In recent news from Epoch Times on September 4, 2024, it was reported that the half-year financial reports of A-share listed companies in mainland China have been disclosed. The average salary of over 2.5 million employees from 42 banks has been revealed, showing a decrease in average monthly salary for the first time and an overall reduction in staff numbers by over 30,000 employees.
Due to the challenging operating environment in the banking industry, the total number of employees at 42 listed banks experienced negative growth in the first half of this year. The total compensation also saw a negative growth for the first time, indicating a potentially pessimistic outlook for the annual salary of bank employees.
Data indicates that the average salary in the banking industry during the first half of 2024 generally declined, with an average monthly salary decrease of 887 yuan. This phenomenon was particularly evident among the six major state-owned banks, where the average monthly salary was less than 30,000 yuan.
For instance, the average monthly salary at China Merchants Bank dropped by 3.7% compared to 2023. Employees at the bank are now receiving 6,000 yuan less per month than they did three years ago.
In terms of staff numbers, the total number of employees at the 42 listed banks exceeded 2.56 million, a decrease of around 38,000 people compared to the beginning of the year.
The reduction in staff and salary cuts may be some of the measures banks are taking to improve efficiency and lower costs.
During the first half of this year, most banks were downsizing, with 32 out of the 42 listed banks having a decrease in staff numbers compared to the beginning of the year.
The changes in staff numbers at the six major state-owned banks garnered significant attention. Among them, Industrial and Commercial Bank of China (ICBC) had the largest staff reduction, with the bank reporting a decrease of over 10,000 employees by the end of June compared to the previous year-end.
This shift reflects the operational pressure and changing market environment faced by the banking industry.
In recent years, reducing salaries and layoffs have become unavoidable topics in the banking sector.
On the evening of August 15, Ping An Bank released its mid-year report for 2024, providing detailed information on staff numbers and offering a comprehensive view of the job cuts within banks in the first half of this year.
By comparing the data between the end of 2023 and June 30, 2024, it was found that within six months, the number of employees at Ping An Bank decreased from 42,757 to 40,452, with 2,305 staff members laid off. These figures only pertain to Ping An Bank and do not include Ping An Wealth Management.
Most of the branches of Ping An Bank across different regions also underwent staff reductions, albeit at varying rates. The largest branch in Shenzhen saw its staff numbers decrease from 4,214 to 4,024, resulting in 190 job cuts, making it the branch with the highest number of layoffs. Similarly, the Shanghai branch saw a reduction from 2,221 to 2,079 employees, laying off 142 people.
Out of the five branches with over a thousand employees, the percentage of layoffs in this round exceeded a hundred in each of them. Among these five branches, the Hangzhou branch had the highest layoff proportion, nearly 9%.
Corresponding to the staff reductions, the number of institutions at Ping An Bank also decreased. While the number of branches remained the same, the total number of operational institutions decreased from 1,201 to 1,180, reduced by 21. Notably, the number of branches in Shenzhen decreased from 101 to 97, a decrease of 4 branches.
Recently, there were reports that personnel from departments such as credit card R&D and consumer finance R&D at Ping An Bank’s Shanghai office would be relocated to Shenzhen, raising questions about Ping An Bank’s “indirect layoffs” through relocation to Shenzhen.
However, Ping An Bank responded, stating that “the news online regarding our bank’s indirect layoffs is not true. Due to historical reasons, some departments at our headquarters operate in different locations. In order to enhance management and efficiency, some departments have been coordinating office locations recently.”
On social media, netizens expressed that while pay cuts have become common knowledge, what’s worse than pay cuts is the prospect of layoffs.
A blogger from Anhui, “Xiao Y,” recently mentioned that when she visited a nearby bank a couple of days ago, the bank teller informed her that the bank’s branch would be closing this month, leaving only the ATM operational.
She noted that many people have felt that the days for financial industry professionals are indeed tough. Ping An Bank ranks as one of the upper-middle banks within the Chinese financial industry, and thus, the situation at Ping An Bank could be seen as representative of the Chinese banking sector.
At the end of 2023, the number of banking business-related employees at Ping An Bank was 34,496, which decreased to 32,308 by the end of June 2024, with 2,188 staff members laid off.