INDUSTRIAL BANK(SH:601166)2024-03-28 16:00Financial Performance - Annual operating income reached RMB 210.83 billion, with a non-performing loan ratio decreasing to 1.07% and a provision coverage ratio increasing to 245.21%[7] - The company's operating revenue for 2023 was RMB 210,831 million, a decrease of 5.19% compared to RMB 222,374 million in 2022[22] - The total profit for 2023 was RMB 84,329 million, down 20.61% from RMB 106,221 million in the previous year[22] - The net profit attributable to shareholders of the parent company was RMB 77,116 million, reflecting a decline of 15.61% from RMB 91,377 million in 2022[22] - The basic earnings per share for 2023 was RMB 3.51, a decrease of 16.43% compared to RMB 4.20 in 2022[22] - The company reported a net cash flow from operating activities of RMB 433,617 million in 2023, a significant recovery from a negative cash flow of RMB (344,587) million in 2022[22] - The company achieved operating income of CNY 2,108.31 billion, a year-on-year decrease of 5.19%, with net profit attributable to shareholders of CNY 771.16 billion, down 15.61%[145] - The company reported a net profit margin of 1.66%, a decline of 17 basis points from the previous year[191] Asset and Liability Management - Total assets of Industrial Bank Co., Ltd. exceeded RMB 10 trillion for the first time, with loans and deposits both surpassing RMB 5 trillion[4] - The total assets as of December 31, 2023, reached RMB 10,158,326 million, an increase of 9.62% from RMB 9,266,671 million at the end of 2022[22] - The total liabilities increased to RMB 9,350,607 million in 2023, up from RMB 8,509,373 million in 2022[27] - The total equity attributable to shareholders increased to RMB 796,224 million, up from RMB 746,187 million in 2022, reflecting a growth of 6.7%[31] - The company’s total liabilities increased by 9.89% to CNY 9,350.61 billion, reflecting stable growth in various liability businesses[150] Loan and Deposit Growth - Loans under the categories of Sci-tech finance, Inclusive finance, Energy finance, Automotive finance, and Park finance grew by 31.88%, 23.95%, 16.16%, 26.14%, and 27.40% respectively compared to the previous year[7] - The loan-to-deposit ratio increased to 97.79% as of December 31, 2023, compared to 96.21% in 2022[29] - The balance of loans supporting green transformation reached 173.26 billion yuan, growing by 27.11% year-over-year, with a non-performing loan rate of just 0.02%[112] - The balance of inclusive small and micro loans was 500.97 billion yuan, an increase of 23.95% year-on-year, accounting for 20.25% of the new loans issued during the period[106] - The balance of agricultural loans reached 664.76 billion yuan, growing by 21.59% since the beginning of the reporting period[108] Digital Transformation and Technology Investment - The annual technology investment exceeded RMB 8 billion, with a technology team of nearly 8,000 people[4] - The company aims to enhance digital transformation and improve risk management capabilities to ensure sustainable development[5] - The number of open banking APIs increased to 1,941, and the mobile banking app was upgraded to version 6.0[9] - The company is focusing on digital transformation to enhance operational efficiency and customer service experience, while also addressing new risks associated with technology[36] - The company’s digital transformation efforts have led to a significant increase in technology investment, now accounting for 3.98% of revenue[47] Risk Management and Compliance - The company is committed to enhancing risk compliance and internal control management, optimizing asset classification and management systems[9] - The company aims to enhance its core competitiveness by adhering to a "light asset, light capital, high efficiency" transformation strategy[40] - The company will focus on enhancing its comprehensive risk management capabilities, ensuring that risk management is prioritized over business expansion[137] - The company is committed to supporting key sectors such as small and micro enterprises, green development, and technological innovation in response to policy adjustments[37] Green Finance Initiatives - Green financing balance increased by 16.14% year-on-year to CNY 1.89 trillion, with carbon reduction financing accounting for 56.26%[8] - The company is committed to strengthening its green finance capabilities, aiming for breakthroughs in energy finance, automotive finance, and low-carbon industry development[140] - The balance of green loans stood at 809.02 billion yuan, growing by 26.99% year-on-year, accounting for 36% of the new loan scale during the period[86] - The company issued CNY 500 billion in green financial bonds and CNY 250 billion in micro-financial bonds at lower interest rates[78] Client Base and Market Position - The number of corporate clients exceeded 1.4 million, while retail clients surpassed 100 million, with interbank clients exceeding 3,300[7] - The retail wealth client base reached 8.355 million, an increase of 8.17% compared to the end of last year[91] - The company ranked among the top 20 in the Banker’s Global 1000 and received the "2023 China Annual Bank" award from the Banker magazine[75] - The company’s investment banking services served 654 major clients, a growth of 7.92% year-on-year[96] Future Outlook and Strategic Goals - The bank aims to achieve stable operation of revenue, profit, and asset quality in 2024, focusing on five core capabilities[10] - The company plans to maintain stable growth in total assets and optimize credit structure, with a focus on increasing loan disbursements in key areas and promoting diversified retail credit development[138] - The company anticipates challenges in the banking sector due to a new normal of "low interest margins, low profits, and low growth," which will pressure profitability and asset quality management[135] - The company plans to expand its technology finance services, focusing on a comprehensive service model for clients, including private banking and consumer credit opportunities[139]