BANK COMM(03328)2024-09-23 08:30Financial 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].