Dividend Distribution - The bank distributed a cash dividend of RMB 2.32 per share for the 2022 fiscal year, totaling approximately RMB 68.298 billion before tax[9]. - The bank did not declare an interim dividend for 2023 ordinary shares and will not implement a capital reserve transfer to increase share capital[9]. - The profit distribution policy stipulates a minimum cash dividend of 10% of the net profit attributable to ordinary shareholders, with a total cash dividend of approximately RMB 68.298 billion distributed for the year 2022[180]. - The company approved a cash dividend of RMB 2.32 per 10 shares for ordinary shares, with the distribution completed by July 14, 2023[183]. - The company plans to distribute RMB 3.285 billion in dividends for the third phase of domestic preferred shares at a rate of 4.50% (before tax) on June 27, 2023[183]. - The company distributed a total of approximately USD 10.15 million in dividends for the second phase of overseas preferred shares, with a dividend rate of 3.60% (after tax)[183]. Financial Performance - Net interest income for the first half of 2023 reached RMB 233.99 billion, an increase from RMB 223.38 billion in the same period of 2022, reflecting a growth of 7.25%[13]. - Non-interest income was RMB 85.72 billion, contributing to total operating income of RMB 319.71 billion, compared to RMB 70.14 billion and RMB 293.52 billion respectively in the first half of 2022, indicating a significant increase in revenue streams[13]. - The bank's net profit attributable to shareholders for the first half of 2023 was RMB 120.10 billion, up from RMB 119.17 billion in the same period of 2022, showing a growth of 0.78%[13]. - The total assets as of June 30, 2023, amounted to RMB 31.09 trillion, compared to RMB 28.89 trillion at the end of 2022, representing an increase of 7.61%[13]. - The group achieved operating income of CNY 319.71 billion and net profit after tax of CNY 127.69 billion, representing year-on-year growth of 8.92% and 3.35% respectively[17]. - The group's net profit after tax for the first half of 2023 was RMB 1,276.88 billion, with the bank's shareholders entitled to RMB 1,200.95 billion, marking a solid performance[48]. Risk Management - The bank is facing risks from macroeconomic conditions and changes in political and economic situations across different countries and regions[10]. - The bank has taken proactive measures to effectively manage various risks, including credit risk and market price fluctuations[10]. - The bank's management emphasizes the importance of risk awareness regarding forward-looking statements and future plans[9]. - The bank is enhancing its market risk management system and digital transformation initiatives to improve risk measurement and management quality[124]. - The bank is focusing on strengthening post-investment monitoring and warning capabilities in the bond investment business[124]. - The company is focusing on enhancing credit risk management by optimizing credit structures and improving asset quality management, particularly in key sectors like infrastructure and green finance[115]. Asset Quality - The non-performing loan ratio remained stable at 1.28% as of June 30, 2023, unchanged from the end of 2022, indicating effective asset quality management[13]. - The coverage ratio for non-performing loans was 188.39% as of June 30, 2023, indicating strong provisions against potential loan losses[13]. - The group reported a non-performing loan balance of CNY 424.69 billion, an increase of CNY 15.205 billion from the end of the previous year, with a non-performing loan ratio of 1.28%, down by 0.04 percentage points[116]. - The loan impairment provision balance stood at CNY 465.11 billion, an increase of CNY 27.867 billion from the end of the previous year, with a non-performing loan coverage ratio of 188.39%, down by 0.34 percentage points[116]. Capital Management - The bank's capital adequacy ratio stood at 17.13% as of June 30, 2023, slightly down from 17.52% at the end of 2022, reflecting ongoing capital management efforts[13]. - The net core tier 1 capital amounted to RMB 2,049,468 million, an increase from RMB 1,991,342 million at the end of 2022[136]. - The group successfully issued RMB 300 billion of perpetual bonds and RMB 600 billion of tier 2 capital bonds in the first half of the year[135]. - The leverage ratio as of June 30, 2023, is 7.39%, down from 7.65% at the end of 2022, meeting regulatory requirements[137]. Customer Loans and Deposits - The total customer loans reached RMB 19.26 trillion as of June 30, 2023, compared to RMB 17.55 trillion at the end of 2022, reflecting a growth of 9.73% in lending activities[13]. - Customer deposits totaled RMB 224,493.14 billion, up RMB 22,474.89 billion or 11.13% year-over-year[46]. - The average balance of customer loans was RMB 18,302.776 billion with an average interest rate of 4.05% in the first half of 2023, compared to RMB 16,311.192 billion and 3.86% in the same period of 2022[31]. - The total amount of customer deposits in RMB was RMB 176,967.89 billion, which increased by RMB 18,173.55 billion or 11.44% compared to the previous year[46]. Digital Transformation - The bank is focusing on digital transformation in transaction banking, enhancing online service capabilities[62]. - The bank's focus on digital transformation in personal finance led to improved customer engagement and enhanced marketing capabilities[73]. - The company is actively promoting digital transformation in financial markets, enhancing online service capabilities and trading convenience[80]. - The bank is advancing digital transformation by implementing privacy computing and IoT technologies to enhance operational efficiency[138]. Green Finance - The balance of green loans exceeded CNY 2.62 trillion, growing by 31.99% compared to the end of the previous year[18]. - The bank's green finance performance is recognized as it ranked first among Chinese banks in Bloomberg's "Global Sustainable Linked Loans" list[142]. - The bank has launched over ten types of green financial products and services, covering loans, trade finance, bonds, and deposits[142]. - The bank actively supports the green low-carbon transformation of high-carbon industries and is working towards carbon neutrality in its asset portfolio[142]. Corporate Governance - The bank's board consists of 13 members, with independent directors making up one-third of the board, complying with regulatory requirements[174]. - The bank's governance practices align with the Corporate Governance Code, meeting the majority of the recommended best practices outlined in the code[172]. - The bank's governance mechanisms have been systematically reviewed and updated to comply with capital market regulations[171]. - The bank's external supervisors actively participated in all supervisory board meetings and provided independent insights to enhance corporate governance[176]. Social Responsibility - The bank invested CNY 38 million in four targeted poverty alleviation counties, implementing over 20 support projects in infrastructure, education, and health[148]. - The bank's charitable platform raised CNY 136 million through 614 fundraising activities, with participation from 1.6576 million donors by June 2023[149]. - The bank's charitable initiatives include support for over 180,000 economically disadvantaged students through a total of CNY 25.7 billion in student loans[149]. - The bank has established 239 green finance specialty outlets to enhance competitiveness in green finance across domestic institutions[145].
中国银行(03988) - 2023 - 中期财报