光大银行(601818) - 2020 Q2 - 季度财报

Important Notes and Definitions This section provides crucial disclaimers and defines key terms used throughout the report 1. Important Notes The Board, Supervisory Board, and senior management guarantee the report's accuracy, with the financial report reviewed by EY and no profit distribution planned - The Board of Directors, Supervisory Board, and senior management of the Bank guarantee the truthfulness, accuracy, and completeness of the report's content, with no false records, misleading statements, or major omissions[4] - The Bank's 2020 interim financial report has been reviewed by Ernst & Young Hua Ming LLP and Ernst & Young in accordance with Chinese and international review standards, respectively[4] - The Bank will not distribute profits or convert capital reserves into share capital for the half-year period[4] 2. Definitions This section defines common terms, including regulatory bodies and major related parties - The report provides clear definitions for regulatory bodies such as the Ministry of Finance, the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission, as well as major related parties like China Investment Corporation, Central Huijin Investment Ltd., and Everbright Group[5] Introduction to the Bank This section provides fundamental information about the bank, including its official name, key personnel, contact details, and operational scope 1. Bank Name The bank's official Chinese name is China Everbright Bank Co., Ltd., and its English name is CHINA EVERBRIGHT BANK COMPANY LIMITED - Legal Chinese Name: China Everbright Bank Co., Ltd (Abbreviation: China Everbright Bank, Everbright Bank)[6] - Legal English Name: CHINA EVERBRIGHT BANK COMPANY LIMITED (Abbreviation: CEB BANK)[6] 2. Key Personnel The bank's legal representative is Li Xiaopeng, and the Board Secretary and Securities Affairs Representative is Li Jiayan - Legal Representative: Li Xiaopeng[6] - Board Secretary: Li Jiayan, Securities Affairs Representative: Li Jiayan[6] 3. Contact Information The bank's contact address is China Everbright Center, No. 25 Taipingqiao Street, Xicheng District, Beijing, with various contact channels provided - Contact Address: China Everbright Center, No. 25 Taipingqiao Street, Xicheng District, Beijing[6] - Contact Phone: 86-10-63636363, Email: IR@cebbank.com, Investor Hotline: 86-10-63636388[6] 4. Institutional Information The bank's registered and office address is in Beijing, with a broad business scope covering deposits, loans, settlements, and various financial services - Registered and Office Address: China Everbright Center, No. 25 and A25 Taipingqiao Street, Xicheng District, Beijing[6] - Business Scope includes accepting public deposits; issuing short-term, medium-term, and long-term loans; handling domestic and international settlements; handling bill acceptance and discounting; issuing financial bonds; acting as agent for issuing, cashing, and underwriting government bonds; buying and selling government bonds and financial bonds; engaging in interbank lending; buying and selling, and acting as agent for buying and selling foreign exchange; engaging in bank card business; providing letter of credit services and guarantees; acting as agent for collection and payment and insurance business; providing safe deposit box services; and other businesses approved by the China Banking and Insurance Regulatory Commission[6][7] 5. Hong Kong Operating Entity and Address The bank's Hong Kong Branch is located on the 23rd floor of Everbright Centre, 108 Gloucester Road, Wanchai, Hong Kong - The Bank's Hong Kong Branch: 23rd Floor, Everbright Centre, 108 Gloucester Road, Wanchai, Hong Kong[7] 6. Selected Information Disclosure Websites and Newspapers The bank's A-share semi-annual report is published on the SSE website and the bank's website, while the H-share interim report is on the HKEX website and the bank's website - Websites for A-share semi-annual report: SSE website: www.sse.com.cn, Bank website: www.cebbank.com; Newspapers: China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily[7] - Websites for H-share interim report: HKEX website: www.hkex.com.hk, Bank website: www.cebbank.com[7](index=7&type=chunk) 7. Securities Listing Exchanges The bank's A-shares, preferred shares, and convertible bonds are listed on the SSE, and H-shares are listed on the HKEX - A-shares: Shanghai Stock Exchange, Ordinary Share Abbreviation: Everbright Bank; Code: 601818[7] - Preferred Shares Abbreviation: Everbright Preferred 1, Everbright Preferred 2, Everbright Preferred 3; Codes: 360013, 360022, 360034 (SSE Comprehensive Business Platform)[7] - Convertible Corporate Bonds Abbreviation: Everbright Convertible Bonds; Code: 113011[7] - H-shares: Hong Kong Stock Exchange, Stock Abbreviation: China Everbright Bank; Code: 6818[7] 8. Accountants Appointed During the Reporting Period The bank's domestic auditor is Ernst & Young Hua Ming LLP, and its international auditor is Ernst & Young - Domestic Accounting Firm: Ernst & Young Hua Ming LLP, Signing Accountants: Xu Xuming, Liang Chengjie[7] - International Accounting Firm: Ernst & Young, Signing Accountant: Cai Jianchang[7][8] 9. Legal Advisors to the Board Appointed During the Reporting Period The bank's A-share legal counsel is JunHe LLP, and its H-share legal counsel is Clifford Chance - A-share Legal Advisor: JunHe LLP, Beijing[8] - H-share Legal Advisor: Clifford Chance[8] 10. Securities Custodian Institutions The A-share ordinary shares, preferred shares, and convertible bonds are custodied by China Securities Depository and Clearing Corporation Limited Shanghai Branch, and H-share registrar is Hong Kong Registrars Limited - A-share Ordinary Shares, Preferred Shares, Convertible Bonds Custodian Institution: China Securities Depository and Clearing Corporation Limited Shanghai Branch[8] - H-share Share Registrar and Transfer Office: Hong Kong Registrars Limited[8] 11. Continuing Supervision Institutions The continuing supervision for convertible bonds extends until full conversion, while for Everbright Preferred 3, it is from August 5, 2019, to December 31, 2020 - Convertible Bonds Continuing Supervision Institutions: CITIC Securities Co., Ltd., Everbright Securities Co., Ltd., with the continuing supervision period extended until all convertible bonds are converted into shares[8] - Everbright Preferred 3 Continuing Supervision Period: 2019 August 5 to 2020 December 31[8] Summary of Accounting Data and Financial Indicators This section provides a concise overview of the bank's key financial performance and position indicators for the reporting period 1. Key Accounting Data and Indicators The bank's operating revenue grew by 9.03% to RMB 72.114 billion, while total profit and net profit decreased by approximately 10%, with operating cash flow significantly increasing 2020 Jan-Jun Key Operating Performance (RMB million) | Item | 2020 Jan-Jun | 2019 Jan-Jun | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 72,114 | 66,139 | 9.03 | | Total Profit | 22,038 | 24,482 | (9.98) | | Net Profit | 18,421 | 20,484 | (10.07) | | Net Profit Attributable to Bank Shareholders | 18,363 | 20,444 | (10.18) | | Net Cash Flow from Operating Activities | 187,604 | 15,169 | 1,136.76 | 2020 Jun 30 Key Scale Indicators (RMB million) | Item | 2020 Jun 30 | 2019 Dec 31 | Period-on-Year-End Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 5,388,434 | 4,733,431 | 13.84 | | Total Principal of Loans and Advances | 2,921,562 | 2,712,204 | 7.72 | | Total Liabilities | 4,996,991 | 4,347,377 | 14.94 | | Deposit Balance | 3,672,102 | 3,017,888 | 21.68 | | Total Shareholders' Equity | 391,443 | 386,054 | 1.40 | 2020 Jan-Jun Key Profitability and Asset Quality Indicators (%) | Item | 2020 Jan-Jun | 2019 Jan-Jun | Period-on-Period Change | | :--- | :--- | :--- | :--- | | Average Return on Total Assets | 0.73 | 0.91 | -0.18 percentage points | | Weighted Average Return on Net Assets | 10.05 | 12.90 | -2.85 percentage points | | Net Interest Margin | 2.20 | 2.15 | +0.05 percentage points | | Net Interest Income Ratio | 2.30 | 2.28 | +0.02 percentage points | | Cost-to-Income Ratio | 25.42 | 26.27 | -0.85 percentage points | | Non-Performing Loan Ratio | 1.55 | 1.56 | -0.01 percentage points | | Provision Coverage Ratio | 186.77 | 181.62 | +5.15 percentage points | | Loan Loss Provision Ratio | 2.90 | 2.83 | +0.07 percentage points | 2. Supplementary Profit Statement for the Reporting Period The bank's net profit attributable to shareholders was RMB 18.363 billion, with a weighted average return on net assets of 10.05%, and basic and diluted EPS of RMB 0.31 and RMB 0.28 respectively Supplementary Profit Statement for the Reporting Period (RMB million, %) | Item | Net Profit Attributable to Bank Shareholders | Weighted Average Return on Net Assets | Basic EPS (RMB/share) | Diluted EPS (RMB/share) | | :--- | :--- | :--- | :--- | :--- | | Before Non-Recurring Gains and Losses | 18,363 | 10.05 | 0.31 | 0.28 | | After Non-Recurring Gains and Losses | 18,356 | 10.05 | 0.31 | 0.28 | 3. Supplementary Financial Indicators The bank's liquidity ratios for RMB and foreign currency both exceeded the 25% standard, and loan concentration ratios remained below regulatory limits Supplementary Financial Indicators (%) | Item | Standard Value | 2020 Jun 30 | 2019 Dec 31 | | :--- | :--- | :--- | :--- | | Liquidity Ratio (RMB) | ≥25 | 70.90 | 72.63 | | Liquidity Ratio (Foreign Currency) | ≥25 | 110.41 | 93.29 | | Single Largest Customer Loan Ratio | ≤10 | 2.72 | 1.86 | | Top Ten Customers Loan Ratio | ≤50 | 11.41 | 10.91 | 4. Capital Structure and Changes The bank's capital adequacy ratio, Tier 1 capital adequacy ratio, and core Tier 1 capital adequacy ratio all met regulatory requirements as of June 30, 2020 Capital Adequacy Ratio Indicators (Consolidated, %) | Item | 2020 Jun 30 | 2019 Dec 31 | | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 8.68 | 9.20 | | Tier 1 Capital Adequacy Ratio | 10.43 | 11.08 | | Capital Adequacy Ratio | 12.74 | 13.47 | - The scope of consolidated capital adequacy ratio calculation includes all domestic and overseas branches and investee financial institutions within the scope of consolidation[19] 5. Leverage Ratio The bank's leverage ratio remained compliant with regulatory requirements, decreasing to 5.99% as of June 30, 2020, from 6.83% at the end of 2019 Leverage Ratio Indicators (%) | Item | 2020 Jun 30 | 2019 Dec 31 | | :--- | :--- | :--- | | Leverage Ratio | 5.99 | 6.83 | - The leverage ratio is measured in accordance with the "Measures for the Management of Commercial Bank Leverage Ratio (Revised)"[20] 6. Liquidity Coverage Ratio The bank's liquidity coverage ratio significantly improved to 171.87% as of June 30, 2020, indicating enhanced resilience to liquidity risk Liquidity Coverage Ratio Indicators (%) | Item | 2020 Jun 30 | 2019 Dec 31 | | :--- | :--- | :--- | | Liquidity Coverage Ratio | 171.87 | 125.12 | | High-Quality Liquid Assets | 833,515 | 630,894 | | Net Cash Outflow in Next 30 Days | 484,964 | 504,250 | - The liquidity coverage ratio is measured in accordance with the "Measures for the Management of Commercial Bank Liquidity Risk"[21] 7. Net Stable Funding Ratio The bank's net stable funding ratio continued to improve, reaching 109.19% as of June 30, 2020, exceeding regulatory requirements Net Stable Funding Ratio Indicators (%) | Item | 2020 Jun 30 | 2019 Dec 31 | | :--- | :--- | :--- | | Net Stable Funding Ratio | 109.19 | 105.34 | | Available Stable Funding | 3,001,492 | 2,693,533 | | Required Stable Funding | 2,748,866 | 2,556,972 | - The net stable funding ratio is measured in accordance with the "Measures for Information Disclosure of Commercial Bank Net Stable Funding Ratio"[22] 8. Differences Between Chinese Accounting Standards and International Financial Reporting Standards There were no differences in net profit for January-June 2020 and net assets as of June 30, 2020, calculated under Chinese Accounting Standards and IFRS - There were no differences in the Group's net profit for January-June 2020 and net assets as of June 30, 2020, calculated separately under Chinese Accounting Standards and International Financial Reporting Standards[24] Business Overview of the Bank This section outlines the bank's key operational achievements, strategic focus on wealth management, and core competitive advantages 1. Review of Key Initiatives In the first half, the bank focused on serving the real economy, supporting pandemic recovery, enhancing wealth management, improving operational strength, and strengthening risk control - Assisted the real economy, reduced fees and offered concessions, supported the development of manufacturing, small and micro enterprises, and private enterprises, achieving the "two increases and two controls" target for inclusive finance[25] - Supported anti-pandemic enterprises, cumulatively disbursed over RMB 95 billion in funds, provided over RMB 150 billion to affected industries, and offered preferential policies such as deferred principal and interest payments[25] - Strengthened wealth management orientation, with initial success in retail business transformation, new strides in digital bank construction, and global bank ranking improved to 35th[25] - Operating indicators maintained a good trend, with rapid growth in deposits and loans, strong growth in operating revenue and net fee and commission income, stable non-performing loan ratio, and improved provision coverage ratio[26] - Upgraded the Sunshine Early Warning Platform, built a four-tier risk monitoring network, and strengthened internal control and information technology risk management[26] 2. Building a Wealth Management Bank The bank continued to advance its wealth management strategy, achieving significant retail transformation, showcasing leading wealth management products, and enhancing E-SBU synergy - Formulated a "1+6" strategic management system optimization framework, focusing on the wealth management bank positioning, and optimizing the strategic indicator system and six major management systems[27] - Retail banking business achieved operating revenue of RMB 29.28 billion, a year-on-year increase of 8.30%; total retail customers reached 114.33 million, an increase of 13.34%; Assets Under Management (AUM) for retail customers reached RMB 1.88 trillion, an increase of 10.46%[27][28] - Cloud Payment maintained its leading position in China, the "Colorful Sunshine" net-value product system continued to enrich, the scale of Sunshine Annuity托管 increased, and the transaction volume of the transaction banking platform ranked among the top in the industry[28] - Wealth E-SBU synergy strengthened, with total business synergy reaching RMB 1.59 trillion, a year-on-year increase of 25.50%; achieving synergistic revenue of RMB 4.88 billion, a year-on-year increase of 77.30%[28] 3. Analysis of Core Competencies The bank's core competencies include diversified operations, comprehensive financial licenses, synergistic shareholder background, strong brand, innovation, leading business segments, and robust risk management - Everbright Group, as a large central state-owned financial holding group, provides comprehensive financial licenses and industrial-financial synergy advantages[28] - The "Sunshine" series brand has been built over many years, enjoying a high reputation[28] - Strong innovation awareness, being the first to launch RMB wealth management products and creating China's largest open payment platform, "Cloud Payment"[29] - Possesses leading advantages in wealth management, investment banking, digital finance, credit card, and retail businesses[29] - Adheres to the "comprehensive, full-process, all-staff" risk management principle, establishing a relatively complete comprehensive risk management system[29] - Achieved data centralization earliest, with security operations and technology support capabilities reaching advanced domestic levels, and gradually enhanced independent R&D capabilities[29] Management Discussion and Analysis This section provides a detailed analysis of the bank's overall operating performance, key financial statement items, and risk management strategies 1. Overall Operating Performance of the Bank The group's total assets grew by 13.84%, with rapid growth in loans and deposits, and optimized liability structure, while net profit decreased due to increased impairment provisions - At the end of the reporting period, the Group's total assets were RMB 5,388.434 billion, an increase of RMB 655.003 billion from the end of the previous year, representing a 13.84% growth[30] - Deposit balance was RMB 3,672.102 billion, an increase of RMB 654.214 billion from the end of the previous year, representing a 21.68% growth; the proportion of deposit balance in total liabilities was 73.49%, an increase of 4.07 percentage points from the end of the previous year, continuously optimizing the liability structure[30] - The Group achieved operating revenue of RMB 72.114 billion, a year-on-year increase of 9.03%[30] - The Group accrued asset impairment losses of RMB 30.673 billion, achieving a net profit of RMB 18.421 billion[30] - Non-performing loan ratio was 1.55%, a decrease of 0.01 percentage points from the end of the previous year; provision coverage ratio was 186.77%, an increase of 5.15 percentage points from the end of the previous year[30] - The Group's capital adequacy ratio was 12.74%, Tier 1 capital adequacy ratio was 10.43%, and core Tier 1 capital adequacy ratio was 8.68%, all meeting regulatory requirements[31] 2. Analysis of Key Income Statement Items Operating revenue increased by 9.03%, driven by net interest income and net fee and commission income, but increased asset impairment losses led to a decline in total profit and net profit Income Statement Item Changes (RMB million) | Item | 2020 Jan-Jun | 2019 Jan-Jun | Change Amount | | :--- | :--- | :--- | :--- | | Net Interest Income | 54,666 | 49,183 | 5,483 | | Net Fee and Commission Income | 14,133 | 12,749 | 1,384 | | Other Income | 3,315 | 4,207 | (892) | | Business and Management Expenses | 18,332 | 17,376 | 956 | | Asset Impairment Losses | 30,673 | 23,379 | 7,294 | | Total Profit | 22,038 | 24,482 | (2,444) | | Net Profit | 18,421 | 20,484 | (2,063) | - Operating revenue was RMB 72.114 billion, a year-on-year increase of 9.03%. Net interest income accounted for 75.80% (up 1.44 percentage points year-on-year), and net fee and commission income accounted for 19.60% (up 0.32 percentage points year-on-year)[32][33] - Net interest income was RMB 54.666 billion, a year-on-year increase of 11.15%, primarily due to the increase in the scale of loans and advances. Net interest margin was 2.20% (up 5 BPs year-on-year), and net interest income ratio was 2.30% (up 2 BPs year-on-year)[33][34] - Net fee and commission income was RMB 14.133 billion, a year-on-year increase of 10.86%, mainly due to a year-on-year increase of RMB 1.197 billion in wealth management service fee income, a growth of 450.00%[43] - Asset impairment losses were RMB 30.673 billion, a year-on-year increase of RMB 7.294 billion, representing a 31.20% growth, reflecting an objective and prudent provisioning policy[47] 3. Analysis of Key Balance Sheet Items Total assets grew by 13.84%, primarily from loans and investments, while total liabilities increased by 14.94% due to significant customer deposit growth, and off-balance sheet credit commitments also rose - At the end of the reporting period, the Group's total assets were RMB 5,388.434 billion, an increase of RMB 655.003 billion from the end of the previous year, representing a 13.84% growth, mainly due to increases in loans and advances and investment securities and other financial assets[49] Asset Composition (RMB million, %) | Item | 2020 Jun 30 Balance | Proportion | 2019 Dec 31 Balance | Proportion | | :--- | :--- | :--- | :--- | :--- | | Net Loans and Advances | 2,845,757 | 52.81 | 2,644,136 | 55.86 | | Investment Securities and Other Financial Assets | 1,650,739 | 30.63 | 1,447,351 | 30.57 | | Due from Banks and Other Financial Institutions and Financial Assets Held for Resale | 251,929 | 4.68 | 67,105 | 1.42 | - At the end of the reporting period, the Group's total principal of loans and advances was RMB 2,921.562 billion, an increase of RMB 209.358 billion from the end of the previous year, representing a 7.72% growth[51] - At the end of the reporting period, the Group's total liabilities were RMB 4,996.991 billion, an increase of RMB 649.614 billion from the end of the previous year, representing a 14.94% growth, mainly due to an increase in customer deposits[56] - At the end of the reporting period, the Group's customer deposit balance was RMB 3,672.102 billion, an increase of RMB 654.214 billion from the end of the previous year, representing a 21.68% growth[59] - At the end of the reporting period, total credit commitments were RMB 1,536.333 billion, an increase of RMB 248.837 billion from the end of the previous year[61] 4. Cash Flow Analysis Net cash inflow from operating activities significantly increased to RMB 187.604 billion, while net cash outflows from investing and financing activities were RMB 134.934 billion and RMB 30.008 billion, respectively - The Group's net cash inflow from operating activities was RMB 187.604 billion, mainly due to a net increase in customer deposits[62] - The Group's net cash outflow from investing activities was RMB 134.934 billion, mainly due to an increase in cash paid for investments[63] - The Group's net cash outflow from financing activities was RMB 30.008 billion, mainly due to an increase in principal repayment of bonds[63] 5. Loan Quality Analysis Loan concentration shifted slightly, with stable regional distribution. Non-performing loan balance and ratio remained stable, while migration rates significantly decreased, indicating effective asset quality control - The proportion of loans to manufacturing, wholesale and retail, construction, and agriculture, forestry, animal husbandry, and fishery industries increased[64] - The proportion of loans in the Yangtze River Delta, Central Region, and Pearl River Delta increased[66] - The proportion of guaranteed, mortgaged, and pledged loans was 69.08%[68] - Non-performing loan balance was RMB 45.413 billion, an increase of RMB 3.201 billion from the end of the previous year; non-performing loan ratio was 1.55%, a decrease of 0.01 percentage points from the end of the previous year[70] Loan Migration Rate (%) | Type | 2020 Jun 30 | 2019 Dec 31 | Period-on-Year-End Change | | :--- | :--- | :--- | :--- | | Normal Loan Migration Rate | 1.60 | 2.57 | -0.97 percentage points | | Special Mention Loan Migration Rate | 26.97 | 42.83 | -15.86 percentage points | | Substandard Loan Migration Rate | 52.35 | 86.04 | -33.69 percentage points | | Doubtful Loan Migration Rate | 29.81 | 66.74 | -36.93 percentage points | - Non-performing loans are mainly concentrated in manufacturing (29.79%) and wholesale and retail industries (10.49%)[77] 6. Capital Adequacy Ratio This section refers to the "Summary of Accounting Data and Financial Indicators" for details on the bank's capital adequacy ratios, which consistently meet regulatory requirements - For content related to capital adequacy ratio, please refer to "Summary of Accounting Data and Financial Indicators"[83] 7. Segment Operating Performance Regional performance showed strong profit growth in Central and Western regions, while corporate banking and financial markets businesses saw profit increases, and retail banking experienced a significant profit decline Operating Performance by Regional Segment (RMB million) | Region | 2020 Jan-Jun Operating Revenue | 2020 Jan-Jun Total Profit | 2019 Jan-Jun Operating Revenue | 2019 Jan-Jun Total Profit | | :--- | :--- | :--- | :--- | :--- | | Yangtze River Delta | 13,658 | 5,051 | 11,948 | 5,787 | | Central Region | 12,395 | 3,748 | 10,585 | 2,916 | | Bohai Rim Region | 11,169 | 4,265 | 9,860 | (751) | | Pearl River Delta | 9,506 | 1,943 | 8,568 | 1,902 | | Western Region | 8,513 | 1,679 | 7,096 | 942 | | Northeast Region | 3,199 | (1,206) | 2,937 | 425 | | Head Office | 12,293 | 5,625 | 14,077 | 12,629 | | Overseas | 1,381 | 933 | 1,068 | 632 | Operating Performance by Business Segment (RMB million) | Type | 2020 Jan-Jun Operating Revenue | 2020 Jan-Jun Total Profit | 2019 Jan-Jun Operating Revenue | 2019 Jan-Jun Total Profit | | :--- | :--- | :--- | :--- | :--- | | Corporate Banking Business | 30,478 | 9,760 | 26,835 | 8,024 | | Retail Banking Business | 29,280 | 1,123 | 27,036 | 5,336 | | Financial Markets Business | 12,354 | 11,181 | 12,247 | 11,066 | | Other Businesses | 2 | (26) | 21 | 56 | 8. Other Matters Significant changes in financial indicators include substantial increases in financial assets held for resale and financial assets at fair value, while investment income and net exchange gains decreased, and credit impairment losses increased Major Financial Indicator Changes and Reasons | Item | 2020 Jun 30/2020 Jan-Jun | 2019 Dec 31/2019 Jan-Jun | Change (%) | Main Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Resale | 192,506 | 6,835 | 2,716.47 | Increase in bonds held for resale | | Financial Assets at Fair Value Through Profit or Loss | 318,028 | 211,406 | 50.43 | Increase in financial assets at fair value through profit or loss | | Other Assets | 55,231 | 34,245 | 61.28 | Increase in unsettled funds | | Investment Income | 2,937 | 4,431 | -33.72 | Decrease in net gains from financial assets at fair value through profit or loss | | Net Exchange Gains | 71 | 778 | -90.87 | Decrease in net exchange gains | | Credit Impairment Losses | (30,526) | (23,331) | 30.84 | Increase in provision accrual | - During the reporting period, the Bank had no overdue and unpaid debts[87] - On-balance sheet accrued interest balance at period-end was RMB 34.098 billion, with an increase of RMB 123.743 billion and a decrease of RMB 121.659 billion during the current period. Accrued interest impairment allowance balance was RMB 3 million, a year-on-year decrease of RMB 7 million[89] - Other receivables balance at period-end was RMB 46.004 billion, a year-on-year increase of RMB 19.817 billion. Other receivables impairment allowance balance was RMB 684 million, a year-on-year increase of RMB 111 million[90][91] 9. Operating Performance by Business Segment Corporate banking supported the real economy and achieved steady growth in deposits and loans. Retail banking focused on digital transformation, with increasing customer base and AUM. Financial markets business optimized asset-liability structure and expanded bond investments - Corporate banking business achieved operating revenue of RMB 30.478 billion, a year-on-year increase of 13.58%, accounting for 42.26% of the Bank's total operating revenue[91] - Corporate deposit balance was RMB 2,790.930 billion, an increase of RMB 512.986 billion from the end of the previous year, representing a 22.52% growth; corporate loan balance was RMB 1,731.366 billion, an increase of RMB 176.670 billion from the end of the previous year, representing an 11.36% growth[92] - Inclusive small and micro enterprise loan balance was RMB 178.830 billion, an increase of RMB 23.434 billion from the end of the previous year, representing a 15.08% growth; non-performing loan ratio was 0.92%[92] - Retail banking business achieved operating revenue of RMB 29.280 billion, a year-on-year increase of 8.30%, accounting for 40.60% of the Bank's total operating revenue[93] - Retail customers reached 114.3343 million, an increase of 13.34%; Assets Under Management (AUM) for retail customers reached RMB 1,884.214 billion, an increase of 10.46%[94] - Private banking customers numbered 36,659, an increase of 13.82%; total assets under management were RMB 426.823 billion, an increase of 14.22%[95] - Credit card transaction volume was RMB 1,323.515 billion, a year-on-year increase of 2.62%; business revenue was RMB 23.350 billion, a year-on-year increase of 0.71%[96] - Cloud Payment business cumulatively connected 8,654 projects, serving 285 million active users, a year-on-year increase of 20.01%; achieving net fee and commission income of RMB 274 million, a year-on-year increase of 47.96%[97] - Financial markets business achieved operating revenue of RMB 12.354 billion, a year-on-year increase of 0.87%[97] - Asset custody business after-tax income was RMB 884 million, with custody business scale of RMB 6,171.118 billion[99] (I) Corporate Banking Business Corporate banking actively supported pandemic response and the real economy, achieving steady growth in corporate deposits and loans, meeting inclusive finance targets, and rapid development in investment banking and transaction banking - Corporate banking business achieved operating revenue of RMB 30.478 billion, a year-on-year increase of 13.58%, accounting for 42.26% of the Bank's total operating revenue[91] - Corporate deposit balance was RMB 2,790.930 billion, a 22.52% increase; corporate loan balance was RMB 1,731.366 billion, an 11.36% increase[92] - Inclusive small and micro enterprise loan balance was RMB 178.830 billion, a 15.08% increase, higher than the average loan growth rate of the entire bank; non-performing loan ratio was 0.92%[92] - Lead underwriting bond amount was RMB 289.693 billion, ranking sixth in the market, a year-on-year increase of 54.40%[93] - On- and off-balance sheet trade finance balance increased by 9.19% compared to the end of the previous year[93] (II) Retail Banking Business Retail banking focused on digital transformation, with continuous growth in customer base and AUM, steady increase in retail deposits, enhanced wealth management and private banking, and strong performance in credit card and cloud payment services - Retail banking business achieved operating revenue of RMB 29.280 billion, a year-on-year increase of 8.30%, accounting for 40.60% of the Bank's total operating revenue[93] - Retail customers reached 114.3343 million, an increase of 13.34%; Assets Under Management (AUM) for retail customers reached RMB 1,884.214 billion, an increase of 10.46%[94] - Retail deposit balance was RMB 843.017 billion, an increase of 19.22%[94] - Personal wealth management net fee and commission income was RMB 3.825 billion, a year-on-year increase of 62.37%[95] - Private banking customers numbered 36,659, an increase of 13.82%; total assets under management were RMB 426.823 billion, an increase of 14.22%[95] - Credit card transaction volume was RMB 1,323.515 billion, a year-on-year increase of 2.62%; business revenue was RMB 23.350 billion, a year-on-year increase of 0.71%[96] - Cloud Payment business served 285 million active users, a year-on-year increase of 20.01%; achieving net fee and commission income of RMB 274 million, a year-on-year increase of 47.96%[97] (III) Financial Markets Business Financial markets business leveraged its low capital consumption advantage, optimized asset-liability structure, increased bond investments, and accelerated its shift towards light-asset operations - Financial markets business achieved operating revenue of RMB 12.354 billion, a year-on-year increase of 0.87%, accounting for 17.13% of the Bank's total operating revenue[97] - Proprietary bond portfolio was RMB 857.939 billion, accounting for 15.92% of the Bank's total assets[98] - Non-guaranteed wealth management product balance was RMB 795.425 billion, with cumulative issuance of RMB 1.99 trillion in the first half of the year[98] - Asset custody business after-tax income was RMB 884 million, with custody business scale of RMB 6,171.118 billion[99] 10. Business Innovation The bank prioritized financial innovation, continuously improving its management mechanisms, increasing FinTech investment, and achieving notable results such as award-winning blockchain products and high customer satisfaction with remote video services - Continuously improved innovation management systems and mechanisms, promoting deep integration of finance and technology with an open attitude, and accelerating the application of innovation achievements[99] - Established a special fund mechanism for FinTech innovation, initially investing RMB 500 million to support annual innovation project incubation[99] - The important blockchain innovation project "Guangxintong" won the "Grand Honor Award"[99] - Remote video services cumulatively served 270,000 customers, with customer satisfaction reaching 99.49%[99] 11. Information Technology The bank continued to build its "123+N" digital banking system, leveraging BTG capabilities to empower business innovation, upgrading intelligent platforms, accelerating technical platform applications, and launching various digital products - Continuously built the "123+N" digital banking development system, focusing on "BTG" (Business Development Empowerment, Technology Infrastructure Construction, Technology Governance Optimization) capability building[99][100] - Upgraded the intelligent perception platform, achieving cross-application of multi-modal biometric recognition, with the number of covered scenarios increasing by 68.79% compared to the end of the previous year[100] - Launched the "Anwo Cloud" project and implemented the "Polaris" architecture transformation plan, with 87.51% of the bank's application systems migrated to the cloud; the total data volume of the big data platform increased by 67.22% compared to the end of the previous year[100] - Launched digital flagship products such as Cloud Payment, Cloud Pay, Suixin Loan, Bidding Full-Process Pass, Sunshine Transaction e-Blockchain, Guangxintong, Cloud Account Opening, and Yixiang Sunshine Health and Elderly Care Ecosystem[100] 12. Investment Status The bank's long-term equity investments remained stable, primarily in subsidiaries like Everbright Financial Leasing and Everbright Wealth Management, which contribute to their respective business areas - Long-term equity investment balance was RMB 12.383 billion, consistent with the end of the previous year[100] Significant Equity Investments (RMB million) | Investee | Business | Amount | Shareholding Ratio | Profit/Loss for the Period | | :--- | :--- | :--- | :--- | :--- | | Everbright Financial Leasing Co., Ltd. | Financial Leasing | 468,000 | 90% | 58,390 | | Everbright Wealth Management Co., Ltd. | Wealth Management | 500,000 | 100% | 2,122 | | Everbright International Investment Limited | Investment Banking | HKD 2.6 billion | 100% | HKD 31.97 million | | China Everbright Bank Co., Ltd. (Europe) | Full-License Banking Business | EUR 20 million | 100% | EUR 0.18 million | - During the reporting period, the Bank did not make any significant non-equity investments[103] 13. No Significant Asset or Equity Disposals During the Reporting Period The bank confirms no significant asset or equity disposals occurred during the reporting period - During the reporting period, the Bank did not have any significant asset or equity disposals[103] 14. Major Controlled and Invested Companies The bank's major subsidiaries, including Everbright Financial Leasing and Everbright Wealth Management, operated steadily, with some rural banks experiencing losses due to the pandemic - Everbright Financial Leasing Co., Ltd. had total assets of RMB 105.753 billion and net profit of RMB 584 million, primarily engaging in financial leasing business around public utilities, infrastructure construction, and strategic emerging industries[103][104] - Everbright Wealth Management Co., Ltd. had total assets of RMB 5.198 billion and net profit of RMB 21.22 million, promoting the net-value transformation of wealth management products through a diversified product spectrum and professional asset allocation capabilities[104] - Everbright International Investment Limited had total assets of HKD 12.098 billion and net profit of HKD 31.97 million, focusing on investment banking businesses such as sponsorship and underwriting, listed company additional issuance and placement, and corporate refinancing[104] - China Everbright Bank Co., Ltd. (Europe) had total assets of EUR 34.78 million and net profit of EUR 0.18 million, operating as a full-license banking institution with a focus on cross-border business[104] - Shaoshan Everbright Rural Bank achieved a net profit of RMB 2.17 million, while Jiangsu Huaian Everbright Rural Bank and Jiangxi Ruijin Everbright Rural Bank experienced narrowed deposit-loan spreads and increased provisions due to the pandemic, resulting in net losses of RMB 2.14 million and **RMB