兴业银行(601166) - 2023 Q2 - 季度财报

Financial Performance - The total operating income for the first half of 2023 was RMB 111,047 million, a decrease of 4.15% compared to RMB 115,853 million in the same period of 2022[13]. - The total profit for the first half of 2023 was RMB 49,105 million, down 5.88% from RMB 52,173 million in the first half of 2022[13]. - The net profit attributable to shareholders of the parent company was RMB 42,680 million, a decrease of 4.92% from RMB 44,887 million in the same period last year[13]. - The basic earnings per share for the first half of 2023 was RMB 1.92, down 5.42% from RMB 2.03 in the first half of 2022[13]. - The return on total assets was 0.45%, a decrease of 0.07 percentage points compared to 0.52% in the same period last year[13]. - The weighted average return on net assets was 5.96%, down 0.84 percentage points from 6.80% in the first half of 2022[13]. - The cost-to-income ratio increased to 26.76%, up 1.81 percentage points from 24.95% in the same period last year[13]. - The net cash flow from operating activities was RMB 242,205 million, compared to a negative RMB 394,017 million in the same period last year[15]. - The company will not distribute profits or increase capital reserves through stock conversion for the first half of 2023[3]. - The financial report for the first half of 2023 has not been audited but has been reviewed by KPMG Huazhen[3]. Asset and Liability Management - Total assets increased by 6.73% to RMB 9,890,454 million as of June 30, 2023, compared to RMB 9,266,671 million at the end of 2022[16]. - Total liabilities increased by 7.13% to RMB 9,116,197 million as of June 30, 2023, from RMB 8,509,373 million at the end of 2022[18]. - The capital adequacy ratio improved to 13.65% as of June 30, 2023, compared to 13.32% at the end of 2022[19]. - The loan-to-deposit ratio decreased to 94.55% from 96.21% at the end of 2022[21]. - The total deposits reached RMB 5,136,491 million, with demand deposits at RMB 1,896,302 million as of June 30, 2023[18]. - The core tier 1 capital ratio increased to 9.29% from 8.81% at the end of 2022[19]. - The company reported an increase in undistributed profits to RMB 457,625 million, up from RMB 442,627 million at the end of 2022[22]. Risk Management - The non-performing loan ratio improved slightly to 1.08%, down 0.01 percentage points from 1.09% at the end of 2022[16]. - The provision coverage ratio rose to 245.77%, an increase of 9.33 percentage points from 236.44% at the end of 2022[16]. - The company has strengthened its risk management and capital management strategies in response to new regulatory requirements and asset quality adjustments[27]. - The company has established agile teams to focus on risk management in key areas, including real estate and local government financing[48]. - The company plans to enhance risk management strategies, focusing on cash recovery and write-off of non-performing assets, aiming to maintain stable credit card asset quality by year-end[50]. - The company has implemented a comprehensive risk management system that includes credit risk, market risk, liquidity risk, and operational risk, ensuring clear responsibilities across all management levels[194]. Business Development and Strategy - The company has developed into a modern comprehensive financial service group, ranking 223rd in the Fortune Global 500 and among the top 20 global banks according to The Banker[25]. - The banking sector has maintained stable operating performance with asset quality remaining controllable, supporting the recovery of the economy and enhancing internal development momentum[26]. - The company has increased credit investment in key sectors such as infrastructure and manufacturing, while also supporting small and micro enterprises and rural finance[26]. - The company is actively promoting cross-border financial services and enhancing its presence along the Belt and Road Initiative, facilitating cross-border trade and investment[27]. - The company is focusing on digital transformation, enhancing data-driven business development, and expanding digital financial services to meet consumer needs[27]. - The company has implemented a "1234" strategic system to ensure balanced development and effectively support national strategies and economic recovery[30]. Income Sources and Financial Products - Non-interest income accounted for 35.29% of total revenue, with wealth management income up 21.7%, investment income up 18.8%, and investment banking income up 14.5%[31]. - The company achieved investment banking underwriting and advisory revenue of 2.012 billion yuan, a year-over-year increase of 14.54%[39]. - The company’s asset management business has a total managed product scale of 2.09 trillion yuan, with new products compliant with the "Asset Management New Regulations" exceeding 2 trillion yuan, accounting for 98.86% of the total wealth management product scale[186]. - The company’s bond underwriting total reached 443.24 billion yuan, a year-on-year increase of 6.28%[189]. Customer and Market Engagement - The number of corporate financial clients grew by 7.35% to 1.3282 million, while retail financial clients increased by 4.99% to 96.326 million[31]. - The number of registered users for Qian Da Zhang Gui increased by 492,800 to 569,800, a growth of 12.17% compared to the end of the previous year[37]. - The retail AUM reached 3.61 trillion yuan, growing by 7.01% year-over-year, with off-balance sheet assets accounting for 65.42%[37]. - The company launched 202 new scene ecological projects during the reporting period, bringing the total to 4,918[172]. - The number of VIP clients increased to 4.2653 million, up by 212,200 clients or 5.23% compared to the end of last year[178]. Digital Transformation and Technology - The company is focusing on digital transformation, enhancing data-driven business development, and expanding digital financial services to meet consumer needs[27]. - The company has implemented a digital transformation plan, with a focus on enhancing its digital operating capabilities and establishing a comprehensive data governance framework[192]. - The company’s digital risk management measures led to a 45% year-over-year decrease in personal account fraud cases, with intercepted fraudulent funds amounting to 380 million yuan[41]. - The company has accelerated the construction of a smart risk control platform for market risks, optimizing the measurement of market risk capital under the Basel framework[199]. Environmental and Social Responsibility - The company has established a comprehensive green finance product and service system, being the first domestic bank to elevate sustainable development to a strategic level[29]. - The company aims to actively engage in green low-carbon construction to support the national "dual carbon" strategy[54]. - The balance of green financing grew by 10.49% to CNY 1.8 trillion, with green loans increasing by 17.29% to CNY 747.2 billion[34].