Dividends and Profit Distribution - The bank proposed a cash dividend of RMB 1.208 per 10 shares for the 2024 interim period, pending shareholder approval[6]. - The total cash dividend distributed for the 2023 fiscal year amounted to approximately RMB 69.593 billion, at RMB 2.364 per 10 shares[6]. - The company emphasizes a profit distribution policy that mandates at least 10% of the after-tax profit attributable to ordinary shareholders to be distributed in cash dividends, barring special circumstances[183]. - The company approved a profit distribution plan for 2023, allocating approximately RMB 20.824 billion to statutory surplus reserves and RMB 40.468 billion to general reserves, with a cash dividend of RMB 2.364 per 10 shares, totaling around RMB 69.593 billion before tax[185]. - The board proposed a mid-term cash dividend of RMB 1.208 per 10 shares for 2024, pending shareholder approval, with expected payment dates for A-shares on January 23, 2025, and H-shares on February 19, 2025[185]. - The company approved a dividend distribution plan for the second phase of overseas preferred shares, with a total payout of approximately USD 10.15 million (after tax) at a dividend rate of 3.60% (after tax) scheduled for March 4, 2024[185]. - The third phase of domestic preferred shares will have a total dividend payout of RMB 3.285 billion (before tax) at a rate of 4.50% (before tax) on June 27, 2024, and the fourth phase will have a payout of RMB 1.1745 billion (before tax) at a rate of 4.35% (before tax) on August 29, 2024[185]. Financial Performance - Net interest income for the first half of 2024 was RMB 226,760 million, a decrease of 3.5% compared to RMB 233,992 million in the same period of 2023[9]. - Total operating income for the first half of 2024 was RMB 317,929 million, slightly down from RMB 319,707 million in the first half of 2023[9]. - The bank's net profit attributable to shareholders for the first half of 2024 was RMB 118,601 million, compared to RMB 120,095 million in the same period of 2023, reflecting a decrease of 1.2%[9]. - The group achieved operating income of CNY 317.929 billion and net profit after tax of CNY 126.536 billion in the first half of the year[13]. - In the first half of 2024, the group achieved a net profit of RMB 126.54 billion, a decrease of 0.90% year-on-year[20]. - The group's net interest income for the first half of 2024 was RMB 226.76 billion, down 3.09% from the previous year[22]. Risk Management - The bank is actively managing various risks, including credit risk from borrowers and market price fluctuations, while ensuring compliance with regulatory requirements[6]. - The bank's management emphasizes the importance of risk awareness among investors regarding forward-looking statements and future plans[6]. - The non-performing loan ratio remained stable at 1.24% as of June 30, 2024, unchanged from the previous quarter[9]. - The non-performing loan coverage ratio stood at 201.69%, demonstrating effective risk management practices[17]. - The company is focusing on optimizing credit structure and enhancing credit risk management policies to improve asset quality and risk management effectiveness[114]. - The company has established a comprehensive credit risk management system to enhance the identification, warning, exposure, and resolution of potential risks[114]. - The company is implementing a unified credit granting approach to strengthen credit risk management across all business lines[114]. Asset and Liability Management - The total assets of the bank reached RMB 33,907,267 million as of June 30, 2024, an increase of 4.5% from RMB 32,432,166 million at the end of 2023[9]. - Customer loans totaled RMB 21,142,830 million, up 5.9% from RMB 19,961,779 million at the end of 2023[9]. - The total liabilities increased to RMB 31,128.29 billion, up from RMB 29,675.35 billion at the end of 2023[34]. - The average balance of customer loans increased to CNY 20,587,933 million in the first half of 2024[26]. - The average balance of customer deposits rose to CNY 23,037,568 million, with interest expenses of CNY 236,382 million and an average interest rate of 2.06%[26]. Digital Transformation and Innovation - The number of active users of the personal mobile banking app grew by 9.98% year-on-year, highlighting the success of digital financial services[14]. - The monthly active users of the personal mobile banking app peaked at 90 million, reflecting a strong customer engagement[57]. - The bank is focused on digital transformation, enhancing customer experience through a seamless online service and launching a digital RMB section in the BoC Pay app[91]. - The bank has implemented a unified data labeling center to enhance data analysis applications, focusing on precision marketing and fraud prevention[57]. - The bank launched a new generation of bill pool systems to enhance bill trading service capabilities, supporting digital transformation in transaction banking[65]. Corporate Governance - The bank's board includes 12 directors, with a mix of executive and independent members, ensuring diverse governance[168]. - The company continues to enhance corporate governance mechanisms, aligning with capital market regulations and conducting self-assessments[176]. - The company emphasizes the protection of shareholders' rights to information, participation, and decision-making[177]. - The board of directors organized training for continuous professional development, improving decision-making efficiency[178]. - The company has established various specialized committees under the board to assist in fulfilling its responsibilities, with independent directors chairing key committees[178]. Sustainable Finance and Green Initiatives - The balance of green credit increased by 39.77% year-on-year, reflecting the company's commitment to sustainable finance[14]. - The bank's green finance action plan includes specific measures to guide funding towards renewable energy and environmental protection sectors[143]. - The bank's risk management strategy emphasizes proactive measures to address market changes and enhance compliance capabilities[141]. - The bank has not provided financing for new coal mining and coal power projects outside of China since Q4 2021, with no new financing for such projects as of June 2024[146]. - The bank invested over RMB 37 million in the first half of 2024 to support poverty alleviation projects in four designated counties in Shaanxi Province[149]. Shareholder Information - As of June 30, 2024, the total number of ordinary shares is 294,387,791,241, consisting of 210,765,514,846 A-shares (71.59%) and 83,622,276,395 H-shares (28.41%)[156]. - The largest shareholder, Central Huijin Investment Ltd., holds 188,791,906,533 A-shares, representing 64.13% of the total A-shares issued[163]. - The second-largest shareholder, Hong Kong Central Clearing Limited, holds 81,769,959,608 H-shares, accounting for 27.78% of the total H-shares issued[163]. - As of June 30, 2024, the total number of ordinary shareholders is 588,043, comprising 421,595 A-share shareholders and 166,448 H-share shareholders[158]. - The total number of shares held by the top ten ordinary shareholders is significant, with the first two shareholders alone holding over 91% of the total[163].
中国银行(03988) - 2024 - 中期业绩