Core Viewpoint - Jinshan Bank reported its 2024 performance, showing growth in total assets and loans, while facing challenges in credit card balances and interest income [1][3][5]. Financial Performance - As of December 31, 2024, the total assets of Jinshan Bank reached RMB 376.3 billion, an increase of 4.2% from the previous year [1]. - The total liabilities amounted to RMB 348.3 billion, reflecting a 3.5% increase year-on-year [1]. - The bank's non-performing loan (NPL) ratio stood at 1.77%, a slight decrease of 0.01 percentage points compared to December 31, 2023 [2][7]. Loan and Deposit Growth - The bank's loan portfolio reached RMB 127.3 billion, marking a 5.8% increase from the previous year, driven by initiatives to support small and micro enterprises and key economic sectors in Shanxi Province [3]. - Total deposits surpassed RMB 310.3 billion, increasing by 7.7% year-on-year, attributed to enhanced marketing efforts and improved customer service [6]. Interest Income and Rates - Interest income from loans and advances was RMB 7.975 billion, a decrease of 2.1% from the previous year, primarily due to a decline in average yield from 4.26% to 3.92% [5]. - Net interest income was RMB 4.189 billion, down 1.1%, influenced by an increase in interest expenses on deposits [6]. - The net interest margin decreased from 1.36% to 1.20% due to lower yields on loans and financial investments [6][7]. Credit Card and Consumer Trends - The bank's credit card balance was RMB 3.935 billion, a decrease of 14.5%, impacted by lower consumer demand and increased competition from alternative financial products [4].

Core Viewpoint - Jinshang Bank emphasizes high-quality development and structural reform in its 2024 performance announcement, focusing on serving the real economy, risk management, and continuous transformation [2] Financial Performance - As of the end of 2024, Jinshang Bank's total assets reached 376.306 billion yuan, an increase of 15.001 billion yuan, or 4.15% from the previous year [3] - The deposit balance was 300.863 billion yuan, up by 19.781 billion yuan, or 7.04% [3] - The loan balance stood at 201.414 billion yuan, increasing by 9.978 billion yuan, or 5.21% [3] - The net profit for the year was 1.750 billion yuan [3] Service to the Real Economy - Corporate banking income accounted for 60% of total operating income, with a loan balance of 127.308 billion yuan, including 13.466 billion yuan in technology finance loans and 11.208 billion yuan in green finance loans [4] - The operating income from corporate banking was 3.480 billion yuan, representing 60.1% of total operating income [4] Retail Banking Development - Retail banking customer numbers grew from 3.313 million at the end of 2023 to 3.485 million at the end of 2024 [5] - Retail banking operating income was 1.387 billion yuan, making up 23.9% of total operating income [5] - The bank received multiple awards for its retail banking services and wealth management [5] Support for Small and Micro Enterprises - The balance of loans to small and micro enterprises reached 11.554 billion yuan, an increase of 1.722 billion yuan [6] - The number of small and micro enterprise loan customers rose to 5,576, an increase of 1,875 [7] - The non-performing loan ratio for small and micro enterprise loans was 3.29%, down by 0.52 percentage points [7] Asset Quality and Risk Management - The non-performing loan ratio was 1.77%, a decrease of 0.01 percentage points from the previous year [8] - The bank's provision coverage ratio was 205.46%, an increase of 6.75 percentage points [8] - Capital adequacy ratios were maintained above regulatory requirements, with a capital adequacy ratio of 12.84% [8] Digital Transformation - Jinshang Bank made significant progress in digital transformation, with mobile banking users increasing by 11.5% and transaction volume rising by 9.5% [9] - Video banking business volume grew by 61.3%, reaching nearly 2 million retail customers [9] - The efficiency of post-loan management improved by 70% [9]

Financial Performance - For the year ended December 31, 2024, the net profit decreased by 12.6% to RMB 1,749.5 million compared to RMB 2,000.6 million in 2023[8]. - The bank's operating profit fell by 11.4% to RMB 1,792.0 million from RMB 2,021.8 million in the previous year[7]. - The diluted earnings per share decreased to RMB 0.30 from RMB 0.34 in 2023, reflecting an 11.8% decline[8]. - The company's pre-tax profit decreased by 10.6% to RMB 1,818.2 million from RMB 2,033.9 million in 2023[24]. - The company's revenue for the year ended December 31, 2024, was RMB 5,791.1 million, slightly down from RMB 5,802.2 million in 2023[127]. Assets and Liabilities - Total assets increased by 4.2% to RMB 376,305.5 million from RMB 361,305.0 million in the previous year[9]. - The bank's total liabilities rose by 3.5% to RMB 348,277.2 million, with customer deposits increasing by 7.7% to RMB 310,327.9 million[9]. - The total amount of loans and advances issued was RMB 201,414.1 million, up from RMB 191,436.1 million in the previous year[101]. - The total amount of corporate loans as of December 31, 2024, was RMB 127,307.5 million, an increase of 5.8% compared to December 31, 2023[150]. Income and Expenses - The net interest income declined by 1.1% to RMB 4,189.3 million, down from RMB 4,236.2 million in 2023[7]. - The net fee and commission income dropped by 10.8% to RMB 626.7 million compared to RMB 702.9 million in 2023[7]. - Interest expenses rose by 1.9% to RMB 7,515.7 million for the year ended December 31, 2024, due to a 7.6% increase in average interest-bearing liabilities to RMB 326,436.4 million[37]. - Operating expenses decreased by 2.2% from RMB 2,348.4 million for the year ending December 31, 2023, to RMB 2,296.3 million for the year ending December 31, 2024[52]. Risk Management - The company has strengthened its risk management framework, focusing on proactive and forward-looking measures to enhance overall risk management capabilities[20]. - The bank has established a comprehensive credit risk management system to identify, measure, monitor, and control credit risks[135]. - The company maintained a strong focus on risk management, dynamically adjusting provisions based on macroeconomic conditions and default probabilities[123]. Capital Adequacy - The bank's capital adequacy ratio decreased to 12.84% from 13.17% in the previous year[10]. - The Tier 1 capital ratio is 10.97%, down 0.17 percentage points compared to the end of 2023[132]. - The Common Equity Tier 1 capital ratio is 10.18%, a decline of 0.96 percentage points from the end of 2023[132]. - The total amount of Common Equity Tier 1 capital is 26,025.5 million, an increase from 24,802.6 million[131]. Loan Performance - The non-performing loan ratio slightly improved to 1.77% from 1.78% in 2023[10]. - The total amount of non-performing loans reached RMB 2,784.5 million as of December 31, 2024, compared to RMB 2,602.7 million in the previous year, with an overall NPL ratio of 2.19%[113]. - The personal loan NPL ratio decreased from 2.54% as of December 31, 2023, to 2.28% as of December 31, 2024, while the NPL balance fell from RMB 809.6 million to RMB 781.2 million[114]. Corporate Governance - The company has established a comprehensive corporate governance structure in compliance with the Hong Kong Listing Rules[169]. - The board has formed six specialized committees to provide advice on decision-making[169]. - The company is committed to maintaining high standards of corporate governance and will continue to review and enhance its governance practices[169]. Digital Transformation and Innovation - The company launched the "Code Loan" service, allowing users to apply for loans via QR code, enhancing its digital service offerings[19]. - The company is focusing on digital transformation and enhancing its product offerings to improve customer experience and meet market demands[73]. Market and Economic Context - The GDP for 2024 was RMB 13,490.84 billion, representing a 5.0% growth compared to the previous year[12]. - The total retail sales of consumer goods reached RMB 487,895 billion, marking a 3.5% increase year-on-year[12]. - The total import and export value for 2024 was RMB 438,468 billion, reflecting a 5.0% increase year-on-year[14].

资料显示，晋商银行总行设在山西太原，2008年12月30日经中国银监会批准由太原市商业银行更名， 2009年2月28日正式挂牌成立，并于2019年7月18日在香港交易所上市。 人民财讯3月15日电，国家金融监督管理总局山西监管局发布批复显示，监管已同意晋商银行收购清徐 晋商村镇银行，承接其资产、负债、业务和员工，并设立晋商银行清徐梗阳西街支行。 ...

(责任编辑:何潇) 【大河财立方消息】2月12日消息,中国人民银行朔州市分行近日披露多则行政处罚决定信息,其中,晋商 银行朔州分行因存在提供虚假的或隐瞒重要事实的统计资料的违法行为,被处罚款约31.98万元。 ...

12月3日，国家金融监督管理总局朔州监管分局日前披露的行政处罚信息公开表显示，晋商银行股份有 限公司朔州分行因贷款"三查"制度执行不到位，国家金融监督管理总局朔州监管分局责令晋商银行朔州 分行改正并处罚款20万元。 同时，晋商银行股份有限公司朔州分行内部控制管理不到位，公章管理存在严重缺陷行为，被国家金融 监督管理总局朔州监管分局责令改正并处罚款40万元。 时任晋商银行山阴支行行长吕加富给予禁止终身从事银行业工作处罚。 时任晋商银行朔州分行办公室主任郭勇给予警告处罚。 ...

Financial Performance - As of June 30, 2024, total assets reached RMB 370.86 billion, with deposits at RMB 290.23 billion and loans at RMB 202.02 billion[26]. - Net interest income increased by 9.4% to RMB 2,218.8 million compared to RMB 2,028.3 million in the previous year[27]. - Pre-tax profit slightly increased by 0.5% to RMB 1,046.6 million compared to RMB 1,041.0 million[27]. - Net profit attributable to equity holders decreased by 0.4% to RMB 1,030.4 million from RMB 1,034.1 million[27]. - For the six months ended June 30, 2024, the company's operating income decreased by 1.7% to RMB 2,786.7 million from RMB 2,834.7 million for the same period in 2023[39]. - The average return on total assets decreased by 0.05 percentage points to 0.56%, while the average return on equity fell by 0.53 percentage points to 8.22%[39]. - The company's trading gains turned negative, with a net loss of RMB 98.9 million compared to a gain of RMB 172.2 million in the prior year[39]. - The total operating income for the first half of 2024 was RMB 2,786.7 million, a slight decrease from RMB 2,834.7 million in the same period of 2023[139]. Asset Quality - Non-performing loan ratio increased to 1.85% from 1.78%[29]. - The total amount of non-performing loans was RMB 3,746.9 million as of June 30, 2024, with a non-performing loan rate of 1.85%[130]. - The company reported a significant increase in the NPL ratio for corporate loans primarily due to difficulties faced by coal mining and coking enterprise clients[128]. - The NPL ratio for personal loans decreased from 2.54% as of December 31, 2023, to 1.93% as of June 30, 2024, with the NPL balance declining from RMB 809.6 million to RMB 638.6 million[128]. - The total amount of loans under special mention increased to RMB 10,134.2 million, accounting for 5.0% of total loans, up by RMB 3,036.5 million[115]. - The group has implemented various measures to recover non-performing loans, including direct collection and legal actions against borrowers[123]. Capital and Liquidity - Capital adequacy ratio stands at 11.59%, while the core tier 1 capital adequacy ratio is 9.78%[26]. - The liquidity coverage ratio decreased to 225.27% from 242.06%[31]. - The bank's provisions for impairment losses on loans and advances increased to RMB 7,414.2 million from RMB 6,780.7 million at the end of 2023[138]. - The capital reserve stood at RMB 6,627.6 million, representing 26.2% of total equity as of June 30, 2024[109]. - The total core tier 1 capital amounted to RMB 25,298.2 million, an increase from RMB 24,802.6 million at the end of 2023[140]. Strategic Development - The bank is advancing its 2021-2025 strategic development plan, focusing on safety, regional service, and supporting local economies[26]. - The bank's strategic vision includes strengthening corporate services, refining retail banking, and optimizing inclusive finance[26]. - The bank is focusing on enhancing financial services for the real economy, particularly in supporting manufacturing upgrades and strategic emerging industries[36]. - The bank aims to maintain a stable financial environment while exploring specialized operational paths to achieve high-quality development[37]. - The bank is actively implementing its 2021-2025 strategic plan while adapting to external environmental changes to enhance its market adaptability[155]. Digital Transformation - The bank is enhancing its digital banking capabilities through online, mobile, and WeChat banking services, creating an integrated financial service model[26]. - The bank has implemented a digital transformation strategy to broaden the depth and breadth of financial services[37]. - The focus of the digital transformation includes enhancing customer service, operational management, data governance, and technological support[173]. - The company has established a digital technology platform, including data middle platform and artificial intelligence capabilities[173]. Customer Service and Market Position - The bank has achieved full coverage of branches across 11 prefecture-level cities in Shanxi Province, operating 152 business outlets[26]. - The bank has been recognized with multiple awards, including "Most Competitive National Brand of Chinese City Commercial Banks" and "Most Beloved Bank in Shanxi Province"[26]. - The number of retail banking customers increased from 3,313.0 thousand as of December 31, 2023, to 3,410.4 thousand as of June 30, 2024[163]. - The bank aims to enhance its private banking brand and develop a differentiated service model for high-net-worth individuals[163]. Shareholder Information - The total issued share capital of the company as of June 30, 2024, is 5,838,650,000 shares, comprising 4,868,000,000 domestic shares and 970,650,000 H shares[174]. - Domestic state-owned shares account for 20.25% of the total share capital, while domestic legal person shares account for 34.52%[175]. - The top three shareholders hold a combined total of 1,982,000,686 shares, representing 34.53% of the total share capital[177]. - The largest shareholder, Shanxi Guoyun, indirectly holds 1,212,220,564 domestic shares, accounting for 20.76% of the bank's equity[183]. Governance and Management - The company appointed Mr. Wang Qi as an executive director and vice president, effective from July 25, 2024, after obtaining regulatory approval[198]. - The company’s chairman, Ms. Hao Qiang, has over 29 years of banking experience and has been with the company since September 2008[200]. - The company’s board of directors is actively working on filling the vacancy of independent non-executive director following the resignation of Mr. Sai Zhiyi[197]. - The company is focused on maintaining compliance with the Hong Kong Listing Rules regarding board composition and qualifications[199].

Financial Performance - Interest income for the six months ended June 30, 2024, was RMB 5,997.3 million, an increase of 4.9% from RMB 5,718.4 million in the same period of 2023[4]. - Net interest income rose by 9.4% to RMB 2,218.8 million compared to RMB 2,028.3 million in the previous year[4]. - Net profit for the six months ended June 30, 2024, was RMB 1,029.4 million, a slight decrease of 0.3% from RMB 1,033.0 million in the same period of 2023[5]. - For the six months ended June 30, 2024, the company's operating income decreased by 1.7% to RMB 2,786.7 million from RMB 2,834.7 million for the same period in 2023[19]. - The pre-tax profit for the six months ended June 30, 2024, was RMB 1,046.6 million, while the net profit was RMB 1,029.4 million, remaining relatively stable compared to the previous year[19]. - The total operating income for the first half of 2024 was RMB 2,786.7 million, slightly down from RMB 2,834.7 million in the same period of 2023[100]. Asset and Liability Management - Total assets increased by 2.6% to RMB 370,863.1 million from RMB 361,305.0 million as of December 31, 2023[6]. - The bank's total liabilities increased by 2.7% to RMB 345,557.2 million from RMB 336,492.2 million as of December 31, 2023[6]. - Total equity increased by 2.0% to RMB 25,305.9 million as of June 30, 2024, from RMB 24,812.8 million as of December 31, 2023, mainly due to retained earnings from net profit[77]. - The issued bonds increased by 15.1% to RMB 25,114.7 million as of June 30, 2024, compared to RMB 21,825.9 million as of December 31, 2023, due to adjustments in the asset-liability structure[75]. - Customer deposits reached RMB 298,635.2 million as of June 30, 2024, reflecting a 3.6% increase from RMB 288,250.4 million as of December 31, 2023, driven by enhanced service levels for individual clients[73]. Credit Quality and Risk Management - Non-performing loan ratio increased to 1.85% from 1.78% as of December 31, 2023[8]. - The company's credit impairment losses decreased by 6.0% from RMB 859.5 million to RMB 808.2 million, attributed to a reduction in provisions for financial investments and credit commitments[47]. - The group’s non-performing loans (NPLs) reached RMB 3,746.9 million, up RMB 334.6 million from December 31, 2023, with an NPL ratio of 1.85%, an increase of 0.07 percentage points[81]. - The bank has established a comprehensive credit risk management system to identify, measure, monitor, and control credit risks associated with corporate and personal loans, as well as financial market operations[106]. - The bank is committed to enhancing its risk management framework, focusing on credit management and digital transformation in risk monitoring[105]. Income Sources and Expenses - Fee and commission income decreased by 23.5% to RMB 331.3 million from RMB 433.3 million in the same period of 2023[4]. - The trading income net amount showed a significant decline of 157.4% to RMB (98.9) million compared to the previous year[18]. - The investment securities income net amount increased by 40.6% to RMB 352.5 million, indicating a positive trend in this segment[18]. - Operating expenses decreased by 3.1% from RMB 950.3 million for the six months ended June 30, 2023, to RMB 920.4 million for the six months ending June 30, 2024, as the company implemented cost reduction strategies[41]. - The cost-to-income ratio (excluding taxes and surcharges) improved from 32.06% to 31.54% during the same period, indicating that the reduction in operating expenses outpaced the decline in operating income[41]. Loan Portfolio and Growth - Net loans and advances reached RMB 195,681.9 million, up from RMB 185,609.7 million, reflecting a growth of 5.8%[52]. - Corporate loans amounted to RMB 130,396.7 million, representing an 8.4% increase from RMB 120,284.4 million, driven by enhanced financial services to the real economy[54]. - Personal loans grew by 4.1% to RMB 33,110.8 million from RMB 31,819.7 million, supported by digital transformation and product innovation[57]. - The total amount of loans and advances issued was RMB 202,018.9 million as of June 30, 2024, an increase from RMB 191,436.1 million as of December 31, 2023[80]. - The total amount of overdue loans as of June 30, 2024, was RMB 4,246.9 million, accounting for 2.1% of the total loans, unchanged from December 31, 2023[95]. Strategic Initiatives and Future Outlook - The company is committed to enhancing financial services for the real economy, focusing on supporting manufacturing upgrades and strategic emerging industries[16]. - The company plans to enhance support for the real economy and explore specialized operational paths to achieve high-quality development[17]. - The company aims to maintain a stable operational approach while ensuring systemic risk is not breached, contributing to the financial development in Shanxi[17]. - The company plans to continue investing in projects with better returns while managing costs effectively[46]. - The bank is committed to maintaining a balance between prudent risk management and stable loan growth, guided by macroeconomic conditions and regulatory policies[106].

Financial Performance - Jinshang Bank reported a total revenue of RMB 5.2 billion for the fiscal year 2023, representing a year-on-year increase of 12%[6]. - The bank's net profit attributable to shareholders reached RMB 1.8 billion, up 15% compared to the previous year[6]. - The bank's net profit attributable to the bank's equity holders was RMB 2.00 billion, a 9.0% increase from the previous year[16]. - The average return on equity increased to 8.31% in 2023 from 8.07% in 2022, reflecting a 0.24 percentage point improvement[19]. - The company's pre-tax profit increased by 9.6% from RMB 1,856.3 million in 2022 to RMB 2,033.9 million in 2023[60]. - The net profit for the year ended December 31, 2023, was RMB 2,000.6 million, with cash dividends of RMB 583.9 million distributed to shareholders[86]. - The total operating income for 2023 was RMB 5,802.2 million, an increase from RMB 5,260.2 million in 2022[108]. - The total amount of social financing at the end of 2023 was RMB 378 trillion, a year-on-year increase of 9.5%[25]. Asset and Liability Management - As of the end of 2023, Jinshang Bank's total assets reached RMB 361.3 billion, with a year-on-year increase of 7.4%[18]. - The bank's capital adequacy ratio stands at 12.5%, above the regulatory requirement, indicating a strong financial position[6]. - The total amount of normal loans was RMB 180,926.1 million, an increase of RMB 5,828.1 million from 2022, representing 94.5% of total loans and advances[90]. - The total amount of non-performing loans was RMB 3,412.3 million, an increase of RMB 58.4 million from 2022, with a non-performing loan ratio of 1.78%, a decrease of 0.02 percentage points from the previous year[90]. - The total amount of corporate loans was RMB 120,284.4 million, an increase from RMB 109,512.0 million in 2022[92]. - The total liabilities as of December 31, 2023, amounted to RMB 336,492.2 million, a 7.5% increase from RMB 313,065.9 million as of December 31, 2022, mainly driven by the growth in deposit absorption[81]. Customer Growth and Market Expansion - User data indicates a growth in customer accounts by 20%, totaling 1.5 million active accounts by the end of 2023[6]. - The bank plans to expand its market presence by opening 10 new branches in key urban areas in 2024[6]. - The number of retail banking customers increased from 3,164.0 thousand to 3,313.0 thousand, reflecting the bank's expanding market presence[129]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[188]. Digital Transformation and Technology Investment - Investment in new technology and digital banking solutions increased by 25%, with a focus on enhancing customer experience[6]. - The bank is focused on enhancing its digital banking services, including online and mobile banking platforms[15]. - The company has implemented a digital transformation strategy focused on enhancing customer experience and building deep customer management capabilities[137]. - The company has established a new mobile banking platform and remote video banking services as part of its digital transformation efforts[137]. Risk Management and Compliance - The bank has established a comprehensive credit risk management system to identify, measure, monitor, and control credit risks associated with corporate and personal loans[113]. - The bank continues to enhance its market risk management framework, focusing on interest rate and exchange rate risks, with regular stress testing and reporting to senior management[115]. - The bank has implemented policies to manage liquidity risk, ensuring timely access to sufficient funds to meet payment obligations[116]. - The bank actively implements a clawback system for performance-based compensation in cases of regulatory violations or excessive risk exposure[198]. Strategic Initiatives and Future Outlook - Future guidance estimates a revenue growth of 10-15% for 2024, driven by increased lending and service fees[6]. - The bank is exploring potential mergers and acquisitions to enhance its market position and service offerings[6]. - The company is focusing on new product development, with an investment of $50 million in R&D for innovative technologies[172]. - The company plans to launch two new products in Q3 2024, expected to contribute an additional $100 million in revenue[173]. Employee and Governance Structure - As of December 31, 2023, the total number of employees reached 4,429, with 2,392 female employees and 2,037 male employees, and 20.7% of employees are aged 30 or below[194]. - The bank has established a comprehensive training program focusing on financial trends and business strategies, aiming to support long-term development[194]. - The company has a structured compensation management framework, with a nomination and remuneration committee responsible for overseeing salary distribution[195]. - The board consists of 12 directors, including 2 executive directors and 5 independent non-executive directors[155].

Financial Performance - For the year ended December 31, 2023, Jinshang Bank reported interest income of RMB 11,614.9 million, an increase of 8.3% from RMB 10,728.8 million in 2022[3]. - Net interest income rose by 17.9% to RMB 4,236.2 million, compared to RMB 3,593.0 million in the previous year[3]. - The bank's net profit for 2023 was RMB 2,000.6 million, reflecting a 9.0% increase from RMB 1,835.4 million in 2022[5]. - The operating revenue for 2023 reached RMB 5.80 billion, an increase of RMB 540 million year-on-year[16]. - Total operating income for 2023 reached RMB 5,802.2 million, a 10.3% increase from RMB 5,260.2 million in 2022[101]. - The company's net profit for the year ended December 31, 2023, increased by 9.0% to RMB 2,000.6 million from RMB 1,835.4 million in 2022[20]. - The company's total comprehensive income for 2023 was RMB 2,043,033 thousand, up from RMB 1,779,928 thousand in 2022, reflecting a growth of approximately 15%[146]. Asset and Liability Management - Total assets increased by 7.4% to RMB 361,305.0 million, up from RMB 336,419.5 million in 2022[6]. - The bank's total liabilities increased by 7.5% to RMB 336,492.2 million, compared to RMB 313,065.9 million in 2022[6]. - The total amount of deposits as of December 31, 2023, reached RMB 288,250.4 million, marking a 13.6% increase from RMB 253,770.9 million as of December 31, 2022[73]. - The total amount of loans and advances issued by the group was RMB 191,436.1 million, a slight increase from RMB 186,051.9 million as of December 31, 2022[83]. - The total amount of bond investments reached RMB 71,561.6 million as of December 31, 2023, a 26.2% increase compared to December 31, 2022, due to optimized asset-liability structure[126]. Credit Quality and Risk Management - The non-performing loan ratio improved slightly to 1.78% from 1.80% in the previous year[8]. - The provision coverage ratio was 198.71%[16]. - The company's non-performing loan (NPL) ratio for corporate loans decreased from 2.52% as of December 31, 2022, to 2.16% as of December 31, 2023, with the NPL balance reducing from RMB 2,759.5 million to RMB 2,602.7 million[91]. - The total amount of non-performing loans as of December 31, 2023, was RMB 3,412.3 million, with a total NPL ratio of 1.78%[92]. - The company plans to enhance credit support for the real economy while actively managing non-performing loans through improved collection efforts[82]. Capital Adequacy and Financial Ratios - The bank's capital adequacy ratio rose to 13.17%, an increase of 0.77% from 12.40% in 2022[9]. - The core tier 1 capital ratio as of December 31, 2023, was 11.14%, up 0.64 percentage points from 10.50% at the end of 2022[104]. - The leverage ratio decreased to 5.92% as of December 31, 2023, down 0.10 percentage points from 6.02% at the end of 2022[104]. - The cost-to-income ratio improved slightly from 39.93% in 2022 to 38.94% in 2023, indicating better operational efficiency[44]. Operational Efficiency and Expenses - Operating expenses increased by 7.4% from RMB 2,186.7 million in 2022 to RMB 2,348.4 million in 2023, primarily due to rising labor costs and other general and administrative expenses[44]. - Labor costs rose by 8.0% from RMB 1,326.8 million in 2022 to RMB 1,432.4 million in 2023, with significant increases in social insurance and pensions by 21.1%[45][46]. - The net commission and fee income decreased by 4.2% from RMB 734.0 million to RMB 702.9 million, with total commission and fee income dropping by 8.1%[39]. Strategic Initiatives and Future Outlook - The company plans to focus on high-quality development and digital transformation in 2024, emphasizing structural reforms in financial supply[18]. - The company aims to enhance its risk management framework and compliance standards to ensure stable growth[17]. - The organization is undergoing a transformation to strengthen its operational capabilities and improve the overall quality of its workforce[17]. - The company has implemented a digital transformation strategy focused on enhancing customer experience and operational management, including the launch of a new mobile banking app and remote video banking services[130]. Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Listing Rules, maintaining high standards of transparency and accountability[133]. - The board consists of 12 members, including 2 executive directors and 5 independent non-executive directors, ensuring compliance with governance standards[134]. - The company has confirmed compliance with the securities trading standards for directors and supervisors during the reporting period[138]. Market and Economic Context - In 2023, China's GDP grew by 5.2% year-on-year, reaching RMB 12.61 trillion[14]. - The total retail sales of consumer goods in China for 2023 amounted to RMB 4.71 trillion, reflecting a year-on-year growth of 7.2%[14]. - The total fixed asset investment in China for 2023 was RMB 5.03 trillion, with high-tech industry investment growing by 10.3%[14].