Dear investors, analysts, good afternoon. Welcome to Ping An Bank 2021 interim results announcement. I'm the board secretary, Zhu Qiang. Just as what you saw, today, our conference is themed the word on the screen, "With 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, it can lead where the company goes. For capital market, momentum is also an important keyword we say when you buy stocks, you have to buy one with this momentum. 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 Co-CEO and Chairman of the bank, Mr. Xie Yonglin.
President of the bank, Mr. Hu Yuefei. Special Assistant to the President, Mr. Cai Xinfa. 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 Shibang. Vice President and CFO, Mr. Xiang You Zhi. 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, it's an accumulation of power. Ping An has been setting ambitious goal for itself.
Three years ago, we said we need to rebuild a new retail bank. For AUM, we need to exceed the CNY 1 trillion volume. 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 three years, we 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. Second, 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 first quarter, retail open day, Cai Xinfa has delivered a retail themed report. He explained the five-in-one new strategy for retail. In this October, we will have corporate retail open day as well, to introduce the thoughts we have on the corporate Five Cards. For interbank, they are constructing the Five 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. 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. Third, momentum means the power. The power means that we need to be very decisive and have high spirit. These two are the chain in Ping An, which we lose to nobody.
For Ping An, any difficulties and challenges, as long as we set our goal, we have the confidence and the power to reach that. In the new three 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 Jinggang Mountain, and we have made a very clear strategy in that conference. One month after that, we saw clear results. Anytime and very well, you can see the power in Ping An. The third thing, we need to be a bank with a high spirit and more power. With the momentum, we need to do that. 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. To do it is a result and also an action. We deliver what we said for the past three years. We did that. For the next three years, we will certainly do that as well. If you do that, you have the momentum. With the momentum, we will surely get things going as well. Next, let's welcome the Chairman of the bank, Mr. Xie Yonglin, 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 would 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 bank's business structure has already reached the 60 to retail and 40 to corporate goal. With that, we are just starting to release our profit. In the first half, the YoY growth for profit was up 10% compared to the first quarter. Second, we reshaped our balance sheet. With ecosystem empowerment, channel empowerment, and technology empowerment, we cut our deposit cost by 30 basis points. For retail, corporate, the demand deposit has grown by 8% and 16% for daily average, respectively. Third, we have held our bottom line of risk. For this bank, all key metrics for risk have reached the historic best.
With the prudent principle, we charged CNY 13.6 billion non-credit provisions, which was up 113% YoY to deal with the uncertainties in the future. In addition, private banking wealth management in the first half are performing quite well. For AUM, PB AUM, and the customer number all achieved double-digit growth, ranking the top among joint stock banks. The growth speed for wealth management volume ranked the top in the market, and the profit and revenues all achieved the times of growth. Looking the past five 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, that comes from the five-in-one model. This model, we will use technology to cut the access cost for financial services to help the mass customer or the society to achieve their better life. Internally, we'll use technology to manage customers' balance sheet well in a low cost, high efficient, quality way. 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. Five-in-one model leverages open bank to build the eco-scenario with our outside traffic platforms. Generally speaking, in this way, it has a better efficiency and quality for the customer acquisition. Secondly, we should also improve our operational chain to improve the customer value. Five-in-one model fundamentally disrupt the traditional operation model based on the stratified customer base.
Based on the customer's dynamic need, to provide the smart matching of the product and service to the customer. 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 the mass customers in the traditional customer stratifications, no one take care of them. In the five-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 will feel being taken care of and being concerned, and it can help to activate the customer to bring us the deposit, where 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. Thirdly, we should build a seamless service network to improve the customer loyalty. In five-in-one model, we have AI bank, retail bank, remote bank, and offline bank, which can provide a multidimensional service network. Customers can get access to the financial service as a need. Fourthly, we also build a very strong and robust service. By connecting our data, product, service, operation, and risk capacities to make sure that we can improve our professionalism will reduce the cost.
All in all, we can say that five-in-one model, the key rests with the technology competence. Why we are confident in establishing this model? The reason is because we made a heavy investment on the technology for the past five years. Our middle desk and open capacity is well consolidated. 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 Five-in-one model is being released for less than six months, it's already received very positive response from the market. You can see that in H1 of this year, our wealthy customer and the 10,000 customer growth rate was 2x or 1.5 x higher than last year, respectively. I think with the continuous operation of the five-in-one model, the retail business is going to further develop.
Well, regarding the corporate finance, the new engine comes from two trump cards, including technological empowerment and integrated finance. For the past five years, due to our business transformation, we were also considering how can we faster 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 still 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 , the corporate business call it a digital app . By so doing, we can make sure we launch the uniformed 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 this logic clear, we believe by having those trump cards, including the technological empowerment and 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, open bank, and the Nebula platform. There's three very important strategy to overturn the traditional way of the corporate customer acquisition. The Digital Pocket can actually use the bottom threshold to attract the customer, where at the same time, non-financial and financial service could be well connected. By having an extreme and a lean customer operation, we can therefore improve the customer value. The result is very promising. By H1 of this year, the customer number is already 5 million, and the half-year growth rate is 3.7 x higher than the same period of last year.
Also, the new incremental customer growth is 3.5 x higher than the same period of the last year. We also leverage the Nebula platform, including the block 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 2.5 million devices, and then to support the real economy of financing more than CNY 110 billion. Where 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 mitigate the risks triggered by interest rate as well as the commodity risks. You can see our trading volume in H1 of this year is already $40.8 billion, up by 78%.
Well, regarding the integrated finance, we're going to leverage the resources from the corporate and our eco partners to make sure we have the Dual-light strategy. 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 interbanking system. By leveraging the investment bank, commercial bank, and investor together, we will be able to take care of the customer's liquidity and leverage reduction and return. With this model, Ping An Bank also help to greatly improve the capital efficiency. For H1 of this year, by leveraging our resources, we provide CNY 612.8 billion 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 great 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. 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.
We can leverage our best resources to provide the asset growth strategy to our customer to help them to well manage their balance sheet, where at the same time to make sure that the capital and the assets, no matter for 2B or 2C customer, can well optimized. 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 are going to honor our commitment. Thank you.
Thank you. Thanks for 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.
This is also a great result we achieved for the past few years, this is also show our differentiated development strategy. You can see that in the opening remarks, many of those sayings made by Chairman Xie has already been implemented by Ping An Bank. By the past three years, it's already the time for us to improve our momentum. Well, in H1, we also help 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. 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. Xiang You Zhi, to give you the overview of the interim result, please.
Dear investors and dear analysts, good afternoon.
Because yesterday, I think all the materials already been provided to you. I think I'm going to leverage the following few minutes of walking you through the Q2 financial results. I'm going to cover five 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 dual strategy for growth. Jointly speaking, the revenue was up by 8.1%. You can see that in Q1, it seems our revenue growth in Q2 was slowed down. The reason is because in 2020, and the Q2 growth was the highest one among the four quarters of 2020. That's why in Q2 last year, we did a very good performance in the market.
The reason is because we leverage the opportunity of the bond trading, security trading. 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. While for the corporate revenue, you can see the settlement and 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%.
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 assets value. After we initiated our three-year strategy, we hope to reduce the deposit cost. Many of the analysts, you probably note this, since the year of 2019, we hope to reduce our deposit cost a lot. In other words, we hope to further optimize our deposit structure. You can see that all those reduced deposit cost is being paid back to the society, and truly to support the real economies to have a better financing solution in the market. In this way, we also help the real economy companies to help to reduce their financing cost. Well, you can say that with our new operational strategy, we also have to proactively adjust our assets structure.
In our assets portfolio, you can see we further optimize it in order to take care of the market needs, especially the house structures and the mortgage side has been making some measures. 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. Since 2016 on, we see a very positive momentum for further optimization. Currently, our NPL ratio and the provision coverage ratio, you can see these are all the indicators to tell the NPL, we are ranking as the well-performer in this industry. Fourthly, we also spared a lot of effort for the NPL treatment, also helped to further improve the collection result.
You can see that we've a large scale write-off last year. This year we've continued to write off around CNY 60 billion, while at the same time, you can see that our total collected NPLs was up by 40%, reached CNY 20 billion. Also, the collected write-down of NPLs was up by 38%, reached CNY 10 billion. You can see that the write-off and the collection side are all done very good job. Let's take a look at the retail business. You can see for the past few years, we stick to the same retail business strategy. From the operational side, we integrated our strategy a lot. From two to one, to our three business card, for the four approaches. In H1 of this year, we have the new five-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. According to such a 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. More importantly, our private bank and wealth management is becoming more professional, more scientific driven. The scientific empowerment also been further improved. That's the reason you can see that our total AUM was up and the PB customer was up a lot. Secondly, regarding the retail business, you can see we also have a quick growth of the basic customers.
Especially Open Bank initiative for the customer we acquired is not only from the offline MGM model, but also in the Open Bank initiative way, which is very important as we innovate operation model. Services we provided to customers also made a lot of innovations. For the total customers increased by 6% year-to-date. For mass wealthy customers and also the 10,000 level customers grow very rapidly.
For Pocket registered users increased by 9% year to date, already exceeded 120 million. The third thing is for deposits, both balance and cost optimized. For daily average deposits increased by 13% year-over-year, and for retail deposit cost decreased by 22 basis points. For payroll business, which we have been doing for the recent years, very important business increased quite well by 22%. The fourth, 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 Xin Yi Dai insurance increased by 53% year-over-year, and mortgage as well as home equity loan insurance increased by 51%. For auto loan insurance increased by 37%. 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. This year in first half, we made some new highs. For receivables, transaction volume, and cards in circulation all achieved a lot of growth. For retail, asset quality maintained sound, especially for retail risk policy, 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. Next page. For technology and integrated finance, you know that are the two 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 bottom part for this slide. We are building retail five major middle office, which is business middle 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 one by one, because there are too many, but you can see that the results we made from this new five-in-one model. 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 insurance market slowing, the performance we have from this business is doing still quite well. 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 three plus two plus one business strategy, and we are building our five cards, new supply chain, integrated bills platform, customer management platform, complex investing and financing as well as ecosystem-based integrated finance. There are 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 your attention is that for the daily average demand deposit increased by 24%. The deposit cost for corporate decreased by 32 basis points. I think among joint stock banks is a quite good result. We have used one and a half 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. Productivity improved as well. For per business units, it improved by 15%. Asset quality for corporate, we are assessing from three aspects. Asset excess standard, risk mid-office, user experience. For the NPL ratio, it was down to 0.99% and NPL amount down to CNY 11.1 billion. Very good performance from asset quality. This slide, we can look at the transaction banking. One is new supply chain, and the other is integrated discounted bills platform. What you can see on this slide, last year, when we talk about those businesses, the growth was not that big, but this first half you can see the momentum. Technology empowerment, because in corporate, we want to fully leverage our tech prowess as well.
In this part, customer service, which is the platform we built to enhance customer service and products, has upgraded. Also for the Nebula Internet of Things platform or product iteration, we have made a lot of improvements and fully leverage the power of technology. In the first half, there are a lot of numbers we can show, because those are the results. For example, the registered users of the Digital Pocket, and also customers served via Open Banking, and also average team productivity. The other advantage we have for integrated finance, where there are two parts as well. One is complex investing and finance. This is a very important module for our business. In the first half, the volume has reached CNY 622 billion, increased by 10%.
For corporate integrated finance, for example, insurance sold by the bank increased by 20%, PAB to Ping An financing volume increased by 22%, and daily average deposit acquired via integrated finance increased by 19%, all growing quite quickly. Next part is for interbank and global markets. Still is the two plus two plus one business strategy. Under the three business module, that is trading, interbank, and wealth management, we have upgraded the five business cards, which are the five business lines. For trading, no matter if you look at the gold or the bond market, we all have market-leading shares. 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%. For interbank institutional sales increased by 51%, and custody increased by 19%.
The fifth card we have for wealth management, we have the non-principal guaranteed WMP balance increased by 17%, is a market-leading growth speed. For the net value-based products, reached CNY 617 billion, increased by 33%. 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 five business cards I mentioned, all supported by technology greatly. Upon the previous base we have, we have upgraded our strategy, technology has deepened, helped deepen our customer management, especially in terms of applying those digital tools in customer management. For the profiling system of interbank or institutes has greatly empowered. The fifth part for my presentation is how we support 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. For SME loan balance increased by 13% year to date. Weighted average interest rate for newly issued loans went down by 52 basis points 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. In first half, inclusive finance SME loan balance up 22% year to date. 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 CNY 5 billion relief funds under the Industrialization and Rural Poverty Alleviation Program, bringing the total to CNY 31 billion, with 880,000 poor people benefited. We help the poor with the Ping An financial customer flow, driving the agri-produce sales to CNY 18 million. As for how we put green finance at a strategic position, at end June, onshore green credit balance was CNY 37 billion, up by 63% year to date. We have won multiple awards. We successfully issued the first Carbon Neutrality Bond. These are the results we made in the first half. In the next half, for the ALCO, first task we have is to deepen the full-scale digital operation. This strategic direction, we will unswiftly hold it. Second task is to enhance risk control capability. Specifically, there are six aspects.
First, to upgrade risk models and fully upgrade our digital risk control capability, to upgrade digital-driven risk control, improve compliance management, to do proactive risk control of market risks. The third 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 to optimize the structure. For the past one and a half years, you already saw the performance we have, the results we made. In the next coming years, we will keep doing that. 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 products.
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 mix for retail loans. Now we want to do the more healthy loans, even with the less yields. This will well go with the fee income growth initiative as well. Dual light 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. The fourth task for retail business, we will promote the five-in-one model and provide touching financial services so as to pave the ground for the second takeoff. The number fifth, for corporate business, we will play the five card as well.
In the first half, you already saw the momentum. We are confident for next three years growth for corporate. Interbank and global markets, trading interbank, custody, hedging, and wealth management. We will keep upgrading these five business lines. Currently, in terms of market shares, some are already doing very well. We will keep doing that. This brings to the end of my introduction. Thank you.
Thank you, Xiang You Zhi. From his report, you can clearly see that for the first half, multiple metrics have made better performance. Those are the results we accumulated for the past several years of transformation. The net profit already entered a fast growth trend. Revenues for multiple years, we achieved very quick CAGR and lead the market. For asset quality, we are now in the historic best level. For deposits incremental volume, those key metrics are all the best one half year for recent years. You can see clearly for the development trends. Next, let's take the time to enter the QA session. First of all, let's welcome the management. Would you mind to improve the volume of voice on the side?
Besides the audience here on-site, we also have more than 300 investors 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 QA. Thanks for your cooperation. Please identify yourself right before you raise a question. Then we take three from the offline meeting room and also two from the online as the rules of the question taking. The first question goes to our on-site audience. Please put up your hand and we're going to circulate the microphone to you. Lady first.
Let's welcome the first lady to raise a question. Madam Shen , please. I see you have an in-depth commentary on our interim result release yesterday. Thank you.
Thanks for providing me the chance of raising the question. My name is Shen Juan from Huatai Securities. You can say that with the support of Chairman Xie, 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 very full of complexities, especially in China, the banking environment is full of uncertainties. I'd like to ask Chairman Xie.
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? How can we take the opportunities in the near future? Strategically speaking, what are the countermeasures we have in our hand? Another question is that you mentioned about with the momentum, we were on our commitment. In the next three years, how the Ping An strategy can fully interpret the so-called momentum?
It seems that you ask multiple questions rather than 1 question. Please go to slide 40 of our presentation document. On slide 40 and 41, 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 banker in China. I mentioned this strategy for multiple times already. The same as our operation strategy, we would like to make the very good link management of our operation. More importantly, we need to change our business model as well as our tactics. You can say that in the retail business, we emphasize on the new five-in-one business model. Five-in-one business model seems pretty complicated, but to my mind, there are a few highlights of this five-in-one 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.
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. In normal days, we get less access to those customer. With the existing AI customer service, and AI account manager is truly a very good tool, and it provides a 24/7 service without asking for a salary. 24/7 hour service without asking for a salary. What a good staff. The AI account manager is just consuming the electricity. The cost is only the electricity bills. You can see with artificial intelligence plus telephone, and also when necessary, we have the elite 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. This is the first point I'd like to make. 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. You can say in the consumable finance, they are our best-in-class customer. 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. You can say that in a customer's life journey, at a different stage of their life, they have different performance of the balance sheet.
We'd like to build a new five-in-one business model. In this way, we can make sure that our middle desk capacity and the fundamental capacity could be fully released in the market. In H1 of this year, when we first roll out the new five-in-one model, our mass customer and also the 10,000 customer was growing 2 x and the 1.5 x higher compared with the same period of last year. We're still in the pilot stage. This year, I promoted one staff. The retail vice director has already been promoted, and who is in charge of the basic finance service, especially the retail side. With the leadership from Cai Fangfang, these people is dedicated of building the five-in-one business model and trying to earn the 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 works for us. We will ask the AI manager, account manager, to do more job. That's the fundamental for the five-in-one business model. Well, regarding the corporate business, as Mr. Xiang You Zhi has already mentioned about the 2 big strategies for the competency building. First of all, technological empowerment, and secondly, the integrated finance. Technological empowerment. I think probably some of people will raise questions regarding corporate business. 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. I would like to mention about technological 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. 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. This all is finance. I would like to emphasize on the five 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, the people ask me how you're going to work on the corporate business side.
I think one thing we need to still spare more efforts 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 lever all the financial sheets to do the bank's business, but to make sure that the accounts need to be rest with Ping An Bank. You can see that in the inter-banking business, I have to say that in H1, our revenue growth is more than 8%. Mr. Zhu and Mr. Xiao 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.
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 where abandoning the opportunity for H2 of last year. That's why this year I was somewhat confused because the scorecard for last year, especially in H2, was wonderful. Still, in this year, our trading performance still outperformed the market average. Because last year, we did a very good job, that's the reason in H1. Both our investors, professional one, they launched the navigation system. That system is really robust in China. Till nowadays in the U.S., we also have a 30 to 40 people team that can really provide the IT support to the navigation system. 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 investors, Mr. Zhang and Mr. Wang. They're working together with our two 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." You can see, we helped open the account for Dalio, and Dalio in China was dealing with the securities product and bond product. We are supporting them of doing the business in China.
We signed the contract already. I tell Chris and Yonghu, "You should also help to make sure your capacity should also be fully leveraged to help us to make more customer to come to us." I said, "No matter how the environment being changed, you should always come back to how to build your capacity." We have two 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. 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. The second question I want to give to onsite. Please give it to Ma Xu, 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 two types of people. First, one is who don't look at fundamentals, and the second type are those who look just in the rough way. Therefore, well, let's just talk about fundamentals, I think is more important.
Well, my question goes to Chairman Xie about the wealth management. Well, this is a topic that everyone cares and everyone has the common sense that as banks looking for the second 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, trusts, et cetera. Well, for other banks, they have different focuses. For Ping An, you have the full suite of financial service licenses. For these modules that I mentioned, where does the funds come from? Insurance, trust, securities or others? 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 the private banking, you want to ask, where do we find products and funds? Whether your fee income is sustainable, and which products can create the most fee income. I think this is how I understand your questions. How can you do the more efficient product for portfolio, more stable, and also can help people earn more money. Well, let's talk about my understanding. What 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, integrated finance. This is the advantage that bank has. For integrated finance committees, there are two. One is for retail, one is for corporate. For corporate, Hu Yuefei is the general secretary, and I am the director.
For Retail Integrated Finance Committee, Cai Xinfa is the General Secretary, and I am in charge of that. Those are the two very important committees for the whole Ping An. For the product and services each subsidiary has, it has to give to the bank, preferably. Otherwise, I will comment on that and will give a hard lesson to them. Because this is a very real ecosystem that we have built, so you have to contribute and leverage on this ecosystem. 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, banks, and to create an ecosystem. With the Integrated 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. We are building this profiling system. With that, we can know clearly their risk performance and underlying capability. With that, we can earn some advantages because you know them well.
Two 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 tag them. In this vast ecosystem, we can find the right funds and the resources. Those two are the small ecosystem and bigger ecosystem that I'm talking about. The other aspect I need to highlight is the funds from insurance. It's the entrusted funds.
Whether I give it to you or others, that depends on whether you give the assets to us. The amount for the entrusted fund is not small. We have around CNY 5 trillion of that. CNY 5 trillion. This is a vast volume, and we have to leverage it very well. The second advantage I need to highlight is technology. That is the empowerment from technology prowess. 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 five-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. 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.
We have migrated, I don't remember the specific number, but for AUM is around CNY 270 billion that we acquired with that initiative we've been doing. 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 these weeks, for the Ruiyuan Fund. I was bad at Mandarin, but what I want to say is that for the mainstream funds sales banks,one is CMB, one is Ping An. One day, we have issued more. Two 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 CNY 10 billion or CNY 20 billion in one day. They said it's impossible. I told them, "I think it's possible. Just do it." They did it.
11.6 billion was sold for one day. It was once unimaginable, but now it's the fact. This is a visual circle. If you have the capability, funds, they will value the channel more, and they will give you better products. We have three advantages. What we differentiated from other peers, which are unimaginable for others. One is bancassurance. Please, pay attention to this. I am in charge of the bancassurance business. In Group, I have the say. 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 Cai 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, after many years, how many return you have. For whole life, well, once you die, you can have the money. 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. Jing Shangsi, Jing. He was graduated from Tsinghua University for bachelor degree and then went to America for his master degree. He is using the technology to raise pigs. I think it's very interesting. 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.
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. With the third uniqueness I have, I am preparing to construct a team. This team needs to know how to sell insurance first and then knows how to manage private banking. Starting from insurance, from life insurance. Internally, we call them the talent team. We want to build or expand this team to 1 million like personnels. Those type of people are alternative talents, and I think they can help us to reform the private bank system and wealth management business. First, banks people don't have the habit to sell insurance products. We need to cultivate this habit. We need to cultivate this team into 10,000-20,000 of that talents.
I think this is valuable.
Also, we do the main business that I've been doing for all those years. This is another advantage. For wealth management subsidiary is an advantage we have all the way. When Zhang Dong reported to me about the proposition, while we want to build a full product variety platform. Zhang Dong, 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 one-year anniversary for the establishment of the wealth management subsidiary, where this is owned by the bank. We show you some statistics. Actually, the wealth management subsidiary helped to accumulate 2.45 million customer for us because it is within Ping An Bank.
The product term is really good for our retail business to help to attract more on-demand deposit. 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. For example, the family inheritance nature or the heritage inheritance business need to be done under the trust umbrella. You 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. You can say 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. I think they're going to have a very promising development. The new five-in-one business model will make sure that they will always be able to gather the resources from other ecosystem and subsidiaries and partners by leveraging their marketing power. They can also help to introduce new product to us. 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 forget that in H1 of this year, the bank insurance revenue was up by 44%. Also the retail revenue, it seems that the growth is not that robust. Actually, we don't have the gold sales in that.
Of the risk reason, we shut the gold sales line down. Jointly speaking, the retail business 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, 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, you will be able to hear more about the facts. 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 Xie's response. Let's welcome Mr. Dai to raise the next question. Thank you.
Thanks for the management team.
I have a question regarding provision and assets quality. From the H1 report, I can see that we made enough provision. Provision coverage ratio was up again, where Chairman Xie has already mentioned our nonprofit provision is already CNY 30 billion. You can say that how we're going to comment on the assets quality in the near future. According to the July economic statistics, it seems that people are still active on that. How's the assets quality of Ping An Bank? What's your provision coverage and target in the near future? For the non-credit provision, what are you going to do with them in the near future? 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 assets quality made a new achievement, reaching the best level in the market.
Me myself is the one in charge of the risks. I'm still very satisfied with the result. Let me be the one to help to answer the question. Our NPL ratio is 1.08%, at the same time, our retail and the corporate business, and they have a very low NPL ratio. For the retail business, the NPL ratio is even go back to the level before the COVID-19 or even with the same level of 2018. You can see that we're now in 2021, our NPL formation ratio for the retail business already the same level as 2018. We have such a large business, you can see the NPL formation ratio is already the same level as 2018. For the corporate business, we used to be the highest one in terms of the NPL ratio and also a lot of overdue.
You can see for our corporate business now, the NPL formation ratio is only 0.22%, and the overdue and overdue 60+ days are all negative numbers. You can see that this year, if we keep the same momentum, and we will be feel 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. I don't think you need to worry too much on that. 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 precondition is that we need to follow the regulation and the accounting rules, while at the same time, we should also consider three 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. We still need to do the capacity building. You guys know the market pretty well, better than me. By benchmarking with the peers, we need to make sure we always outperform the industrial average. More importantly, on the profit side, we have a very good profit growth. At least now we have 8.5% of the growth.
Besides the provision, if we put the provision back to the balance sheet, actually, we have a better profit growth. With such a robust performance, we made a lot of provision for this year, and the provision coverage ratio is already 260% and ranking the top two in the banks industry. I think for China Merchants Bank, they are ranking the top one. They are around 400%, and we are 260%. All of you know that credit provision ratio should be lower than 300%, being required by the Ministry of China. For China Merchants Bank, they have even higher, more than 400% for the provision coverage ratio. You can see for us, for the provision ratio, we need to make sure that it was lower than 300%, according to the regulation. That's the reason we have to make some non-credit provision.
This year, for non-credit provision, I made CNY 3.2 billion and CNY 700 million higher than that of last year. I told the media friends in the morning, you say that our non-credit provision ratio is at 2.85%. I think China Merchants Bank, they also launched their statistics. Their one is 1.46%. 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 II, phase III stage loan conditions. We're going to follow the IFRS 9 accounting rules, translating the loans into phase I to III. For our loans in phase II and phase III stage, according to the data we have, actually, we already outperformed the industry, or we tell ourself the best performer in this industry.
It's already be reduced by 0.22% compared with the beginning of this year. For China Merchants Bank, their number is 3.14%, up by 0.54% for them. I think it's because they have more growth on the phase II loans. I think you guys sitting here, you probably have a better picture than me. I'm just elaborating those numbers to you. By having those numbers, you probably get a better picture about our asset quality, and you should also understand why should we improve the credit provision and also the non-credit provision, too. Well, regarding what it's going to do in the near future, I think at 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.
Which is more risky, which is less risky, when the show that risk moment happens. I know these details very well. Just following the way and making enough provision. 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 the peers. I said we have three factors to decide our provision coverage ratio. If we're going to change the provision coverage ratio, it should be some changes happens for that three factors or three criteria.
This year, we're going to make provisions continuously. For the non-credit provision, we have no risk assets underlying there. No matter how much we make for this year, the non-credit provision should be no higher than that of the last year.
Thank you. Thanks for Chairman, and thanks for Mr. Guo for responding to the question. I think we are reaching the peak of this QA session. According to the online session, we have 120,000 people joining us through the video conference. Let me just help you to repeat some of the highlights from what's being said by Mr. Guo . Let's also talk about the retail business. Mr. Guo , 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. For any of the NPL, we're going to do the write-off, so it has a better rotation. This is because we have a capacity to execute the strategy.
Secondly, you can also see our provision coverage ratio is clear on the table. We don't do any kind of hidden work. We never beautify that. The same as the corporate business. The corporate business, when we encounter any NPL, and we were well managing it to mitigate it. 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. 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 downgrade reason. I have another data to share with you.
According to our financial results, you can see for each one of the CD, and including the retail business and the corporate business. We jointly speaking for half an year, and we already made almost CNY 10 billion of the collected write-off NPLs. Even if it's already been write-off, but you can see within six months, we can already make it being collected and being write-off to reach almost CNY 10 billion of business because we already do a very good business on that. For this year, it seems that we have more being write-off than the ones being formatted. You can see we also have a very good clearing business.
Retail business coming back to the level of 2018, and for provision, we're ranking top two is outperforming the industrial performance. Ranking first for the phase II and the phase III loans.
Because for retail, we have to do the immediate write-off. With the same asset quality, I think personally, we are telling the story to the market and telling the facts. The collected write-off are very happy with the liability performance.
That's the highlights of Mr. Guo .
The next question, based on the rule we made, we give it to online. Please connect to the next guest.
Let's welcome Lin Jiali from Haitong Securities.
Thank you for this opportunity. I am the analyst Lin Jiali from Haitong Securities. I want to ask about corporate deposit, because in second quarter, the QoQ growth was quite quick. You mentioned that a few months ago you went on the Jinggang Mountain. I want to ask Mr. Guo 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's corporate deposit was over CNY 2.6 trillion, increased by CNY 14 billion, and the daily average was over CNY 20 billion. For both, the difference between these two figures was around CNY 100 billion. That means for this growth, it is stable.
For the reports that we have read all mentioned that in the second quarter's corporate deposit, daily average was not that good, only CNY 7.4 billion. They are worrying about the sustainability. In fact, for daily average and balance, the difference is very small. That says the growth is stable. If you look into that more closer, for firm customers and for transaction banking, this part altogether increased by more than CNY 100 billion. The other part is for transborder business, for the foreign currency settlement business, increased by CNY 180 billion. Another part comes from the new customers.
As President Zhang mentioned, the first half, we have 50,000 of deposit affected by that proactive cut down. We are looking for new sources to make up the difference. We maintain this stable growth.
For the first quarter, 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 is 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. For the second quarter of our bank, our deposit cost for corporate was down by 32 basis points. Compared with the last year, it was down by 20 more basis points. Both balance 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, I said is customers value, and second is the liability structure, and third is asset quality.
With this year for liability structure, it has been improved greatly. 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 five 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 , for the revenues and other key metrics are growing quite well. Those are the key components of the five cards, we need to deepen customer management, they will keep making contributions to deposit. Our offshore financial business contributed to CNY 28 billion. Most of them are CASA. For other platforms that we cooperated can contribute to deposits as well. Numbers we showed before, for platform customers, it has reached 4.8 million.
This customer pool will keep increasing. We have to find out ways to better dig out the value of them, 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. 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. The system under the framework, their capability to cooperate with each other are very strong. We think there's great potential for growing, for contributing to the bank's deposits and other metrics. In the first half, it increased by CNY 28 billion. All those, I believe, will grow smoothly or stably.
There are not much uncertainties, because those business are not related to loan. For the past four years of transformation, for the first three, in corporate, we say we are more on a defensive position. After last year's Zunyi Conference, we said we need to restart the corporate business, transform from the defensive to an initiative or proactive position. The ratio between retail and corporate resources will stay at 60 to retail and 40 to corporate, and we will keep enhancing customers' value. You can have confidence on the liability business of this bank because we have confidence. We will keep a relatively high speed of growth, and we are working towards that goal. Thank you.
As President Hu said, we cut down around CNY 50 billion of proactive liability on the corporate, both CASA and the daily average are performing the best for the half year. Both cost and balance optimized, 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, we will double efforts from the top. The next question, we give to online. Let's welcome Fu Huifang from Xingye Securities.
Thank you for this opportunity. 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 wealth management is over 40% of growth.
I want to ask, since it opened the business, what important work you have done and what changes you have seen? As Chairman Xie answers the last question, for wealth management subsidiary, you will build a full product variety bond. We noticed the double times of growth. From the product perspective, I want to ask, how do you achieve a balance between the sales of public funds and private funds?
Thank you for your question. Since last October, wealth management subsidiary opened to business, and next Saturday, we will have the first anniversary. We started late, but we grew quite fast. Chairman mentioned all those metrics. 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 CNY 35 trillion, was flattish from last year.
This is based on the regulatory's requirement, you have to cut down the old wealth management products. 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 to business, the wealth management subsidiary has become a very important hook or channel to acquire customers because we can fully leverage on the platform advantage and embed it 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 million, so the growth speed was quick as well. Under this epidemic, and the second, Ping An Bank ourselves have made some new upgrades in the product allocation. One thing is we have integrated banks' cash products into all kinds of scenarios of other subsidiaries platform. Also we leverage on the fixed income and other advantages to create stable returns to customers. The other part is based on the fixed-income product, we can play our differentiated advantages. For example, we have this Ping An Preferred Fund Selection provided to customers. We selected the best funds in the market. Our fixed income product can perform better than public funds' fixed-income product.
We are working with public funds. 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 building to our wealth management product. In one way, we will be able to provide our customer optimized solution. This is my response to the first question. My response to the second question is actually the same as what I mentioned just now. For the bank wealth management subsidiaries, and what relationship between us and the product, public and private fund product we are selling now, you can see that because of the Ping An Wealth Management, it provide many of the business tracks.
You can see, especially we see very good public fund sales in the market. The deposit of the population in China is still more than CNY 100 trillion. You can see with the structured deposit, the government is trying to downsize the structured deposit, and also some of the new regulation from the government. Along with the micro picture and environment we have, we see that more and more deposit customers, 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 due role. 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. It was different from the public and private funds product that is being sold through us as intermediate agency.
You can see from the cooperation perspective, we're going to leverage the Ping An Preferred Fund 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.
Thanks for the response. Just to remember a few words. Premier and stable, yet the very well-performed product. You can say that we would like to make it short yet good. We're going to have another three people from the on-site meeting to raise questions. Zhang Shuaishuai, please. Zhang Shuaishuai 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, it seems very good. What's the reason behind? What work's being done to lead to such a good performance? Is it possible after competing or comparing with the peers? What's your advantage by also benchmarking yourself with all the fintech companies and even internet companies? What are you going to do in the next one to two years? Ms. Cai, would you mind 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 see that for technology, from the very beginning of the transformation, we have a 12-character strategy that's being 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 still be very good. You can see that from our outreach perspective, the outreach numbers being reduced from 1,100 to just more than 1,000. It's now the outreach coverage being further extended from 50 cities to more than 100 cities. Also we have more salespeople to join our team for the retail business. 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. The same as returns, the profit are all growing very well.
As Mr. Guo emphasized again and again, our assets quality is also being further improved. We stabilize and well manage 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 player in this 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 two big contributor 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 corporate and retail business, and some of the technologies being applied in the retail business first and then being applied into corporate businesses. 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 are not happy with the product or the workflow or the procedure or the internal management. We said, 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.
You can say that if we are going to recruit the people with the technical background to really cater the customer need. 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 talents 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. 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. 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. The same as agile transformation. You can say, we are learning from the technology company, and the internet company knows how to take a agile approach of operating the business. Especially for fintech companies, it's not easy for us to have a very flexible and agile kind of development. We have to be compliant all the time. From the bank culture perspective, we allow the business people to learn more business but should also be empowered by the technology. We did a technology test for all of our staff to make sure all the staff of Ping An Bank 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. That's also the reason we could be, Open Bank, could be a Pocket Bank and also be integrated bank. The reason because we have many years culture changes and the technological build-up. 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. By benchmarking ourself with internet company, what's the advantage we have? What are the rooms for further improvement? You can say that in the financial industry, because, Ping An Group is respecting technology and leveraging technology to the extreme. I think for the whole industry, and we'll still be the leading one in applying 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. We also have a well-connected line for the retail business and the corporate business, so that we can share the resources together. I think probably, benchmarking with other peers, we will probably be the best one in this market. You can see our advantage that compared with other technology company, we could abide by the compliance regulation, the 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 ways by catering the customer needs, changing our workflow and procedure, and also adopt the internal optimized operation as a technology company within our bank.
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 billion, where for us, we only probably have, 100 million. 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. For bigger companies, they have the equity incentives. As a financial company, it seems that we do less in this part. We are going to respect the technology people and also to change all the cultures to help to make sure that technologies become a part of the culture to the bank. Thank you.
Thank you. Zhang Shuaishuai, I think you have already made an in-depth report on our technology. Thank you very much.
It seems that you are coming here with a checklist to see whether we satisfy your need for the technological development. Coming back to our meeting room, let's have another one to raise a question. That side, please.
Thank you. Thanks for providing me the opportunity. My name is Bo Chi, we're from Tianfeng Securities. My question is regarding interbank business. We know that for this year, we developed the Ping An Wealth Management and Ping An Development, and we are now building the ecosystem for the interbank business. I can see for H1 of this year, the sales of the public funds, private funds and insurance products, and, it seems that the sales volume taking up greatly. 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, this year, the custody business is ranking first among all other shareholding banks. How did you do that? Would you mind to share your lessons with us? Thank you.
Thanks for the question. Just now, our Chairman has already walked you through how we build the ecosystem for the interbank business.
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 firms, all developing quite good. The second change is for FIC business, has a booming development as well. During this process, how can we precisely link product to customers and how to serve our institutional interbank institutes well, to discern their demand and satisfy their demand, and the identified business opportunities during this process are the key work we have been doing. We have several capabilities showing during this process. First is technology. We built a very detailed or granular profiling system. There are two online apps. First is for interbank, Tong Yijia, and the other is for Hang-E-Tong platform.
Those two apps are the key channels we serve our customers. We work building a sales army. The integration of these two capabilities gives the bank a very strong competitive edge. In the next phase, we noticed that we grew quite well in institutional sales. In first half, it was 51% of growth. All those mostly concentrated in FIC 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 the building of this ecosystem. This is the second 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 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 we look at it, we see the momentum is here. For example, 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. With that, we believe in the future, those will contribute to our revenues greatly. As for custody AUM, it was 20% of growth. Several reasons were, first, our base in the past was quite low. It was CNY 510 million. 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.
Now we put it on the front end and to work closely with the sales army. With that mechanism, and also we are integrating the 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.
I believe what Mr. Wang mentioned is the mechanism plus the sales army. Those are the key metrics for our results. With that goal, we will surely do that. Next question, let's give to the on-site.
Thank you for this opportunity. I am Zhang Yu from Guotai Junan Securities.
My question is regarding NIM, net interest margin. We noticed that QOQ is narrowed slightly. Put all together in the next half, when you look at the Notice 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, since last year, we have started this new three-year asset and liability management. There are three 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 going ahead with. 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. 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. Those are the goal for us for the new three years management. For the first half, NIM narrowed slightly. There are three reasons. First, because the whole market's interest rates are going downward. Second, indeed, for the fee cutting or supporting the real economy initiative has some effect on that as well. We supported SMEs and private entities with lower interest rates. The third, we proactively optimized the asset portfolio. To cite RITA as an example, high risk, but 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 three 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 deepening customer management and providing suitable products and services to customers. In the asset side, we'll keep optimizing it 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 concerning question by all of us. Mr. Xiang Has given a very clear answer. I will not add new words. The next question gives to Xu Ran.
Thank you for the last opportunity to ask question on site. I want to ask President Hu for supply chain financing. I am Xu Ran from Morgan Stanley. Do you have any new strategy in this business? How many technological applications you applied in this business? Are there any breakthroughs?
Well, for all those years, you ask the same question for the last several conferences. You really care about this topic. Right. Well, let me simply answer your question. Li Yue will add up some more words.
For all those years, more than a decade ago, when Ping An Bank started to do supply chain, it was all alone. It was Ping An Bank itself in the market. Now when you look at all banks' financial reports, you will notice that they started to do this business as well. Well, generally speaking, you can categorize supply chain finance into several types. First is the one that centered more on core enterprises to provide the underwriting. The second is the 1 + N model centered on the online stores or online companies. The third type is the 1 + N model of the warehousing or logistic or transportation companies. No matter which type we look at for online companies or for the online data supported, all those companies or the business have to leverage on technology.
For example, they build some supply chain comprehensive service platform to provide settlement or product services. Now, I think we already entered a new phase of supply chain business. It's a new stage that is relying on the third party's data support. That is, in the five cards, we added a new type because we think we are doing this new type of supply chain finance. Next, I will have Li Yue to add up some words. He is not a big, tall guy, but he has great energy. Chairman Xie mentioned about the two foreigners we have. One is from Cambridge, one 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 a 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. The Internet of Things, the online platform. Since Wuhan started this business 10 years 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. 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, not long ago, we have this flood disaster, and with the satellite, we can clearly see the equipment condition of factories.
There's 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, now we can leverage the technology and the big data. Most assets that bank take charge of are equipment. 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, you cannot use those equipment anymore. For car, it's 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 km per hour, but it's limited. 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 two technical applications, including Digital Pocket. 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 CNY 90 million, everything's been done online by having the Digital Pocket. What we provide is JD.com logistics and the coupon also from JD. 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. You can see that these are all being done through the app.
By having this way, if you download our app again, you will see that in our app, it's not only for the financial services, but also the infrastructure for the automotive industry. We also provide the MRO service, which can provide the construction material basic. In this way, the company is not here only for the finance purposes only. We will also be able to help to make sure that everything's been well packed, the same as the financial assets. 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. Recently, you probably understand, and the industry has been reshuffled.
We are working with educational people of a very famous district of Beijing, making sure their extracurricular training industry, the funds and the capital is being well managed by us. We can serve the customer, and also the government can help to well manage the capitals for the extracurricular training industry. Our Chairman has already mentioned, we still have a very robust IT capacity. This capacity can make sure that our traditional salespeople, we have five IT staff behind that account manager. That's the reason we only have hundreds 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.
Jointly speaking, we have 4,000 interfaces, including the retail and the corporate business. The structuring is being done by the interfaces more than 55 million times on daily basis. 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, I used to have a friend from a branch, who actually shared with me his comment of using our new supply chain product. This guy actually transferred the job from other banks to Ping An, and he write down a few words for me. He said, "When the system being roll out, the loans has no human intervention for verification and approval. Every day, we see a lot of customers are applying for the loans online.
I can actually stay in my home and playing with my families while the customer is still handling the business. Every night before I go sleep, I will see how many loans being approved. Also during the weekend, I also see how many loans being approved. Now I was sitting in the office, and now I see the customer from different parts of the China also applying for the loans. Sometimes I have my customers covering every corner of China." The supply chain system is very robust. It is the contactless and the simplest loan approval process. I don't need to go to the doorsteps to visit the customer. It seems that I become lazy. It let the system and the data to do more work for me. I was taking a look at loans, and I see more loans being approved on daily basis.
That's how the data and system serves us. I'd like to say to many another system. You can see that we are going to have a corporate event day, and we will introduce you how we develop a so-called five-in-one business, especially on technological empowerment. I truly look forward to your information sharing.
We would like to schedule the event. Actually, we hope that we can actually launch the second satellite right before the corporate event day. It's probably going to be not that early as we expected. Okay, regarding the new supply chain, as Li Yue has mentioned, we have the satellite in the air and also the Digital Pocket in middle, and we also have our offline sales team already. Supply chain service, to some extent, I also don't know what does it mean before.
After having a few examples, I truly understand how wonderful this system is. 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. Mr. Hu asked me to make sure that the event could be staged perfectly, and that's the reason we made it in October rather than in August of this year. Okay. An advertisement or a trailer. We're going to have a corporate business day event in October. Final two questions. Let's welcome Yang Shuo from Goldman Sachs.
Thank you. Thanks for giving me the chance to raise the question. Here is the question regarding the property market and also the local abilities.
We see the regulations becoming more stringent, along with the Notice 15, and the real estate market is being highly regulated. 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 attaches great importance to the crediting and also the credit loans to the real estate market. Let me say that for the real estate market, our conversion rate is 20.4%, which is lower than 27.5% made by the regulation. While for the personal mortgage, we are less than half of the targets made by the government. We still outperformed compared with the government regulation. I can say that it doesn't mean that we have a big gap, then we have the opportunities.
It also doesn't mean that we are going to have a further room. We still believe we have further room to improve our business. Regarding the real estate business quality, you see probably many of you may notice the issue with a real estate company named China Fortune Land Development. They only have CNY 1.6 billion and CNY 10 billion for the financed bond, and also $600 million for the USD bonds. They will already be built into the provision at all. For the private bank, we are not shouldering the risks at all. You can see that for China Fortune Land Development, we're now talking with the financier to make sure that the customer's rights could be safeguard.
Regarding our real estate business, you can see that we made a good scorecard, and the NPL formation ratio is 0.57%, which is much lower than the NPL formation ratio. Only one account have the default. Otherwise, our NPL ratio is only 0.2%, but because one account, they have the non-performing liability. That's why 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 we're going to work with. We also have the white name list mechanism internally. We prefer to work with the tier 1 and tier 2 cities, and we also find out that some tier 2 cities are not performing very well. We started to only work with the type 1 and type 2 customer.
Some tier 2 cities already been kicked out, and also some tier 3 well-performed cities be included. 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 a healthy cash flow. If they don't, they probably won't be developed very healthy. That's the general business we do with the real estate industry. I think in the near future, we're still going to implement the strategy of the housing for living, 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 say Notice 15. There are so many behind the stories in that document. I'm not sure how should I present the information in Notice 15 to you or not, but as we have a very limited investor sitting here, let me just walk you through our story. You can see that for our bank, for the urban construction platforms and the government-related project, and the credit quota is around CNY 174.6 billion with a limited exposure. We don't really need that CNY 3 trillion loans on our balance sheet.
The kind of urban construction or the government-related projects loans are accounting for a very small portion of that. We would like to welcome to the newly added 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 volume on that side. That won't be a big problem for us. Since 2018, we started to improve our customer. For some tough customer, we ask them to go. By optimizing our customer structure, we help to make sure that around CNY 30 billion of the low-end customer exposure is being further mitigated for the past few years. In this way, we can help to optimize the cost. 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. We are persuading the government to make the capital arrangement early so that we can make sure the government can actually pay back the so-called hidden liabilities or the debt of the urban construction groups. This, to some extent, is going to limit the newly added loans. In the longer run, it's going to be good for the risk release for the urban construction platforms. Some hidden debt, if they are hidden there, they're not on balance sheet at all. This is actually a good news or a good protection to the bank. That's the comment I'd like to make for this question. Thank you. Thanks for Mr. Guo. It seems that we already have 150,000 people online. We're lucky that you have some prudent kind of statement here.
These are the two very important points being mentioned by China Merchants Bank, the same as being stated here at our interim result announcement. Mr. Guo has mentioned, the Notice 15 and the real estate market has already been a long area with keen 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 Qianhai 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 zero-fee products. 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 change for the agency sales of fund, I think is one of the widest and the deepest transformation. If you look at the previous year's growth for the bank, it's mostly relied on the Ping An Preferred Fund Selection. That is the combination of Ping An Securities, Ping An Life, and the Ping An Annuity, all the subsidiaries.
Altogether, there are about 30 to 40, we think, that performed better than industry or the market funds. Now, for the fee income growth and also the performance for that part are very good. We can say that. For the future, we noticed that there are some new growth room. 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. Some professional customers have raised these suggestions to us, and I am a customer of the bank as well. When I received their suggestion, I started to do this change. Also another consideration is for the long-tail customer, because they compare us to those online internet companies. This part of customer pool have the greatest stickiness.
We want to retain them, we need to develop a good product to acquire them. That they can choose the product by themself or because their sensitive point is about fee. We can make the recommendation page or the product page more clear, simple to understand. The cost could be lower, and we can give that part of the cost to customers. For A type funds, we give 10% of discount, and for C type funds, we rolled out the zero fee choice. This part of customer who were alert by the new products, they were not our customers before. 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 Preferred Fund Selection and to serve customers who need offline services to, for example, explain the product.
Well, thank you, President Hu. Well, our QA session starts from a lady and ends with a lady. It's a quite good ending. Well, this brings to an end to the interim results announcement. Your question are very incisive, and we will take it as a spur on the management. We will keep highly motivated and keep going forward. This year is the Year of Bull. We hope that you can get on the back of bull to get into share the stock market, and we will work harder. The momentum is here, and we will get things done. Okay. This is the end.
Thank you all for attending this conference.