2024 創造共同 價 值 創造共同 價 值 交 通 銀 行 股 份 有 限 公 司 2 0 2 4 年 度 報 告 交 通 銀 行 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） 地址及郵編 中國上海市浦東新區銀城中路188號 200120 www.bankcomm.com www.bankcomm.cn 交 通 銀 行 股 份 有 限 公 司 2 0 2 4 年 度 報 目 錄 告 交 通 銀 行 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） 地址及郵編 中國上海市浦東新區銀城中路188號 200120 www.bankcomm.com www.bankcomm.cn 交通銀行股份有限公司 二零二四年度報告H股 重要提示 一、本行董事會、監事會及董事、監事、高級管理人員保證年度報告內容的真實、準確、完整，不存在虛假記 載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 二、本行第十屆董事會第二十一次會議於2025年3月21日審議批准了交通銀行股份有限公司2024年度報告及摘 要。出席會議應到董事18名，親自出席董事17名，委託出席董事1名，廖宜建非執行董事因其 ...

Financial Performance - Net interest income for the year 2024 reached RMB 169,832 million, an increase of 3.1% compared to RMB 164,123 million in 2023[7] - Net profit attributable to shareholders for 2024 was RMB 93,586 million, a slight increase of 0.9% from RMB 92,728 million in 2023[7] - The pre-tax profit was RMB 103.475 billion, an increase of RMB 3.777 billion, or 3.79% year-on-year[34] - The net profit attributable to shareholders of the parent company was RMB 93.586 billion, a year-on-year increase of 0.93%[33] - Net operating income for 2024 was RMB 260,269 million, slightly up from RMB 258,014 million in 2023, indicating a growth of 0.87%[102] - Pre-tax profit rose to RMB 103,475 million in 2024, compared to RMB 99,698 million in 2023, reflecting an increase of 3.79%[102] Asset and Loan Growth - Total assets at the end of 2024 amounted to RMB 14,900,717 million, representing a growth of 5.9% from RMB 14,060,472 million in 2023[8] - Customer loans increased to RMB 8,555,122 million, up 7.5% from RMB 7,957,085 million in 2023[8] - The total assets of the group reached RMB 14.90 trillion, an increase of 5.98% compared to the end of the previous year[32] - Customer loan balance amounted to RMB 8.56 trillion, increasing by RMB 598.04 billion, a growth of 7.52%[32] - The total loan balance as of December 31, 2024, was RMB 855.51 billion, an increase from RMB 795.71 billion in the previous year[99] Deposit and Funding - The bank's total customer deposits reached RMB 8,800,335 million, an increase of 2.9% from RMB 8,551,215 million in 2023[8] - Customer deposit balance was RMB 8.80 trillion, up by RMB 249.12 billion, a growth of 2.91%[32] - Customer deposits, the primary source of funding, reached RMB 880.03 billion, up RMB 24.91 billion or 2.91% year-on-year, accounting for 64.03% of total liabilities, a decrease of 1.95 percentage points[88] Non-Performing Loans and Asset Quality - The non-performing loan ratio improved to 1.31%, down from 1.33% in the previous year[12] - The provision coverage ratio was 201.94%, an increase of 6.73 percentage points from the end of the previous year[33] - The bank's non-performing loan balance reached CNY 111.68 billion, with a non-performing loan ratio of 1.31%, a decrease of 0.02 percentage points year-on-year[164] - During the reporting period, the bank disposed of non-performing loans amounting to CNY 66.67 billion, a year-on-year increase of 3.0%, with substantial recoveries of CNY 30.38 billion[163] Shareholder Information - The number of ordinary shareholders increased to 261,229 at the end of the reporting period, up from 245,103 as of February 28, 2025[14] - HSBC Holdings plc holds 14,135,636,613 H-shares, representing 19.03% of the total issued shares[22] - The Ministry of Finance of the People's Republic of China owns 13,178,424,446 A-shares, accounting for 17.75% of the total issued shares[17] - The National Social Security Fund holds a total of 12,170,541,195 shares (A and H combined), which is 16.39% of the total issued ordinary shares[16] Financial Ratios - The capital adequacy ratio stood at 16.02%, an increase from 15.27% in 2023[13] - The weighted average return on equity decreased to 9.08% from 9.68% in 2023[12] - The net interest margin for the group was 1.11%, a decrease of 3 basis points year-on-year[48] - The average interest rate on interest-earning assets was 3.37%, down from 3.59% in the previous year[48] Business Operations and Strategy - The company aims to build a world-class banking group with distinctive advantages, focusing on serving the real economy and optimizing financial products and services[104] - The company plans to enhance its analysis of economic and financial conditions to optimize its securities investment strategy[76] - The company aims to improve its liability quality management system to ensure the safety, liquidity, and profitability of its operations[84] - The company established a digital finance committee to enhance decision-making and organization in digital transformation efforts[110] Technology and Digital Transformation - The number of active monthly users (MAU) for the personal mobile banking app reached 55.41 million, representing a 12.84% increase compared to the end of the previous year[151] - The "Cloud Bank" remote video service provided 1.98 million services, a 2.3 times increase year-over-year[152] - The company launched an AI action plan for 2025-2026, establishing a framework for AI capabilities and applications, completing over 100 model scenarios[156] - Financial technology investment amounted to CNY 11.43 billion, accounting for 5.41% of operating income, a decrease of 0.23 percentage points year-over-year[154] Risk Management - The bank's risk management framework emphasizes a unified approach to credit risk management and compliance with regulatory requirements[161] - The group aims to enhance its risk management capabilities, focusing on preventing systemic risks and improving cybersecurity measures[196] - The group conducted regular liquidity risk stress tests, confirming that liquidity risks remain within controllable limits under various stress scenarios[190] Employee and Corporate Governance - The total number of employees at the end of the reporting period was 95,746, with a gender distribution of 45.02% male and 54.98% female[198] - The group emphasizes equal employment and fair compensation, ensuring compliance with regulatory requirements in its compensation policies[199] - Over 40% of performance-based compensation for senior management and key positions will be deferred for at least three years[200]

Financial Performance - Net operating income for Q3 2024 was RMB 63,861 million, a year-on-year increase of 3.29%[3] - Profit before tax for the first nine months of 2024 was RMB 72,886 million, a slight decrease of 0.96% year-on-year[3] - Net profit attributable to shareholders for Q3 2024 was RMB 23,403 million, reflecting a year-on-year increase of 1.19%[3] - Basic earnings per share for Q3 2024 was RMB 0.28, unchanged from the previous quarter[3] - The net operating income for the first nine months of 2024 was CNY 196.411 billion, a year-on-year decrease of 1.37%[12] - The net profit attributable to shareholders of the parent company for the first nine months of 2024 was CNY 68.690 billion, a year-on-year decrease of 0.69%[12] - The company reported a net profit of RMB 69,412 million for the nine months ended September 30, 2024, compared to RMB 69,680 million for the same period in 2023[26] - For the nine months ended September 30, 2024, the total comprehensive income was RMB 75,380 million, an increase from RMB 74,153 million in the same period of 2023, representing a growth of 1.65%[29] - Net profit attributable to the parent company shareholders for the same period was RMB 68,690 million, slightly down from RMB 69,166 million in 2023, indicating a decrease of 0.69%[29] Asset and Liability Management - Total assets increased by 3.80% to RMB 14,594,709 million as of September 30, 2024, compared to RMB 14,060,472 million at the end of 2023[3] - Total liabilities increased by 3.81% to RMB 13,454,955 million, up from RMB 12,961,022 million[3] - The total equity attributable to shareholders of the parent company increased to RMB 1,127,908 million from RMB 1,088,030 million, reflecting a growth of 3.66%[34] Customer Loans and Deposits - Customer loans rose by 6.10% to RMB 8,442,157 million from RMB 7,957,085 million[3] - Customer deposits grew by 2.06% to RMB 8,727,029 million, compared to RMB 8,551,215 million[3] - The total customer loan balance at the end of the reporting period was CNY 8,442.157 billion, an increase of CNY 485.072 billion, or 6.10% compared to the end of the previous year[17] - The total customer deposit balance at the end of the reporting period was CNY 8,727.029 billion, an increase of CNY 175.814 billion, or 2.06% compared to the end of the previous year[18] Credit Quality - The non-performing loan balance at the end of the reporting period was CNY 111.500 billion, an increase of CNY 5.812 billion, or 5.50% compared to the end of the previous year[20] - The provision coverage ratio was 203.87%, an increase of 8.66 percentage points compared to the end of the previous year[20] - The total amount of loans classified as "concerned" is RMB 133,091 million, with a concerned loan ratio of 1.58%[21] - The company reported a decrease in the NPL ratio compared to the end of the previous year, indicating stable asset quality[22] - The total loan balance as of September 30, 2024, is RMB 8,442,157 million, with a non-performing loan (NPL) ratio of 1.32%[22] - The overdue loan balance is RMB 117,353 million, with an overdue loan ratio of 1.39% as of September 30, 2024[22] - The company’s focus on corporate loans accounts for 65.55% of the total loan portfolio, with a corporate NPL of RMB 82,726 million and an NPL ratio of 1.49%[22] - The company’s credit card loans total RMB 507,465 million, with a non-performing loan ratio of 2.39%[22] Income and Expenses - The company’s interest income for the nine months ended September 30, 2024, is RMB 340,379 million, while interest expenses are RMB 213,583 million, resulting in a net interest income of RMB 126,796 million[26] - The net interest income for the first nine months of 2024 was CNY 126.796 billion, an increase of CNY 2.671 billion, or 2.15% year-on-year[13] - The net fee and commission income for the first nine months of 2024 was CNY 29.353 billion, a year-on-year decrease of CNY 4.762 billion, or 13.96%[14] - The credit impairment losses for the nine months ended September 30, 2024, amount to RMB 44,841 million[26] Cash Flow and Investments - Cash flow from operating activities before changes in operating assets and liabilities was RMB 55,102 million, down from RMB 59,955 million in the previous year, a decrease of 8.93%[35] - The net cash flow from investing activities was RMB (1,154) million, a significant improvement compared to RMB (78,905) million in the same period of 2023[37] - Cash and cash equivalents at the end of the period stood at RMB 160,261 million, compared to RMB 191,589 million at the end of the previous year, indicating a decrease of 16.27%[37]

Financial Performance - The net profit attributable to the parent company's shareholders for the first half of 2024 was RMB 45.287 billion, a decrease of 1.63% year-on-year[15]. - The net operating income for the same period was RMB 132.550 billion, down 3.46% year-on-year, while net interest income increased by 2.24% to RMB 84.234 billion[15]. - The total operating income for the first half of 2024 was RMB 132.550 billion, reflecting a decline of 3.46% from RMB 137.307 billion in the previous year[17]. - The net profit attributable to shareholders was RMB 45.287 billion, down 1.63% from RMB 46.039 billion in the same period last year[17]. - The pre-tax profit for the Yangtze River Delta region was 20,911 million RMB, accounting for 43.86% of total pre-tax profit[60]. - The total net operating income for the first half of 2024 was 132,550 million RMB, a decrease from 137,307 million RMB in the same period of 2023[64]. - The bank reported a pre-tax profit of RMB 47,678 million, a decrease of 4.0% compared to RMB 49,674 million in the first half of 2023[198]. - The net profit for the period was RMB 45,825 million, down 1.6% from RMB 46,566 million in the same period last year[198]. Risk Management - The bank's management emphasizes the importance of risk management, facing credit risk, market risk, operational risk, and compliance risk, with ongoing measures to effectively control these risks[2]. - The bank has strengthened its risk management framework, focusing on credit, market, operational, liquidity, and technology risks, while enhancing its risk governance capabilities[108]. - The bank is advancing its digital transformation in risk management, aiming to improve risk data management and the intelligence of risk management systems[110]. - The bank's overdue loans accounted for a higher proportion compared to the beginning of the year, with overdue loans over 90 days constituting 69.04% of non-performing loans[111]. - The bank has implemented a comprehensive risk management and internal control committee to oversee risk conditions across the organization[109]. - The bank's market risk management focuses on interest rate and exchange rate risks, with ongoing improvements to the risk management system[123]. - The group is committed to enhancing compliance management systems and capabilities, particularly in anti-money laundering and data governance[127]. Digital Transformation and Innovation - The bank continues to focus on digital transformation and innovation to drive high-quality development[12]. - The bank's digital service brand "Cloud Bank" aims to meet customer digital service needs through remote video services and online service models[5]. - The bank is exploring potential mergers and acquisitions to enhance its market presence in Southeast Asia[194]. - The bank plans to expand its digital banking services, aiming for a 20% increase in online customer engagement by the end of 2024[194]. - The bank is investing in new technology to enhance its financial services, with a budget allocation of 200 million for R&D in 2024[194]. - The bank is enhancing its digital education and training capabilities through the development of an online "smart campus" platform[166]. Customer and Market Presence - The total customer loan balance reached RMB 8.267 trillion, an increase of RMB 310.649 billion or 3.90% compared to the end of the previous year[15]. - Customer deposits amounted to RMB 8.650 trillion, rising by RMB 98.901 billion or 1.16% from the end of the previous year[15]. - The number of retail customers reached 195 million, a year-on-year increase of 1.35%, with AUM growing by 5.29% to CNY 5.27 trillion[77]. - The cumulative number of corporate online banking clients increased by 5.30% year-on-year, while the cumulative transaction clients grew by 9.99%[101]. - The bank's overseas loan balance was 342,101 million RMB, accounting for 4.14% of total loans[61]. - The bank's comprehensive financial service system includes commercial banking, financial leasing, funds, wealth management, trust, insurance, and overseas securities, enhancing service capabilities[89]. Asset and Liability Management - The total assets of the group at the end of June 2024 were RMB 14.178 trillion, reflecting a growth of 0.84% from the end of 2023[13]. - The capital adequacy ratio stood at 16.34%, up 1.07 percentage points from the previous year[13]. - The total liabilities of the group reached RMB 13,058.62 billion as of June 30, 2024, an increase of RMB 97.60 billion or 0.75% compared to the end of 2023[54]. - The liquidity ratio as of June 30, 2024, was 65.30%, exceeding the regulatory standard of 25%[125]. - The average liquidity coverage ratio for Q2 2024 was 143.72%, with the net stable funding ratio at 111.50% at the end of Q2[125]. Governance and Compliance - The board of directors approved the interim report and performance announcement on August 28, 2024, with all 18 directors present at the meeting[2]. - The bank's governance structure includes a commitment to the accuracy and completeness of the financial report by the chairman and senior management[2]. - The bank's governance adhered to the corporate governance code, with most best practices being followed[163]. - The audit committee consists of 7 members, with independent director Ms. Li Xiaohui serving as the chairperson[186]. - The bank has appointed KPMG Huazhen LLP for auditing financial statements prepared under Chinese accounting standards and KPMG for international financial reporting standards[188]. Shareholder Information - The total number of ordinary shares of the company is 74,262,726,645, with A-shares accounting for 52.85% and H-shares for 47.15%[136]. - The total number of ordinary shareholders is 277,228, with 247,301 holding A-shares and 29,927 holding H-shares[138]. - The Ministry of Finance holds 17.75% of A-shares and 6.13% of H-shares, making it a significant shareholder[138]. - The company has a total of 39,250,864,015 A-shares and 35,011,862,630 H-shares, all of which are tradable without restrictions[137]. - The total net amount of related party transactions with HSBC and its affiliates is 16.256 billion yuan, while non-credit related transactions amount to 1.167 billion yuan[142]. Green Finance Initiatives - The bank emphasizes green finance as a core aspect of its business strategy, aligning with national goals for carbon neutrality[168]. - The bank's green finance development committee reviewed the 2023 green finance report and set targets for 2024[169]. - The bank issued the "Green Finance Action Plan (2024-2025)" outlining four action goals and 30 specific measures[170]. - Green loans reached CNY 10,870.998 billion, an increase of CNY 48.956 billion or 5.96% compared to the end of the previous year[172]. - The company increased investments in clean energy and environmental protection industries by CNY 1 billion during the reporting period[173].

Financial Performance - Net interest income for the first half of 2024 was RMB 84,234 million, an increase of 2.24% compared to RMB 82,387 million in the same period of 2023[3]. - Net fee and commission income decreased by 14.56% to RMB 21,000 million from RMB 24,580 million year-on-year[3]. - The net profit attributable to shareholders was RMB 45,287 million, down 1.63% from RMB 46,039 million in the previous year[3]. - The annualized return on average assets was 0.65%, down from 0.69% in the same period last year[4]. - The group's pre-tax profit was RMB 47.68 billion, a decrease of 4.02% year-on-year[21]. - The bank's total operating income for the first half of 2024 was RMB 132,550 million, down from RMB 137,307 million in the first half of 2023, representing a decrease of 3.5%[137]. - The bank's net profit for the six months ended June 30, 2024, was RMB 45,825 million, compared to RMB 46,566 million in the same period of 2023, indicating a decline of 1.6%[138]. - The net profit attributable to shareholders of the parent company for the six months ended June 30, 2024, was RMB 41,770 million, a decrease of 1.8% from RMB 42,522 million in the same period of 2023[159]. Asset and Liability Management - Total assets increased by 0.84% to RMB 14,177,914 million compared to RMB 14,060,472 million at the end of 2023[3]. - Total liabilities amounted to RMB 13,058.62 billion, an increase of RMB 976.01 billion or 0.75% from the end of 2023[57]. - Customer deposits reached RMB 8,650.12 billion, up by RMB 989.01 billion or 1.16% from the end of 2023, accounting for 66.24% of total liabilities[58]. - The total equity attributable to shareholders of the parent company reached RMB 1,107,374 million, up from RMB 1,088,030 million, marking an increase of 1.06%[142]. - The company's cash and cash equivalents balance at the end of the reporting period was RMB 145.784 billion, a decrease of RMB 129.677 billion compared to the end of the previous year[61]. - The total amount of financial bonds held is RMB 487.42 billion, with policy bank bonds accounting for 15.40%[54]. Loan and Deposit Growth - Customer loans rose by 3.90% to RMB 8,267,734 million from RMB 7,957,085 million year-on-year[3]. - Customer loan balance reached RMB 8.27 trillion, an increase of RMB 310.65 billion or 3.90% compared to the end of the previous year[20]. - Customer deposit balance was RMB 8.65 trillion, up RMB 98.90 billion or 1.16% from the end of the previous year[20]. - Personal loans increased by 3.34% to RMB 2,555.798 billion, with personal consumption loans rising significantly by 26.85%[49]. - The balance of personal deposits is RMB 3,588.27 billion, which is 41.48% of total customer deposits, an increase from 39.27% at the end of 2023[59]. Capital and Risk Management - The capital adequacy ratio improved to 16.34%, up from 15.27% at the end of 2023[4]. - The non-performing loan ratio slightly decreased to 1.32% from 1.33% at the end of 2023[4]. - The group's credit impairment provision at the end of the period was RMB 223.198 billion, reflecting an increase from the previous year[51]. - The overdue loan balance for corporate loans was CNY 62.71 billion, with an overdue loan ratio of 1.15%, a decrease of 0.05 percentage points from the end of the previous year[115]. - The overdue loan balance for personal loans was CNY 56.80 billion, with an overdue loan ratio of 2.22%, an increase of 0.29 percentage points from the end of the previous year[115]. Shareholder Information - The bank's total number of ordinary shares was 74,262,726,645, with A-shares accounting for 52.85% and H-shares for 47.15%[6]. - HSBC Holdings plc holds 14,135,636,613 H shares, representing 19.03% of the total issued shares[11]. - The Ministry of Finance of the People's Republic of China owns 13,178,424,446 A shares, accounting for 17.75% of the total issued A shares[11]. - The total dividend for domestic preferred shares is 1,831,500,000 yuan, with a coupon rate of 4.07%[15]. - The bank approved a cash dividend of RMB 0.375 per share for the fiscal year 2023, totaling RMB 27,849 million, to be distributed to shareholders[134]. Strategic Initiatives - The company is actively implementing its "One Four Five" strategy to enhance service capabilities and optimize credit structure, focusing on digital transformation and product innovation[68]. - The group aims to strengthen its role in supporting the real economy and maintaining financial stability as part of its strategic goals[68]. - The company plans to strengthen innovation and leverage Shanghai's role in leading financial reforms and initiatives[130]. - The focus will be on digital transformation to enhance business development momentum and reshape financial infrastructure[130]. Market and Economic Conditions - The bank's core tier 1 capital increased by 2.42% to RMB 927,346 million from RMB 905,394 million at the end of 2023[3]. - The average yield on interest-earning assets was 3.48%, while the average cost of interest-bearing liabilities was 2.36%, resulting in a net interest margin of 1.12%[25][26]. - The average yield on corporate loans was 3.66%, down from 3.92% in the previous year, while personal loans had an average yield of 4.19%, down from 4.65%[30]. - The company reported a year-on-year increase of 2.24% in net interest income, with a net interest yield of 1.29%, down 2 basis points year-on-year[26]. Digital Transformation and Customer Engagement - The cumulative number of corporate online banking clients increased by 5.30% year-on-year, while the cumulative transaction clients grew by 9.99%[103]. - The monthly active users (MAU) of the personal mobile banking reached 45.2217 million, reflecting a year-on-year increase of 4.96%[104]. - The cumulative number of users for the "Buy Now" app reached 78.3956 million, with monthly active users at 26.5949 million[105]. - The total number of open banking interfaces reached 5,215, with over 4.8 billion calls made, and financing amount through open banking services increased by 69.36% year-on-year to 135.034 billion yuan[106]. Regulatory Compliance and Reporting - The mid-term performance announcement is based on the International Financial Reporting Standards for the 2024 interim report[194]. - The full report will be available on the Hong Kong Stock Exchange's "Disclosure Easy" website and the company's website for shareholders and investors[194]. - The 2024 semi-annual report prepared according to Chinese accounting standards will also be published on the Shanghai Stock Exchange's website[194].

Financial Performance - Net operating income for Q1 2024 was RMB 67,201 million, slightly up by 0.05% compared to RMB 67,169 million in Q1 2023[3] - Pre-tax profit was RMB 27,349 million, a 3.59% increase from RMB 26,402 million year-over-year[3] - Net profit attributable to shareholders was RMB 24,988 million, reflecting a 1.44% increase from RMB 24,633 million in the same period last year[3] - Basic earnings per share were RMB 0.34, up 3.03% from RMB 0.33 in Q1 2023[3] - The company reported a net profit of RMB 25,253 million for the first quarter of 2024, up from RMB 24,951 million in the same quarter of 2023[24] - The total fee and commission income for the first quarter of 2024 was RMB 12,838 million, down from RMB 13,774 million in the same period of 2023[24] - The company’s basic and diluted earnings per share for the first quarter of 2024 were RMB 0.34, slightly up from RMB 0.33 in the same period of 2023[27] Assets and Liabilities - As of March 31, 2024, total assets amounted to RMB 14,238,091 million, reflecting a 1.26% increase from RMB 14,060,472 million as of December 31, 2023[3] - Total liabilities were RMB 13,112,273 million, an increase of 1.17% from RMB 12,961,022 million[3] - The total equity attributable to shareholders increased to RMB 1,114,564 million from RMB 1,088,030 million, marking a rise of about 2.45%[30] Customer Loans and Deposits - Customer loans reached RMB 8,203,223 million, up 3.09% from RMB 7,957,085 million in the previous period[3] - Customer deposits increased to RMB 8,679,901 million, representing a 1.50% growth from RMB 8,551,215 million[3] - Customer loan balance was CNY 8,203.223 billion, an increase of CNY 246.138 billion or 3.09% from the end of the previous year[16] - Customer deposit balance reached CNY 8,679.901 billion, up by CNY 128.686 billion or 1.50% year-on-year[17] Income and Expenses - Net interest income amounted to CNY 41.558 billion, up by CNY 0.910 billion or 2.24% year-on-year[12] - The company’s financial investments received interest income of RMB 23,449 million, up from RMB 19,975 million year-over-year[32] - Net fee and commission income decreased to CNY 11.879 billion, down by CNY 0.806 billion or 6.35% year-on-year[13] Non-Performing Loans and Provisions - Non-performing loan balance increased to CNY 108.377 billion, a rise of CNY 2.689 billion or 2.54% compared to the previous year[18] - The provision coverage ratio improved to 197.05%, an increase of 1.84 percentage points year-on-year[18] - As of March 31, 2024, the total loan balance reached RMB 8,203,223 million, with a non-performing loan (NPL) ratio of 1.32%, slightly improved from 1.33% at the end of 2023[20] - The total amount of overdue loans was RMB 114,397 million, with an overdue loan ratio of 1.39% as of March 31, 2024, compared to 1.38% at the end of 2023[19] Cash Flow - Net cash flow from operating activities showed a significant decrease to RMB (125,760) million for the three months ended March 31, 2024, compared to RMB 132,977 million for the same period in 2023[31] - Cash and cash equivalents decreased to RMB 183,889 million as of March 31, 2024, down from RMB 299,921 million at the end of the previous period[32] - Investment activities generated a net cash inflow of RMB 52,881 million, a recovery from a net outflow of RMB (101,697) million in the same period last year[32] Return on Equity and Assets - The weighted average return on equity (annualized) decreased to 10.79%, down 0.68 percentage points from 11.47%[3] - The annualized average return on assets was 0.71%, a decrease of 0.04 percentage points year-on-year[11] - The capital adequacy ratio stood at 16.09%, with a Tier 1 capital ratio of 12.40% and a core Tier 1 capital ratio of 10.44%, all meeting regulatory requirements[21]

Financial Performance - The bank's net interest income for 2023 was RMB 164,123 million, a decrease of 3.3% from RMB 169,882 million in 2022[16]. - The net operating income for 2023 was RMB 258,014 million, slightly up from RMB 257,346 million in 2022[16]. - The net profit attributable to shareholders for 2023 was RMB 92,728 million, an increase from RMB 92,102 million in 2022[16]. - Total assets reached RMB 14,060,472 million at the end of 2023, up from RMB 12,991,571 million in 2022[16]. - Customer loans increased to RMB 7,957,085 million in 2023, compared to RMB 7,294,965 million in 2022, reflecting a growth of 9.1%[16]. - Customer deposits rose to RMB 8,551,215 million in 2023, up from RMB 7,949,072 million in 2022, marking a growth of 7.6%[16]. - The bank's average return on assets for 2023 was 0.69%, down from 0.75% in 2022[16]. - The net profit for 2023 was RMB 278.49 billion, with a cash dividend of RMB 0.375 per share, representing 32.67% of the net profit[20]. - The core tier 1 capital increased to RMB 905.39 billion, up from RMB 840.16 billion in 2022, reflecting a growth of 7.0%[17]. - The non-performing loan ratio improved to 1.33%, a decrease of 0.02 percentage points compared to the previous year, while the provision coverage ratio rose to 195.21%, an increase of 14.53 percentage points[20]. Risk Management - The company has faced various risks including credit risk, market risk, operational risk, and compliance risk, and has implemented measures to effectively manage these risks[2]. - The company emphasizes the importance of risk awareness among investors regarding forward-looking statements and future plans[2]. - The bank aims to enhance its risk management capabilities by integrating AI frameworks for better risk identification and pricing[25]. - The bank's overall risk preference is established as "stable, balanced, compliant, and innovative," with strict control over various types of risks[135]. - The bank has strengthened risk identification and accelerated risk disposal, enhancing credit risk management in key areas[138]. - The bank's credit risk management framework has been continuously optimized to align with national strategies and regulatory requirements[138]. Digital Transformation and Innovation - The company reported a significant focus on digital transformation and wealth management solutions, aiming to enhance service offerings for corporate and individual clients[6]. - The company operates under the brand "Yuntong Wealth," providing comprehensive wealth management solutions through digital services[6]. - The bank aims to enhance its digital transformation and expand its services in green finance and inclusive finance[13]. - Digital transformation investments increased, with fintech talent comprising 8.29% of the total workforce[88]. - The bank's cloud layout continues to optimize, with the establishment of a T4 certified financial data center, enhancing its network security capabilities[131]. - The bank launched new products such as "Jingcai Loan" and "Employee Loan" to meet the financial needs of new citizens[130]. Governance and Compliance - The financial statements have been audited by KPMG, which issued standard unqualified audit opinions for both Chinese and international financial reporting standards[2]. - The company is committed to maintaining transparency and accuracy in its financial reporting, as stated by the chairman and senior management[2]. - The company emphasizes the importance of board diversity, considering factors such as skills, industry experience, and gender, with a goal of maintaining at least one female director[190]. - The company’s governance practices align with legal and regulatory requirements, with no significant discrepancies noted[185]. - The company has established various committees to enhance corporate governance, including risk management and consumer rights protection committees[184]. - The company is committed to improving its data governance and financial technology planning[199]. Customer and Market Development - The bank is actively expanding its market presence and enhancing its product offerings in response to evolving customer needs[6]. - The number of corporate clients grew by 8.18% year-over-year, reaching a total of 97,500 clients[89]. - The number of small and micro enterprise clients increased by 188,800, totaling 2,444,700 clients[89]. - The balance of inclusive small and micro enterprise loans grew by 29%, and the number of loan customers increased by 17% compared to the end of the previous year[19]. - The number of technology finance credit customers increased by 41.2%, with loans to strategic emerging industries growing by 31.12%[85]. - The bank's total loan balance was CNY 7.957 trillion, with a slight increase from CNY 7.295 trillion in the previous year[139]. Awards and Recognition - The bank has been recognized with multiple awards, including the Best Personal Mobile Banking Award and the Best Corporate Mobile Banking Award in 2023[14]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shares is 74,262,726,645, with A-shares accounting for 52.85% and H-shares for 47.15%[163]. - The total number of ordinary shareholders at the end of the reporting period is 308,784, with A-share holders numbering 278,402 and H-share holders 30,382[165]. - The Ministry of Finance is the largest shareholder, holding 17,732,424,445 shares, which represents 23.88% of the total shares[169]. - HSBC Holdings plc is the second largest shareholder, with 14,135,655,913 shares, accounting for 19.03% of the total shares[169]. - The National Social Security Fund holds 12,148,857,900 shares, representing 16.36% of the total shares[169].

Financial Performance - Net interest income for the year 2023 was RMB 164,123 million, a decrease of 3.3% from RMB 169,882 million in 2022[4]. - Net fee and commission income for 2023 was RMB 43,004 million, down 4.1% from RMB 44,855 million in 2022[4]. - Net profit attributable to shareholders for 2023 was RMB 92,728 million, a slight increase of 0.7% from RMB 92,102 million in 2022[4]. - The pre-tax profit for the period was RMB 99.70 billion, an increase of RMB 1.58 billion, or 1.61% year-on-year[20]. - The total comprehensive income for 2023 was RMB 101.552 billion, an increase from RMB 92.089 billion in 2022[159]. - The net profit for 2023 was RMB 93.252 billion, an increase of 1.4% compared to RMB 91.955 billion in 2022[158]. - The total operating income for 2023 was RMB 258.014 billion, slightly up from RMB 257.346 billion in 2022[157]. - The company reported a pre-tax profit of RMB 99,698 million for 2023, compared to RMB 98,115 million in 2022, reflecting a growth of 1.6%[158]. Assets and Liabilities - Total assets at the end of 2023 reached RMB 14,060,472 million, an increase of 8.2% from RMB 12,991,571 million in 2022[4]. - The total liabilities as of December 31, 2023, were RMB 12,961 trillion, compared to RMB 11,958 trillion in 2022, marking an increase of 8.4%[160]. - Customer loans amounted to RMB 7,957,085 million, up 9.1% from RMB 7,294,965 million in 2022[4]. - Customer deposits were RMB 8,551,215 million, an increase of 7.6% from RMB 7,949,072 million in 2022[4]. - The total number of shares held by the top ten shareholders includes significant stakes from state-owned entities, indicating a strong government presence in the ownership structure[8]. - The total assets of the group reached RMB 14.06 trillion, an increase of 8.23% compared to the end of the previous year[19]. Shareholder Information - The Ministry of Finance of the People's Republic of China holds 13,178,424,446 A shares, accounting for 17.75% of the total issued ordinary shares[8]. - HSBC Holdings plc has a total of 14,135,636,613 H shares, representing 19.03% of the total issued ordinary shares[9]. - The National Social Security Fund holds 3,105,155,568 A shares and 9,043,702,332 H shares, totaling 12,148,857,900 shares, which is 16.36% of the total issued ordinary shares[9]. - The shareholding structure shows that the top three shareholders collectively hold over 50% of the total issued shares, highlighting concentrated ownership[12]. Loan and Deposit Growth - Customer loan balance amounted to RMB 7.96 trillion, with an increase of RMB 662.12 billion, reflecting a growth rate of 9.08%[19]. - Customer deposit balance was RMB 8.55 trillion, increasing by RMB 602.14 billion, representing a growth rate of 7.58%[19]. - Corporate loans amounted to RMB 5,179.533 billion, up RMB 468.18 billion, with a growth rate of 9.94%, and accounted for 65.09% of total customer loans, an increase of 0.51 percentage points[50]. - Personal loans reached RMB 2,473.100 billion, an increase of RMB 107.783 billion, with a growth rate of 4.56%, and accounted for 31.08% of total customer loans, a decrease of 1.35 percentage points[50]. Non-Performing Loans and Credit Quality - The non-performing loan ratio improved to 1.33% in 2023 from 1.35% in 2022[5]. - The provision coverage ratio improved to 195.21%, an increase of 14.53 percentage points compared to the previous year[19]. - The bank's non-performing loan balance reached 105.688 billion yuan, with a non-performing loan ratio of 1.33%, a decrease of 0.02 percentage points from the previous year[129]. - The overdue loan balance for corporate loans reached RMB 62.273 billion, an increase of RMB 15.964 billion compared to the end of the previous year, with an overdue loan ratio of 1.20%, up by 0.22 percentage points[131]. Capital Adequacy and Financial Ratios - The capital adequacy ratio increased to 15.27% in 2023 from 14.97% in 2022[5]. - The return on average assets decreased to 0.69% in 2023 from 0.75% in 2022[5]. - The weighted average return on equity was 9.68% in 2023, down from 10.34% in 2022[5]. - The effective tax rate was 6.47%, significantly lower than the statutory rate of 25%, mainly due to tax-exempt income from government bonds[45]. Cash Flow and Investment Activities - The net cash flow from operating activities was RMB 137.32 billion, a decrease of RMB 230.90 billion year-on-year, primarily due to reduced cash inflows from deposit absorption and certificate issuance[64]. - The net cash outflow from investing activities was RMB 116.62 billion, a decrease of RMB 168.27 billion year-on-year, mainly due to reduced net cash outflow from bond investments[65]. - The net cash inflow from financing activities was RMB 4.89 billion, an increase of RMB 37.86 billion year-on-year, primarily driven by increased cash inflows from bond issuance and repayment[65]. Risk Management and Compliance - The bank has established five laboratories focusing on artificial intelligence, cybersecurity, user experience, and digital currency[126]. - The bank's risk management framework includes specific risk limit indicators for various types of risks, ensuring comprehensive risk control[127]. - The company has implemented a performance wage deferral and recovery management system for senior management, reinforcing accountability in performance-related compensation[150]. - The governance structure of the bank complies with the Hong Kong Stock Exchange's corporate governance code, ensuring transparency and accountability[154]. Strategic Initiatives and Future Outlook - The company plans to enhance its investment strategy focusing on government bonds and local government bonds, while also addressing financing needs in key areas such as technology innovation and green development[54]. - The company anticipates a favorable economic environment in 2024, with continued investment and steady consumption improvements supporting high-quality economic development[146]. - The bank emphasizes the importance of green finance to support the dual carbon goals, integrating it into its core strategies[147].

Financial Performance - Net operating income for Q3 2023 was RMB 61,824 million, a decrease of 4.61% from RMB 64,812 million in Q3 2022[3] - Profit before tax for the first nine months of 2023 was RMB 73,591 million, representing a 3.70% increase compared to RMB 70,968 million in the same period of 2022[3] - Net profit attributable to shareholders for Q3 2023 was RMB 23,127 million, down 2.98% from RMB 23,838 million in Q3 2022[3] - Basic earnings per share for Q3 2023 was RMB 0.27, a decrease of 3.57% from RMB 0.28 in Q3 2022[3] - The net operating income for the first nine months of 2023 was CNY 199.131 billion, a year-on-year increase of 1.65%[9] - The net profit attributable to shareholders of the parent company for the same period was CNY 69.166 billion, reflecting a year-on-year growth of 1.88%[9] - The bank's net profit for the period was RMB 69.68 billion, compared to RMB 68.03 billion in the previous year[20] - The company's net profit attributable to shareholders for the nine months ended September 30, 2023, was RMB 69,166 million, a slight increase from RMB 67,890 million in the same period of 2022, representing a growth of 1.0%[22] - Total comprehensive income for the same period was RMB 74,153 million, compared to RMB 67,780 million in 2022, reflecting an increase of 9.5%[22] - The basic and diluted earnings per share attributable to shareholders was RMB 0.84, up from RMB 0.83 in the previous year[22] Assets and Liabilities - As of September 30, 2023, total assets reached RMB 13,830,605 million, an increase of 6.46% compared to the adjusted total of RMB 12,991,571 million at the end of 2022[3] - Total liabilities were RMB 12,757,638 million, up by 6.69% from RMB 11,958,049 million at the end of 2022[3] - The total assets of the group reached CNY 13,830.605 billion, an increase of 6.46% compared to the end of the previous year[9] - The total liabilities of the group reached CNY 12,757.638 billion, an increase of 6.69% compared to the end of the previous year[9] - The company’s total equity increased to RMB 1,072,967 million from RMB 1,033,522 million, representing a growth of 3.8%[24] Customer Loans and Deposits - Customer loans amounted to RMB 7,908,271 million, reflecting an 8.41% increase from RMB 7,294,965 million at the end of 2022[3] - Customer deposits totaled RMB 8,638,670 million, an increase of 8.68% from RMB 7,949,072 million at the end of 2022[3] - Customer loan balance reached RMB 7,908.27 billion, an increase of RMB 613.31 billion or 8.41% compared to the end of last year[14] - Customer deposit balance was RMB 8,638.67 billion, up RMB 689.60 billion or 8.68% year-over-year, with corporate deposits accounting for 60.20%[15] Income and Expense Analysis - The net interest income for the first nine months was CNY 124.125 billion, a decrease of CNY 3.861 billion, or 3.02% year-on-year[10] - The net interest margin for the first nine months was 1.30%, down 20 basis points year-on-year[10] - The net fee and commission income was CNY 34.115 billion, a decrease of CNY 0.779 billion, or 2.23% year-on-year[11] - The total business costs for the first nine months amounted to CNY 60.064 billion, an increase of CNY 2.310 billion, or 4.00% year-on-year[12] - The asset impairment losses for the first nine months were CNY 49.053 billion, a decrease of CNY 3.106 billion, or 5.95% year-on-year[13] Risk and Asset Quality - Non-performing loan balance increased to RMB 104.49 billion, a rise of RMB 5.96 billion or 6.05%, with a non-performing loan ratio of 1.32%, down 0.03 percentage points from last year[16] - The provision coverage ratio improved to 198.91%, an increase of 18.23 percentage points compared to the previous year[16] - The ratio of overdue loans was 1.33%, slightly up from 1.16% at the end of last year[17] Capital and Liquidity - The group's capital adequacy ratio stands at 14.65%, with a Tier 1 capital ratio of 11.98% and a core Tier 1 capital ratio of 9.98%, all meeting regulatory requirements[30] - As of September 30, 2023, the group's leverage ratio is 6.98%, in compliance with regulatory standards[32] - The average liquidity coverage ratio for the third quarter of 2023 is 132.90%, a decrease of 3.62 percentage points from the previous quarter, primarily due to a reduction in high-quality liquid assets[35] Client Base and Financial Instruments - The number of corporate clients reached 2,470,898, while the number of individual clients is 191,498,629[28] - The total amount of securities issued and other financing tools is 96,248,822 million RMB[28] - The total amount of derivative products is 637,676,113 million RMB[28] - The average daily value of high-quality liquid assets is 2,346,684 million RMB[36] - The total expected cash outflows amount to 3,984,622 million RMB[36]

Financial Performance - The bank reported a total revenue of RMB 100 billion for the first half of 2023, representing a year-on-year increase of 12%[3]. - The net profit attributable to the parent company's shareholders for the first half of 2023 was RMB 46.039 billion, representing a year-on-year increase of 4.51%[11]. - The net operating income for the same period was RMB 137.307 billion, an increase of 4.74% compared to the previous year[11]. - The pre-tax profit for the first half of 2023 was RMB 49.674 billion, an increase of 8.83% year-on-year[12]. - The total net operating income for the first half of 2023 was RMB 137,307 million, an increase from RMB 131,094 million in the same period of 2022, representing a growth of approximately 4.9%[59]. - The pre-tax profit for the first half of 2023 was RMB 49,674 million, compared to RMB 45,642 million in the same period of 2022, indicating an increase of about 8.3%[59]. - The effective tax rate increased significantly to 6.26% from 3.27% in the previous year, reflecting a 108.45% increase in income tax expense[13]. - The bank aims to create shared value for customers, shareholders, employees, and society, emphasizing risk management and quality service[8]. Asset and Liability Management - Total assets reached RMB 13.813 trillion, reflecting a growth of 6.33% from the end of the previous year[11]. - The bank's capital adequacy ratio stands at 14.5%, maintaining a strong position to support future growth initiatives[3]. - The bank's liquidity coverage ratio is reported at 150%, ensuring sufficient liquidity to meet short-term obligations[3]. - As of June 2023, the total liabilities of the group amounted to RMB 12,758.46 billion, an increase of RMB 800.41 billion or 6.69% compared to the end of the previous year[49]. - Customer deposits reached RMB 8,579.60 billion, up RMB 630.53 billion or 7.93% year-on-year, accounting for 67.25% of total liabilities, an increase of 0.78 percentage points[50]. - The group's total assets reached RMB 13,813.36 billion, an increase of RMB 821.79 billion or 6.33% compared to the end of the previous year[36]. Loan and Deposit Growth - Customer loan balance stood at RMB 7.796 trillion, up RMB 500.74 billion, marking a 6.86% increase[11]. - The balance of personal public fund products sold was CNY 243.84 billion, while wealth management products reached CNY 808.28 billion[82]. - The total amount of customer deposits increased by RMB 630.53 billion, with corporate deposits increasing by RMB 291.54 billion and personal deposits increasing by RMB 321.26 billion[50]. - The balance of inclusive small and micro enterprise loans grew by 19% year-on-year, while personal consumption loans increased by 39%[70]. - The balance of green loans increased by 25% compared to the end of the previous year, achieving the highest level for the same period in recent years[70]. Digital Transformation and Innovation - The bank has set a target for a net profit growth of 10% for the full year 2023, with a focus on enhancing digital services and customer engagement[3]. - The bank's strategic focus includes enhancing digital transformation and expanding in key areas such as inclusive finance and green finance[8]. - The bank plans to expand its digital banking services, aiming for a 30% increase in online transactions by the end of 2024[197]. - The company is actively promoting the application of artificial intelligence across various business scenarios to enhance customer service[72]. - The bank's digital transformation initiatives included the launch of 23 convenient service scenarios across various channels, serving 260,000 customers[108]. Risk Management - The bank has implemented new risk management strategies to mitigate credit and market risks, aiming for a reduction in non-performing loans by 5% by the end of 2023[3]. - The non-performing loan ratio remained stable at 1.35% as of June 30, 2023[11]. - The company has strengthened its risk management framework, focusing on unified credit risk management and optimizing credit asset structure[116]. - The group continuously improved its market risk management system, optimizing risk management processes and enhancing product management[128]. - The company is actively supporting the "carbon peak and carbon neutrality" goals by integrating climate risk into its overall risk management framework[137]. Strategic Initiatives - The bank plans to expand its market presence in Southeast Asia, targeting a 20% increase in regional customer base by 2025[3]. - A strategic acquisition of a fintech company is expected to enhance the bank's technological capabilities and improve service delivery, with an estimated investment of RMB 1 billion[3]. - The company aims to strengthen its service to the real economy by increasing financial support in key areas and improving customer service offerings[138]. - The company has established a green finance development strategy, focusing on supporting the "carbon peak and carbon neutrality" goals[171]. - The company is focused on optimizing its asset allocation and enhancing loan pricing management to stabilize and improve net interest margins[139]. Shareholder and Governance - The total number of ordinary shares at the end of the reporting period was 74,262,726,645, with A-shares accounting for 52.85% and H-shares for 47.15%[143]. - The top shareholder, the Ministry of Finance of the People's Republic of China, held 13,178,424,446 A-shares, representing 17.75% of total shares[145]. - The company has approved a cash dividend distribution of CNY 27.7 billion for the fiscal year 2022, with a distribution of CNY 0.373 per share based on a total of 74.263 billion ordinary shares[159]. - The company has not conducted any profit distribution or capital reserve increase in the first half of 2023[159]. - The company is focused on expanding its market presence and enhancing its governance structure[162].