Investment Rating - The report assigns an "Accumulate" rating for Postal Savings Bank of China (1658) [2][4]. Core Views - The 2024 interim performance of Postal Savings Bank aligns with expectations, with revenue and net profit growth showing marginal decline. Loan and deposit growth outpaces peers, and asset quality remains stable, though future risk exposure should be monitored [4]. Summary by Sections Financial Performance - Revenue growth for Q2 2024 decreased by 3.1 percentage points compared to Q1, resulting in a year-on-year decline of 1.6%. Net interest income grew by 0.6%, but the growth rate declined by 2.6 percentage points from Q1 due to slower expansion and narrowing interest margins. Non-interest income also saw a decline of 8.1% year-on-year [4]. - The cost-to-income ratio increased by 2.6 percentage points year-on-year due to higher expenses from deposit acquisition through agency networks. Net profit growth for Q2 2024 fell by 0.6 percentage points to -1.7% compared to Q1, influenced by declining revenue growth and rising costs [4]. Loan and Deposit Growth - As of the end of Q2 2024, loans increased by 10.2% year-on-year, maintaining double-digit growth, which is faster than total asset growth. Corporate loans rose by 15%, while personal loans also showed steady growth. Deposits grew by 11.8% year-on-year, reflecting a solid increase [4]. Asset Quality - The non-performing loan (NPL) ratio stood at 0.84% as of June, unchanged from March, with a provision coverage ratio of 325.6%, slightly down by 1.3 percentage points. The core asset quality indicators remain superior to comparable peers [4].

Investment Rating - The investment rating for Postal Savings Bank is "Buy" [3] Core Views - The bank's performance in the first half of 2024 shows revenue pressure with a slight decline in both revenue and net profit, but net interest margin has stabilized. The bank's asset quality remains strong, with a continued improvement in non-performing loan generation [6][2]. Summary by Sections Performance Overview - Postal Savings Bank reported a revenue of 176.8 billion, a year-on-year decrease of 0.1%, and a net profit attributable to shareholders of 48.8 billion, down 1.5% year-on-year. The non-performing loan ratio stands at 0.84%, unchanged from the previous quarter [1]. - Net interest income increased by 1.8% year-on-year, with a net interest margin of 1.91%, showing a slight decrease of 1 basis point from the previous quarter. The decline in loan rates for both retail and corporate loans contributed to this trend [1][2]. Asset and Liability Management - Total assets reached 16.4 trillion, growing by 4% since the beginning of the year. Loans increased by 136.7 billion in the second quarter, with retail loans showing a significant increase of 464 billion [2]. - Deposits reached 14.9 trillion, a 7% increase since the beginning of the year, with time deposits growing significantly while demand deposits decreased [2]. Asset Quality - The non-performing loan ratio remains stable at 0.84%, with a slight increase in the attention ratio to 0.81%. The non-performing loan generation rate improved to 0.74%, indicating a positive trend in asset quality [2][6]. Financial Projections - The bank's financial projections indicate a slight decline in revenue growth for 2024, with expected revenue of 342.4 billion, reflecting a year-on-year decrease of 0.02%. The net profit is projected to be 86.85 billion, a modest increase of 0.67% [7][8].

Financial Performance - Operating income for the first half of 2024 was RMB 176,919 million, a slight decrease of 0.13% compared to RMB 177,157 million in the same period of 2023[18]. - Net interest income increased to RMB 142,876 million, up 2.04% from RMB 140,305 million year-on-year[18]. - Net profit attributable to shareholders was RMB 48,815 million, down 1.51% from RMB 49,564 million in the first half of 2023[18]. - Total assets reached RMB 16,413,529 million, an increase of 4.37% from RMB 15,726,631 million at the end of 2023[19]. - Total customer loans amounted to RMB 8,658,762 million, up 6.25% from RMB 8,148,893 million at the end of 2023[19]. - The capital adequacy ratio decreased by 0.08 percentage points to 13.82% as of June 30, 2024, compared to 14.23% at the end of 2023[17]. - The net interest margin for the first half of 2024 was 1.91%, down from 2.08% in the same period of 2023[20]. - The cost-to-income ratio increased to 59.95% in the first half of 2024, compared to 57.36% in the same period of 2023[20]. - Basic and diluted earnings per share for the first half of 2024 were RMB 0.44, slightly down from RMB 0.46 in the same period of 2023[18]. - As of June 30, 2024, the non-performing loan ratio stands at 0.84%, consistent with the previous year[21]. - The provision coverage ratio is reported at 325.61%, down from 347.57% at the end of 2023, indicating a decrease in risk mitigation capacity[21]. Risk Management - There were no significant risks identified that could adversely affect the bank's future development strategy and operational goals during the reporting period[2]. - The bank is actively managing various risks and has implemented measures to effectively mitigate them, as detailed in the risk management section of the report[4]. - The bank maintains a prudent risk preference and has established a comprehensive risk management system to enhance its risk-leading capabilities[11]. Technological Advancements - The bank is focusing on enhancing its technological capabilities and has initiated a series of activities to promote consumer spending and financial inclusion[7]. - The bank is advancing the construction of its core business systems to strengthen its technological capabilities[7]. - The bank is accelerating the promotion of digital RMB and continuously innovating its application scenarios[7]. - The bank's new core business system launched on January 27, 2024, has reduced customer on-site processing time by over 50%[187]. - The bank's data platform has provided over 1,600 data services and 326 data service APIs, with a peak daily access volume of 40 million[191]. - The bank's AI-driven complaint analysis tool has achieved a classification accuracy rate of 93%[185]. Customer Service and Engagement - The bank serves over 660 million individual customers through nearly 40,000 outlets, focusing on "three rural issues," urban and rural residents, and small and medium enterprises[10]. - The bank's operational strategy includes a unique "self-operated + agency" model to serve its target customer groups effectively[10]. - The bank's focus on customer experience management has led to the establishment of a dynamic monitoring system for customer satisfaction[197]. - The bank has opened 5,638 "Post Love Stations" to provide community services, benefiting over 2.36 million people during the reporting period[195]. Sustainable Development and Green Finance - The bank has launched the first "ESG Climate Finance Loan" to explore new models of green finance in the local area[7]. - The balance of green loans amounted to RMB 693.099 billion, representing an 8.66% increase compared to the end of the previous year, consistently outpacing the average growth rate of various loans[170]. - The company aims to support the United Nations' 2030 Sustainable Development Goals and the Paris Agreement by promoting sustainable finance and climate financing[170]. - The company provided preferential interest rates for green projects with significant carbon reduction benefits, offering a 15 basis points discount for green credit and bonds, and a 70 basis points discount for green agriculture and micro-enterprises[172]. Corporate Strategy and Growth - The bank aims to enhance its service capabilities and accelerate its transformation into a digital ecological bank, focusing on rural revitalization and new urbanization[12]. - The bank is committed to a "5+1" strategic path, emphasizing digital finance, ecological finance, collaborative finance, industrial finance, and green finance[11]. - The bank is actively implementing national strategies and fulfilling its social responsibilities while pursuing high-quality development[11]. - The bank's financial services are designed to be integrated and efficient, providing high-quality and convenient services to a broad customer base[11]. Financial Health and Capital Structure - The bank's Tier 1 capital ranked 12th in the "Top 1000 World Banks" list by The Banker in 2024[11]. - The bank's equity totaled RMB 1,006.80 billion, an increase of RMB 50.18 billion, or 5.25%, primarily driven by a net profit increase of RMB 48.88 billion[86]. - Customer deposits reached RMB 14,865.06 billion, up RMB 909.10 billion, or 6.51% year-over-year, with individual deposits contributing RMB 13,215.24 billion, a growth of 5.77%[82]. Operational Efficiency - The operating expenses for the first half of 2024 amounted to RMB 107,372 million, an increase of RMB 4,263 million or 4.13% year-on-year[54]. - The company has implemented a centralized approval process for microloans, achieving a 40% reduction in review personnel costs and a 90% decrease in post-loan service time[107]. - The company has achieved a 70% improvement in business processing efficiency through the introduction of a video self-service signing model for agricultural credit[182]. Community and Social Responsibility - The company has actively engaged in social responsibility initiatives, including consumer rights protection and financial fraud prevention campaigns[167]. - The company conducted financial knowledge promotion activities reaching approximately 400,000 participants, and the "Financial Supermarket Challenge" event had a total exposure of 1.27 million times[167]. - The company has implemented energy-saving measures, achieving over 20% water savings through the use of water-saving devices in its Hebei branch[175].

Investment Rating - The investment rating for Postal Savings Bank is "Buy" [1][5]. Core Views - The bank's Q1 2024 performance met expectations, showing stable results with double-digit credit growth and a solid liability base, justifying the "Buy" rating [5]. - Revenue resilience is noted, with a slight decline in profit. Q1 revenue grew by 1.4% year-on-year, making Postal Savings Bank the only state-owned bank to achieve positive revenue growth [5]. - The net interest margin for Q1 narrowed by 10 basis points year-on-year, but interest income increased by 3.1% due to high credit growth, while non-interest income rose by 16.7% [5]. - The bank's loan growth was robust, with total loans increasing by 11.8% year-on-year, driven by a 18.1% increase in corporate loans and a 10.5% increase in retail loans [5]. - The bank's deposit base grew over 10% year-on-year, with retail deposits contributing significantly, enhancing the liability structure [5]. - Asset quality showed slight fluctuations, with a non-performing loan ratio of 0.84% and a provision coverage ratio of 326.9% [5]. Financial Summary - The projected net profit growth rates for Postal Savings Bank from 2024 to 2026 are 0.13%, 2.89%, and 5.80%, respectively, with corresponding EPS of 0.82, 0.84, and 0.89 yuan [5][6]. - The target price is set at 5.0 HKD, corresponding to a 0.55 times price-to-book ratio for 2024 [5].

Investment Rating - The report maintains a "Buy" rating for Postal Savings Bank of China (01658.HK) [6][9] Core Views - The bank achieved a revenue of 89.43 billion yuan in Q1 2024, reflecting a year-on-year growth of 1.4%, while the net profit attributable to shareholders decreased by 1.3% to 25.93 billion yuan [1] - The asset quality remains stable, with a non-performing loan (NPL) ratio of 0.84% and a provision coverage ratio of 326.87% as of the end of Q1 2024 [1][3] - The bank's net interest income grew by 3.1% in Q1 2024, supported by improved deposit costs and investment income [2] - The bank's retail loans showed a year-on-year increase, primarily driven by the growth in personal microloans [4] Summary by Sections Financial Performance - In Q1 2024, net interest margin was 1.92%, down by 9 basis points compared to the previous year, with interest-earning asset yield at 3.42% and interest-bearing liability cost at 1.52% [2] - Non-interest income decreased by 4.8% in Q1 2024, with net fee and commission income declining by 18.2% due to the impact of the "reporting and banking integration" policy [2] - The cost-to-income ratio increased to 59.3%, up by 3.4 percentage points year-on-year, primarily due to rising business and management expenses [2] Asset Quality - As of Q1 2024, the bank's NPL ratio was 0.84%, with a new NPL generation of 17.09 billion yuan, reflecting an annualized NPL generation rate of 0.81%, which is an improvement compared to the previous year [3] - The provision coverage ratio decreased by 20.7 percentage points year-on-year, indicating a stable asset quality [3] Asset and Liability Management - Total assets grew by 11.1% year-on-year, with loans increasing by 11.8%, contributing to a loan increment of 373.2 billion yuan in Q1 2024 [4] - Deposits increased by 10.5% year-on-year, with a total deposit increment of 672.1 billion yuan, primarily driven by retail deposits [4] Wealth Management - As of Q1 2024, the bank's retail assets under management (AUM) exceeded 16 trillion yuan, with a year-to-date increase of 845.5 billion yuan, maintaining a structure primarily based on deposits [5]

Financial Performance - Net profit for Q1 2024 was RMB 25,957 million, a decrease of 1.25% from RMB 26,285 million in Q1 2023[3]. - The company's operating revenue for the reporting period was 89.494 billion yuan, representing a year-on-year growth of 1.42%[13]. - The net profit attributable to shareholders was 25.926 billion yuan, maintaining a stable performance despite industry challenges[13]. - Net profit for the period was CNY 25.957 billion, a decrease of CNY 3.28 billion, or 1.25% year-on-year[19]. - Total operating income for Q1 2024 was RMB 89,494 million, up from RMB 88,242 million in Q1 2023, indicating a growth of 1.4%[30]. Asset and Liability Management - Total assets increased to RMB 16,331,949 million, up 3.85% from RMB 15,726,631 million at the end of 2023[2]. - The bank's total liabilities amounted to RMB 15,323,248 million, an increase of 3.75% from RMB 14,770,015 million[2]. - The bank's equity attributable to shareholders increased to RMB 1,006,927 million as of March 31, 2024, from RMB 954,873 million at the end of 2023, a growth of 5.5%[33]. - The adjusted on-balance sheet assets total RMB 16,951,270 million after accounting for various adjustments, including a deduction for impairment provisions of RMB 262,689 million[39]. Loan and Deposit Growth - Customer loans reached RMB 8,522,074 million, reflecting a growth of 4.58% compared to RMB 8,148,893 million[2]. - Customer deposits rose to RMB 14,628,047 million, marking a 4.82% increase from RMB 13,955,963 million[2]. - The balance of differentiated credit growth reached 5.31 trillion yuan, accounting for 62.34% of total loans, an increase of 0.35 percentage points from the end of the previous year[13]. - Agricultural loans balance reached CNY 2.33 trillion, an increase of CNY 176.23 billion compared to the end of last year[14]. - Inclusive small and micro enterprise loans balance reached CNY 1.58 trillion, accounting for over 18% of total customer loans, with a growth rate exceeding 30%[15]. Capital Adequacy and Risk Management - The bank's core tier 1 capital adequacy ratio stood at 9.41%, compared to 9.23% at the end of 2023[5]. - The liquidity coverage ratio stood at 282.57%, indicating a strong liquidity position relative to net cash outflows[37]. - The net stable funding ratio was reported at 165.81%, reflecting a robust funding profile[37]. - The company is focusing on enhancing risk management capabilities and has implemented a digital risk monitoring system[13]. Investment and Cash Flow - Operating cash flow increased significantly to RMB 225,146 million, up 829.74% from RMB 24,216 million year-on-year[4]. - Cash flow from investment activities resulted in a net outflow of RMB 65,769 million, compared to a net outflow of RMB 3,334 million in the previous year, indicating increased investment activity[35]. - Cash flow from financing activities showed a net outflow of RMB 68,646 million, contrasting with a net inflow of RMB 47,240 million in the same period last year, reflecting changes in capital structure[35]. Customer and Market Engagement - The number of ordinary shareholders reached 162,562, including 160,105 A-share shareholders and 2,457 H-share shareholders[6]. - The number of technology-based enterprises served reached 74,800, with a loan balance growth of 13.97% compared to the previous year[15]. - The number of VIP clients reached 53.82 million, growing by 4.55% compared to the end of last year[16]. - The company launched a comprehensive digital management platform for small and micro enterprises, serving a total of 14,000 clients[15]. Strategic Initiatives - The company aims to achieve its "14th Five-Year Plan" goals, emphasizing high-quality development and innovation[13]. - The company is actively optimizing its liability structure to maintain cost advantages[13]. - The company is committed to supporting the "two small" loan growth in agriculture and small enterprises, achieving historical highs in loan increments[13]. - The company is actively exploring green financial products, including the innovative "ESG loan + insurance" service model[16].

股 票 研 究 [Table_industryInfo] 商业银行/金融 [ Table_Main[ITnafbol]e _Title] [评Tab级le_：Inv est] 增持 邮储银行(601658) 上次评级： 增持 信贷高增，息差韧性较强 目标价格： 6.10 公 上次预测： 6.52 ——邮储银行2023 年报业绩点评 司 当前价格： 4.75 更 刘源(分析师) 钟昌静(研究助理) 2024.03.31 新 021-38677818 010-83939787 [交Ta易bl数e_M据a rket] 报 liuyuan023804@gtjas.com zhongchangjing028678@gtjas.com 52周内股价区间（元） 4.24-5.93 告 证书编号 S0880521060001 S0880123070141 总市值（百万元） 471,015 总股本/流通A股（百万股） 99,161/67,122 本报告导读： 流通 B股/H股（百万股） 0/19,856 邮储银行2023年营收和净利润增速符合预期，信贷保持高速增长，净息差收窄幅度 流通股比例 88% 优于同业，资产质量整体保持 ...

Financial Performance - Net profit for the first nine months of 2023 was RMB 75,766 million, up 2.48% compared to RMB 73,974 million in the same period of 2022[12]. - Net profit attributable to shareholders was CNY 75.655 billion, a year-on-year growth of 2.45%[18]. - The company achieved operating income of RMB 260.37 billion, an increase of RMB 3.18 billion, or 1.24% year-on-year[22]. - Net profit reached RMB 75.77 billion, up RMB 1.83 billion, or 2.48% year-on-year[22]. - The bank's net profit for Q3 2023 was RMB 26,128 million, a slight decrease from RMB 26,765 million in Q3 2022, representing a decline of 2.4%[33]. - Basic and diluted earnings per share for the first nine months were RMB 0.73, with a year-over-year decrease of 10.34%[12]. Asset and Liability Management - As of September 30, 2023, total assets reached RMB 15,315,359 million, an increase of 8.87% from RMB 14,067,282 million at the end of 2022[11]. - Total liabilities amounted to CNY 14.40 trillion, up 8.75% from the previous year[18]. - Total assets as of September 30, 2023, amounted to RMB 15,315,359 million, a significant increase from RMB 14,067,282 million at the end of 2022, indicating a growth of 8.9%[35]. - The bank's total liabilities as of September 30, 2023, were RMB 14,399,885 million, compared to RMB 13,241,468 million at the end of 2022, reflecting an increase of 8.7%[36]. Customer Loans and Deposits - Total customer loans amounted to RMB 8,020,496 million, reflecting an 11.23% increase from RMB 7,210,433 million year-over-year[11]. - Customer deposits increased to RMB 13,493,122 million, a growth of 6.12% from RMB 12,714,485 million at the end of 2022[11]. - Customer loans exceeded CNY 8 trillion, reaching CNY 8.02 trillion, a growth of 11.23% year-on-year[18]. - Customer deposits reached CNY 13.49 trillion, reflecting a 6.12% increase year-on-year[18]. Equity and Shareholder Information - The bank's equity attributable to shareholders rose to RMB 913,774 million, marking a 10.86% increase from RMB 824,225 million at the end of 2022[11]. - Shareholders' equity totaled RMB 915.474 billion, an increase of RMB 89.660 billion or 10.86% year-on-year, driven by net profit and capital raised from non-public issuance[28]. - The total number of ordinary shareholders was 155,270, including 152,790 A-share shareholders and 2,480 H-share shareholders[14]. - China Postal Group Co., Ltd. held 62.78% of the shares, making it the largest shareholder[15]. Cash Flow and Operating Activities - The net cash flow from operating activities for the first nine months was negative at RMB (28,418) million, a significant decrease from RMB 129,214 million in the same period last year[13]. - Operating cash flow before tax profit for the nine months ended September 30, 2023, was RMB 82,840 million, slightly up from RMB 82,578 million in the same period of 2022, reflecting a growth of 0.32%[37]. - Cash flow from investment activities showed a net outflow of RMB (287,877) million for the nine months ended September 30, 2023, compared to RMB (247,409) million in the same period of 2022, representing an increase in outflow of 16.3%[38]. - Cash flow from financing activities generated a net inflow of RMB 333,751 million for the nine months ended September 30, 2023, a turnaround from a net outflow of RMB (36,674) million in the same period of 2022[38]. Loan Quality and Risk Management - Non-performing loan ratio stood at 0.81%, a decrease of 0.03 percentage points from the end of last year[18]. - Non-performing loans amounted to RMB 64.661 billion, an increase of RMB 3.925 billion; the non-performing loan ratio was 0.81%, a decrease of 0.03 percentage points[29]. - The cumulative amount of proactive credit granted reached RMB 235 billion, with a loan balance exceeding RMB 118 billion and a non-performing loan ratio of less than 0.5%[19]. - The bank's credit impairment losses for the first nine months of 2023 were RMB 21,149 million, a decrease of 32.8% compared to RMB 31,458 million in the same period of 2022[33]. Capital Adequacy and Ratios - The core tier 1 capital adequacy ratio was 9.46%, an increase of 0.10 percentage points; the total capital adequacy ratio was 13.83%, up 0.01 percentage points[29]. - The core tier 1 capital adequacy ratio as of September 30, 2023, was 9.46%, up from 9.36% at the end of 2022, indicating improved capital strength[39]. - The leverage ratio as of September 30, 2023, was 5.61%, consistent with the previous quarter's 5.57% and showing stability in capital management[40]. - The liquidity coverage ratio as of September 30, 2023, was 222.59%, down from 250.86% at the end of 2022, reflecting a decrease in liquidity buffer[41]. Business Growth and Revenue - The bank served 65,100 specialized and innovative enterprises, with loans exceeding CNY 300 billion[17]. - Green loan balance reached CNY 596.697 billion, growing by 20.17% year-on-year[17]. - The bank's wealth management transformation and the promotion of the "1+N" operating and service model contributed to rapid growth in various business revenues[24]. - Net commission and fee income reached RMB 23.715 billion, an increase of RMB 0.076 billion or 0.32% year-on-year; excluding one-time factors from the previous year, the growth was 16.14%[24].

Financial Performance - Operating income for the first half of 2023 was RMB 177.16 billion, a year-on-year increase of 2.03% compared to RMB 173.64 billion in the same period of 2022[19]. - Net profit attributable to bank shareholders for the first half of 2023 reached RMB 49.56 billion, reflecting a year-on-year growth of 5.20% from RMB 47.11 billion in the first half of 2022[19]. - The bank's comprehensive income totalled RMB 50.79 billion, representing a year-on-year increase of 12.22%[40]. - The bank's operational philosophy is to understand the market and act proactively, ensuring compliance and prudent risk management[14]. - The bank's income from personal banking business grew by 2.59% year-on-year, accounting for 72.15% of total operating income, an increase of 0.39 percentage points[97]. Asset and Loan Growth - Total assets exceeded RMB 15 trillion, an increase of 7.51% compared to the end of the previous year[2]. - Total customer loans reached RMB 7.82 trillion as of June 30, 2023, an increase of 8.49% from RMB 7.21 trillion at the end of 2022[20]. - Customer deposits grew to RMB 13.30 trillion, marking a 4.62% increase from RMB 12.71 trillion at the end of 2022[20]. - The total loan balance in poverty alleviation areas (832 counties) reached CNY 468.67 billion, an increase of CNY 55.30 billion from the previous year[147]. - The balance of inclusive small and micro enterprise loans reached CNY 1.35 trillion, accounting for over 17% of the total customer loan amount, maintaining a leading position among state-owned banks[159]. Risk Management - Non-performing loan ratio stands at 0.81%, with a provision coverage ratio of 381.28%[2]. - The bank emphasizes a risk management system that is comprehensive, full-process, and involves all employees, enhancing its risk-leading capabilities[12]. - The bank actively implements measures to effectively manage various risks[3]. - The bank's loan-to-deposit ratio improved to 58.81%, an increase of 2.10 percentage points compared to the end of the previous year[38]. - The bank's credit card non-performing rate decreased by 0.12 percentage points to 1.83%[111]. Digital Transformation and Innovation - The bank is focusing on digital transformation and innovation, including the introduction of AI-driven customer service and new operational models[32]. - The bank launched the "U Benefit Creation" financial brand to support high-quality development of specialized and innovative enterprises[8]. - The bank is enhancing its digital service capabilities through the "C+" integrated service platform, aiming for improved customer experience and operational efficiency[99]. - The company has implemented a digital transformation strategy that integrates risk management with green finance, utilizing AI technology for dynamic monitoring of environmental benefits[183]. - The company has established a digital agricultural industry alliance to enhance financial services across the entire lychee industry chain, addressing financing, sales, and logistics challenges[157]. Customer Base and Service Expansion - The company serves over 650 million individual customers through nearly 40,000 service outlets, focusing on rural areas, urban residents, and small and medium-sized enterprises[12]. - The number of customers increased by 150,100 to 2.0845 million, with specialized and innovative enterprises growing by over 30%[31]. - The number of personal customers served reached 656 million, with assets under management (AUM) totaling CNY 14.52 trillion, an increase of CNY 632.5 billion from the end of the previous year[98]. - The bank processed a total of CNY 3.13 trillion in collected funds and CNY 9.14 trillion in paid funds, including CNY 243.17 billion in collected social security pensions and CNY 4.83 trillion in paid pensions[102]. - The company has established a unique "4-3-2-1" service model, integrating digital services to enhance inclusive financial capabilities[168]. Corporate Social Responsibility and Sustainability - The company has signed the United Nations Sustainable Blue Economy Finance Initiative in March 2023, becoming the first state-owned commercial bank in China to do so[179]. - The company has launched various green financial products, including small loans for photovoltaic equipment and clean energy projects, with a total issuance of RMB 5 billion in green financial bonds in the interbank bond market[183]. - The company has established 25 green financial institutions to support local economic green and low-carbon transformation[179]. - The company has implemented a green procurement policy, requiring suppliers to adhere to energy-saving and environmental protection agreements[183]. - The company has developed a comprehensive green banking management mechanism, optimizing its credit policies to focus on green finance and climate financing[183]. Employee Development and Welfare - The bank's corporate culture emphasizes resilience, warmth, and a commitment to employee development and satisfaction[14]. - The company has committed to enhancing employee welfare and satisfaction, focusing on improving the quality of life and addressing urgent employee needs[186]. - The company has organized multiple sports events, such as badminton and volleyball tournaments, to promote physical fitness among employees[190]. - The company emphasizes the importance of employee mental health and has established a psychological support system, including a hotline and various activities aimed at enhancing mental well-being[188]. - A specialized training program for customer service engineers is being implemented to enhance their professional and comprehensive capabilities[199].

Financial Performance - Net profit for Q1 2023 was RMB 26,285 million, up 5.03% from RMB 25,026 million in Q1 2022[14] - Operating income for Q1 2023 was RMB 88,242 million, representing a 3.50% increase from RMB 85,256 million in Q1 2022[14] - Net profit attributable to shareholders was CNY 26.28 billion, a year-over-year increase of 5.22%[20] - Operating income was CNY 88.24 billion, reflecting a 3.50% increase compared to the previous year[20] - Net profit reached CNY 26.29 billion, an increase of CNY 1.26 billion, or 5.03% year-on-year[24] - The bank's basic and diluted earnings per share for Q1 2023 were CNY 0.27, compared to CNY 0.26 in the same period last year[37] Assets and Liabilities - Total assets increased to RMB 14,697,475 million, a 4.48% increase from RMB 14,067,282 million at the end of 2022[13] - Total liabilities amounted to RMB 13,805,964 million, an increase of 4.26% from RMB 13,241,468 million at the end of 2022[13] - Total assets reached CNY 14.70 trillion, an increase of 4.48% year-over-year[20] - Total liabilities increased to CNY 13.81 trillion, up by 4.26% year-over-year[20] Customer Loans and Deposits - Customer loans reached RMB 7,622,902 million, reflecting a growth of 5.72% compared to RMB 7,210,433 million at the end of 2022[13] - Customer deposits reached RMB 13,240,198 million, up 4.13% from RMB 12,714,485 million at the end of 2022[13] - Customer loans amounted to CNY 7.62 trillion, growing by 5.72% compared to the previous year[20] - Customer deposits surpassed CNY 13 trillion, reaching CNY 13.24 trillion, a growth of 4.13% from last year[20] Cash Flow - The net cash flow from operating activities decreased significantly to RMB 24,216 million, down 83.13% from RMB 143,558 million in the same period last year[15] - The net cash flow used in investing activities for Q1 2023 was RMB (3,334) million, an improvement from RMB (119,112) million in Q1 2022[41] - The net cash flow from financing activities for Q1 2023 was RMB 47,240 million, compared to RMB 43,878 million in Q1 2022, showing a slight increase[41] Capital Adequacy and Ratios - The return on average equity (annualized) for Q1 2023 was 14.37%, a decrease of 0.45 percentage points from 14.82% in Q1 2022[14] - Core Tier 1 capital adequacy ratio improved to 9.72%, up by 0.36 percentage points from last year[20] - The bank's core Tier 1 capital adequacy ratio was 9.72%, an increase of 0.36 percentage points from the end of the previous year[32] - The leverage ratio as of March 31, 2023, was 5.77%, an increase from 5.61% as of December 31, 2022[43] - The liquidity coverage ratio decreased to 236.41% as of March 31, 2023, down from 250.86% as of December 31, 2022[44] Non-Performing Loans - Non-performing loan ratio improved to 0.82%, down by 0.02 percentage points from the previous year[20] - As of the end of Q1 2023, the bank's non-performing loan balance was CNY 62.62 billion, an increase of CNY 1.88 billion from the end of the previous year, with a non-performing loan ratio of 0.82%, down by 0.02 percentage points[31] - The bank's overdue loan balance was CNY 72.22 billion, an increase of CNY 4.07 billion from the end of the previous year, maintaining an overdue rate of 0.95%[32] - The bank's provision coverage ratio was 381.12%, down by 4.39 percentage points from the end of the previous year[32] Fee and Commission Income - Net income from fees and commissions rose to CNY 11.59 billion, a significant increase of 27.50% year-over-year[20] - Fee and commission income increased by CNY 2.50 billion, or 27.50%, totaling CNY 11.59 billion, driven by growth in insurance, credit card, and investment banking services[25] - The bank's fee and commission income for Q1 2023 was CNY 21.47 billion, compared to CNY 16.09 billion in Q1 2022, marking a significant increase of 33.56%[36] Other Financial Metrics - Net interest income was CNY 69.40 billion, up CNY 6.82 billion, or 0.99% year-on-year, with a net interest margin of 2.09%[25] - The pre-tax profit for Q1 2023 was RMB 29,464 million, a slight increase from RMB 28,793 million in Q1 2022[40] - Cash and cash equivalents increased to RMB 308,021 million as of March 31, 2023, from RMB 239,980 million at the beginning of the period[41]