2016 Third Quarterly Results. October 2016

Transcription

1 2016 Third Quarterly Results October 2016

2 Cautionary Note Regarding Forward-looking Statements To the extent any statements made in this presentation containing information that is not historical are essentially forward-looking. These forward-looking statements include but are not limited to projections, targets, estimates and business plans that the Company expects or anticipates will or may occur in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may be general or specific. Certain statements, such as those including the words or phrases "potential", "estimates", "expects", "anticipates", "objective", "intends", "plans", "believes", "will", "may", "should", and similar expressions or variations on such expressions may be considered forward-looking statements. Readers should be cautioned that a variety of factors, many of which may be beyond the Company's control, affect the performance, operations, and results of the Company, and could cause actual results to differ materially from the expectations expressed in any of the Company's forward-looking statements. These factors include but are not limited to exchange rate fluctuations, market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, and other risks and factors beyond our control. These and other factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. In addition, the Company undertakes no obligation to publicly update or revise any forward-looking statement that is contained in this presentation as a result of new information, future events, or otherwise. None of the Company, or any of its employees or affiliates is responsible for, or is making, any representation concerning the future performance of the Company.

3 Overview Core Finance Business Internet Finance Business Overview

4 Overview In the third quarter of 2016, the overall economic situation in China was stable, showing an improvement yet still with some downside pressure. The government promoted transformation and upgrading of the economic structure, with reforms and opening-up being further pushed through. Given the uncertainty of macroeconomic trends, Ping An adhered to the established operating concept, continued to follow the strategy of "Integrated Finance + Internet" and "Internet + Integrated Finance", and kept improving the user and customer value to work towards the goal of being a World-leading Personal Financial Services Provider. Through efforts in the first three quarters, the scale of Group's individual customers increased steadily. The conversion between users and customers turned out to be successful. The core finance businesses such as insurance, banking and asset management maintained steady and healthy growth, and the internet finance business maintained rapid growth. 3

5 Financial Highlights Net Profit (in RMB million/in RMB) Net Profit attributable to Shareholders of the Parent Company / EPS 56, % 64,813 48, % 56,508 EPS 2.64 EPS Q Q 2016 Total Assets 3Q Q 2016 Equity attributable to Shareholders of the Parent Company 4,765, % 5,296, , % 379,378 31/12/ /9/ /12/ /9/2016 4

6 Solid Achievement in Operation of Customers and Users 125 million individual customers 337 million internet users Increased by 15.0% over the beginning of the year Increased by 39.7% over the beginning of the year 21.6% of the customers hold financial products from more than one company Multiple products Active users 229 million yearly active users 61.0% of the customers have become internet users Online Mobile 222 million APP users, 107.3% higher than at the beginning of 2016 In the first three quarters, 8.23 million users became new customers, accounting for 30.7% of total new customers Conversion Conversion In the first three quarters, million customers became new online users, accounting for 14.0% of total new users One customer, one account, multiple services and multiple products 5

7 Growing Customer Base and Significant Conversion between Users and Customers The Number of Individual Customers (in ten thousand) 10, % 12,487 The Number of New Individual Customers 29.3% (in ten thousand) 2,682 2,075 Including: Online Customers: 5,712 31/12/ % Including: Online Customers 7,620 30/9/2016 3Q 2015 Including: from internal user conversion 823 3Q 2016 Note: The number of customers at September 30, 2016 is not equal to the sum of the number of customers at December 31, 2015 and new customers in the reporting period, due to customer loss. 6

8 Overview Core Finance Business Internet Finance Business Core Finance Business

9 Life Insurance Business Maintained Steady and Healthy Growth, with NBEV Growing Steadily Written Premiums NBEV 26.2% 48.1% 295,552 35, ,145 23,874 Including: Individual business 221, % 280, Q 年 月 Q 年 月 Q 年 月 Q 年 月 Note: (1) Written premiums refer to all premiums received from the policies underwritten by the Company prior to the testing of significant insurance risks and the separating of hybrid risk contracts; (2) The life insurance business includes relevant activities of Ping An Life, Ping An Annuity and Ping An Health; (3) Assumptions and methods of the value of new business in the first three quarters of 2015 are consistent with current valuation assumptions and methods. 8

10 Ping An Life(1/2) Agent Channel Realized Sound Growth, and Structure of the Bancassurance Business Kept Improving Written Premiums of New Business from Agent Channel Bancassurance Regular Written Premiums of New Business 39.5% 82, % 2,559 59,374 1, Q 年 月 Q 年 月 Q 年 月 Q 年 月 Note: Written premiums refer to all premiums received from the policies underwritten by the Company prior to the testing of significant insurance risks and the separating of hybrid risk contracts. 9

11 Ping An Life (2/2) Internet Marketing Developed Differentiated Advantages, and Telemarketing Business Maintained its Leadership in Market Share Written Premiums of Telemarketing Business Written Premiums of Internet Marketing 30.6% 158.1% 12,335 3,588 9,444 1, Q 年 月 Q 年 月 Q 年 月 Q 年 月 Note: Written premiums refer to all premiums received from the policies underwritten by the Company prior to the testing of significant insurance risks and the separating of hybrid risk contracts 10

12 Ping An Annuity Remained Market Leader Annuity Assets under Investment Management 7.1% Annuity Assets Entrusted 18.2% 135, , , ,402 31/12/ /9/ /12/ /9/

13 Ping An Property & Casualty(1/2) Premium Income of Auto Insurance Kept Growing; Combined Ratio was 94.9% Premium Income 4.8% Combined Ratio 0.5 PPs Others 121, , % 94.9% 94,200 Auto 11.9% 105,409 3Q Q Q 年 月 Q 年 月 12

14 Ping An Property & Casualty(2/2) Sustained Growth of Premium from Cross-selling, Telemarketing and Internet Marketing Premium Income from Cross-selling, Telemarketing and Internet Marketing Channel Contribution 54, % 58,850 Others 31.3% Premium Income 127,427 Telemarketing and internet marketing 29.9% Car dealers 22.6% Cross-selling 16.3% 3Q Q

15 Banking Business(1/3) Sustained Business Growth Total Assets Net Profit 2,507, % 2,791,238 17, % 18,719 31/12/ /9/2016 Deposits 3Q Q 2016 Loans and Advances 1,733, % 1,912,878 1,216, % 1,430,514 31/12/ /9/2016 Note: The data is from Ping An Bank s third quarterly report of /12/ /9/

16 Banking Business(2/3) Improved Operating Efficiency and Business Structure Cost-to-Income Ratio 32.14% 4.44 PPs 27.70% Net Non-Interest Income 19.4% 27,405 22, % 33.43% 3Q Q 2016 NIS 3Q Q 2016 Net non-interest income Proportion of Net non-interest income NIM 2.59% 0.03 PPs 2.62% 2.73% 2.73% 3Q Q 2016 Note: The data is from Ping An Bank s third quarterly report of Q Q

17 Banking Business(3/3) Reinforce Provisions, Asset Quality under Control Non-performing Loans Balance of Non-performing Loans Non-performing Loan Ratio 22,300 17,645 Provisions/ Loan Loss Provision Ratio/ Provision Coverage Ratio Provisions Loan Loss Provision Ratio Provision Coverage Ratio % % 1.45% 1.56% 2.41% 2.56% 31,615 19,935 31/12/ /9/2016 3Q 2015/ 31/12/2015 3Q 2016/ 30/9/2016 Note: The data is from Ping An Bank s third quarterly report of

18 Asset Management Business(1/3) Investment Assets and Investment Yield of Insurance Funds Total Investment Assets Investment Yield 8.6% Annualized Total Investment Yield Annualized Net Investment Yield 1,731,619 1,881, % 6.0% 5.6% 4.9% 31/12/ /9/2016 3Q Q

19 Asset Management Business(2/3) Ping An Trust Improved Business Structure, Ping An Securities Outperformed the Industry Assets Held in Trust 558, % 626,489 Comparison of Net Profit of Securities Net Profit of Securities Industry Net Profit of Ping An Securities Administrative Trusts 224, % 325,500 Reduced by 49.8% Investment Trusts 171, % 150,768 Financing Trusts 162, % 150,221 31/12/ /9/2016 3Q Q 2016 Reduced by 20.2% 18

20 Asset Management Business(3/3) Third-party Business of Ping An Asset Management Saw Steady and Healthy Growth Assets under Management Management Fees Income 245, % 282, % 1,543 1,133 31/12/ /9/2016 3Q Q

21 Overview Core Finance Business Internet Finance Business Internet Finance Business

22 Lufax Holding Realized Strong Growth in Various Businesses Wealth Management Lufax Institutional Trading Consumer Finance Puhui Financial Registered Users Active Investors Trading Scale million 6.55 million Retail: RMB1.08 trillion Institutional: RMB3.22 trillion 39.3% 80.4% 239.3% 428.8% New Loans Balance of Loans Under Management RMB billion RMB billion Note: Growth rates of registered users and active investors are compared with those at the beginning of the year, growth rates of trading scale and new loans are compared with those in the same period last year % 21

23 Ping An Doctor Ranked No.1 in the Internet Healthcare Industry with Valuation at USD3 Billion Online portal Ping An Doctor APP: online health service platform Provided 110 million users with health management services Daily peak consultation quantity surpassing 250 thousand Peak number of monthly active users exceeding 26 million Health advisory service Hospitals Partners Health Checkup Institutions Better user experience Closed-loop services Doctor network In-house Medical Team Contracted External Doctors Offline medical service network Private clinics Hospitals Health partners Pharmacies Checkup centers Offline health service platform Offline medical services 22

24 E-wallet and One Account Management Services E-wallet Company: with E-wallet APP at its core, integrated development of Loyalty Points + Payment Registered Users million Monthly Active Users 6.21 million Trading Scale RMB2.01 trillion Loyalty Points Granted RMB8.95 billion Payment plug-in business proactively sought external cooperation opportunities The loyalty point management business aimed at providing member benefit solutions for various industries One Account Management Services aims to become a leading open internet financial services platform in China Users about 157 million Monthly Active Users million Customers:continued to diversify scenarios and provide users with account, wealth, credit and life management services Businesses:One Account Management Cloud Services Platform had cooperated with 174 banks and 996 non-bank financial institutions and quasi-financial institutions 23

25 Prospects Looking into the last quarter, on one hand, in a low interest rate environment, the global economic recovery will be faltering, with greater market competition pressure; on the other hand, with the promotion of the economic structure transformation and upgrading, China s economy is at the critical stage of the change of new and old growth momentum. Given the current complex economic situation and risk challenges, Ping An will pay close attention to the changing of external economic environment, strengthen internal control and delicacy management, improve operating efficiency, and realize sustained and healthy growth in the profit and new business value for the whole year. Meanwhile, Ping An will endeavour to promote comprehensive planning for and innovation in the model of internet finance, make unremitting efforts to carry out the Ping An 3.0 Era strategy, build "Open Platforms + Open Markets", and continue to create value for investors and society. 24

26 Honors and Awards Constantly rising on Fortune's list 2016 No No No No No No No No.462 Established in 1988 Widely praised by community No.20 among Forbes Global 2000 public companies, No.10 among financial companies in the world, and No.7 among mainland Chinese companies No.57 among BrandZ Top 100 Most Valuable Global Brands in 2016, up by 11 positions compared with in 2015 No.6 on Interbrand s 2015 Best China Brands list, again No.1 among Chinese insurance brands No.96 among Eurobrand's Global Top 100 Brand Corporations 2015 as the only insurance brand on the list Ping An received the "Asian Excellence Award", the "Best CEO Award", the "Best CFO Award", and the "Best Investor Relations in China Award" from the Corporate Governance Asia magazine Ping An received the The Excellent Director in the Executive Director category from the Director Of The Year Award 2015 of the Hong Kong Institute of Directors Ping An received the "Carbon-value Ecological Practice Award" from the World Economic and Environmental Conference 25

27 Thank you