INDUSTRIAL BANK(SH:601166)2021-03-30 16:00Financial Performance - Total operating income for 2020 was RMB 203,137 million, an increase of 12.04% compared to RMB 181,308 million in 2019[13]. - Net profit attributable to shareholders of the parent company for 2020 was RMB 66,626 million, a slight increase of 1.15% from RMB 65,868 million in 2019[13]. - The total assets as of December 31, 2020, reached RMB 7,894,000 million, reflecting a growth of 10.47% from RMB 7,145,681 million in 2019[13]. - The non-performing loan ratio improved to 1.25% in 2020, down from 1.54% in 2019, indicating better asset quality[13]. - The capital adequacy ratio stood at 13.47% as of December 31, 2020, slightly up from 13.36% in 2019[19]. - The weighted average return on equity decreased to 12.62% in 2020 from 14.02% in 2019, reflecting a decline of 1.40 percentage points[13]. - The net cash flow from operating activities for 2020 was negative RMB 34,228 million, an improvement from negative RMB 588,009 million in 2019[13]. - The total deposits increased to RMB 4,042,894 million in 2020, up from RMB 3,759,063 million in 2019, marking a growth of 7.52%[17]. - The bank's basic earnings per share for 2020 was RMB 3.08, a slight decrease from RMB 3.10 in 2019[13]. - The bank's provision coverage ratio improved to 218.83% in 2020, up from 199.13% in 2019, indicating stronger risk management[13]. Asset Quality - Non-performing loan ratio and non-performing loan balance both decreased for the first time in five years[5]. - Provision coverage ratio returned to over 200%, reflecting improved asset quality[5]. - The company has completed strategic restructuring of its balance sheet, enhancing sustainability of asset quality[5]. - The company has exceeded key regulatory indicators for loans to manufacturing, small and micro enterprises, and financial poverty alleviation[5]. - The non-performing loan balance decreased to CNY 496.56 billion, down by CNY 33.66 billion from the previous year[54]. - The company maintained a high-pressure asset quality control stance, resulting in a decrease in both the NPL balance and NPL ratio compared to the previous year[66]. - The company’s non-performing loan ratio and non-performing loan balance both decreased for the first time in five years, indicating improved asset quality[39]. Strategic Initiatives - The company aims to become a leading provider of green financial services, focusing on carbon neutrality and peak carbon emissions[6]. - The company is committed to enhancing its wealth management services and creating an open investment ecosystem[7]. - The investment banking division will focus on expanding its direct financing capabilities and asset management[7]. - The company has positioned itself as a leader in green finance, integrating ESG principles into its operations[28]. - The company plans to enhance its risk management strategies in response to ongoing market uncertainties and the impact of the COVID-19 pandemic[45]. - The company aims to further develop its wealth management services and investment banking capabilities to meet evolving customer needs and market demands[44]. Customer and Market Engagement - The number of mobile banking customers exceeded 37 million, reflecting an 18.19% increase compared to the end of the previous year[33]. - The company expanded its ecosystem by adding 889 new platform projects, doubling the previous year's total, and increasing corporate clients by 2,445 to 7,448[33]. - Retail banking customers reached 79.56 million, an increase of 773,500 from the previous year, with total retail financial assets of CNY 2.3844 trillion, up CNY 244.3 billion[152]. - The company launched the "Xingye Inclusive Loan," achieving nearly CNY 15 billion in disbursements within five months[150]. - The company achieved a total underwriting scale of non-financial corporate debt financing instruments of CNY 654.55 billion, maintaining the market's leading position for three consecutive years[158]. Risk Management - The company established a comprehensive risk management system covering various risks, including credit, market, liquidity, and operational risks[163]. - The company maintained liquidity regulatory indicators at historically good levels, ensuring stable operations[165]. - The company actively managed interest rate risk through a risk indicator limit system, focusing on interest-sensitive and stop-loss indicators[167]. - The company controlled foreign exchange risk exposure through a zero-tolerance approach to its market-making positions[167]. - The company implemented a risk early warning monitoring system to identify and manage potential risks effectively[164]. Corporate Governance and Compliance - The company launched a "System and Governance Year" initiative to enhance compliance and governance capabilities, focusing on legal awareness and compliance training for senior management[172]. - The company conducted proactive research in data compliance management, particularly regarding the Personal Information Protection Law, to mitigate risks associated with customer information leaks[173]. - The company implemented a reputation risk management strategy to enhance brand reputation and market image, ensuring timely and accurate information disclosure[175]. - The company has maintained compliance and transparency in its profit distribution procedures, ensuring the protection of minority shareholders' rights[179]. Dividend Policy - The company plans to distribute cash dividends of 8.02 RMB per 10 shares, totaling 16.661 billion RMB for the fiscal year 2020[179]. - The cash dividends for 2020 represent 26.00% of the net profit attributable to ordinary shareholders, which is 64.077 billion RMB[180]. - The company has committed to distributing at least 20% of its distributable profits as cash dividends annually from 2018 to 2020, with a minimum of 40% of the total distribution being in cash[181]. - The independent directors have confirmed that the profit distribution plan complies with relevant regulations and considers the interests of all types of investors[179]. Social Responsibility - The company is actively involved in poverty alleviation efforts, enhancing financial service accessibility in impoverished areas[194]. - The company's targeted poverty alleviation loans reached a balance of 16.668 billion RMB, an increase of 2.14 billion RMB compared to the beginning of the reporting period[195]. - A total of 189,982 individuals benefited from the financial targeted poverty alleviation services provided by the company[196]. - The company has donated over 100 million RMB for various charitable causes, including more than 60 million RMB for COVID-19 relief efforts[195].