Financial Performance - Net profit attributable to shareholders decreased by 9.12% to RMB 576.074 million compared to the previous year[11]. - Basic earnings per share decreased to RMB 0.25, down from RMB 0.28 in the previous year[10]. - In 2020, the company's pre-tax profit was RMB 740.25 million, a decrease of RMB 89 million or 10.78% compared to the previous year[24]. - Net profit for 2020 was RMB 576.07 million, down RMB 58.94 million or 9.12% year-on-year[24]. - Total operating income for 2020 was RMB 3.155 billion, an increase of RMB 348 million or 12.40% from 2019[26]. - Interest income for 2020 was RMB 6.062 billion, up RMB 650 million or 12.01% year-on-year, primarily due to the expansion of interest-earning assets[33]. - The average return on total assets decreased to 0.55% in 2020 from 0.73% in 2019[12]. - The company's total interest expense in 2020 was RMB 3.31 billion, an increase of RMB 612 million, reflecting a growth of 22.70% year-on-year[39]. - Non-interest net income for 2020 was RMB 398.28 million, a significant increase of RMB 310 million, representing a growth of 350.00% year-on-year[44]. Asset and Liability Management - Total assets of Luzhou Bank reached RMB 118.886 billion, with total customer loans at RMB 59.624 billion and total customer deposits at RMB 85.223 billion[8]. - Total assets increased by 29.67% year-on-year to RMB 118.89 billion in 2020, up from RMB 91.68 billion in 2019[12]. - Total liabilities increased by 29.66% year-on-year to RMB 109.94 billion in 2020, up from RMB 84.79 billion in 2019[12]. - Customer deposits grew by 38.72% year-on-year to RMB 85.22 billion in 2020, compared to RMB 61.44 billion in 2019[12]. - The bank's capital adequacy ratio improved to 13.87% in 2020, up from 12.09% in 2019[13]. - Total equity increased to RMB 8.95 billion, up by RMB 2.06 billion or 29.89% year-on-year[73]. Credit Risk and Loan Management - The bank's expected credit losses increased by 31.49% to RMB 1.242 billion, reflecting a rise in provisions for potential loan defaults[11]. - The non-performing loan ratio increased to 1.83% in 2020, compared to 0.94% in 2019[12]. - The expected credit loss for the bank was RMB 1.24 billion, up by RMB 298 million or 31.49% from the previous year[52]. - Non-performing loans totaled RMB 1.09 billion, with a non-performing loan ratio of 1.83%, an increase of 0.89 percentage points from the previous year[77]. - The provision for expected credit losses on loans measured at amortized cost was RMB 2.04 billion, representing an increase from RMB 1.46 billion in the previous year[54]. - The bank's total overdue loans amounted to RMB 1.15 billion, representing 1.93% of total loans, an increase of 0.45 percentage points from the previous year[87]. Customer Growth and Market Presence - The number of personal customers increased by 173,000, nearly doubling the previous year[18]. - The bank operates 28 branches and a sub-branch in Chengdu, expanding its market presence in the region[8]. - The total number of corporate banking customers reached 21,385, an increase of 5,674 customers year-on-year, representing a growth of 36.11%[123]. - Retail banking customers increased to 947,400, up by 173,000 customers or 22.34% compared to the end of 2019, with total retail deposits of RMB 41.78 billion[126]. Operational Efficiency and Cost Management - The bank's operating expenses increased by 13.54% to RMB 1.177 billion, indicating higher costs associated with operations[11]. - The company's operating expenses in 2020 were RMB 1.18 billion, an increase of RMB 140 million, with a cost-to-income ratio of 36.09%[50]. - The proportion of net interest income in total operating income decreased to 87.38% in 2020, down 9.47 percentage points from 2019[26]. Innovation and Digital Banking - The bank launched a video banking service, "Xiao Lu Cloud Hall," enabling remote handling of 14 services, recognized as an innovative case in 2020[16]. - Luzhou Bank received the "Best Intelligent Bank Award" in December 2020, highlighting its advancements in digital banking[9]. Governance and Management - The company has established a corporate governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and senior management[200]. - The bank's management team includes several vice presidents responsible for various operational areas, ensuring effective leadership[161]. - The company emphasizes the importance of governance with a structured board and supervisory committee[160]. - The bank's governance structure includes several committees focused on audit, risk management, and consumer protection, ensuring comprehensive oversight[176][178]. Shareholder Structure - The total number of shares held by the top 10 shareholders amounts to 1,000,000,000 shares, which is approximately 44.15% of the total issued shares[148]. - The top shareholder, Luzhou Laojiao Group Co., Ltd., holds 325,440,000 shares, representing 14.37% of the total shares[147]. - The bank's major shareholders include Sichuan Xinfu Industrial Group, which holds 60% and 40% of the equity interests in its subsidiaries[152]. Risk Management - The bank implemented a unified credit management approach to control risks associated with group clients, focusing on risk monitoring and early warning systems[92]. - The bank's credit risk management is based on a five-level classification system, assessing credit assets based on the debtor's repayment ability and willingness[96]. - The bank has implemented a liquidity risk management strategy that includes continuous monitoring and stress testing to ensure adequate cash flow under extreme conditions[109].
泸州银行(01983) - 2020 - 年度财报