BANK COMM(03328)2024-03-27 08:30Financial Performance - Net interest income for the year 2023 was RMB 164,123 million, a decrease of 3.3% from RMB 169,882 million in 2022[4]. - Net fee and commission income for 2023 was RMB 43,004 million, down 4.1% from RMB 44,855 million in 2022[4]. - Net profit attributable to shareholders for 2023 was RMB 92,728 million, a slight increase of 0.7% from RMB 92,102 million in 2022[4]. - The pre-tax profit for the period was RMB 99.70 billion, an increase of RMB 1.58 billion, or 1.61% year-on-year[20]. - The total comprehensive income for 2023 was RMB 101.552 billion, an increase from RMB 92.089 billion in 2022[159]. - The net profit for 2023 was RMB 93.252 billion, an increase of 1.4% compared to RMB 91.955 billion in 2022[158]. - The total operating income for 2023 was RMB 258.014 billion, slightly up from RMB 257.346 billion in 2022[157]. - The company reported a pre-tax profit of RMB 99,698 million for 2023, compared to RMB 98,115 million in 2022, reflecting a growth of 1.6%[158]. Assets and Liabilities - Total assets at the end of 2023 reached RMB 14,060,472 million, an increase of 8.2% from RMB 12,991,571 million in 2022[4]. - The total liabilities as of December 31, 2023, were RMB 12,961 trillion, compared to RMB 11,958 trillion in 2022, marking an increase of 8.4%[160]. - Customer loans amounted to RMB 7,957,085 million, up 9.1% from RMB 7,294,965 million in 2022[4]. - Customer deposits were RMB 8,551,215 million, an increase of 7.6% from RMB 7,949,072 million in 2022[4]. - The total number of shares held by the top ten shareholders includes significant stakes from state-owned entities, indicating a strong government presence in the ownership structure[8]. - The total assets of the group reached RMB 14.06 trillion, an increase of 8.23% compared to the end of the previous year[19]. Shareholder Information - The Ministry of Finance of the People's Republic of China holds 13,178,424,446 A shares, accounting for 17.75% of the total issued ordinary shares[8]. - HSBC Holdings plc has a total of 14,135,636,613 H shares, representing 19.03% of the total issued ordinary shares[9]. - The National Social Security Fund holds 3,105,155,568 A shares and 9,043,702,332 H shares, totaling 12,148,857,900 shares, which is 16.36% of the total issued ordinary shares[9]. - The shareholding structure shows that the top three shareholders collectively hold over 50% of the total issued shares, highlighting concentrated ownership[12]. Loan and Deposit Growth - Customer loan balance amounted to RMB 7.96 trillion, with an increase of RMB 662.12 billion, reflecting a growth rate of 9.08%[19]. - Customer deposit balance was RMB 8.55 trillion, increasing by RMB 602.14 billion, representing a growth rate of 7.58%[19]. - Corporate loans amounted to RMB 5,179.533 billion, up RMB 468.18 billion, with a growth rate of 9.94%, and accounted for 65.09% of total customer loans, an increase of 0.51 percentage points[50]. - Personal loans reached RMB 2,473.100 billion, an increase of RMB 107.783 billion, with a growth rate of 4.56%, and accounted for 31.08% of total customer loans, a decrease of 1.35 percentage points[50]. Non-Performing Loans and Credit Quality - The non-performing loan ratio improved to 1.33% in 2023 from 1.35% in 2022[5]. - The provision coverage ratio improved to 195.21%, an increase of 14.53 percentage points compared to the previous year[19]. - The bank's non-performing loan balance reached 105.688 billion yuan, with a non-performing loan ratio of 1.33%, a decrease of 0.02 percentage points from the previous year[129]. - The overdue loan balance for corporate loans reached RMB 62.273 billion, an increase of RMB 15.964 billion compared to the end of the previous year, with an overdue loan ratio of 1.20%, up by 0.22 percentage points[131]. Capital Adequacy and Financial Ratios - The capital adequacy ratio increased to 15.27% in 2023 from 14.97% in 2022[5]. - The return on average assets decreased to 0.69% in 2023 from 0.75% in 2022[5]. - The weighted average return on equity was 9.68% in 2023, down from 10.34% in 2022[5]. - The effective tax rate was 6.47%, significantly lower than the statutory rate of 25%, mainly due to tax-exempt income from government bonds[45]. Cash Flow and Investment Activities - The net cash flow from operating activities was RMB 137.32 billion, a decrease of RMB 230.90 billion year-on-year, primarily due to reduced cash inflows from deposit absorption and certificate issuance[64]. - The net cash outflow from investing activities was RMB 116.62 billion, a decrease of RMB 168.27 billion year-on-year, mainly due to reduced net cash outflow from bond investments[65]. - The net cash inflow from financing activities was RMB 4.89 billion, an increase of RMB 37.86 billion year-on-year, primarily driven by increased cash inflows from bond issuance and repayment[65]. Risk Management and Compliance - The bank has established five laboratories focusing on artificial intelligence, cybersecurity, user experience, and digital currency[126]. - The bank's risk management framework includes specific risk limit indicators for various types of risks, ensuring comprehensive risk control[127]. - The company has implemented a performance wage deferral and recovery management system for senior management, reinforcing accountability in performance-related compensation[150]. - The governance structure of the bank complies with the Hong Kong Stock Exchange's corporate governance code, ensuring transparency and accountability[154]. Strategic Initiatives and Future Outlook - The company plans to enhance its investment strategy focusing on government bonds and local government bonds, while also addressing financing needs in key areas such as technology innovation and green development[54]. - The company anticipates a favorable economic environment in 2024, with continued investment and steady consumption improvements supporting high-quality economic development[146]. - The bank emphasizes the importance of green finance to support the dual carbon goals, integrating it into its core strategies[147].