2014-10-18

Banks Wages Plunge As Profits Squeezed

In Wuhan, highly paid bank employees have seen their wages cut from ¥400,000 to ¥200,000, or roughly $65,000 down to $32,500. Most cuts aren't that large, but many banks are slashing wages as income tumbles.

银行地方分支机构员工薪酬普降:武汉员工40万变20万

Bank executives pay cuts storm has not yet settled, many local branch employees already pay than in previous years.

According to "China Business" reporter investigation, because of overdue bank loans in August and September 2 months there have been more obvious rise of the trend, banking related departments pressure swells, a corresponding provision for banks will increase, and thus profit growth increasing pressure, the impact on employees' income has begun to quietly emerged, especially employees undertake business tasks branches, more sensitive to changes in income.

At the same time, most banks pay appraisal system are close to clearing bad loans have clear requirements, all bank employees directly linked to income. Therefore, many of this year's local line staff pay levels have decreased significantly compared with last year, a decline of more than 40% of the cases even exist.

"Tall on the" embarrassment

Bank employees in previous years has been a high salary is considered "tall on a" typical, but this year the situation is not optimistic.

Li is the Marketing Department employees a stock line in Wuhan last year, the total wage income of about 40 million, less than half of last year and this year.

"Did not expect that this year would be so bad." Li told reporters, reduce bank profits, employee income decreased inevitable. But suddenly dropped from 400,000 yuan annual salary of $ 200,000, this gap is difficult to accept.

Li told reporters in the central region, especially in this kind of second-tier cities of Wuhan, the average income level is not high, generally in the 4000 to 5000 yuan monthly salary. Comparison, the annual salary of 400,000 yuan in local banks is very great. "Shares OK heavy task, the pressure is very large, most people also will be hard to see decent income, but no competing approaches and industry trends."

He also told reporters that the decline is not just pay for a single department or individual, but spread to all branch employees. Moreover, the presence of the banking industry as a whole also pay adjustment.

Reporters found that in the interview process, Minsheng Bank [ -0.16% funding research report ] , the Industrial Bank [ -0.29% funding research report ] , several joint-stock bank branch employees' income in some areas declined significantly, while Huaxia Bank [ -0.70 % funding research report ] , Everbright Bank [ -1.10% funding research report ] and other local branches of some relatively minor affected. Meanwhile, many banks this year, the staff salary structure, benefits have adjusted, and even some banks due to "eleven" No fee as paid holidays and cause employee dissatisfaction with previous years.

"Minsheng Bank, Industrial Bank pay levels are high levels in the industry, in this environment, appropriate adjustments are conceivable, even if the income of employees that banks have decreased, but still higher than most bank income. "a stock line retail department official said.

The source also believes that Minsheng Bank and Industrial Bank are currently in a transition period. Minsheng Bank has been in force on the small and micro business, but now faces restructuring, business center may have to turn to retail. Industrial Bank has been "king of the industry", this year the business was forced to face adjustment. "Both banks are relatively large pressure exists, the pay adjustment is understandable."

"In the bank, the staff was able to feel the decline in revenue due to performance standards adjustments may also less per month from 500 to 600 yuan." CITIC Bank [ -2.11% funding research report ] Guangzhou Branch, told reporters, compared to Last year, a variety of benefits inside the Guangzhou Branch of China CITIC Bank to cancel a lot to reduce the current wage is not too obvious. "In fact, this part of the reasons for the reduction results mostly from the pressure line on the intrinsic performance scoring more demanding tasks. Adverse CITIC Bank Guangzhou Branch of very low salaries may decline slightly better situation if the outbreak is bad centralized place could affect the income of bank employees larger. "

According to the reporter, due to higher bad loans in Wenzhou, Foshan and other areas, the income effects of local bank employees is much greater than other places.

"In accordance with the provisions of point of view, if the presence of large branches of non-performing loans, staff salaries can cut 90 percent to the lowest level of income of local residents paid directly on the line." Wenzhou, a stock line of credit department official said that the current to Look, a lot of bad loans the bank has not been fully exposed, the internal clearance received a lot of pressure, or only one point of view only signs from the salary.

The weight of bad clearance received

"Non-performing bank loans and overdue loans this year the pressure is very large, in October and November months is a critical period deal with bad loans, if done well, could end it will be difficult to see." Huaxia Bank official said.

He believes that the increase in the bank's overall NPL ratio will be a major challenge facing the industry, nor is it Wenzhou or a local problem. "If poor control is not good, interest rates alone is not enough to fill the possible."

Reporters learned in the investigation, although there are many methods for banks to cover bad loans, but it does not solve the fundamental problem.

It is understood that, under normal circumstances, the process is the extension of the bank's bad, clean closing, on behalf of holders, such as several listed for sale. Non-performing loan extension is commonly used as a means for the existence of non-performing assets, temporary operational difficulties of the enterprise. However, there is a very large loan extension drawbacks, that is, will take up the line of credit, and banks often do not consider the profits of enterprises willing to rollover.

"Loan extension is generally required to meet a number of conditions, but companies often not up to standard." A state-owned big firms who briefed reporters.

Compared bank loan extension, bad loan bank priority. "After the loan went to the clearing settlement process, depends on the mortgage loan situation and if the problem has not yet sufficient collateral, but credit will be very troublesome. Credit mortgage is generally clear, there will be loss of revenue, some companies shut down after possible Finally, companies can only give discounts to recover some of the money. "these big firms say.

He also said: "The transfer of non-performing loans of banks listed on the program too much trouble, but also more difficult to find to take over the party; behalf of the holders of short-term behavior is more just, whitewash about the report data, and can not solve the problem."

In fact, the credit front, now most of the pressure on the clearing banks are closed on overdue loans and non-performing loans, and directly linked to employee salaries.

"Bank employees' wages are generally divided into basic salary and performance pay, different pay system each bank, but the focus was largely the same assessment. Most banks appraisal of employees have a bad loan, and this one in the proportion of the wage system is relatively large, that is, bank branches once appeared large non-performing loans, then the employee's performance will have a relatively large impact. "a local bank said.

"In fact well understood, the bank non-performing loans once appeared, it must be mentioned provision, affecting bank profits, which is to say, poor performance when the bank, the bank certainly affected the income of employees." Above the line where believes that the entire branch including administrative, too, may be directly responsible for lending-related business will affect a large number of people, a small number of affected other employees Bale.

Above CITIC Bank Guangzhou Branch said that for now, the bank declined salary is a trend, but about half the decline, even down 70% to 80% of cases is still small. Banks also repeatedly stressed this year to strengthen internal risk control, all of the strict control of non-performing loans, strengthen clean close.


"In addition to regional and industry-specific outbreak of bad loans outside, rising bad bank is slow, gradual release. Linked to bank staff salaries, a decrease is controlled within a range, slowly adjust." Above CITIC Bank Guangzhou Branch sources said.

It is understood that the recent regulators on risk management experts conducted more than 100 banks on some of the hot issues of the questionnaire, and the formation of the "2014 third quarter, Bank of China [0.00% funding research report ] Risk Management Expert Survey Report. " The report notes that 88 percent of the bank reflects the current general banking risk increased slightly from the previous quarter increased 5 percent, 9 percent of the Bank believes that the overall risk unchanged; increased risk mainly from the banking sector credit risk.

"Most banks have only seen benefits reduced from the current bank stress when possible to release year-end awards next year in February, the bank employees' income will decline in this case performed exceptionally clear it." Line above the local sources said.

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