On March 25, Jiangxi Bank, which is listed in Hong Kong, announced its 2021 financial report. Judging from the surface data, this is a good report card: net revenue and profit increased, the non-performing loan ratio was 1.47%, a decrease of 0.26 percentage points from the beginning of the year, the provision coverage rate increased to 188%, and the ability to resist risks was enhanced.

Coincidentally, since October last year, Jiangxi Bank has rarely experienced two incidents that shocked the industry. The removal of the president and the removal of the chairman may have just kicked off the ongoing turmoil.

The "problem" of loan quality

In fact, Jiangxi Bank's non-performing loans only achieved a "single decline" last year. The non-performing loan ratio decreased, but the balance of non-performing loans increased, increasing by 200 million compared with 2020.

In fact, Jiangxi Bank’s non-performing loans are mainly concentrated in the wholesale and retail, leasing and business services industries. These three industries account for 44.06% of Jiangxi Bank’s non-performing loans.

Jintong News found from the financial report that Jiangxi Bank’s overdue loans within three months accounted for the majority, accounting for almost half of all overdue loans. Data shows that as of the end of 2021, Jiangxi Bank has accumulated overdue loans of 5.8 billion yuan, of which 2.8 billion yuan is overdue within 3 months, 1.3 billion yuan is overdue from 3 months to 1 year, 1.4 billion yuan is overdue from 1 to 3 years, and 1.4 billion yuan is overdue for more than 3 years. Only 250 million yuan.

The three months from October to December 2021 are the most serious period for Jiangxi Bank, which coincides with the loan overdue data.

Luo Yan was fired.

In the financial report, more information about the dismissal of Luo Yan, the former president of Jiangxi Bank, was also disclosed.

In fact, before Jiangxi Bank announced the removal of Luo Yan as president, the Jiangxi Provincial Department of Finance had already removed Luo Yan from the post of deputy secretary of the Party Committee of Jiangxi Bank.

The financial report shows that on September 29, 2021, the Jiangxi Provincial Department of Finance removed Mr. Luo Yan from the post of deputy secretary of the party committee and recommended that he be removed from the post of president. On October 15, 2021, Jiangxi Bank held the 20th extraordinary meeting of the second board of directors in 2021, and reviewed and approved the "Proposal on the Dismissal of Comrade Luo Yan as President of the Bank", and agreed to remove Luo Yan from the post of President, and the Board of Directors will review Effective from the date of adoption.

On the same day, Bank of Jiangxi issued an announcement to dismiss President Luo Yan. After deliberation and evaluation by the Board of Directors, taking into account the overall best interests of the Bank and shareholders, it is recommended that Luo Yan be removed from the positions of executive director, vice chairman, member of the Strategy Committee and the Remuneration and Nomination Committee of the Board of Directors, and that he be removed from the position of president. Until the appointment of the new president takes effect, Chairman Chen Xiaoming acts as president.

The announcement also pointed out that Luo Yan expressed opposition to the dismissal of the above-mentioned positions. In addition, the board of directors has no objection to Luo Yan. The Bank’s legal advisor believes that the above-mentioned dismissal procedures comply with applicable laws and regulations and the Bank’s Articles of Association.

From October 15, 2021 to January 28, 2023, Chen Xiaoming, Chairman of Jiangxi Bank, will assume the duties of Acting President.

On the evening of January 10, the bank issued an announcement stating that the bank’s board of directors reviewed and approved the proposal to appoint Luo Xiaolin as the bank’s executive director on that day. At the same time, the board of directors passed a resolution to appoint Luo Xiaolin as president of Jiangxi Bank. Luo Xiaolin previously served as deputy director of the Jiangxi Provincial Local Financial Supervision and Administration Bureau.

But what is strange is that on the evening of February 22, Jiangxi Bank announced the resignation of Chairman Chen Xiaoming. The announcement stated that the Board of Directors of Jiangxi Bank announced that Chairman Chen Xiaoming had submitted a written resignation letter to the Board of Directors on February 21, resigning from his positions as executive director, chairman, strategic committee member, and chairman due to personal reasons, and no longer held any position in the bank.

On March 25, the website of the Central Commission for Discipline Inspection and the National Supervisory Commission showed that Chen Xiaoming, the former Party Secretary and Chairman of Jiangxi Bank Co., Ltd., was suspected of serious violations of discipline and law and is currently undergoing disciplinary review and supervisory investigation by the Jiangxi Provincial Commission for Discipline Inspection and Supervision. Related questions and answers: