Dear investors, analysts, good afternoon. Welcome to Ping An Bank 2021 Interim Results Announcement. I'm the Board Secretary, Zhu Chang. Just as what you saw, today, our conference is themed, it's the word on the screen, with the momentum, we can do it. The momentum is here.
We will get things done. In this opening video, I believe you can see that the most thing that you can feel is the momentum. It sounds complex, but it can lead where the company goes. For capital market, momentum is also an important keyword because we say when you buy stocks, you have to buy 1 with this momentum and to bank, you have to be a bank with momentum. Okay.
Next, let's enter today's release announcement. First of all, please allow me to introduce the bank's guest here, Ping An Group President and the Co CEO and Chairman of the Bank, Mr. Xiaoying President of the Bank, Mr. Hu Yue Fei Special Assistant to the President, Mr. Cai Qingfa.
Well, he is still in the quarantine and he will join us online. Can you hear
us?
Yes, yes. Thank you. Vice President, Mr. Guo Shiban Vice President and CFO, Mr. Shan Liu Zhen President of the Ping An Wealth Management subsidiary, Mr.
Zhang Dong and the Chief Treasury Officer, Mr. Wang Wei Reviewing what we have made in the first half or even we look longer to see from 2016 till today what we have developed, I'd say we have walked a totally different path and the main line for this is momentum. First of all, it's a trend and it sources from direction and the goal if you put a stone on the top of mountain is an accumulation of power. Ping An has been setting ambitious goal for itself. 3 years ago, we said we need to rebuild a new retail bank for AUM.
We need to exceed the trillion volume. And fundamentally, we will solve the asset quality legacy burden. Those seemed unformidable in the past and now are milestones for the transition road. In the new 3 years, we have formulated even ambitious goal for the first half's results are the performance we made as we are standing on the new starting point for Ping An. The momentum to going up has never stopped up and up, go ahead and go ahead.
We will be a bank that's always on the upward trend. 2nd, momentum is an advantage. And that means we need to translate our advantages into results via strategic planning. Its goal and for the advantages we have are the path. In the Q1 Retail Open Day, Taifang has delivered a retail themed report, and he explained the 5 in-one new strategy for retail.
In this October, we will have corporate retail open day as well and to introduce the thoughts we have on the corporate 5 cards. For Interbank, they are constructing the 5 golden business cards for product and services as well. All business lines are upgrading and planning ahead to find the second growth curve to keep in pace with the times. So the second thing that we need to do is to be a bank that is very executive and have clear implementation path and also advantages. 3rd, momentum means the power.
The power means that we need to be very decisive and have high spirit. And these 2 are the gene in Ping An, which we lose to nobody for Ping An. Any difficulties and challenges as long as we set our goal, we have confidence and power to reach that. In the new 3 years, we have identified our new strategy that is to reshape the balance sheet with the deposit at the core. In order to grow our deposit in this May, altogether, there are 1,000 people from business lines.
We went up to the Jinkan mountain and we have made a very clear strategy in that conference. 1 month after that, we saw clear results. So anytime, very well, you can see the power in Ping An. So it's the third thing, we need to be a bank with high spirit and more power. With the momentum, we need to do that.
And for the to do that, there are 2 meanings as well. The trend, advantages and power are the directions, path and team. With the right directions, path and the right team, we will certainly get things done. So to do it is a result and also an action. We deliver what we said for the past 3 years.
We did that. And for the next 3 years, we will certainly do that as well. Therefore, if we do that, you have the momentum. And with the momentum, we will surely get things going as well. Next, let's welcome the Chairman of the Bank, Mr.
Xianning, to clearly introduce what he views on the power and the implementation of the Ping An Bank. Let's welcome. Good afternoon, everyone. Welcome to Ping An Bank 2021 Interim Results Announcement. As you know, for every release, we have a key word, key sentence that is to deliver what we said.
Today is the same. Compared to last time's conference, what I promised, I will deliver to report on the results we made in the first half. First, we reached the goal of balanced structure. Retail maintained the growth momentum and the corporate growth is accelerated. For the whole banks, business structure has already reached the 60 to richer and 40 to corporate goal.
And with that, we are just starting to release our profit. In the first half, the Y o Y growth for profit was up 10% compared to the Q1. 2nd, we reshaped our balance sheet. With ecosystem empowerment, China empowerment and technology empowerment, we cut our deposit cost by 30 bps. For retail, corporate, the demand deposit has grown by 8% 16% for daily average respectively.
3rd, we have hold our bottom line of risk for this bank. All key metrics for risk have reached the historic best. And with the prudent principle, we charged a 13,600,000,000 non credit provisions, which was up 113% y o y to deal with uncertainties in the future. In addition, Private Banking, Wealth Management in the first half are performing quite well for AUM. PV AUM and the customer number all achieved double digit growth ranking the top among joint stock banks.
And the growth speed for Wealth Management volume ranked the top in the market, and the profit and revenues are achieved at times of growth. Looking the past 5 years in the retail transformation road, Ping An Bank has maintained fast growth. I know that market cares very about where we gather momentum for the second growth curve. For this complex question, we identified the model and the strategies we have to source the new momentum for Ping An Bank's development. In retail, we have a new driver, and that comes from the 5 in-one model.
This model, we will use technology to cut the excess cost for financial services to help the mass customer or the society to achieve their better life. And internally, we use technology to manage customers' balance sheet well in a low cost, high efficient quality way. And specifically, we will finish the following tasks.
First of all, we need to establish a well connected traffic pool in order to improve the customer acquisition efficiency. 5 in-one model leverages the Open Bank to build the eco scenario with our outside traffic platforms. And generally speaking, in this way, and it has a better efficiency and quality for the customer acquisition. Secondly, we should also improve our operational churn to improve the customer value. 5 in-one model fundamentally disrupted the traditional operation model based on the stratified customer base.
And we based on the customer's dynamic need and then to provide the smart matching of the product and service to the customer. And also by keeping an eye on the balance sheet of the customer, we also optimize our operation to improve the customer value. Let me give you an example. For mass the mass customers in the traditional customer stratifications, and no one take care of them. But in the 5 in-one model, by having the AI customer account, the wealth management and high quality hook service can also be delivered to those so called mass customers.
They were feel being taken care of and being concerned, and it can help to activate the customer to bring us the deposit, while at the same time, it can also help to deliver more customer source to our private bank and the wealth management service so that we can form a cascade yet upsell customer mix. And thirdly, we should build a series of service network to improve the customer loyalty. In 5.1 model, we have AI Bank, retail bank, remote bank and the offline bank, which can provide a multidimensional service network. Customers can get access to the financial service as they need. And fourthly, we also build a very strong and robust service.
And by conducting our data product, service, operation and the risk capacities to make sure that we can improve our professionalism will reduce the cost. So all in all, we can say that by 51 model, the key rest with the technology competence. While we are confident in establishing this model, The reason is because we made a heavy investment on the technology for the past 5 years. Our middle desk and open capacity is well consolidated. So next, what we need to do is to make sure the technology business is working with the market more to create more business value.
When the 5 in-one model is being released for less than 6 months, it's already received very positive response from the market. And you can see that in H1 of this year, our Wealthy customer and the 10 ks customer growth rate was 2x or 1.5x higher than last year, respectively. And I think with the continuous operation of the 5 in-one model, the retail business is going to further develop. Well, regarding the corporate finance, the new engine comes from 2 trump cards, including technological empowerment and integrated finance. For the past 5 years, due to our business transformation, we were also considering how can we foster develop the corporate business.
We find out the fundamental logic of the corporate business is the same as the retail business. Fundamentally speaking, it is steer platform plus AUM and RUM to help the customer to well manage their balance sheet. Platform means the operational platform of the customer. Retail call this as the pocket app, and the corporate business call it a digital app. And by so doing, we can make sure we launch the uniform platform with a uniformed account to consolidate the management of our corporate customer.
AUM is on the asset end, where RUM is on the liability side. By having a good financing arrangement, we can support the customer to develop their business. By having these logic clear, we believe by having both trump cards, including the technological empowerment and the integrated finance, along with our retail platform fundamental strategy, we will be able to copy the successful story from the retail business to the corporate business. Regarding the technical empowerment, we leverage the digital pocket OpenBank and the Newblr platform. There's 3 very important strategy to over turn the traditional way of the corporate customer acquisition.
And the digital market can actually use the bottom threshold to attract the customer, while at the same time, non financial and financial service could be well connected. By having an extreme and lean customer operation, we can therefore improve the customer value. The result is very promising. And by H1 of this year, the customer number is already 5 million, and the half year growth rate is 3.7x higher than the same period of last year. And also, the new incremental customer growth is 3.5x higher than the same period of last year.
And we also leverage the Nebula platform, including the DROP technology and the IoT to help the SMEs to take care of the difficulties in financing and the cost of financing. Currently, we have already introduced 2,500,000 devices and then to support the rail economy of financing more than RMB 110,000,000,000. But at the same time, we have our leading navigation system that can make sure that we leverage the trading capacities to serve the B end customer to help our customer to help to mitigate the risks triggered by interest rate as well as the commodity risks. So you can see our TRIL volume in H1 of this year is already USD 40,800,000,000 up by 78%. Well, regarding the integrated finance, we're going to leverage the resources from the corporate and our equal partners to make sure we have the do light strategy.
And you can see that we truly serve as a party A. We're going to keep an eye on the balance sheet of the customer to leverage the funds from the bank, from insurance, from the capital market and the inter banking system By leveraging the investment bank, commercial bank and invest together, we will be able to take care of the customers' liquidity and the leverage reduction and return. With this model, Ping An Bank also helped to receive to greatly improve the capital efficiency. And for each one of this year, by leveraging our resources, we provide JPY 612,800,000,000 of the funds for the customer for finance and for development. There is no bank capital being occupied in this process, which truly shows how great the dual light strategy is.
Well, for the banks, we attach its importance to this model. And by well working on this strategy, we'll be able to promote the SMEs for their business development well for the C end. And they can also make sure that we help the customer to truly take care of the value in the market. Well, we can say that for our corporate bank and the retail finance, both platforms are working with the banks. I am the director of both the corporate financial groups as well as the retail financial team.
And we can leverage our best resources to provide the asset's improvement strategy to our customer to help them to well manage their balance sheet, while at the same time to make sure that the capital and assets, no matter for 2B or 2C customer, can well optimize. In this way, we can seek for the high quality and sustainable development, especially with the dual circulation strategy. We can actually support the real economy. This is a commitment we offer to the market. We're going to honor our commitment.
Thank you. Thank you. Thanks, Chairman Xie, for your wonderful presentation. In your opening remarks, you clearly indicate how we have the strategies for both retail business and the corporate business, especially the strategies and also the motivations we have. And this is also a great result we achieved for the past few years, and this is also show our differentiated development strategy.
And you can see that in the opening remarks, many of those sayings made by Chairman and Shieh has already been pigmented by PM Bank. By the past 3 years, it's already the time for us to improve our momentum, while in H1, we also helped to deliver a decent scorecard to the market. Many analysts already said that it's already for Ping An Bank to honor its commitment to the market. So the interim result announcement is actually a way for us to show our commitment to the market. Coming next, let's welcome the CFO of Ping An Bank, Mr.
Xiangyou Zhi to give you the overview of the interim result, please. Dear investors and dear nurses, good afternoon. And of course, yesterday, I think all the materials are already being provided to you. So I think I'm going to leverage the following few minutes of breaking you through the Q2 financial results. And I'm going to cover 5 parts, including overall performance.
In H1 of this year, we have five highlights. First of all, our revenue has a stable growth, especially for retail corporate, and we have the new strategy for growth. And jointly speaking, the revenue was up by 8.1%. You can see that in Q1, since our revenue growth in Q2 was slowed down. The reason is because in 2020 and the Q2 growth was the highest one among the 4 quarters of 2020.
And that's why in Q2 last year, we did a very good performance in the market. The reason is because we leveraged the opportunity of the bond trading. But you can see and it's a good trading, but you can see that for this year, purely speaking on the quarterly growth perspective and in Q2, actually, our growth is still 2.8% higher than Q1. Well, regarding the retail revenue and the corporate revenue And for the retail revenue and especially the Wealth Management income growth was very stronger. For the fund insurance and the Wealth Management revenue, they all present a very robust growth.
Well, for the corporate revenue, we can see the settlement and the bills, we also see very good growth. Regarding the net profit growth, it's also been accelerated. In H1 of this year, the net profit was up by 28.5 percent. And thirdly, the deposit balance also show a very good growth in the volume, where for the NIM and it's actually been narrowed down due to the asset value. And after we initiated our 3 year strategy, we helped to reduce the deposit cost.
Many of the analysis you probably noticed since the year of 2019, we helped to reduce our deposit cost a lot. And in other words, we helped to further optimize our deposit structure. You can see that all those reduced deposit costs has been paying back to the society and truly to support the rail economies to have a better financing solution in the market. In this way, we also help the rail economy companies to help to reduce our financing cost. Well, you can see that with our new operational strategy, we also have to proactively adjust our asset structure.
In our assets portfolio, and you can see we further optimize it in order to take care of the market needs, especially the house collectibles and the mortgage side has been making some measures. And fourthly, we also made a very good asset quality improvement strategy. You can see this is the slide I show you repeated on a different announcement meeting. And since 20 60 on, we see a very positive momentum for further optimization. Currently, our NPR ratio and the provision coverage ratio and you can see these are all the indicators of NPR, and we are ranking as the well performer in this industry.
And fourthly, we also spent a lot of efforts for the NPR treatment and also helped to further improve the production result. You can see that we have a large scale relative last year and this year. We continue to write off around RMB 60,000,000,000, while at the same time, you can see that our total collected NPLs was up by 40%, reached RMB 20,000,000,000. And also, the collective write off NPRs was up by 38%, reached RMB 10,000,000,000. So you can see that the write off and the collective side are all done very good job.
Let's take a look at the retail business. You can see for the past few years, and we stick to the same retail business strategy. But from the operational side, we elaborated our strategy a lot from 2 to 1 and to our 3 business cards and for the 4 countries. And in H1 of this year, we have the new 5 in-one model. More importantly, we would like to provide a human touch financial service to the customer.
In other words, the customer can trust our choice, and they can have the heartwarming service and also a very comfortable customer experience. So according to such retail operation strategy, you can see every year we made a new advancement. In H1 of this year, the retail business are showing the following great achievements. First of all, for the private banking, it still made a double digit growth. And more importantly, our private bank and the wealth management is becoming more professional, more scientific driving.
And the scientific environment also being further improved. And that's the reason you can see that our total AUM was up and the PB customer was up a lot. And secondly, regarding the retail business, you can see we also have a quick growth of the basic customers. Especially open banking initiative for
the customer we acquired is not only from the offline MGM model, but also in the open banking initiative way, which is very important as we innovate in operation model, services we provided to customers also made a lot of innovations. So the total customers increased by 6% year to date. For mass wealth worthy customers and also the 10 ks level customers grow very rapidly. And for pocket registered users increased by 9% year to date, already exceeded 120,000,000. And the third thing is for deposit, both balance and cost optimized.
For daily average deposits increased by 13% Y o Y and for retail deposit cost decreased by 22 bps. And for payroll business, which we have been doing for the recent years, very important business, increased quite well by 22%. And the 4th for loan insurance picked up, especially after epidemic because we saw the economy is recovering and the retail insurance is performing quite well. For example, if you look at Xingindai, insurance increased by 53% y o y and mortgage as well as home equity loan insurance increased by 51%. And for auto loan insurance, it increased by 37%.
So from this slide, you can see the strong momentum for retail loan insurance. Next, let's look at credit card under the epidemic impact. Last year, credit card was slowed, but this year in first half, we made some new like new highs. For receivables, transaction volume and cards in circulation all achieved a lot of growth. Retail asset quality maintained sound especially for retail risk policy, I upgraded from product centered to customer centered and asset quality maintained sound overall.
For vintage analysis, we can also look at this chart for MGM customer quality. It performed better than customer acquired from other channels. And next page, for technology and integrated finance, you know that are the key advantages of us. For tech part, it has brought us some new achievements. We are focusing on building a middle office, which you can see on the down part, the bottom part for this slide.
We are building retail 5 major mid office, which is business mid office risk, operation data and tech. In the first half, we have made a lot of results, though those figures have been shown on this slide. I will not name them 1 by 1 because there are too many, but you can see that the results we made from this new 5 in-one model. And in the advantage of integrated finance, we are leveraging platforms and also the integrated finance committee to deepen MGM online operation model. MGM model even as the market insurance market slowing, the performance we have from this business is doing still quite well and its contribution for MGM model to the bank actually maintained stable and some even contributed more.
Next, let's look at corporate business. We still focus on the 3 plus, 2 plus 1 business strategy, and we are building our 5 cards, new supply chain integrated to build platform, customer management platform, complex investing and finance as well as ecosystem based integrated finance. And there are some new figure some figures I can show you. For example, for corporate deposit, both balance and cost optimized, the balance increased by 7% and daily average deposit increased by 6%. One thing I need to bring to your attention is that for the daily average demand deposit increased by 24%.
And deposit cost for corporate decreased by 32 bps. I think among joint stock banks is quite good result. We have used 1.5 years to cut down our liability cost. At the same time, our customer number for corporate increased quite well In first half, increased by 50,000 and it was 11% of growth. For last year, the whole year was 50,000 growth.
This half For this half alone, we made the same number as well. And productivity improved as well for per business units improved by 15%. Asset quality for corporate, we are assessing from 3 aspects asset access standard, risk mid office, user experience. And for the NPL ratio, it was down to 0.99 percent and NPL amount down to KRW 11,100,000,000. So very good performance from asset quality.
Now this slide, we can look at the transaction banking. 1 is new supply chain and the other is integrated discounted bills platform. What you can see on this slide, last year, when we talked about those business, the growth was not that big. But this first half, you can saw the momentum. And then technology empowerment because in corporate, we want to fully leverage our tech prowess as well.
So in this part, customer service, which is the platform we built to enhance customer service and products, has upgraded and also for the Nebula Internet of Things platform or product iteration, we have made a lot of improvements and fully leveraged the power of technology. In the first half, there are a lot of numbers we can show because those are the results, for example, registered users of the digital pocket and also customers served via open banking and also average team productivity. And the other advantage we have for integrated finance, well, there are 2 parts as well. 1 is complex investing and finance. This is a very important module for our business.
In the first half, the volume has reached KRW 622,000,000,000 increased by 10%. And for corporate integrated finance, for example, insurance sold by the bank increased by 20%, PAB to Ping An Finance in volume increased by 22% and daily average deposit acquired by integrated finance increased by 19%, all growing quite quickly. And next part is for interbank and global markets. Still, it's the 2+2+1 business strategy. And under the 3 business module that is trading, interbank and wealth management, we have upgraded the 5 business cards, which are the 5 business lines.
And for trading, no matter if you look at the gold or the bond market, we all have a leading market leading shares. And for Ping An hedging, that is the service we provided to SMEs and individuals in terms of ForEx and commodities, the hedging services increased by 78%. And for interbank, institutional sales increased by 51% and custody increased by 19%. The 5th card we have for Wealth Management, we have the non principal guarantee WMPU balance increased by 17% is market leading growth speed. And for the net value based products, reached RMB677,000,000,000 increased by 33%.
So the percentage to total non principal guarantee wealth management was 82%. Next to technology, it also played a great role in interbank and global markets business. For the 5 business cards I mentioned, are supported by technology greatly. Upon the previous base we have, we have upgraded our strategy and technology has deepened helped deep our customer management, especially in terms of applying those digital tools in customer management. And for the profiling system of inter bank or institutes has greatly empowered.
And the 5th part for my presentation is how we support the real economy and develop the rural economy and also go ahead with the green finance. Well, for serving real economy, if we look at that perspective, we have scaled up our support for private entities and SMEs. In first half, private companies accounted over 70% of all new corporate clients that granted with new loans. And for SME, balance loan balance increased by 13% year to date. And weighted average interest rate for newly issued loans went down by 52 bps compared with the 2020 full year because this is the social responsibility for the bank that we think we need to support the private entities.
And in first half, inclusive finance SME loan balance up 22% year to date. And as for how we support the rural development, we have made a lot of innovations in service model and also we set offices for rural development projects. In first half, we issued 5,000,000,000 relief funds under the industrial and rural poverty elevation program, bringing the total to 31,000,000,000 with 880,000 poor people benefited. And we helped the poor with the Ping An Financial customer flow, driving the equity produce sales to JPY 18,000,000. And as for how we put Green Finance at a strategic position, in at end June, Onshore Green credit balance was JPY 30 7,000,000,000, up by 63% year to date and we have won awards multiple awards and we successfully issued the 1st carbon neutrality bond.
This is are the results we made in the first half and in the next half for the outlook, first task we have is to deepen the full scale digital operation. This strategic direction we will on swift to be hold it. And second task is to enhance risk control capability. Specifically there are 6 aspects. First to upgrade risk models and fully upgrade our risk control digital risk control capability and to support to upgrade digital driven risk control, improve compliance management and to do proactive risk control of market risks.
And the 3rd task we have is to reshape the asset and liability sheet is to do management well. First, for liability side, we need to cut down the liability cost and to optimize the structure. For the past one and a half years, you already saw the performance we have, the results we made. And in the next coming years, we will keep doing that. And on asset side sorry, for the liability side, we will diversify liability source.
We will enhance capital levels by issuing greater variety of financial and capital balance. If you look at our balance sheet clearly, you can see there are a lot of changes in our balance sheet structure, especially for the ratio the mix for retail loans because now we want to do the more like a stable like a healthy loans even with the less yields. And this we will go with the fee income growth initiative as well. Dualite will stay as the strategy along with the fee income growth. For internal KPI mechanism, we will steal more resources and encourage business lines to increase the fee income.
And the 4th task for retail business, we will promote the 5 in-one model and provide touching financial services so as to pave the ground for the 2nd takeoff. And the number 5th for corporate business, we will play the 5 cards well. In the first half, we already saw the momentum, so we are confident for next 3 years growth for corporate. Interbank and Global Markets, Trading Interbank, custody, hedging and Wealth Management, we will keep upgrading these 5 business lines. And currently in market in terms of market share, some are already doing very well.
We will keep doing that. So this brings to the end of my introduction. Thank you. Thank you, Xiaohang. From his report, you can clearly see that for the first half, multiple metrics have made great like a better performance.
Those are the results we accumulated for the past several years of transformation and the net profit already entered a fast growth trend. Revenues for multiple years achieved very quick CAGR and lead the market. For asset quality, we are now in the historic best level. And for deposits, incremental volume, those key metrics are all the best half year for recent years. So you can see clearly for the development trends.
And next, let's take the time to enter the Q and A session. First of all, let's welcome the management.
Would you like to improve the volume of voice on the site? So besides the audience here on-site, we also have more than 300 ambassadors and also 80,000 audience joining us through the teleconferencing and the video conferencing. Well, today, we have a new role for the QA in order to make sure that we have more people to engage in the QA and make sure that for each of the audience, you can only raise one question each time. And then we can have more opportunities to engage more people for the Q and A. And then we take 3 from the offline meeting room and also 2 from the online as a rules of the question taking.
And the first question goes to our on-site audience. Please put up your hand and we're going to circulate the microphone to you. So lady first, let's welcome the first lady to raise a question. Madame Shen, please. Madam Shen, and I see you have an in-depth commentary on our interim results released yesterday.
Thank you. Thanks for providing me the chance of raising the question. And my name is Shen Jun from Baikai Securities. And you can say that with the support of Chairman Xu, I think the bank made a very good U-turn and it also brought a decent scorecard to the market. My question is regarding strategy.
You can say that in this year, especially in H1, there are so many changes in the market, especially the in and outside China market are full of complexities. Especially in China, the banking environment is full of uncertainties. So I'd like to ask Chairman, Shi, so you can say with such a complicated environment in outside China, how you're going to comment on the challenges and opportunities of Ping An Bank in the near future? And also, how can we take the opportunities in the near future? Strategically speaking, what are the countermeasures we have in our hands?
And also another question is that you mentioned about with the momentum we were on our commitment. So in the next 3 years, how the Ping An strategy can fully interpret the so called momentum? It seems that you asked multiple questions rather than one question. Please go to Slide 40 of our presentation documents. And on Slide 40 41, I show you many of the countermeasures we have in order to embrace the inside and outside environment, which is full of complexities.
We have the same direction and the unchanged strategy. In other words, we're going to be a world class and the best in class retail bank here in China. I mentioned this strategy for multiple times already. The same as our operation strategy, we would like to make the very good lean management of our operation. But more importantly, we need to change our business model as well as our tactics.
So you can see that in the retail business, we emphasize on the new 5 in-one business model. 5 in-one business model seems like pretty complicated. But to my mind, there are a few highlights of this 5 in 1 model. The technology competency we accumulated have to be translated into the power and the value to support our new business model. We say that for the past, for the commercial banks, every time we talk about the wealth management and the private banking, people started to talk about the customer stratification.
But with more technology and the tools available in the market, some of the customer within your bank, they are not the wealth management customer. But actually, the customer is already a wealth management customer or private banking customer. But in nowadays, we get less access to those customers with existing the AI customer service. And AI account manager is truly a very good tool and it provided a 20 fourseven service without
asking for
a salary. 20 fourseven, our service, salary. What a good stuff. And the AI account manager is just consuming the electricity. So the cost is only the electricity bills.
So you can see with artificial intelligence plus telephone and also when necessary, we have the Earthlight sales team to work together to serve the customer rather than blindly seeking for the customer in the market. In this way, we can provide a better customer experience with a lower cost and also provide a better coverage of the customer. More importantly, in this process, our wealth management customer and the private banking customer are coming to us. And this is the first point I'd like to make. And the second point I'd like to make is that even if we have some customers, they are not the customer for the Wealth Management and Private Banking.
But you can see in the consumable finance, they are our best in class customer. So sometimes when you talk about the Wealth Management and the Private Banking, you should never forget some of the university students who need to have the consumable financial product. So you can see that in our customers' life journey, at a different stage of their life, they have different performance of the balance sheet. Because of that, we'd like to build a new 5 in-one business model. In this way, we can make sure that our middle class capacity and the fundamental capacity could be fully relished in the market.
So you can see that in H1 of this year, we will first roll out the new 5 in-one model. Our mass customer and also the 10 ks customer was growing 2x and 1.5x higher compared with the same period of last year. But I have to say we're still in the pilot stage. And this year, I promoted 1 staff. The retail voice director has already been promoted and who is in charge of the basic finance service, especially the retail side.
With the leadership from CICE Infant, these people is dedicated to building the 5 in 1 business model and trying to R and D more business scenarios. In this way, we can train more AI account manager to make sure that the AI manager can do more job so that we use less manpower because for manpower it's used for us. But we will ask the AI manager account manager to do more job. That's the fundamental for the 5 in-one business model. Well, regarding the corporate business, as Mr.
Sao You Chi has already mentioned about 2 big strategies for the competency building: 1st of all, technological empowerment and secondly, the integrated finance. Technological impact, I think probably some of people will raise questions regarding corporate business. And I think Mr. Hu, to a great extent, is probably going to ask Mr. Li Yue to answer what the trading platform served the corporate business.
So I would like to mention about technical empowerment and its importance in the corporate business, especially the trading bank. At the same time, we should also do well on the integrated finance. Our digital pocket is on the corporate and the group level. So you can say that for other subsidiaries, their customers still need to be registered with this digital pocket product. It's already become a hub for our corporate account.
And this all credit finance, I would like to emphasize on the 5 cards. The direct finance and indirect finance need to work together. More importantly, you need to well manage the balance sheet for the customer. Thirdly, you need to make sure that you have a dual light strategy. In other words, you need to have the commercial banks, investment banks and investment working together as a triple strategy.
You can see in H1 of this year and people ask me how you're going to work on the corporate business side. But I think one thing we need to still spend more effort on that. In such a complicated scenario, how can we make sure that we have the best assets to back up the capital deployment? We made already very good progress, but I think we can make more. We're probably going to deliver all the financial shifts to the bank's business, But to make sure that the cuts need to be rest with Ping An Bank.
So you can say that in the inter banking business, I have to say that in H1, our revenue growth is more than 8%. And Mr. Zhou and Mr. Xia emphasized again and again because in H2 last year, we make a lot of money and that really embarrassed us to some extent in H1 of this year. But you know that as you have the window opportunity, you have to make the money out.
You should never just seeking for the business growth. We're abandoning the opportunity for H2 of last year. So that's why this year, I was somewhat confused because the scorecard for last year, especially in H2, was wonderful. But still in this year, our trading performance still outperformed the market average because last year, we did a very good job. And that's a reason in nature.
Both our investors, professional one, they launched the navigation system. That system is ready robust in China. Till nowadays in the U. S, we also have a 40 to 30 to 40 people team that can really provide the IT support to the navigation system. And this is the technical team we have, and they are located in the U.
S, providing technical support to navigation system. We also have another domestic investor, Mr. John and Mr. Wang. They're working together with our 2 foreign professional investors, working together to make sure that we have a good profit from the customer.
I was criticizing Chris and Yonghu a lot in H1 of this year. I tell them you should also export your capacity to the outside to help us to further improve our profitability. As you can see, we helped open the account for Dario. And Dario in China was dealing with the securities product and bond product. We are supporting them of doing the business in China.
We started the contract already. And I tell Chris and Dong Ho, you should also help to make sure your capacity should also be fully released to help us to make more customers to come to us. So I said no matter how the environment being changed, you should always come back to how to build your capacity. We have 2 genes, technology and integrated finance. They should be kept unchanged to make sure that we have a good risk control capacity.
Then we can live an easy life in the near future. And that's not going to be and that's going to be a commitment we make to the market. Thank you. Thanks for the Chairman.
Well, for Mrs. Shen, what she means for this battleground is changing greatly. What Chairman has replied is as we deal with the changes, we will take advantage of our integrated finance and technology to fully handle the uncertainties ahead. And the second question I want to give to On-site. Please give it to Mahe Shi, Mr.
Ma. He is the very first one who give us comment report. It's not easy and it's very late yesterday. Well, congratulations. It's for a long time we haven't seen these good results and this is great potential.
Everyone can see that potential. Well, for the share price this morning, I asked around there are 2 types of people. First, one is the who don't look at fundamentals and the second type are those who look just in a rough way. Therefore, well, let's just talk about fundamentals. I think it's more important.
Well, my question goes to Chairman Hsieh about the wealth management. Well, this is a topic that everyone cares and everyone has the common sense that as banks looking for the 2nd growth curve, this is a very important competition field. For wealth management, what we can understand that to use external channels to leverage the internal proprietary channels such as the funds, trust, etcetera. Well, for other banks, they have different focuses. For Ping An, you have the full suite of financial services licenses.
So for these modules that I mentioned, where does the funds come from? Insurance, trust, securities or others? So this is my question, where do you focus more about and your strategy in each channel? Thank you. Well, I think you can ask this question in a more frankly way.
For Wealth Management and Private Banking, you want to ask where do we find the products and funds? And whether your fee income is sustainable? And which products can create the most fee income? I think this is how I understand your questions. And how can you do the more efficient product portfolio, more stable and also can help people earn more money?
Well, let's talk about my understanding. Well, I have repeatedly talked about the advantages this bank has. Not only by talking about it, we are doing in a down to earth way first. Integrative finance, This is the advantage that bank has. For integrated finance committee, there are 2.
1 is for retail, 1 is for corporate. And for corporate, Hu Han is the General Secretary and I am the Director. And for retail integrated Finance Committee, Sai Hong is the General Secretary and I am in charge of that. So those are the 2 very important committees for the Ho Ping An. And for the product and services each subsidiary has, it has to give to the bank preferably.
Otherwise, I will comment on that and will like give a hard license to them, because this is a very like a real ecosystem that we have built. So you have to contribute and leverage on this ecosystem. And the second step, we need to build an even greater ecosystem to cooperate with external partners. We are building this interbank ecosystem right now and the team leader is here, Mr. Wang Wei.
What we have to link among securities, banking, interbank institutes, funds and to create an ecosystem. And with the Integrative Finance Committee, we provide assets. We call it institutional sales, it's a strange name, but it's just to sell products to our interbank institutes. And we are building this profiling system. And with that, we can know clearly their risk performance and underlying capability.
So with that, we can earn some advantages, because you know them well. 2 days ago, I was talked with Wang Wei and told him that we will review what the work he has done for the profiling system, not only for the banking interbank institutes, but also for that ecosystem, what their risk appetites are and what their risks are, they need to attack them. In this vast ecosystem, we can find the right bound and the resources. So those 2 are the small ecosystem and bigger ecosystem that I'm talking about. And the other aspect I need to highlight is the funds from insurance.
It's the interest rate funds. Whether I give it to you or others, that depends on whether you give the assets to us. And the amount for the interest rate fund is not small. We have around 5,000,000,000,000 of that, 5,000,000,000,000. This is a vast volume, and we have to leverage it very well.
And the second advantage I need to highlight is technology. That is the empowerment from technology progress. For the recent several years, we are building the platform and system to provide customized and tailor made products and services. That is to do well in KYC, know your customer and KYB, know your business. For AI customer managers that we are building, what's the purpose for that is we want to stock customers with products directly with the foundation that we built.
The system that we have built and also the AI customer managers we trained, those translate into the advantage of technology for this bank. We have been building this capability for the past years and these can support the new 5 in-one model of retail. We have to build a new business model, which others cannot copy and those we can fully apply to private banking and in wealth management. This will be the advantage which others cannot copy. And the third advantage is this bank, we are great in marketing.
No matter for customers, for the number, if you look at the number for the whole group, we are now migrating the group's customers to the banks via the account system. Last year, we identified a way that is to link or integrate the bank's account system with the settlement account. So we have migrated I don't remember the specific number, but for AUM, it's around RMB 270,000,000,000 that we acquired with that initiative we've been doing. And in public funds or private funds, our sales capability greatly improved and was well recognized by the market. For example, recently, I think it's for this week, for the Ruiyuan Fund, Ruyuan Fund, well, I was bad at Mandarin.
But what I want to say is that for the mainstream funds, sales banks, one is MMB, one is Ping An. One day we have issued more. 2 days ago, I was having the meeting with the retail people. I asked them whether there is a good fund which can be sold about 10,000,000,000 yen or 20,000,000,000 yen in one day. They said it's impossible.
And I told them I think it's possible. Just do it. And they did it. RMB 11,600,000,000 was sold for one day. It was once unimaginable, but now it's the fact.
So this is a vicious circle. If you have the capability, funds, they will value the channel more and they will give you better products. We have three advantages. And what we differentiated from other peers, which are unimaginable for others, one is Bancassurance. Please pay attention to this.
I was in charge I am in charge of the Bancassurance business. In group, I have the say. So for the whole operation system, I already integrated with the bank system. We believe that life insurance are a part an essential part for our asset allocation. From operation to the decision, I am in charge of that and President Tsai gives suggestion.
Recently, we are developing annuity products and whole life insurance. The purpose is that we don't need that much complex products. We just need a product that is simple and everyone can understand annuity, what is easy to understand, how much you pay and after many years, how many like return you will have and for whole life, well, once you die, you can have the money. So it's very easy to understand. Those are the key products that we have been developing for recent time.
On the morning of the day before yesterday, I was talking to the development team, Qing Shanse James. He was graduated from Tsinghua University for bachelor degree and then went to America for his master degree. And he is using the technology to raise pigs. I think it's very interesting. But later when I give more thoughts on that, I think he's a good guy on product and I put him on the Bancassurance product.
And he was very happy because after he came, he knows what he should do and this is the type of talent that I need, alternative talent. This is a unique way that I have. Well, the 3rd uniqueness I have, I'm preparing to construct a team. This team is to know how to sell insurance first and then knows how to manage private banking. So starting from insurance, from life insurance, internally we call them the talent team.
We want to build or expand this team to a median like a personnels. So those type of people are alternative talents. And I think they can help us to reform the private bank system and wealth management business because first, banks people don't have the habit to sell insurance products. Now we need to cultivate this habit. We need to cultivate this team into 10000 to 20000 of that talent.
I think this is valuable. And also, we'll do the main business that I've been doing for all those years. So this is another advantage. For wealth management subsidiary, it's an advantage we have all the way. When Zhang Dong reported to me about the preposition, while we want to build a full like a product variety platform.
Zhang Long, he worked for securities before and he is a trading expert. Our wealth management subsidiary started late, but grow rapidly. No matter if you look at revenues, net profit or the total volume, next Saturday is the 1 year anniversary for the establishment of the Wealth Management subsidiary. Well, this is owned by the bank.
We show you some statistics. Actually, the Wealth Management subsidiary helped to accumulate 2,450,000 customer for us because it is within Ping An Bank. So the product term is very good for our retail business to help to attract more on demand deposits. And the trust is actually managed by us. I think in the near future, the trust based financing not going to be that promising, but I think the True Trust product still have a very good promising product.
And for example, the family inheritance nature or the heritage inheritance business need to be done under the trust umbrella. And I can say that for the insurance based trust product, it was up a lot for this year. Even if we have the trust based finance, but we should also further improve our corporate business to help to well manage the risks. So you can see that these are the measures we're going to take. For the private bank and the wealth management business, I'm still very confident on that.
And I think they're going to have a very promising development. The new 5 in-one business model will make sure that they will always be able to gather resources from other ecosystem and subsidiaries and partners by leveraging their marketing power, and they can also help to introduce new product to us. So I think they're going to have a good development in the near future. Ultimately, we should also work on the bank insurance. Bank insurance should be a very important part of our revenue.
I forgot that in H1 of this year, the bank insurance revenue was up by 44%. And also the retail revenue, it seems that the growth is not that robust. But actually, we don't have the gold sales in that because of the risk reason. We shut the gold sales a lot down. But jointly speaking, the retail business is still growing very robust.
Thanks, Mr. Ma. Mr. Ma, when you are in the share market, you should also see the momentum. You need to understand the fundamentals, and you should also join our interim result announcement meeting more.
You have the facts and the statistics here to tell you the truth. If you come to such announcement meeting more, and you will be able to hear more about the facts. So you can see our Chairman already shared with you a very clear response on the Wealth Management business. I think Mr. Ma, probably you have a better understanding of our business after listening to Chairman Shi's response.
Then let's welcome Mr. Dai to raise the next question. Thank you. Thanks for the management team. I have a question regarding promotion and asset quality.
From the H1 report, I can see that we made enough promotion. The promotion coverage ratio was up again, where Chairman Xie has already mentioned our non profit promotion is already JPY 30,000,000,000. So you can see that how we're going to comment on the asset quality in the near future? According to the July economic statistics, it seems that people are still active on that. So how's the asset quality of Ping An Bank?
And what's your provision coverage target in the near future? And for the non credit provision, what are you going to do with them in the near future? And it seems that what kind of plan you have for the non credit provision you made? Thank you. Thanks.
In H1 of this year, our asset quality made a new achievement reaching the best level in the market. So me myself is the one in charge of the risks. I'm still very satisfied with the result. So let me be the one to help to answer the question. Our NPR ratio is 1.08%.
But at the same time, our retail and the corporate business, and they have a very low NPR ratio. For the retail business, the NPR ratio is even go back to the level before the COVID-nineteen or even with the same level of 2018. So you can say that we're now in 2021, but our NPR formation ratio for the retail business is already at the same level at 2018. We have such a large business, but I can say that NPR formation ratio is already at the same level as 2018. For the corporate business, we used to be the highest one in terms of the NPR ratio and also a lot of overdue.
But you can see for our corporate business now, the MTR formation ratio is only 0.22. And the overdue and overdue 60 plus days are all negative numbers. So you can see that this year, if we keep the same momentum and we will be few easy life for the business development, we don't need to worry about too much of the negative pictures of the economic development because we already have a very high asset quality internally. So I don't think you need to worry too much on that. I'm the one who is in charge of the risks.
I'm the one who is in charge of the risks. So I feel that I can sit back and relax because we have a very high asset quality. Regarding the provision, let me put it in this way. Actually, in the morning, I shared with our media friends our provision, the pre version that precondition that we need to follow the regulation and accounting rules, while at the same time, we should also consider 3 factors, including the internal and external condition and also benchmark our performance with other peers. Thirdly, we should also consider our profitability because if you have a good vision, but if you don't have the capacity to reach that target, it's very hard for us to execute all the strategy if you don't have a good capacity.
So we still need to do the capacity fielding. You guys know the market pretty well better than me. So by benchmarking with peers, we need to make sure we always outperform the industrial average. And more importantly, on the profit side, we have a very good profit growth. And at least now we have 8.5% of the growth besides the promotion, if we put the promotion back to the balance sheet, actually, we have a better profit growth.
So with such a robust performance, we made a lot of promotion for this year, and the promotion coverage ratio is already 2 60% and ranking the top 2 in the banks industry. And I think for China Merchants Bank, they are ranking the top 1. They are around 400% and we are 2 60%. All of you know that credit promotion ratio should be lower than 300% being required by the Ministry of China. But for China Merchants Bank, they have even higher, more than 400% for the promotion coverage ratio.
But you can see for us, for the provision ratio, we need to make sure that it was lower than 300% according to the regulation. So that's the reason we have to make some non credit promotion. So this year, for non credit promotion, I made JPY 30,200,000,000, and JPY 700,000,000 higher than that of last year. I told the media friends in the morning, you say that our noncredit promotion ratio is 2.85%. I think China Merchants Bank, they also launched their statistics.
Their one is 1.46 percent. So by comparing our performance to theirs, you already know how important the non credit provision made by us is. The second point I'd like to share with you is another number. That is about the Phase 2, Phase 3 stage loan conditions. We're going to follow the IE9 accounting rules, translating the loans into Phase 1, 2, 3.
And for our loans in Phase 2 and Phase 3 stage, according to the data we have, actually, we already outperformed the industry. We killed ourselves the best performer in this industry. And it's already be reduced by 0.22% compared with the beginning of this year. And for China Merchants Bank, their number is 3.14%, up by 0.54% for them. And I think it's because they have more growth on the Phase II loans.
I think you guys taking care, you probably have a better picture than me. So I just elaborating those numbers to you. By having those number, you probably get a better picture about our asset quality and you should also understand why should we improve the credit promotion and also the non credit promotion too. Well, regarding what it's going to do in the near future, I think at the least from our asset portfolio perspective. Talking about the asset portfolio risks, I have to say that in our bank, every transaction, every business are within my control.
And which is more risky, which is less risky, which was going to when and show that risk moment happens? And I know these details very well. So just following the way and making enough promotion, I think currently our provision coverage ratio is very good. And we are happy with our top two positions in this market. I think within this year, we're still going to keep a very good provision coverage ratio.
A possible change is on the microeconomic trend and also some of the changes by benchmarking with peers. I said that we have 3 factors to decide our promotion coverage ratio. If we're going to change the promotion coverage ratio, should be some changes being happens for that 3 factors or 3 criteria. So this year, we're going to make provisions continuously. But for the non credit provision, we have no risk assets underlying there.
So no matter how much we make for this year, the non credit promotion should be no higher than that of the last year. Thank you. Thanks, Chairman, and thanks, Mr. Guo, for responding to the question. I think we are reaching the peak of this Q and A session.
And according to the online session, we have 120,000 people joining us through the video conference. So let me just help you to repeat some of the highlights from what's been said by Mr. Gu. Let's also talk about the retail business. Mr.
Gu, would you like to say a few more words? Retail business write off, would you mind to share with us the business structure? You can say that for our retail business and the corporate business, as being required by the Chairman, it's already reached 64 retail and 44 corporate structure already. And for any of the NPR, we're going to do the write off, so it has a better rotation. And this is because we have a capacity to execute the strategy.
And secondly, you can also say our promotion coverage ratio is clear on the table. We don't do any kind of hide down word or never beautify that. The same as the corporate business. The corporate business, when we encounter any NPR and we were well managing it to mitigate it. And this year, for the regulators, I already received their decision.
We made a bargain with the regulator. And it seems that we don't have that. How should I put it in this way? Probably, we were talking to the regulator, and we're trying to down regulate our NPL ratio. But you know that our asset quality is already high enough.
We can't just down regulate the NPL formation ratio for the down low downgrade ratio. I have another data to share with you. According to our financial results, you can see for H1 of this year and including the retail business and the corporate business. And we jointly speaking for half a year and we already made almost 10,000,000,000 of the collected write off NPLs. And even if it's already been write off, but you can say within 6 months, we can already make it have been collected and been write enough to reach almost 10% right enough business because we already do a very good business on that.
And for this year, it seems that we have more being read off than the ones being formatted. So you can see we also have a very good clearing business. Retail business coming back to the level of 2018. And for promotion, we're ranking top 2 is outperforming the industrial performance. Ranking first for the Phase 2 and Phase 3 loans and because for retail, we have to the immediate write off.
So with the same asset quality, I think personally, we are telling the story to the market and telling the facts. And the collected write off are very happy with the liability performance. That's the highlights of Mr. Goh. The next question,
based on the rule we made, we'll give it to online. Please connect to the next
guest.
Let's welcome Lin Zhao Li from Haitong Securities. Thank you for this opportunity. I am the analyst Lin Zhao Li from Haitong Securities. I want to ask you about corporate deposit because in the Q2, the Q o Q growth was quite quick. You mentioned that a few months ago, you went on the Jindao mountain.
So I want to ask Mr. Hu, Wu, so whether you have new tactics in growing corporate deposits and whether you can make this momentum sustainable, that is for the first half, the growth you have for corporate deposits, what's the structure looks like? Okay. Thank you for the question. The number shows that the first half corporate deposit was over 2,600,000,000,000, increased by 14,000,000,000 yen and the daily average was over 20,000,000,000 yen.
And for both, the difference between these two figures was around 100,000,000,000 yen, so that means for this growth, it's stable. Even though for the reports that we have read, all mentioned that in the 2nd quarter's corporate deposit, daily average was not that good, only RMB 7,400,000,000 and they are worrying about the sustainability. But in fact, for daily average and balance, the difference is very small. So that says the growth is stable. And if you look into that more closer, 4th form customers.
And for transaction banking, this part altogether increased by more than RMB 100,000,000,000. And the other part is for transborder business for the foreign currency settlement business increased by RMB 180,000,000,000 and another part comes from the new customers. As President Shao mentioned, the first half we have 50,000 of deposits affected by that proactive cut down. So we are looking for new sources to make up the difference and we maintained this stable growth. For the Q1, it was up by 6.8% And the CASA portion to the total deposit increased as well.
In the first half, it increased by around 3% and now it's around 34% to the total deposits. A part of this casa has not been counted into. If it was counted into, this proportion should be higher. Every bank has a different standard for the Casa. So for the 2nd quarter of our bank, our deposit cost for corporate was down by 32 bps.
Compared with the last year, it was down by 20 more bps, both balanced and cost optimized. They are closely linked to each other. In the morning, media friends were asking about what are the key metrics for the management. First, asset is customers' value and second is the liability structure and third is asset quality. Well, this year for liability structure, it has been fundamentally it has been improved greatly.
And for the deposit drivers I mentioned for the corporate, integrated finance is the first card. The platform business, that is the customer management platform is one of the 5 cards and bills business. Based on Chairman's requirement, we need to build it into a corporate version of credit card. Both the volume increased by 40 something percent and for the revenues and other key metrics are growing quite well. Those are the key components of the 5 cards and we need to give them customer management and they will keep making contributions to deposit.
Offshore Financial Business Contributed RMB 28,000,000,000, most of them are Casa. And for other platforms that we cooperated can contribute to deposits as well. And numbers we shared before, for platform customers, it has reached 4,800,000. These customer pool will keep increasing and we have to find out ways to better dig out the value of them and to find out more touching points for them to stimulate them, make the activity rate higher and to migrate them into more financial products. In that way, they will not only contribute to deposits, but also like fee income or other income.
And for complex investing and financing, like Chairman mentioned, the engine is the bank. General Secretary or the whole team is in the bank. For the committee, cooperation among subsidiaries are very smooth now and the system under the framework, their capability to cooperate with each other are very strong. So we think there is great potential for growing, for contributing to the bank's deposits and other metrics. In the first half, it increased by 28,000,000,000.
So all those, I believe, will grow smoothly or steadily. There are no not much uncertainties because those businesses are not related to loans. For the past 4 years of transformation, for the 1st 3, in corporate, we say we are more on a defensive position. After last year's Zhongyi conference, we said we need to restart the corporate business, transform from the defensive to like initiative or proactive position. Loan structure has improved and the ratio between retail and corporate resources will stay at 60 to retail and 40 to corporate and we will keep enhancing customers' value.
So you can have confidence on the liability business of this bank, because we have confidence. We will keep a relatively high speed growth and we were working towards that goal. Thank you. As President Hu said, we cut down around RMB 50,000,000,000 of proactive liability on the corporate, but both Casa and the daily average are performing the best for the half year. And both cost and balance optimized and deposits is the most important part for the whole bank's business.
We believe in the next half, we will keep a stable growth trend and we will double efforts from the top. And the next question, we'll give to you online. I have a question regarding Wealth Management. Well, this goes to Mr. Zhang Dong.
In the opening remarks of the Chairman, he mentioned it has achieved times of growth for wealth management subsidiary. This is beyond our expectation. The volume, 60%. Retail is wealth management is over 40% of growth. So I want to ask since the opening opened the 2 business, what important work you have done and what changes you have seen?
That as Chairman Chen answers the last question for Wealth Management subsidiary, you will build a product variety and we noticed that double tons of growth. So from the product perspective, I want to ask how can we achieve a balance between the sales of public funds and private funds? Thank you for your question. Well, since last October, Wealth Management subsidiary opened to business and the next Saturday we will have the 1st anniversary. We started late, but we grew fast.
Chairman mentioned all those metrics. Well for the wealth management market, I want to comment a little bit. For public fund, it grew by 15%. For banks, Wealth Management increased by RMB 35,000,000,000,000 was flattish from last year. Because this is based on the regulatory's requirement you have to cut down the old wealth management products.
But if you take this factor away for the bank's wealth management new product growth, it was quite quickly. For Ping An Bank itself, in the first half. For non principal guaranteed product, the growth rate was around 17%. I think among our peers, we are the top. The growth speed is relatively fast.
Several reasons for that. First, since it opened business, the subsidiary wealth management subsidiary has become a very important hook or channel to acquire customers because we can fully leverage on the platform advantage and embedded into all kinds of scenarios. That's why our customer number increased very fast. That is 67% for the first half. For the whole industry, I looked at the Wealth Management Center's report.
The data shows the total number for Wealth Management customers was 60,000,000. So the growth speed was quick as well. Under this epidemic, in the second, Ping An Bank, ourself have made some new upgrades in the product allocation. Well, one thing is we have integrated bank's cash products into all kinds of scenarios of other subsidiaries' platform. This is and also we leverage on the fixed income and other advantages to create stable returns to customers.
And the other part is based on the fixed income product, we can play our differentiated advantages. For example, we have this Ping An preference funds selection provided to customers. We selected the best funds in the market. So our fixed income product can perform better than public funds fixed income product.
And also we're working with public funds and this is also a very good opportunity for us We're going to welcome the best public fund managers and private fund managers and also the private banking quantum DC managers to make sure that they could also be built into our wealth management product. In one way, we will be able to provide our customer optimized solution. And this is my response to the first question. And my response to the second question is actually the same as what I mentioned just now. For the bank wealth management subsidiaries and what's the relationship between us and the product public and the private fund products we're selling now, you can say that because of the Penn Wealth Management, it provided many of the business tracks.
And you can see especially we see very good public funds sales in the market, but the deposit of the population in China is still more than JPY 100,000,000,000,000. So you can see with the structure of the deposit, the government is trying to downsize the structure of the deposit. And also some of the news regulation from the government and along with the micro picture and the environment we have, we say that more and more deposit customer and they have different scenarios for the Wealth Management. In this way, it's actually in need of the Wealth Management subsidiary to play its dual role. And for the wealth management subsidiary, it can provide better solution to the general public.
And we will be able to select the best product from public funds and private funds. And it was different from the public and private funds product that is being sold through us as intermediate agency. And you can see from the corporation perspective, we're going to leverage the Ping An Funds' primary selection. We can make sure that our research and investment capacity could be fully packed, and then we choose the best public and private funds managers along with our product to launch them and pack them as a whole solution to the customer? Thank you.
Thank you. Thanks for the response. Just remember a few words and premier and stable, yet the very well performed product. So you can say that we would like to make it short yet good. And we're going to have another 3 people from the on-site meeting to raise the questions.
Zhai Zhai, please. Zhai Zhai from CICC, please. Thank you. I have a question regarding the FinTech for the retail business. For the past few years, it seems that we have a very good operation from the financial perspective, including the daily active user on daily and monthly basis.
And also accumulated customer, they are all seems very good. And what's the reason behind? What work's been done to lead to such a good performance? And is it possible after competing or comparing with the peers? And what's your advantage by also benchmarking yourself with all the fintech companies and Infantintech companies?
What are you going to do in the next 1 to 2 years? Mr. Tsai, would you like to answer the question, please? For technology, especially in the retail business, let me just make it in the following way. First of all, you say that for technology, from the very beginning of the transformation, we have a 12 character strategy that's been called technological leading.
And that's the overarching investment we made on technology. From the retail business transformation perspective, I can say that the technological investment result is still be very good. And you can see that from our outlet perspective, the Outreach number is being reduced from 1100 to just more than 1,000. And it's now the Outreach coverage being further expanded from 50 cities to more than 100 cities. And also, we have more salespeople to join our team for the retail business.
But you can say that no matter for the AUM or for our loan size, you see that they are all growing by at least triple times. And the same as the returns, the profits are all growing very well. And also, as Mr. Gomen emphasized again and again, our asset quality is also being further improved. We stabilized and well managed the risks and then to seek for the robust growth for our business.
We also did some attribution analysis internally. I think technology is playing a dominant role in this regard. Integrated finance is a part of the story, but technology is the very important pleasure in these wonderful scorecards. We take a look at the past history and the practice, and it also informs us that technological empowerment and the integrated finance are the 2 big contributors to our successful story for the high quality yet fast business growth for the past few years in the retail business. Well, you can see on the technological empowerment perspective, to make it more specific, we made a lot of efforts in recent years.
You asked me about how should I benchmark myself with the peers in the market. I think for the corporate business, you see that some of and the corporate and retail business and some of the technology is being applied in the retail business first and then being applied into corporate business. So let me say that the technological development and first of all, we help to further invest on the technological capacity. Some of the customers, they said at the very beginning of our transformation, they said they are not happy with the product or the workflow or the procedure or the internal management. And then with that, it really takes time for us to reshuffle the situation.
That's the reason our bank started to decide on investing in more technology. We have more technical background people to join our team. We can say that if we're going to recruit the people with the technical background to really cater the customer needs, we need to solicit those talents from the Internet company and also the Fintech company. We also made some institutional changes that can make sure we attract the best talent from the big Internet companies. We changed our institution and to empower our technological development by soliciting the best talent from the big Internet companies.
So you can say that among all the banks in China, our CTOs be embedded into each BU. No matter for the corporate business or retail business, we have the dedicated CTO in taking care of the charge of the service and also making the decision for the business, so which truly makes sure that technology is being a part of the business decision making. This is what we made on the institutional side. In this way, the technology can empower the business just like what we have for the Internet company and the same as annual transformation. You can see that we are learning from the technology company and the Internet company knows how to take an annual approach of operating the business.
And especially for Fintech companies, it's not easy for us to have a very flexible and annual kind of development. We have to be compliant all the time. So from the bank culture perspective, we allow the business people to learn more business, but should also be empowered by the technology. We hit a technology test for all of our staff to make sure all the staff of Pian Bank who respect the technology, know technology, to have some know how about the technology and also be trained by technology with the compliance work. We did a lot of efforts in this regard, and that's also the reason we could be an open bank, could be a pocket bank and also be integrated bank.
The reason is because we have many years of culture changes and the technological buildup. And you can say that only having the technical talents to join the team is not enough. We also made the institutional changes and also the culture changes to make sure that the whole bank is working with technology. And by benchmarking ourselves with Internet company, what's the advantage we have and what are the rooms for further improvement? You can see that in the financial industry, because Ping An Group is respecting technology and leveraging technology to the extreme.
So I think for the whole industry and will still be the leading one in buying the technology in our business, No matter for the digitalization or for the customer management or the staff management, we already have the digitalized solution. And we also have a well connected line for the retail business and the corporate business and so that we can share the resources together. I think probably benchmarking with other peers will probably be the best one in this market. But you can see our advantage that compared with other technology company, we could abide by the compliance regulation rule, but at the same time to do the business very well. After many years of development, we have also built a quasi technology company system inside so that we can still harvest the growth opportunity from the market way by catering the customer needs, changing our workflow and procedure and also adopt the internal optimized operation as a technology company within our bank.
But I think something we need to improve is there to have a more technology background guys in our team. I can say that for some big companies, their MAU is probably 1,000,000,000, where for us, we only probably have 100,000,000. I think by working with those big Internet companies, we can further consolidate our capacity of serving the customer, especially the large volume of the customer. Well, for bigger companies, they have the equity incentives. But as a financial company, think that we do less in this part.
We're going to respect the technology people and also to change our culture to help to make sure that technologies become a part of the culture to the bank. Thank you. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Thank you. I think you have already made an in-depth report on our technology. And so thank you very much.
And it seems that you are coming here with a checklist to see whether we satisfy your need for the technological development. So coming back to our meeting room, let's have another one to raise a question. Next slide, please. Thank you. Thanks for providing me the opportunity.
My name is Kojiwei from Tianfeng Securities. And my question is regarding Interbank's business. We know that for this year, we divided the Penn Wealth Management and the Penn Development, and we are now building the ecosystem for the interbank's business. But I can see for H1 of this year, the sales of the public funds, the private funds and insurance products, and it seems that the sales volume picking up greatly. So as you are building the ecosystem for the interbank business, what are the measures you took?
And how can you further sharpen your competitiveness in this regard? Another perspective is that on the custody side, and this year, the custody business is ranking 1st among all other shareholding banks. So how did you do that? Would you mind to share your lessons with us? Thank you.
Thanks. Thanks for the question. Just now, our Chairman has already worked you through how we build the ecosystem for the interbank business.
Well, for Ping An Bank, one of our core advantages is that ecosystem. What we saw very big changes in the market. We saw the Pan Asset Management circle is widened. No matter for securities, wealth management or the development of private funds, all developing quite good. And the second change is for FICC business has booming development as well.
So during this process, how can we precisely link product to customers and how to serve our institutional interbank institutes well to discern the demand and satisfy their demand and the identified business opportunities during this process are the key work we have been doing. Well, we have several capabilities showing during this process. 1st is technology. We built a very detailed or granular profiling system. There are 2 online apps.
First is for interbank Tong Yijia and the other is for Hong Yitong platform. Those two apps are the key channels we serve our customers. And we work building we are building a sales army. The integration of these two capabilities gives the bank a very strong competitive edge. And in the next phase, we noticed that we grow quite well in institutional sales.
In first half, it was 51% of growth. All those mostly concentrated in fake business and wealth management business, those are the key factors or key aspects and also our pricing capability. This has everything to do with the CY's trading capability, which empowered this the building of this ecosystem. So this is the 2nd capability. Well, I noticed that in the building process of this interbank process, the group has many subsidiaries.
They possess strong ecosystem capabilities, not only to satisfy internal demand, but also can output our capability. Like Mr. Zhang Dong mentioned, we outputted a lot of capabilities to interbank institutes. We want to integrate those capabilities and to fully leverage on that. Well, now if you look at it, we see the momentum is here.
For example, for the for fee income, we don't see much growth. But for the traffic and also the dig of customers, the value, we saw a lot of results already. So with that, we believe in the future, those will contribute to our revenues greatly. And as for custody, you asked, it was 20% of growth. Several reasons were first, our base in the past was quite low.
It was 510,000 yen and this year it grew quite well. We want to use the digital tools to empower this business and we also revamped the marketing system and we put it on the front end. Custody department in the past was a service department. It was doing more like a settlement or other supporting work. But now we put it on the front end and to work closely to the sales army.
So with that mechanism and also we are integrating into group's ecosystem and we inputted a lot of resources. That's why a lot of results have shown. The last point I want to mention is we want to create some differentiated products that others don't have. For example, we integrated a physical check or the stewardship services to give those services to our customers. The momentum for custody business is quite good now.
We believe it is sustainable. Thank you. Well, I believe what Mr. Wang mentioned is the mechanism plus the sales army, the army. Those are the key metrics for our results.
With that goal, we will surely do that. Next question, let's give to you. The on-site. Thank you for this opportunity. I am Zhang Yu from Guotaijunan Securities.
My question is regarding NIM, net interest in in margin. We noticed that Q on Q is narrowed slightly. So put all together in the next half, when you look at the notice number 15 and also the contraction of real estate financing, I want to ask for interest rate trend and for NIM, what's your projection? Thank you. Let me take this question.
You probably have noticed that for Ping An Bank, the NIM level for Ping An Bank is quite high among our peers. For the asset portfolio, this since last year, we have started this new 3 year assets and liability management. There are 3 aspects. First, we will cut down deposit costs that is to optimize the structure like President Hu mentioned. This is the direction that we will keep doing, keep going ahead with.
And the second aspect is for the asset portfolio. We will do more stable, sustainable growth to acquire certain returns, but risk cost is low. Those part of assets are our focus. And the third aspect is we will increase the proportion of fee income. Part of that fee income will not consume RWA, but some still need to consume RWA.
For example, for trading assets, the proportion is increasing. So those are the goal for us for the new 3 years management. And for the first half, NIM narrowed slightly. There are three reasons: first, because the whole market's interest rates are going downward. And second, indeed, for the fee cutting or the like supporting the real economy initiative has some effect on that as well.
We supported SMEs and private entities with lower interest rates. And the third, we proactively optimized asset portfolio, to cite retail as an example, high risk, low returning high risk products, the proportion coming down a little bit and the proportion for the low risk but stable return product increase like mortgage and equity loans. NIM is a very important metric for bank, but it's not all. We have to look at this metric in a comprehensive way and the logic behind it in the future. We believe that the goal for the new 3 years management is to maintain comprehensive income, but keep the risks low.
We are confident with that. We can achieve that because in liability side, we already optimized a lot and we will keep doing that by to deepen our customer deepening customer management and providing suitable products and services to customers. In the asset side, we'll keep optimizing as what we planned. The most important is that during this process, we have to bring down credit cost and increase the proportion of fee income. With all those efforts, this will form a circle of good or handsome returns, but slightly contracted NIM.
The overall revenues will maintain stable and sustainable. Well, thank you. NIM is a very, very concerned question by all of us. Mr. Shao has gave a very clear answer.
I will not add new words. And the next question gives to Xiran. Thank you for the last opportunity to ask question on-site. I want to ask President Hu for supply chain financing. I'm Shiran from Morgan Stanley.
Well, you do you have any new strategy in this business? And how many like technological applications you applied in this business? Are there any breakthroughs? Well, for all those years, you asked the same question for the last several conferences. You really care about this topic.
Well, let me simply answer your question and then Li Yue will add up some words. For all those years, like more than a decade ago, when Ping An Bank started to do supply chain, it was all alone. It was our it was Ping An Bank itself in the market. But now when you look at our bank's financial reports, you will notice that they started to do this business as well. Generally speaking, you can categorize supply chain finance into several types.
The first is the one that centered more on core enterprises to provide the underwriting. And the second is the 1 plus M model centered on the online stores or online companies. And the 3rd type is the 1 plus M model of the warehousing or logistic or transportation companies. And then is to no matter which type we look at for online companies or for the online data supported, all those companies will or the business have to leverage on technology. For example, they built some supply chain comprehensive service platform to provide settlement or product
services.
And now I think you already entered a new phase of supply chain business is a new stage that is relying on the 3rd party's data support.
That
is in the 5 cards. We added a new type because we think we are doing this new type of supply chain finance. And next, I will have Li Yuezhong to add up some words. He's not a big, tall guy, but he has great energy. Chairman Chen mentioned about the 2 foreigners we have.
1 is from Cambridge, 1 is from the King's College. Well, Li Yue is from China's Tsinghua University. Well, for supply chain finance, internally, we have a common sense and also very figurative saying that is on the sky, we have the satellite and in your hand, we have the pocket and online, we have the platform. Well, the Internet of Things, the online platform, since Wuhan started this business a decade ago, what we used to do is to approach this business from point to point. And now it's more like a lean way, like the vertical or horizontal way to do this business to make breakthroughs.
And now we have satellites, we have IoT data. We can do this business in a wide way, not just for the vertical or horizontal, but more in a comprehensive way. For example, last time, not long ago, we have this flood disaster. And with the satellite, we can clearly see the equipment condition of factories. That is there is clear changes for the status and also for Yangzhou, Nanjing and Wuhan, other cities we can monitor or directly to look into the performance of their equipment.
In the previous time, we have to go to the site and ask companies themselves, but now we can leverage the technology and the big data. Most assets that bank is like take charge of our equipment. But now we rely more on data and IoT technology to monitor the status of those equipment. For example, if this month you don't give me loan or in other standard you couldn't meet, I will not give you activation password and you cannot use those equipment anymore. And for cars, the same.
If you don't meet some standard, I can tell the high speed railway company that you cannot go on the road anymore or I can limit your speed. You can go as fast as 20 or 30 kilometers per hour where you can it's limited. So we are using technology to control our assets, not just to monitor assets. This is how we say it's a new type. In the past, it's unimaginable.
But now we can do that.
I mentioned about 2 technical applications, including Digital Pocket. And for Digital Pocket, if any of you are interested in that, you can download it for a trial. For example, recently, there is a company in order to buy the consumption coupon for their staff. They bought it for RMB 90,000,000 and everything's been done online by having the digital pocket. What we provide is jd.comlogistics and the coupon also from JD.
So you can see that by leveraging our platform, by having some very handy steps to go, and you will always be able to enjoy the best service in the market. It's already more than finance, but you can see that these are all being done through the app. By having this way, if you download our app again and you will see that in our app, it's not only for the financial services, but also the infrastructure for the automotive industry. And we also provide the MRR service, which can provide the construction material base. And in this way, the company is not here only for the finance purposes only.
And we will also be able to help to make sure that everything is being well packed, the same as the financial assets. And you can see by having this way, we can make sure that some of the companies and their assets and their capital can also be well managed. And recently, you probably understand and the industry has been reshuffled. We are working with an educational bureau of a very famous district of Beijing, making sure their extra curriculum training industry, the funds and the capital is being well managed by us. And we can serve the customer and also the government can help to well manage the capitals for the extracurricular trending industry.
And our Chairman has already mentioned we still have a very robust IT capacity. This capacity can make sure that our traditional salespeople, we have 5 IT staff behind that account manager. So that's the reason we only have 100 of the salespeople, but we have more IT staff to support them. For example, in H1 of this year, we have 58 scenario based product. Majority of them are being done just within 24 hours.
Now we have the open bank to help to export those product. And jointly speaking, we have 4,000 interfaces, including the retail and the corporate business. And the scheduling has been done by the interfaces more than 55,000,000 times on daily basis. So this is how we do with this industry. Altogether, we will be able to support the financial service in the offline environment.
Talking about the supply chain, and I used to have a friend from a branch who actually shared with me his comment of using our new supply chain product. And this guy actually transferred the job from other banks to Ping An. And he write down a few words for me. He said, with the system being rolled out, the loans have no human intervention for verification and approval. And every day, we see a lot of customers are planning for the loans online.
And I can actually state in my home and playing with my family while the customer is still handling the business. Every night, before I go sleep, I will see how many loans being approved. And also during the weekend, I also see how many loans being approved. And now I was sitting in the office, and now I see the customer from different parts of China also applying for the loans. And sometimes I have my customers covering every corner of China.
The supply chain system is very robust. It is the contactless and the seamless loan approval process. I don't need to go to the doorsteps to visit the customer. It seems that I become lazy. It led the system and the data to do more work for me.
And I was taking a look at loans, and I see more loans being approved on a daily basis. And that's how the data end system serves us. I'd like to see too many analysis. And you can say that we are going to have a corporate event day, and we will introduce you how we develop the so called 5 cards business, especially on technological empowerment. And I truly look forward to your information sharing.
And we would like to schedule the actually, we hope that we can actually launch the 2nd satellite right before the corporate event day, but it's probably going to be not that early as what we expected. Okay. Regarding the new supply chain, as Mr. Yuan has mentioned, we have the satellite in the air and also the digital pocket in middle, and we also have our airline sales team already. Supply chain service, to some extent, I also don't know what they mean before.
But after having a few examples, I truly understand how wonderful this system is. And this is actually a heartfelt comment made by our staff. In October, on our corporate event day, we're also going to welcome all of you to join us. You can see that we originally want to schedule that corporate business day for today or just within this month. But Mr.
Hu asked me to make sure that the event could be staged perfectly, and that's a reason we made it in October rather than in August of this year, okay? And advertisement or a trader, we're going to have a corporate business day in event in October. Final
two questions.
Thank you. Thanks for giving me the chance to raise the question. And here is a question regarding the property market. Also the local liabilities, we say the regulation is becoming more stringent along with the notice of the thing. And the real estate market is being highly regulated.
So what about the situation of your bank regarding your business with the real estate market? Let me just answer the question in one. Talking about the property market, for my bank, we attach its great importance to the crediting and also the credit loans to the real estate market. Let me say that for the real estate market and our contribution rate is 20.4%, which is lower than 27.5% made by the regulation. Well, for the personal mortgage, and we are less than half of the targets made by the government.
So we still outperformed compared with government regulation. But I can say that it doesn't mean that we have a big gap, then we have the opportunities. And it also doesn't mean that we are going to have further room to actually to further but we still believe we have further room to improve our business. Well, regarding the real estate business quality, and you see probably many of you may notice the issue with a real estate company named China Fortune Land Department. They only have JPY 1,600,000,000, JPY 10,000,000,000 for the financed bond and also JPY JPY 600,000,000 for the USD bonds.
And they will already be built into the promotion at all. And for the private bank, we are not shouldering the risks at all. So you can see that for China 4 Chain Land Development, we're now talking with the financier to make sure that the customers' rights could be safeguarded. So regarding our real estate business, you can see that we made a good scorecard, and the NPR formation ratio is 0.57 percent and which is much lower than the NPR formation ratio. And only one account have the default.
Otherwise, our NPR ratio is only 0.2 percent. But because one account, they have the nonperforming liability. That's right. We have 0.5% of the NPL ratio in the real estate business. The reason is because we do very prudent management regarding the regions and the customer going to work with.
We also have the white name list mechanism internally. We prefer to work with Tier 1 and Tier 2 cities, and we also find out that some Tier 2 cities are not performing very well. So we started to only work with the Type 1 and the Type 2 customers. Some Tier 2 cities already have been kicked out and also some Tier 3 well performed cities be included. And we also take a look at whether we have the net inflow of the population to the city and also the industrial capacity.
And also we take a look at whether the project has healthy cash flow. If they don't, they probably won't be developed very healthy. So that's the general business we do with the real estate industry. But I think in the near future, we're still going to implement the strategy of the housing for living not for rather than for speculation strategy to well manage the loans and the mortgage size for the real estate business and to double our efforts on the risk control to make sure there will be no systematic financial crisis happens here. Well, for notice 15, I think many of you know that this is a secret document, and that's why people are more curious about it.
Let's just have some information just within this meeting room. I don't know how to interpret that. Everyone see notice 15, but there are so many behind stories in that document. I'm not sure how should I present the information in notice 15 to Toyo or not. But as we have a very limited investor sitting here, let me just walk you through our story.
You can say that for our bank, for the urban construction platforms and the government related project and the credit quota is around JPY 174,600,000,000 with limited exposure. So we don't redeem that JPY 3,000,000,000,000 loans on our balance sheet. And the kind of urban construction or the government related projects loans are accounting for a very small portion of that. So we would like to welcome to the newly aided loans, while at the same time to make sure that we decouple the loans with the so called urban construction project and the government project. We have a limited dividend volume on that side.
That won't be a big problem for us. And also since 2018, we started to improve our customer. And for some hotel customer, we ask them to go. By optimizing our customer structure, we have to make sure that around JPY 30,000,000,000 of the low end customer exposure has been further mitigated for the past few years. And in this way, we can help to optimize the cost.
So you can see for our inventory market, we have already made support. Well, regarding the incremental business, we help to limit the kind of business. And we are persuading the government to make the capital arrangements early and so that we can make sure the government can actually pay back the so called higher liabilities or the debt of the urban construction groups. And this, to some extent, is going to limit the newly aided loans. But in the longer run, it's going to be good for the risk release for the urban construction platforms.
Some heightened debt are still heightened there. They are not on the balance sheet at all. So this is actually a good news or a good protection to the bank. And that's the comment I'd like to make for this question. Thank you.
Thanks, Mr. Go. It seems that we already have 150,000 people online. We're lucky that you have some prudent kind of statement here. And these are the 2 very important points we mentioned by China Merchants Bank, the same as being stated here at our interim result announcement.
So Mr. Kuo has mentioned and the notice fifteen and the real estate market has already been a low area we keep an eye on. We have good performance now, and we're going to have a prudent regulations and management over that. Final question, let's pass it to our online friends. Who is going to raise this question?
Let's see.
Let's welcome Sun Yi from HSBC, Shanghai Securities. Thank you for the opportunity for the last question. Well, my question is regarding the agency sales of Fund. We noticed that the rate for
Ping An Bank have been cutting down
and you also launched some 0 fee products. So my question is about the logic behind the fund operation. And what's the profitability model for your company in the future? What's the change? Thank you.
Let me take this question. Media Friends also asked about this question. The trend for the agency sales of Affound is, I think, is the widest one of the widest and the deepest transformation because if you look at the previous year's growth for the bank, it's mostly relied on the Ping An preference fund selection. That is the combination of Ping An Securities, Ping An Life and Ping An Life Annuity or the subsidiaries. So altogether, there are about 30 to 40, we think that performed better than industry or the market found.
And now
we well, for the fee income growth and also the performance for that part are very good. We can say that. But for the future, we noticed that there are some new growth room. And for some part of customers, they are more expert like. They don't need us to select funds for them.
They only want lower fees. So some professional customers have raised these suggestions to us and I am a customer of the bank as well. So when I received their suggestion, I started to do this change. And also another consideration is for the long tail customer because they compare us to those online intranet companies. And this part of customer pool have the greatest stickiness.
We want to retain them. So we need to develop a good product to acquire them so that they can choose the product by themselves or because their sensitive point is about the fee, we can make the recommendation page or the product page more clear, simple to understand, So the cost could be lower and we can give that part of like the cost to customers. For A type funds, we give 10% of discount and for C type funds, we rolled out the 0 fee choice. And this part of customer who were alert by the new products, they were not our customers before. So to us, they are incrementals.
After several months of operation, our fee income was not affected, but we saw some new growth from that incrementals. In the future, we will bring in other fund companies into our platform. They can directly serve our customers and the cost will be lower. Our team, they will more focus on Ping An preference product selection and to serve customers who need offline services to, for example, expand the product. Well, thank you, President Tsai.
Well, our Q and A session starts from lady and ends with a lady. So it's quite good ending. Well, this brings to an end to the interim results announcement. Your questions are very incisive and we will take it as a spur on the management. So we will keep highly motivated and keep going forward.
This year is the year of all. We hope that you can get on the back of all to getting to share the market, stock market. We will work harder. The momentum is here and we will get things down. Okay.
This is the end. Thank you all for attending this conference.