And in Q4, we started to phase out from those backward production capacities.
We have already restored from USD 130,000,000,000. And at the same time, in 2018, the consumer pool industry was decreasing. And 1 year before, we started to waste all and especially those weak enterprises. And then jointly speaking, the total withdrawal volume is already than JPY 110,000,000,000. And we also started to withdraw from those low tier customer platform customer.
At that time, our inventory exposure size has been downgraded by 31%. Well, for the past 5 years, and we have already restored around JPY 600,000,000,000 of the corporate risks and potential risk assets. And through the premium, we filed out and collected the right of assets of more than JPY 49,000,000,000 so that can help us to further well control our risks. Well, after 5 years restructuring, the assets portfolio has been greatly improved. Our corporate loans in the Q3 of 2016 is accounted for 66%, but now it's already less than 38%.
Where in the corporate business perspective, we also have some primary high quality customer. But at the same time, the currently, the nonperforming client is only 26, weighs 5,700,000,000. NPR ratio is only 0.8 percent to new customer, which can help to lay a solid foundation for the asset quality. After 5 years hard efforts, our asset quality has already ranking the top. And by the end of Q3, the NPR ratio is 0.5%, decreasing by 40%.
And we further improve ourselves as top 2 in this industry. And we it's also been greatly decreased. Decreasing rate is 0.3%. And our promotion coverage is 265%, 8%, ranking top 2. And also the promotion is being accounted for 42 percent of the total revenues.
And in H1 of this year, the Phase II and Phase III loan is ranking top 1 among all stock banks. So risk control has already become our core competitiveness. With such well performed development, we have mechanism plus the team as a fully dimensional risk management team. We leverage mechanism and institution to confirm our risk culture, leveraging professional teams for robust execution. And then to build ourselves into a well performed team, we leverage technology to empower risk control, to empower the teams and to empower the management.
In the second part, I'm also going to share with you another point. We have an independent management system to make sure we have a well divided risk control business. Independency is a core risk for the risk control. As long as you guarantee the development, you can make sure the judgment is objective to have a very good balance sheet. While we have 4 independents, independent profiling, we have the vertical dispatching system.
All the risk people are being moderated based on the business lines. We also have the independent KPI and also the risk dimension had, and we also have these KPIs being established and also have the depromotion promotion for independent approach and will be nominated and also have the vote of power, where the independent authorizing means that the risk's president and also the business risk director will be authorized and be dynamically monitored. So we make our compliance more independent. The hand quarter is going to have the vertical management over the compliance hand to make sure we have a coordinated approach. Regarding centralization, we have centralized risk policies and we have the centralized management of the risk policies to have the same risk appetite, same business direction, the same inclusion criteria, where we also have a centralized monitoring of the credit line to make sure that we will manage the risk appetite and to reduce the non compliance and also have a centralized loans approval, and we have the same standard and the same management.
We are the only one to exercise centralized approval by the headquarter. While we also have the centralized clearing, we have a special asset task force to take different ways of taking care of the assets so that we can take care of the final steps of the assets. And we keep the relatively same teams and also leveraging investment model to do the forward looking research to make sure that it can be translated into the risk policies, but at the same time, we also have the development in a very robust approach. And land means the land monitoring, we have the headquarter, the branches and the industrial BU to set up special task force to take care of the customer need. We also have the dynamic management strategy, and we're going to have a synthetic approach between headquarter and branches to have the promotional judgment over the client.
For those the primary high quality customer, we're going to expand our coverage. But for the deep order customer, for those potential and high risk customer, we're going to withdraw from their business. Well, portfolio management and to guarantee risk management and business development are being well received by this. And we now have a risk tolerance criteria rather than just seeking for the development. We're going to control the whole system with systematic risks to make sure it can be moved to those well performed areas to support the business development and expand the market.
Portfolio development has 2 major strategies. First of all, operational organization means that the risk management, risks and data could be included into KPI. KPI results will also be taken to decide the quota of the risks and the team management. And secondly, for the accountability system, and you can say that we need to assess whether the asset quality is within the tolerance range and then to help the accountability for any of the noncompliant people. And generally speaking, principally speaking, and we are not going to go through the 4th 1.
And we also have the forward looking risks. We're going to further improve the momentum. The risks in the business, we're jointly speaking, to develop a better momentum to seek for future development. We're on one side, we're deep diving into the industry to leverage the industrial business units. And around 60% of the subsidiary issues in sideways industrial policies covering more customers, where at the same time, we are building our industrial chain to release the potential.
We set up the industrial policies to connect upstream and downstream to form 7 industrial chains in a single industrial chain. And we have moved 4 lasers of the upper stream into the raw material industry. The downstream covers 3 layers to reach the end consumer. And we also support the closed loop marketing to well establish our risk control. Innovation support can also build new momentum.
We have innovation breakthrough to build the new development. We also have a scenario based risk control. And also, we build a well established multimodal development. All the monitoring devices can be based upon IoT and big data to improve the monitoring efficiency and the granularity will raise the empowerment from technology. And we have 57 products being built upon the different scenarios and around 6 product has already been seen as automatic approval.
And we jointly located 88,000,000,000 of the new supply chain financial product. Only by 50 minutes, a single credit approval will be done. And for the customer, they don't need to present any paper document. They just file the application online, and we'll be able to guide the financing with a few seconds. Secondly is data driving and green finance, and we're catching up with international development.
Help to deep dive into 211 subsectors in Green Finance, clear the risk policies to guide the business development. And regarding approval, we build a joint team for the green channel. Well, regarding the quota, we also provide a credit quota and industrial order, especially in a way, reserve more for the key projects. By taking proactive measures on risks, we can support the business for explosive growth. While you can see currently, our green finance quota has been increased by 134%.
Compared with the beginning of this year, a well coordinated team is also a great guarantee for this business. We have 5 professional teams, including the investment like development, review team and the risk managers and the special client management team. And also the legal teams, they have 4 features: the professional and you are actually taking care of the dedicated team to make sure we have a more professional expert. 2nd one is stability. Around 70% of the review and the post alarm and the clearing people, they have already have wide experience.
Those experienced people can actually help us to improve the work. Coordination means that different teams can work together. And fourthly is empowerment. We can actually export Thailand. The senior Thailand export is more than 60%, including the President of 6 sub branch and 6 key apartment responsible person within the current company.
My third part is technology empowerment to open a new chapter for the future. Technological empowerment, there are 2 key results. The first one is intelligent risk control platform That is human machine integrated data and brain. But on the right side, it's a special management team. We call it as cloud platform.
But we can say that the smart risk control, last year, we won the Gartner 2020 Eye on Innovation Award. This is the most influential award worldwide, most authoritative award. And it's the first time for domestic China Bank to be awarded with such an honor. That also shows our fintech is ranking 1 in China, while at the same time, a smart risk control means leveraging future to define the now, we have the pre launch in long and after long and alarming process to be digitalized, managed and also integrating with 8 intelligent scenario to improve the risk power, risk control power and then to make further investment. Well, 8 intelligence means intelligent due diligence, intelligent approval and both monitoring and also analysis.
In this way, we can further improve the risk control and capacity and the asset quality. For example, intelligence credit can actually make sure that the takes less than 5 days to approve all the transaction and around 65% of the business would be standardized.
And for smart prewarning, for both 180 days 90 days is 90%. And for the approval, ProSAS is 100% online. It empowers management, risk control and loan issuance. There are 4 scenarios I want to introduce. First is for the smart approval with 4 steps to evaluate the business and it can set up automatic approval for standard business.
And for the non standard, we will go to the labor work to do the approval. And accumulatively, we have RMB 96,000,000,000 of loans be issued through this platform and the time length is around 15 minutes. And every day you can see the system is doing the automatic check on the health of the business and to check the customer risks in the real time. And the non standard business I mentioned, we will have human being human to do the approvals to increase the efficiency. And for each business, the approval time has been shortened by 50%.
And next page, we'll segment the policy and risk policies into the parameters and that the standard can be consistent. First, we strictly control the access. We have around 500 industrial access standard and 400 approval credit lending to the products. And the second, we will control the limit strictly. And third, we will control the process to approval to check the approval time and to see the system in a timely way.
And the last one is we will have a tightened control of the value. We set 9 types of financial pledge products by our own and 5 types of property and 124 types of the pledged valuation model. So with all those rules, we can detect risks in an early way and to control the standard consistently. And the third one is pre warning system. We can know the science in an advanced way.
We have been building this Sky Eye system to detect risks and to solve those black swan and gray rhino event in the early way. In the past, it was a single or like a sole rule model. Now it's a more complex model, and we make it a scenario based. And now it's over 160,000 and the to 90. And for the risk news promoting volume, it was cut by 53% and customers pre warned decreased by 47%.
And next page for smart post loan management. We strengthened the management and cut the human involved, the interference to let the machine do the main work so that efficiency can be greatly increased. And our goal is that in 2020 2, 30% of our customers will be automatically served without human interference. And 40% we can do it in a simple way without with some degree of human interference. And the 30% we will do it as a main focus.
And next page for recovery, especially during the pandemic time, we didn't need to go out and we can do the recovery collection work online. Now the process is 100% online and we have this recovering robot and registered a historic good performance. We also developed some functions, which are very one of the first in the industry. For example, one click litigation, we connected with the lawsuit the law the courthouse system and that solved the problem of a slow and complex litigation process and high cost. So the time it take for a law case make operational analysis totally online.
And with the Kanban system, we can see the performance in the real time to monitor the branch and sub branch and regions team performance. And now for the KPI management, 100% de automatic. And for the task management, it's 100 automatic as well. And next page, we want to cooperate with external partners to create this win win special asset ecosystem to provide 1 stop services to our customers. With this special ecosystem platform, we already connected with 1700 active investors, 6,000 lawyers, 2,800 laws law office and 3 62 top evaluation company and 5 70 mainstream collection companies.
And we effectively satisfy the need for all participants to look for assets, look for fund and look for services. And we provide a smart service like the core scenario application. We refer or recommend lawyers the best suited cases to them and to refer the 2B evaluated assets to those evaluations institute and to introduce the suitable asset portfolio to investors. Let me conclude what I talked before. Risk culture, our bank take as a quality as the bottom line, the lifeline.
And we have the mechanism, have the team, and we are using technology to empower our business. We are building the smart risk control, smart special asset management and smart compliance platform. Technology based platform is vital for us to control risk as well. Today, everything is changing quickly. And Ping An Bank will use an innovative way to control risk as well and to make risk a good assistant to your business.
And that's our core competitiveness. Thank you. Let's see what kind of questions you have for President Guo. I'm Liangfeng Zhi from Zhejiang Securities. My question is for the 3rd quarter.
All NPL related metrics are performing quite well, but for SML and overdue actually went up quite quickly. What's the reasons behind? And how do you view the trend for your asset quality? Thank you. Well, I think you all of you are paying attention to this question a lot for the overdue and SML and overdue by 90 days.
QoQ speaking went up. Let me give you an answer. There's some single cases that's on the group. We are derisking. So that's why you saw the pickup in SML and overdue.
So I take this opportunity to report to you the situation here. For SML, within 1 quarter, the fluctuation is actually quite normal to us. The case, whether you have the capability to solve it in a timely way, that's the key. But for this quarter, the slight pickup in SML ratio is because the liquidity problem Bao Nang had. But for the overall property loan we had, asset quality maintained very well.
In 3rd quarter, the NPL is 0.63%, the NPL for the property sector. In the last one half, it was 0.57%. And across the industry, Ping An Bank saw the last defaults. We did a calculation since 2018 in the bond market of property sector. If the calculation is right, our default ticket size is 1.2 trillion, around 1.2 trillion.
Only 3 companies is related to us, but others we have exited much early before. And for these 3 remaining 3, actually we have solved the most part of it. And the second point I want to mention is for the credit lending we gave to it is fully pledged. And for the pledge we had, the property have been delivered. So there is no risk for the uncompleted projects.
And the coverage ratio for us is very high. So that's the second point. The third point, with a high pledge coverage ratio, our estimated the ultimate exposure to Ping An Bank is not that big. For example, the Hainan Airlines, a year ago, the problem, based on the plan it has right now,
the
principle we will have 100% to be guaranteed to take back and we can also take back some part of interests. So that's the situation we had with the Hainan Airlines. We have a team there to guarantee our benefit. And I believe this will be the same similar case with Baoneng Group because with that high coverage ratio for the pledge, so the ultimate risks is are low. And now their loan are categorized as SML.
The overdue part is not that much. We categorize this as SML and charge full provisions. This is not the bottom line that regulators asked. We charge based on our own standards quite high for the provisions. And the 4th point I want to report to you is just now I talked about the smart risk control.
For the pre warning system, as early as the beginning of the year, already detected the risks of Bao and Zhituan, Bao and Group. So as exposure has been fully calculated into our risk budget and we already prepared our write off line. So once it become NPL, we can roll it off, write it off right away. If we did not turn to NPL, well, in that case, that's a good news to us. So even with the situation we have now, it will not balance case, will not affect our risk metrics that much because we have been prepared much earlier before.
And the 5th point I want to make is for recovery because I said it's a strong pledge. So once we collected back the loans we had with Baumann, it will be a great boost to our revenues. Currently speaking, we already made some progress and the city government already set up a special team to speed up the solving of Baoneng crisis and we will keep close eye on the progress and to adjust our disposal strategies in a real time way.
So Mr. Kuo, I'm from Snowball. I have a question to you. Well, in the 5 cards strategy initiated in the corporate business, well, for Piya Bank, you leverage your advantage from the parent company and continue the investment in the corporate business. Well, in the early days, we didn't do any retail transformation, we actually have some aggressive strategies in the corporate business.
That's the reason in 2016, your MTR ratio is around 1.47. While later, because of the retail transformation and we did a lot of write off and make sure the transformations be well done. Well, in the near future and for the corporate business, there are going to be some rebounds over the NPL ratio. Well, let's take a look at we mentioned about aggressive. And therefore, later to the problems in the later stage, in my report, I mentioned we have the platform plus the team.
Well, these are not existing in the past, especially the technological empowerment, this being sent in recent years. So right before the year of 2016, I think the risk culture was there and also don't have the technological power and such a robust team to do so. Right after the year 2017, it's already 5 years now. We have already well established the mechanism plus institution and plus platform for a systematic yet organic environment. In terms of the corporate costs and Mr.
Hsieh was mentioning, the asset quality is a lifeline of our business. And at the same time, we have the integrated support to make sure that everything could be well conducted. And this cannot be done in some banks. But in Pian, we did a very good job. And we have a very fragile yet predictive risk control mechanism.
And if you can take a look at the work, and we also stick to this. And there's no so called transfer. And also the smarter risk control is also something we need to do to further empower the risk management. So you can see there are some differences. So you can see that for the asset quality lifeline, it's already become a consensus action made by the whole bank.
And it was also be mentioned in the previous presentation, we see the performance of the new customer in our corporate business. We have half of them are the new client, but the NPL ratio formation ratio is less than 0.8%. Later, very solid foundation for risk control, while at the same time, our retail client accounted for 60%. And retail NPR ratio also reached the ideal situation. And it was getting back to before the COVID-nineteen, but it's already gone back to the 2080.
I come from Jin Financial. I have a question regarding risk control. Recently, we find out there are some liquidity shortage for the real estate developers. And even some of the companies started to have the default issue enterprises has a default issue. So what are those risk control measures did Ping An Bank take in order to well resolve the issue for some existing and new business?
Sorry, I wasn't clear on the question. Can you repeat the question? Well, for the larger real estate developers, they have some liquidity shortage. And I find out some company already started to have the default issue. So for such developers, do you have any kind of specific risk control measures to help to resolve the risks in the existing and upcoming business.
While talking about Baoban, I was also talking about the property development business. Well, let me just also share my insights on the property development project. Actually, in my presentation, I have the first slide. It's going to walk you through the property business. But because it's a sensitive issue, so I'll just give you a few points now.
And I used to plan to talk about the property market from the beginning of my presentation, especially from 2,080 to now. In the markets, there are so many defaulted enterprises, but less are working with banks. How can we do so? For the past 5 years, we have a proactive management and pre judgment. They play a very important role.
I have a set of the data. Let me just name it to you 1 by 1. Among these 60 companies, and we have 5 companies being well resolved. And for the 11 populations we are working with, for 8 of them because of the early warning and they have already been withdrawn. Well, for the rest of the part, even if they have some of the problems, but right before the risk exposure, and you can see it's already been well taken up.
And people may ask me what's the reason and what's the reason for this. So let me just share with you some of the strategies we took in this regard and how we changed the policy accordingly. In 2016, the central government first proposed that housing for living not for speculation, but since 2017 on, and we're going to do the explanation on every 6 months. This dynamic name is quite important. And in 20.80, we are also going to leverage the risk assessment mechanism.
In other words, we do it to see whether the capital chain has been broken and to see whether there is going to be some of the problems with the liability of those developers. We're leveraging the 3 tools to help our business plan to help identify those high risk clients. And since 20 60 on, we also initiated the risk characterization tools. In the past, we do it in Tier 1 and Tier 2 cities. And we found out problem issues are there in Tier 3 and Tier 4 cities.
And later, we find out some Tier 2 cities also encountering the similar problems. So after we initiated this model, we break down the traditional approach and then to modify the so called Tier 2 and Tier 3 risk capacity mechanism in Tier 2 cities. Some Tier 2 cities, I was unable to penetrate in, but I can penetrate into some Tier 3 cities in this way still. And we are basing upon this risk cost cutting model to pre charge whether the city could be well developed or not. So according to this, we find out the central banks when they release the triple red line, And our structure has already been fully optimized.
I can also name you some of those data. By the very beginning of 2017, and we have 6 people and who's already being restored in the next few years. Inventory real estate business and also being restored in the next 5 years. The waste number is already more than JPY 85,000,000,000. This is also data I'd like to report to you on the property management principles that can help us to avoid the risks.
Well, in the near future, because the market is still changing, So we need to still comply with the government regulation. First of all, we need to well control the loans and the mortgage size and then to well control the real estate market. There are 3 points. First of all, we're going to continue with the nameless mechanism. Well, you know that entity is very important.
If you don't have a well selected entity, it's very hard for you to resolve the risks when it comes. And secondly, regarding the geographic location, we're still going to choose some cities with the inflow of the population with a strong industrial support within the project. We were going to choose those projects with the geographic location with better product promise and also the best selling rate. If we can take care of this issue, then we will be able to take care of the risks in the real estate market, where for the existing market, we do the risk review. The review has been done recently.
And in the near future, we'll also take care of the postmortgage and the postlaw management. We recently find out the capital monitoring started to see some signals of problems. So we need to further consolidate our performance in this regard. Due to time reason, the final question, please. Thank you.
I'm Xiaofei Fei from Citic Securities. I have two questions. The first question is regarding noncredit assets. And it seems that you did a lot of promotion on that. So how the promotion strategy in Q4 and the next year would be?
Just now Mr. Kaohsi mentioned about the corporate business. I'm a reassured. Well, for the retail business, today, you don't provide us too many specifics. So let me ask you how you're going to dispose the retail assets.
Do you mean you do the for the 30 day overdue and the 60 day overdue, whether there's going to be a statistic difference? And what would be the size of the write off? Thank you. Or move out of the balance sheet. Let me talk about the noncredit part first.
Well, for this year, because we have more profits being gained and also the promotion coverage of the loans has been growing very fast. So in the noncredit part, we also started to improve our promotion. Well, for this year, especially in H1 of this year, in Q3, we have already made JPY 17,900,000,000 for provision and increased by JPY 600,000,000 compared with the same period of last year. The non credit market still has less risks. And you can see the risk asset for the past is only KRW 1,000,000,000.
So can you imagine, in H2 of this year, it's impossible for us to do so because we still need to follow the regulation. For the whole year, we find out the noncredit promotion is going to be lower than that of last year. That's the general picture for this year. Well, regarding the retail and we are supporting the industry. And you'll find out the retail is also seeing very good returns.
So we can actually take care of those credit costs. So don't worry, as long as the retail business has its needs, every time we do the write off and the accounting and you find out retail side means that no matter how many they report, we will always be able to provide them the corresponding requested quota. If you have any questions, you can actually raise your questions in the group Q and A session. Thank you. Thanks, Mr.
Kuo. Thank you. Just as what's been mentioned, today is a corporate business and risk Investor Day. But I think we're still asking about the retail business. So let's welcome the final part.
Let's now welcome our Chairman, Mr. Hsieh, to be on the stage for the remarks.
Friends of Ping An Bank, good afternoon. Well, for today's Investor Day, in fact, you know that is for risk and corporate. And also just after the release of Q3 report, I wasn't planning to give remarks. But since the day before yesterday and till this morning, I read the corporate reports and risk report. I think it's necessary for me to say some words.
Otherwise, President Hu may be mad at me because the story between me and President Hu in the corporate part, there are a lot, many of them. I want to share some of my feelings first. First of all, I want to say something to the corporate team. That is you are becoming prosperous after all those hardships. I have been telling President Hu that once we retired, especially during lunchtime, I told that many times to him.
I think when we are limited in the resource, we cut the corporate size to support retail. This is the right decision. At the time, we already thought ahead that there might be a series of hardships, difficulties, but we did it. I couldn't share all the stories during that launch time in today's occasion. But after we retired, I think I can share some more.
So 4 feelings here. 1st, to cooperate and risk people, I want to deliver my heartfelt gratitude. 5 years ago, Ping An Bank has identified its retail transformation path. Corporate at that time to stand from a big picture perspective, give out resources to fully support the retail development. At that time, our NPL was massive.
Our PB was 0.6 multiple of today's figure. Only 0.6 is impossible to do external financing and internal organic growth to support business growth impossible as well. So corporate had to give out their resources to support retail. At that time, corporate guys, they were complaining that you are favorable to retail. As you know, a family with this many children and with only one bite, what should we do?
We have to guarantee something and to sacrifice in some other aspects. So today with this momentum, momentous achievements retail made, corporate played a vital role, huge contribution. And more importantly, facing this limited resource, this dilemma, corporate team, they didn't choose to sit idly. Instead, they kept exploring, kept making innovations, putting pressure on themselves and formed their unique skills. Every metric in our reports, every scorecard we delivered, every new business model we made, all showcased that corporate has restarted with a fully refreshing new image.
In President Hu's report, he said, even though we are restarting corporate business, the ratio between corporate and retail stays 6040. We stay committed to the retail transformation road and we keep making retail the priority. The picture I'm showing all of you on the screen is in 2017 when corporate people and the risk team, they visited Jingdao Mountain. And after that meeting, corporate started to cut its size across the board in balance sheet and off balance sheet. We did a calculation from 2017 to the end of 2018.
How much we cut almost a RMB600 1,000,000,000. And during that process, we innovated a series of models, approaches and all kinds of awareness training programs. Now it may be simple or might be light easy to tell that story. But at that time, we were so nervous, so prudent. So now I have to take this opportunity to say those words to risk and cooperate, express my deep heartfelt gratitude without your sacrifice at that time.
Without that strong decisive implementation, we will not be the bank we are today. 2nd feeling I had is as we enter in the 2nd stage of retail transformation, the importance of corporate business is becoming even more prominent. First is in the fundamental of liability and liquidity management, corporate keeps playing a vital role. Later on, probably people are going to ask President Tsai how to grow liability in the retail side. Well, now we can say we already find the logic for retail liability growth.
But no matter what, corporate to the whole bank's liability work or in the management of liquidity is playing the biggest role as always, because this is the characteristic of bank. Since last year with the technology empowerment and the concept of building an ecosystem together, corporate has made great progress in deposit, especially in Casa and made non prominent contribution to the whole bank's liability. From last year to this year, liability cost dropped hugely for Ping An Bank. The work is quite well. And the second I want to mention is in the asset side, the corporate can play out play its capability well in asset detection, risk control and pricing and to look for better assets and create products for retail.
So as to increase the AUM on the retail side. And now the mechanism is mature for the synergy between corporate and retail. With better coordination in the future, we believe the second stage of retail formation will be successfully and smoothly finished. So we will take this golden time window of the stable development of the whole bank and to take this strong momentum of retail of corporate regrowth and to allocate resources appropriately to become stronger and bigger. And third feeling I want to share is that corporate has walked out its right yet unique path.
I believe you have shared one feeling after today's report that there are 2 advantages for this bank. 1 is technology and the other is integrated finance. These 2 trump cards, we will hold on to them. Technology is the driver where increase efficiency and the drive for innovation. Today, in Transaction Banking and Risk Report, in that two reports, apart from big data, artificial intelligence, data model, all those well known technologies.
I believe you also had very deep impression on IoT, satellite, 5 gs and quantum communications, etcetera. Those technology, when you apply them well, will not only cut your cost, but also increase your efficiency, cut risks and better customer experience. And more importantly, it will change the concept of corporate business and to expand the boundary of corporate business. A year before last year, Lin Yue, the presenter of transaction banking, He said he wants to long wanted to launch a satellite. I asked why he said there are a lot of areas we couldn't reach, which should rely on satellite rely on IoT.
I asked how much does that cost. I couldn't give you that figure. Otherwise, our peers might make learn from us. It's a secret for us. But I gave him a yes and with one word as well.
If it's less than 8 satellites, you don't need to report to me. Report to me only when you launched 10 of them. In November, we are about to set the Ping An number 2 Ping An satellite. Just now you also have experienced the presentation of Nebula platform. I don't know how you felt when you watched the herds, the farm and when those husbandry situation.
In the past, the most difficult part for supply chain finance is you don't know the real financial health or the transaction background of a company, an enterprise. But now we are using the IoT technology to solve that problem. And once the with the real transaction background, the NPL is very low. So the main task for us is to prevent from fraudulent cases. That's why we are using technology to better support SME as well.
And for the behavior data, logistics data, husbandry data, we accumulated are valuable. On Monday, I visited He Yuan City to do this rural prosperity program. Our team developed an equipment to gather the soil data on that city in the countryside. Those data will help bank to serve SMEs better. And relying on those data, we set up our own risk models, help us to be more confident in making finance cheaper and easier for those SME companies.
This is a blue sea for us. Only one case example I'm sharing with you actually has been applied into all kinds of the parts of supply chain finance. We're talking about the 5 in 1 model. What is my ultimate goal? I want
to
integrate the capability of private banking and wealth management to give this service to mass or long tail customers with the help of technology because this will help to realize the goal of Commonwealth with lower cost. So a new business for us. You know that from long tail customer segment, they generate the most low cost liability, but it may be costly when you want to cover them with the labor work. So with AI application, we can cover them well with the low cost. But to this year, I can be very confident or assured to tell you that for Ping An Bank, our technology prowess is market leading, especially in the funds and global markets business is the same.
In China, I think we are one of the best.
We are talking about the leading banks. I still remember we demonstrated that on 1 Investor Day, how capable that is. It means that we're just leading the way among all the competitions. And we find out interpreted financing is as a nuclear weapon. And this is how Ping An Bank can enjoy this unique advantage.
We're not only there for giving the loans. We need to grasp the opportunity for the greater scale development and working with the capital market and direct the financing market to actually work. We can help the customers to well manage the assets balance sheet. I think probably Zhou Chan made the report today, but I think Zhou Chan probably didn't report our insurance and for the underwriting mechanism, including the investment. But for Ping An Group, and especially we find out the credit loan, the investment is more than 3,000,000,000,000.
So in this ecosystem, we can actually pay a lot of story. And internally, we need to help the customer to well manage the balance sheet. We need to help our corporate customers to well manage their balance sheet. So I think LiRae probably already informed you the Smartwells platform, it's not having a very good name, but I don't know how to modify it. Actually, for this name, and to have the liquidity and the leverage guidance and also with the best efficiency and the lowest cost.
While for banks, by leveraging integrated finance, we cannot only help to demonstrate how robust the development is, where at the same time, we can also leverage small capital to actually develop the business and then to actually help to deposit those pieces and then to have the leverage effect to truly make the so called dual lighters development, including light assets and light development. We also have a very strong mechanism to help to well organize all the resources. You can see nowadays, we were well based in the bank. And Mr. Hu is actually working as a President.
And with the advantage from every part. In the near future, the Integrated Finance is still going to leverage more resources outside the parent company to support us and then to enable the bank to actually play extreme part on both dual life resources. And my full feeling is that And I say that we now have a robust foundation after 5 years' trip. And the corporate business is embracing the best opportunity for development. And we'd like to stick to the development with dual empowerment.
First of all, to make sure that retail business can actually have a mature capacity for development so that we can empower the customer. And more importantly, we can leverage the corporate finance for its value and then to drive the mutual empowerment for both sides, where at the same time And this is a verified mode. And coming next, we'll just stick to the needs and further improve our business, which means a broader yet well defined development and and which means great development in the corporate approach. And more importantly, our team need to be more energetic. Currently, for the corporate business, and they are developing very well.
We have the seasoned team to support us. You see, the U. S. Team And I was wondering what can we do. They said we're going to climb the mountain 6th November.
They said you are supposed to climb the mountain with them. We need to research the young people regarding the future and how they're going to help to take over our business. And they start the journey from 8 until 12 and then to down and then to just withdraw and then to have the lunch. And those young people, they are quite dynamic, and they are the future. Around 5 years ago, we have announced our retail transformation strategy to the market.
These directions never been changed. For the 5 years development, and we see that the development has been more integrated. We took a lot of transformation. And even we are making transformations on the mid and back office desks. So you can see that something we do cannot yet be decided.
And it's so different from the beginning. So you can see that so we can actually help to identify the best positioning of each. And coming next, we can leverage the in-depth technological empowerment. I truly believe that our corporate business is going to find a unique opportunity for the second growth curve and in the retail transformation strategy. It also present more highlights in the near future.
Thank you very much. Thank you. Thanks for the Chairman. Well, for the corporate business business line, and we're actually taking the changes all the way. Just like our Chairman said, in the near future, we're going to have the development more robustly.
We call it internal circulation of Ping An Bank with resources. And with integration, we're going to be more closed. Well, today, we see that here comes to the end of this corporate business at risk Investor Day. Let me pass some question mic to Mr. Zhou.
Yesterday, we just released our Q3 report. I think many of you probably are going to be quite interested in our Q3 report. So let's leave some time for some questions here. So let me just pass the microphone back to Mr. Zhou Chan.
Thank you. Thank you. Thank you very much. I say today the stock price was around increasing and which means our corporate business is actually getting to the version 2.0. Well, in the final part, it's me who's going to chair the session.
We attach great importance to this job. So for the Q and A, we'd like to hear your response. So let me just ask our Board Secretary to do the job. While coming next, let me have a few people to be on the stage, including Mr. Kai and Mr.
Hu and our Vice President, Mr. Xiang, to be on the stage. If you have any questions regarding risks, you can also ask Mr. Kuo. But due to the time reason, let's get into the QA directly.
Let's make it in this way. We have one question on one people and also leave some questions for someone else. Ladies and gentlemen, I think I have just one question. Just now, we ask a lot of questions regarding the corporate business. Let me ask you the corporate business.
And PM Bank is a bank with a lot of scientific developments. When we do the analysis and the matter for the development from multiple perspective, we say that we are actually a company with a very strong technical gene. Where Mr. Chaim, right after you onboard PM Bank, and you have been here for quite a few years. So may I ask regarding the technology, how it's going to support the private bank and the wealth management business?
Thank you. And from the Q3 report, I can also say that the same set of the retail business growth has been slowed down. And this is probably going to be quite a sharp question. What's a raise? Would you mind to elaborate on that?
And in the next 3 to 5 years, how you're going to comment on the sustainable growth or growth momentum? Thank you. The first question was asking about technology. For example, how the technology is going to impact the business development. There are a few points.
The first point, you can see many of the private banks and their service. For example, some of the product actually need to be very stringent and managed. For example, if possible, if you watch the video online, then I'll ask people to watch them online. And this kind of things could actually be done by us. We're also among the first batch of the companies can do so, where at the same time, you can see we can make those investment quite smart.
Making sure that some good investment and the rules could be mounted into the system, then people can choose whether they open it and take a look at it Where at the same Where at the same time, I see that technology really works for the so called development in a comprehensive approach. I see some of the clients actually, it seems they are some big clients, but actually they are not. By improving the development, So you can see this is also another dimension we're taking care of. So internally speaking, it's actually helpful to further improve our management. Let me also answer another question regarding AUM.
Our AUM in Q3, the growth is lower in Q2. I think it's sometimes because of the seasonality issue, some of the wealth management is still being well managed by the offline channel. For example, PV, they have their own pace of managing the work. And in Q3, sometimes the work would be slowed down. And another part is that for Q3 of this year, because we are working with some of the private and investment bank customer, and they are not many of their products are actually not in this industry.
Well, in Q3, we find out the S and F 300 has been decreasing. So that means you can generate another extra 10%. We have a higher market ratio, but it seems that there are some slight decline. But as I mentioned, let me also share with you some of the forecast. Generally speaking, if we take a look at the Chinese Wealth Management market, we see it's a blue sea.
Even if we see a lot of people are there, but the growth was quite robust, while at the same time, we also have multiple ways of service because the service quality is being compromised. That's a reason we are leveraging integrated finance. That is private bank plus the investment bank. And also the financial vehicles plus medical service, especially some wealth patient, they pay attention to the development. So as far as I say that in the next few years, we're still going to see very robust growth.
Thank you very much. Okay.
Just as Kevin introduced that this is very first time for us to invite some Xueqiu on a celebrity. So let's welcome one question from them. Thank you. I'm Zhu De from Xueqiu. One question goes to President Kuo.
In your report, you mentioned that for the past several years, corporate was reducing its size and that affected the foundation when you compare to your peers. So when you started restarted corporate business, what is the biggest weakness you saw in this process? And how will you make breakthrough or improvement on that? Question to President Hu. After 3 hours of report, you can ask this question very clearly.
It's not easy, Impressive. Well, for weakness in this Investor Day, to be honest, we are showing all the good signs of us to showcase the room for expectation for both media, friends and analysts, investors. We want you to be positive on our current stage and future growth. Internally, we did spend a lot of time to talk about what are our weaknesses when comparing to peers. We spent a lot of time on that.
How to learn from the best practice bank to make up our shortage. This should be a key work that we do. When you when people talk loudly, talk about good size, well, it can be just a shortages. For example, when I talk about 2 parts, I was loudly. First is the growth of customer number.
I said that from 2000 to this year, 2019 to this year, within less than 2 years, our customer number increased by 33%. And I also mentioned for the 1st 3 quarters, that incremental was 2.19 times of last year. I was very loud on these two numbers. Well, it actually reflects that we have a relatively weak customer foundation now. 500,000 customer clients for a commercial joint stock bank, especially we are one of the oldest bank.
This number is not big. Customer number surely is only one side. We focus on the quality even more. We want to be a boutique corporate banking. We don't aim for how many
for
those low value or non value customers, we think those are unnecessary. But a certain amount or a certain scale is necessary for business growth. So we have been putting a lot of focus on how to enhance the value of existing customers. We did some big data based analysis to see where are the possible room comes from and to see which customers we have the most possibility to grow and to refer some suitable products and services to them. So that's with the help of technology.
We want to expand our coverage or reach out to those customers. If we can transform those users into our customers, if we have that capability, we can surely manage our existing customers well. Another part is incremental. With big data analysis, we do not rely solely on loan product to expand customer base. Under that prerequisite, the incremental customer number we had will be even more valuable.
And number growth should be even bigger because if you are using loan to acquire customer, loan is limited. So customer number might be limited. Now we have 6,000,000 or even to 10,000,000 user number. We are working to migrate or transform them to a new concept of customers. So one weakness is customer base or a shortage weakness you call it.
We will speed up our work to make up this shortage. And the second point I want to mention, apart from customer base, we have another one that is the asset side capability. Frankly speaking, for the past 4 years, we were mainly focusing on cutting down the size. President Guo shared one number, KRW 600,000,000,000 we cut down both in and off balance sheet. It sounds like all right compared to our 5 trillion asset.
But you should think about the time 4 years ago, we were only 2 trillion asset bank. So on the basis of that, all the way we have been cutting the size, corporate indeed shouldered huge pressure. As Chairman said, we were very nervous and prudent for all the way we have been through. So the cutting down we did for the past several years. We do felt something are lacking for the loan growth on the corporate side is not that satisfactory.
There is a little bit pressure for corporate business. If you don't issue loan at all, well, it will not be a right thing to do. So in the asset side, once we meet the risk preference of President Guo, he's really good at his work and very stringent in the standard. He's risk averted and he's a person looking for perfection. So any asset business wants to pass his have a yes from him, it's not easy.
So we are taking our capability in data and technology to make sure that frontline people detect the right customer and the right asset. And this I have to talk about the synergy between corporate and retail. Corporate can provide premium assets to retail high end customers. And for the group, the insurance, they have 1,000,000,000,000 of assets. They need to find good assets and corporate can help them with that.
That's my brief answer. Thank you. 3rd question goes to online. Let's welcome, Ma Kunpeng. Thank you for this opportunity.
First of all, I want to say sorry because I couldn't be on-site. I had another very important meeting. So my question is regarding fee income. And well, actually your bank has been performed quite well in that aspect for the first half and the fee income is very important to your bank's business. So we care about that a lot.
In Q3 report, well, we noticed that there is some fluctuation. So I'm wondering what's the reason behind that and I want to know the trend afterwards. Could you elaborate on that? Thank you. For fee income, I will take this question.
Two aspects to answer your question. First, for the first three quarters, our fee income business grew quite well in our 3rd quarter. The growth, if you compare, actually is quicker than our revenue growth, especially in Wealth Management and the Private Banking and the Corporate Settlement Business as well as investment proceeds, we made quite good results. We think there is still more room for growth. In one half report, we said that the precious gold business, we are gradually cutting down.
So that's one factor in play. And another reason is for credit cards on the basis of last year's foundation. Because last year, the epidemic, it affected the performance of credit card. The fee income was affected. And this year, credit card pickup is growth.
But this is not apple to apples. If you look at it, our credit card expenses this quarter are more. So that influenced the figure to some extent. And also there is accounting factor. And the third factor is that the card issuance that I mentioned for the expenses on credit card grow quite a lot.
And that expenses we categorize in the fee income fees expenses. And the income, you are not going to see right now, but in the future, you will see that. So a slight fluctuation, we think, is acceptable and will not affect the general trend. To your question, Mr. Ma, you probably are wondering about the whole year's trend and what about future.
What I can say here is looking into the full year for the growth points we have now, we'll keep that momentum, and you will see even better performance. Especially in this year, the credit card, because of the last year's influence, we had pressure on this year. But as it recovered growth in next year, it will lay a solid foundation for next year's growth.
We have an ever increasing volume of the custody and also transaction business and corporate business. We can say that right after the development, and also the inter banking business was also growing. For example, like the trading capacity of our banks being further improved, which can help to boost our performance in the longer run. I also would like to say that because of the accounting rule adjustment in the past, our installment business of the credit card has been placed into the income, but now it's been built into the interest income. So you can see all the numbers are actually comparable.
We make sure that we stick to the dual light asset and the strategy. We hope that in the near future that we have more revenues to make sure that our middle business revenue could actually be further improved in the longer run. Thank you very much. Thank you. Thanks for Mr.
Xiang. We allow only 2 questions, one online and one offline. Let's welcome Mr. Zhang, please. Thank you.
Thanks for the management team providing me the chance for the question. My question goes to Mr. Cai regarding credit card business. Well, we clearly noticed that for PM Bank, since the interim result, we are working on the credit card business. While credit card business on one side generate high returns, while at the same time it also under great pressure.
While for PN Bank in the near future, how can you make sure that you do a very good job on this? Thank you. Let me just answer your question regarding credit card. You say that in recent years, our Chairman also asked us to work through the credit card business. Our conclusion is that for credit card and we're making money after the installment with interest, you need to find those customers who are in need of financing.
So this is a kind of the customer, they have a tight budget. They are not kind of having too much redundancies. And just pay off whatever they ask for, this is a strength we have. So we're going to play our advantage to make sure we identify such customer with very good risk control. We did a good performance in the risk regard.
Well, on the other part, what we are trying to do is for some other customers just like all of you sitting here, you don't want to do the installment and you don't want to do the financing. But you consume a lot. You use credit cards and making sure there will be some private service also being provided, for example, the 12% discount on the gasoline refill service. Well, for this kind of customer, we have to make sure that our credit card business and the wealth management business could be well linked. This is the second thing we do to make sure that the credit card business need to be well performed.
So we need to make sure that credit card and wealth management could be strongly connected. Well, for this year, a big improvement has been made. Just now, we mentioned about the malls. When we opened a new account, some of the customers, they use the debit card to repay their credit card. And last year, the number used to be 50%, and now it's 80%.
While their current deposit has been increased by RMB 10,000,000,000. If you can make this number 30%, then the current deposit will be even larger. So it will bring you a lot of risk free income. This is what we need to do between the credit card business and the wealth management business. So what we're doing now is to well manage the business.
And when we make this pie bigger, we also make sure we can work with some wealth management to make sure that the final part and especially the revenue could be well taken off and also taking an integrated approach for the development, which has been proved to be verified. Well, I think in the near future, because this is what is being said, okay? Thank you. Thank you. Let's raise a question to our online audience if they find a chance.
Coming next, let's welcome Shuran from Morgan Stanley. Thank you. Thanks for the management team providing me this chance. Congratulations. Congratulate on your profit growth in Q3.
But investors, we're probably going to keep an eye on what is going to happen in the near future. So Mr. Sun, Sam, in the next one year, what's your trajectory of the profit? We see that the capital replenishment has been further improved. And what's the motivation behind your ever growing revenue?
Thank you. Let me just respond to your question easily. Regarding the future forecast, I think I have the following points. First of all, in the interim results, our Chairman also mentioned, because at a different phase of the development, we also say different business, especially for the past 5 years, we truly embark a different journey. But in the near future, we believe it's also the time for us to release our profit.
The reason is because in the past, majority of our revenue has been used to digest the non performing loans in the past. And now all the NPR is being digested. And even in the near future, if the works could be done very well, it can become a new growth point for the business. You can take a look at our financials for that to know that. But at the same time, from our business growth perspective, we made some inter banking days and also retail days and also the corporate and risk Investor Day.
You can feel that internally, our business deployment is actually making sure we further consolidate our strengths. In the past, we already wanted to further improve our work. So this is a great momentum for our future development. We hope that you can pay actual attention to us. We are still very confident on that.
For sure, even if in this market, especially in the environment, we still have a lot of uncertainties. But with such uncertainty, we need to have some more uncertainties by exploring the uncertainties, making sure we consolidate our leadership. We're not going to be a strict A student but still want to be a well performed one. Well, you can see that I mentioned about the capital. In the past, we were being limited by 2 factors.
Actually, 2 factors means the same story. If you make too much promotion and you won't be able to have many profits be made and you can't replenish your capital in return. More importantly, you make too much promotion and your tax write off cannot be done immediately. Then in our balance sheet, we have deferred tax regarding around the 30,000,000,000 yen to 40,000,000,000 yen. But for this year, we can roughly do the work, especially the deduct part is still around 10,000,000,000 yen if we made less promotion in the near future.
If it has less deferred income tax, then we do more work on write off and can help us to release more capitals. So you can say this is actually something we're quite confident on. We're still going to have the development strategy in the longer run. In Q3, you can see that our capital replenishment is still growing compared with Q2. This truly rely on different factors can help to deliver such a scorecard.
In the near future, we'd like to play the following scene. First of all, more benefits, less promotion, more write offs and leveraging the due light strategies for the development. Imagine if we have a very robust growth business in the market in the near future, then we will not exclude the possibilities for refinancing. So ultimately, we won't allow the capital to hurdle our business development. And that's all for my answer.
Thank you very much. Thank you. Thanks for Mr. Xiang. We were always aware of the business by providing enough capital support.
Ladies and gentlemen, let's come back to the previous point. We built new momentum, started a new growth curve. We are still very confident that we're going to grow in the near future. Ladies and gentlemen, thank you for participation. We're going to spell our efforts in the near future more.
Thank you very much.