Shanxi Banking and Insurance Regulatory Bureau Releases Q2 Consumer Complaint Report, Jinshang Consumer Finance Ranks First in Complaints Within Jurisdiction

Beike Finance News from The Beijing News (Reporter Huang Xinyu): On October 21, the Shanxi Banking and Insurance Regulatory Bureau Office released the “Notice on the Consumer Complaint Situation of the Banking Industry in the Province in the Second Quarter of 2022.” According to the Shanxi Banking and Insurance Regulatory Bureau, in the second quarter of 2022, the bureau and its district branches received and forwarded a total of 682 financial consumer complaints, a decrease of 0.73% quarter-on-quarter. Shanxi Merchant Consumer Finance Company (hereinafter referred to as “Shanxi Merchant Consumer Finance”) received 140 complaints (as shown below), ranking first in the district. At the same time, the reporter also found that in the second quarter of this year, Shanxi Merchant Consumer Finance experienced a “balance sheet shrinkage” in total assets despite a slight increase in net profit.

Chart of complaints against non-bank financial institutions in Shanxi Province (units: cases) / Shanxi Banking and Insurance Regulatory Bureau

In previous quarterly reports, the Shanxi Banking and Insurance Regulatory Bureau introduced that consumer finance companies among non-bank financial institutions have prominent complaints. The current report shows that in the second quarter of 2022, the total complaints against non-bank financial institutions in Shanxi Province were 143 cases, of which Shanxi Merchant Consumer Finance accounted for 140 cases, a 21.74% increase quarter-on-quarter, representing 97.90% of complaints against non-bank financial institutions.

About a month before the release of the Shanxi banking industry consumer complaint report for the second quarter, on September 29, the China Banking and Insurance Regulatory Commission issued the “Notice on Further Strengthening Consumer Complaint Handling Work.” The CBIRC stated that it will emphasize consumer complaint assessment orientation and strengthen accountability and traceability rectification. Especially for the latter, the CBIRC emphasized that responsible personnel and management personnel should be held accountable according to relevant regulations for institutions responsible for and poorly handling consumer complaints.

According to the official website, Shanxi Merchant Consumer Finance was established on February 23, 2016. By the end of 2021, Shanxi Merchant Consumer Finance had issued over 73.2 billion yuan in inclusive consumer loans, serving more than 16.8 million consumers in total.

Yuxin Technology (300674), which holds a 20% stake in Shanxi Merchant Consumer Finance, reported in its 2022 semi-annual report that, as of the end of the reporting period, Shanxi Merchant Consumer Finance’s total revenue was approximately 210 million yuan, a decrease of about 23.64% from 275 million yuan in the previous period; net profit was 25.6137 million yuan, a slight increase from 25.2868 million yuan in the previous period.

However, despite the slight increase in net profit, Shanxi Merchant Consumer Finance experienced a “balance sheet shrinkage” in total assets quarter-on-quarter.

According to Yuxin Technology’s 2022 semi-annual report, as of June 30, 2022, the total assets of Shanxi Merchant Consumer Finance were approximately 7.698 billion yuan, down 2.45% from 7.891 billion yuan in the previous period.

Editor: Song Yuting

Proofreader: Lu Qian

(Responsible editor: Ma Jinlu HF120)

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