Financial Performance - For the six months ended June 30, 2023, the bank reported net interest income of RMB 2,417.1 million, a decrease of 18.0% compared to RMB 2,947.6 million for the same period in 2022[5]. - The net profit attributable to the bank's owners for the first half of 2023 was RMB 149.3 million, down 79.6% from RMB 732.1 million in the same period last year[5]. - The bank's operating profit for the first half of 2023 was RMB 93.4 million, a significant decline of 88.0% from RMB 781.3 million in the same period of 2022[5]. - The total operating income for the six months ended June 30, 2023, was RMB 2,517.5 million, a decrease of 20.1% compared to RMB 3,151.8 million for the same period in 2022[12]. - Net profit for the same period dropped 80.4% to RMB 128.1 million from RMB 653.6 million in the previous year[12]. - The pre-tax profit for the first half of 2023 was RMB 95.8 million, down 87.6% from the previous year[14]. - The diluted earnings per share for the first half of 2023 were RMB 0.03, down 78.6% from RMB 0.14 in the same period of 2022[4]. Asset and Liability Management - The bank's total assets as of June 30, 2023, were RMB 267,276.7 million, reflecting a slight increase of 0.1% from RMB 267,000.7 million at the end of 2022[7]. - The bank's total liabilities were RMB 248,488.0 million as of June 30, 2023, showing no change from RMB 248,381.4 million at the end of 2022[7]. - The total amount of loans and advances issued increased by 4.2% from RMB 172,029.4 million as of December 31, 2022, to RMB 179,208.3 million as of June 30, 2023[58]. - The net amount of loans and advances increased by 2.7% to RMB 175,234.7 million compared to the beginning of the year[12]. - Total deposits increased by 2.5% to RMB 233,138.5 million since the beginning of the year[12]. Non-Performing Loans and Risk Management - The bank's non-performing loan ratio increased to 2.28% as of June 30, 2023, compared to 1.98% at the end of 2022, representing a rise of 15.2%[8]. - The non-performing loans (NPLs) amounted to RMB 4,080.9 million, resulting in an NPL ratio of 2.28%, up from 1.98% as of December 31, 2022[75][76]. - The company noted that the rise in NPLs was primarily due to macroeconomic downturns and difficulties faced by some corporate clients in cash flow and debt repayment capabilities[76]. - The impairment loss provision for loans and advances rose by 14.4% from RMB 5,359.5 million as of December 31, 2022, to RMB 6,128.9 million as of June 30, 2023[64]. Income and Expense Analysis - The bank's net fee and commission income decreased by 74.7% to RMB 7.7 million for the first half of 2023, compared to RMB 30.4 million in the same period last year[5]. - Non-interest income for the six months ended June 30, 2023, was RMB 39.4 million, a decrease of 37.6% from RMB 63.1 million in 2022, with significant declines in various fee income categories[39]. - Operating expenses increased by 4.4% from RMB 1,322.1 million for the six months ended June 30, 2022, to RMB 1,380.2 million for the six months ended June 30, 2023, primarily due to increases in employee costs and general administrative expenses[47]. - Employee costs increased by 8.8% from RMB 847.1 million for the six months ended June 30, 2022, to RMB 921.6 million for the six months ended June 30, 2023, mainly due to increases in salaries and social insurance[49]. Capital Adequacy and Equity - The bank's capital adequacy ratio stood at 10.98% as of June 30, 2023, down from 11.50% at the end of 2022[8]. - As of June 30, 2023, total equity reached RMB 18,788.7 million, an increase from RMB 18,619.3 million as of December 31, 2022[73]. - The core tier 1 capital adequacy ratio as of June 30, 2023, is 8.51%, down from 8.91% as of December 31, 2022[167]. - The total capital adequacy ratio as of June 30, 2023, is 10.98%, compared to 11.50% as of December 31, 2022[167]. Strategic Initiatives and Future Outlook - The company aims to strengthen its position in the agricultural and small to medium enterprise banking sectors while expanding retail banking services[11]. - The bank's strategy focuses on community financial construction and digital transformation to enhance customer acquisition capabilities[71]. - The company is committed to enhancing consumer rights protection and has strengthened its product and service management to raise public awareness of financial knowledge[149]. - The company is focused on maintaining its capital adequacy to support future business development and meet regulatory requirements[175]. Governance and Compliance - The bank has maintained a high standard of corporate governance, adhering to best practices to protect shareholder interests and enhance corporate value[169]. - The bank has fully complied with all applicable provisions of the Corporate Governance Code during the reporting period[170]. - The internal audit department operates independently, focusing on risk management, compliance, and governance effectiveness to promote the company's stable development[159].
九台农商银行(06122) - 2023 - 中期业绩