Consumer finance companies transfer over 53 billion yuan of non-performing loans in half a year, accelerating risk clearance.

Consumer finance companies continue to offload non-performing assets. According to incomplete statistics from a Beijing Business Today reporter, in the first half of 2026, a total of 24 licensed consumer finance companies participated in the transfer of non-performing assets, with a combined transfer scale exceeding 53 billion yuan, both the transfer scale and the number of participating institutions reaching new highs. During the same period, the overdue aging of the transferred non-performing assets shortened significantly. Analysts pointed out that the transfer of non-performing assets in the consumer finance industry shows composite characteristics such as rising scale, wide institutional coverage, and accelerated asset offloading. Some interviewed institutions also mentioned that this is a positive signal of consumer finance institutions accelerating risk offloading.

Non-performing assets intensively listed

On July 1, Nanyue BNP Paribas Consumer Finance issued three phases of personal non-performing loan (personal consumer loan) transfer solicitation announcements, namely the 6th, 7th, and 8th phases of 2026, with transfer scales of 462 million yuan, 184 million yuan, and 318 million yuan respectively, totaling 964 million yuan; involving 47,418, 2,072, and 2,788 loan items respectively, totaling 52,278 items. Among them, the transaction base date for the 6th phase non-performing asset package of Nanyue BNP Paribas Consumer Finance was June 16, while the remaining two phases were June 26.

Looking at the characteristics of the non-performing loan assets, the assets to be transferred by Nanyue BNP Paribas Consumer Finance this time are all personal consumer loans, almost all of which are unlitigated assets. Compared with the industry's more common long-aging assets with overdue periods of 1,500-2,000 days, the weighted average overdue days of the three phases of non-performing loans listed by Nanyue BNP Paribas Consumer Finance are generally not long, with the 6th phase being the longest at 723 days and the 8th phase being the shortest at 263 days.

At the beginning of the second half of 2026, consumer finance companies continue their actions to transfer non-performing assets, which is also in line with the normalization of non-performing asset disposal in the industry over the past two years. Not only Nanyue BNP Paribas Consumer Finance, but also several institutions such as Shangcheng Consumer Finance, Shengyin Consumer Finance, Vipshop Fubon Consumer Finance, and Haier Consumer Finance listed non-performing assets for transfer in June 2026.

Among them, Haier Consumer Finance issued its first non-performing asset transfer announcement of the year on June 22, with the relevant assets having an outstanding principal and interest total of 142 million yuan, including 88.5M yuan of outstanding principal and 53.91M yuan of outstanding interest, involving 48,997 asset items. The weighted average overdue days of this non-performing asset package were 2,022 days, mostly unlitigated assets. On the same day, Vipshop Fubon Consumer Finance publicly solicited overdue claims of 40.05 million yuan, with a weighted average overdue days of 253.57 days.

Also on June 16, Shengyin Consumer Finance issued a solicitation announcement for the first phase of personal non-performing loan bulk transfer project in 2026, intending to transfer claims with an outstanding principal and interest total of 60.39 million yuan, with a weighted average overdue days of 1,127 days. This was also the first time Shengyin Consumer Finance conducted a non-performing asset transfer.

Su Xiaorui, senior researcher at Suxi Zhiyan, commented directly that for licensed consumer finance institutions, the transfer of non-performing loans can help institutions reduce historical burdens and focus on more important business areas such as customer acquisition and risk control. Institutions also hope to resolve potential risks in a timely manner through the disposal of non-performing assets.

Both transfer scale and number of participating institutions hit new highs

Looking at a longer time frame, according to incomplete statistics from a Beijing Business Today reporter, in the first half of 2026, a total of 24 licensed consumer finance companies participated in the transfer of non-performing assets, with a combined transfer scale exceeding 53 billion yuan, both the transfer scale and the number of participating institutions reaching new highs. Compared with the same period last year, both the transfer scale and the number of participating institutions have significantly increased. In the first half of 2025, a total of 15 consumer finance companies listed non-performing loan asset packages, with a scale exceeding 30 billion yuan.

Among the 24 participating institutions, the listing scale of top consumer finance institutions was more prominent. Bank of China Consumer Finance and Merchants Union Consumer Finance both had transfer scales exceeding 10 billion yuan. Specifically, in the first half of the year, Bank of China Consumer Finance listed a total of 33 projects, with a total listing scale of 11.7 billion yuan, ranking first in the industry, accounting for more than 22% of the total listed assets. Next, Merchants Union Consumer Finance listed 10 projects, totaling 10.6 billion yuan. Following that, Ant Consumer Finance transferred non-performing assets close to 6.5 billion yuan, ranking third in the industry.

Since licensed consumer finance was included in the pilot scope of non-performing loan transfer at the end of 2022, licensed consumer finance institutions have increasingly become the main force in this market. The main reason behind this is that the consumer finance industry has ended its period of rapid expansion, and regulatory requirements for asset quality, provisions, and capital management have been continuously strengthened, forcing institutions to establish normalized non-performing asset offloading channels.

"Previously, consumer finance institutions mostly accumulated long-aging bad debts for centralized disposal. The industry's stock of overdue loans continued to accumulate, coupled with declining interest rates compressing profit margins, institutions had to proactively adjust their disposal strategies. Relying on the pilot policy for individual loan non-performing transfer, they can transfer short-term overdue claims in advance, achieving risk mitigation front-loading. At the same time, with stricter compliance requirements for debt collection, the recovery efficiency of long-term overdue assets has declined. Early transfer can lock in losses and revitalize credit limits," explained an industry insider from the consumer finance sector to a Beijing Business Today reporter.

Regarding the main reasons for the intensive listing of non-performing assets and its impact on company operations, a Beijing Business Today reporter also interviewed several companies including Bank of China Consumer Finance, Merchants Union Consumer Finance, and Haier Consumer Finance. In response, Merchants Union Consumer Finance stated that the non-performing asset transfer mechanism, by converting non-performing assets into tradable securities, not only improves the liquidity of financial markets but also achieves risk diversification and transfer, reducing the risk borne by a single institution, becoming an effective way to resolve financial risks and enhance the stability of the financial system.

Merchants Union Consumer Finance pointed out that conducting non-performing asset transfers is a routine operation for consumer finance institutions to proactively optimize their balance sheets and release credit space.

Su Xiaorui believes that the transfer of non-performing assets in the consumer finance industry in the first half of 2026 shows composite characteristics such as rising scale, wide institutional coverage, and accelerated asset offloading. This not only reflects the industry's proactive risk offloading and self-purification under strong regulation but also reveals the positive actions of the consumer finance industry in strengthening post-loan asset disposal and promoting the transformation of post-loan models under the pressure of asset quality.

"Short-aging" trend will deepen

A Beijing Business Today reporter noted that in addition to the increase in participating entities and the prominent listing scale of top institutions, there is another important change in the non-performing assets transferred by consumer finance institutions in the first half of 2026: the aging structure has significantly shortened. Compared with previous long-aging assets, the weighted average overdue days of non-performing asset packages listed by multiple institutions in the first half of the year were concentrated in the range of 200-300 days, and some asset packages even appeared on the resale platform after only a little over a hundred days.

For example, among the other five phases of non-performing asset packages released by Nanyue BNP Paribas Consumer Finance in the first half of the year, only one had a weighted average overdue days exceeding one year, involving a claim amount of 450 million yuan; the remaining non-performing asset overdue periods did not exceed seven months, with the shortest being only 155 days. The solicitation announcement for the 30th phase of personal non-performing loan transfer of Bank of China Consumer Finance in 2026 mentioned that the weighted average overdue days of this asset package was only 135.44 days.

"The longer the overdue period, the greater the asset depreciation and the higher the rate of unreachable borrowers. By listing short-term overdue claims early, consumer finance institutions can quickly lock in losses, reduce provision occupation, and further recover funds to maintain high-quality customer groups," the aforementioned industry insider mentioned.

According to a notice from regulatory authorities, the pilot period for non-performing loan transfer, originally scheduled to expire at the end of 2025, has been extended for another year until December 31, 2026. In the remaining six-month window, what new changes will occur in the non-performing asset transfer actions of consumer finance institutions? Su Xiaorui pointed out that in the short to medium term, the non-performing asset transfer in the consumer finance industry may exhibit the following characteristics: First, the scale of non-performing transfers may remain high, but the growth rate may slow down; second, the "short-aging" trend will deepen, and "early transfer, quick exit" has become industry consensus.

However, it should also be noted that non-performing asset transfer is not a "one-and-done" solution for consumer finance institutions. Asset transfer will incur discount losses, and continuous transfers will compress profits. While offloading risks, institutions should do a better job of user management from the source.

Beijing Business Today reporter Liao Meng

(Editor: Qian Xiaorui)

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