Interest Income and Net Interest Income - Interest income decreased by 11.5% to RMB 38,376,991 thousand in 2023 compared to 2022[6] - Net interest income dropped by 31.0% to RMB 8,866,241 thousand in 2023 compared to 2022[6] - Interest income for 2023 was RMB 38.38 billion, a decrease of RMB 4.97 billion (11.5%) compared to 2022[21] - Net interest income for 2023 was RMB 8.87 billion, a decrease of RMB 3.99 billion (31.0%) year-on-year[21] - Interest income decreased by RMB 4.97 billion (11.5%) year-on-year to RMB 38.38 billion, primarily due to a decline in interest income from loans and advances[33] - Interest income from loans and advances decreased by RMB 4.54 billion (13.0%) year-on-year to RMB 30.28 billion, accounting for 79.0% of total interest income[35][36] - Interest income from financial investments decreased by RMB 397 million (5.8%) year-on-year to RMB 6.49 billion[37] - Interest income from deposits with central banks decreased by RMB 62 million (6.0%) year-on-year to RMB 976 million[38] - Interest income from placements with other financial institutions increased by RMB 118 million (59.6%) year-on-year to RMB 317 million[39] - Interest income from reverse repurchase agreements decreased by RMB 90 million (22.8%) year-on-year to RMB 306 million[40] Non-Interest Income and Operating Income - Non-interest net income fell by 64.4% to RMB 1,173,584 thousand in 2023 compared to 2022[6] - Operating income declined by 37.8% to RMB 10,039,825 thousand in 2023 compared to 2022[6] - Operating income for 2023 was RMB 10.04 billion, a decrease of RMB 6.11 billion (37.8%) compared to 2022[21] - Fee and commission income for 2023 was RMB 146.52 million, a decrease of RMB 117.75 million (44.6%) compared to 2022[21] - Net fee and commission income decreased by 44.6% to RMB 146.52 million in 2023, influenced by reduced fee income and increased expenses[49][50] - Trading net loss increased by RMB 736 million to RMB 565 million in 2023, mainly due to higher foreign exchange funding costs[51] - Investment net income decreased by 46.0% to RMB 1.52 billion in 2023, primarily due to lower net gains from bond disposals[52][53] Operating Expenses and Asset Impairment Losses - Operating expenses increased by 3.6% to RMB 5,999,866 thousand in 2023 compared to 2022[6] - Asset impairment losses decreased by 66.0% to RMB 3,119,594 thousand in 2023 compared to 2022[6] - Operating expenses increased by 3.6% to RMB 6.00 billion in 2023, with a notable rise in other general and administrative expenses by 23.4%[54][58] - Employee compensation expenses decreased by 2.5% to RMB 3.11 billion in 2023, mainly due to reductions in salaries, bonuses, and allowances[55][56] - Asset impairment losses decreased by 66.0% to RMB 3.12 billion in 2023, reflecting improved asset quality[59] Profit and Net Profit - Operating profit dropped by 22.7% to RMB 920,365 thousand in 2023 compared to 2022[6] - Net profit attributable to shareholders decreased by 25.3% to RMB 732,434 thousand in 2023 compared to 2022[6] - Net profit for 2023 was RMB 765 million, a decrease of RMB 255 million (25.0%) year-on-year, primarily due to LPR reductions, declining market interest rates, and insufficient growth in financing demand[20] Assets and Liabilities - Total assets decreased by 0.2% to RMB 1,080.05 billion in 2023 compared to 2022[7] - Total loans and advances dropped by 22.1% to RMB 477.88 billion in 2023[7] - Total deposits decreased by 1.3% to RMB 761.15 billion in 2023[7] - Total assets decreased by RMB 23.60 billion to RMB 10,800.53 billion, a decline of 0.2% year-over-year, primarily due to optimized asset structure adjustments[62] - Loans and advances decreased by RMB 1,354.86 billion to RMB 477.88 billion, a decline of 22.1%, accounting for 44.3% of total assets, down 12.4 percentage points year-over-year[65] - Corporate loans (including bill discounts) decreased by RMB 144.16 billion to RMB 369.33 billion, a decline of 28.1%, accounting for 77.3% of total loans and advances, down 6.4 percentage points year-over-year[66] - Personal loans increased by RMB 8.67 billion to RMB 108.55 billion, a growth of 8.7%, accounting for 22.7% of total loans and advances, up 6.4 percentage points year-over-year[67] - Financial investments increased to RMB 457.16 billion, accounting for 42.3% of total assets, up from 30.5% in the previous year[63] - Total liabilities decreased by RMB 818 million (0.1%) to RMB 10,001.58 billion as of December 31, 2023, with deposits accounting for 78.0% of total liabilities[76] - Deposits (excluding interest payable) decreased by RMB 10.41 billion (1.3%) to RMB 761.15 billion, with personal deposits increasing by RMB 16.14 billion (3.2%) and corporate deposits decreasing by RMB 15.76 billion[78] - Personal deposits accounted for 68.2% of total deposits, with time deposits making up 63.4% of personal deposits[80] - Corporate deposits accounted for 30.0% of total deposits, with time deposits increasing to 15.0% from 11.8% in 2022[80] - Issued bonds (excluding interest payable) totaled RMB 16.83 billion, including RMB 11.84 billion in interbank certificates of deposit[81][82] - Shareholders' equity decreased by RMB 1.54 billion (1.9%) to RMB 79.90 billion as of December 31, 2023[83] Loan Quality and Provision Coverage - Non-performing loan ratio improved to 2.68% in 2023, down by 0.54 percentage points from 2022[7] - Provision coverage ratio increased to 159.50% in 2023, up by 19.20 percentage points from 2022[7] - Non-performing loan balance decreased by RMB 6.957 billion to RMB 12.806 billion, and the provision coverage ratio increased by 19.2 percentage points to 159.50%[17] - Provision coverage ratio improved to 159.50%, an increase of 19.2 percentage points year-over-year[70] - The non-performing loan (NPL) ratio improved to 2.68% in 2023, down by 0.54 percentage points from 2022, and the provision coverage ratio increased to 159.50%, up by 19.2 percentage points[85] - The total balance of non-performing loans decreased to RMB 12.81 billion in 2023 from RMB 19.76 billion in 2022, with the NPL ratio dropping to 2.68% from 3.22%[86] - Loans classified as "normal" accounted for 94.2% of total loans in 2023, slightly down from 94.3% in 2022, while "substandard" loans decreased to 2.3% from 2.9%[87] - The wholesale and retail sector had the highest NPL ratio at 5.02% in 2023, down from 7.70% in 2022, with the real estate sector's NPL ratio increasing to 2.20% from 1.70%[89] - Loans to the top five industries (wholesale and retail, leasing and business services, real estate, manufacturing, and construction) accounted for 57.7% of total loans in 2023, down from 63.3% in 2022[90] - The top ten single borrowers, all classified as "normal" loans, accounted for a combined 12.07% of total loans in 2023, with the largest borrower in the wholesale and retail sector at 1.69%[91] - The non-performing loan (NPL) ratio for corporate loans (including bill discounts) was 2.66% as of December 31, 2023, compared to 3.43% as of December 31, 2022[93] - The NPL ratio for retail loans was 2.74% as of December 31, 2023, up from 2.16% as of December 31, 2022[93] - The total NPL ratio was 2.68% as of December 31, 2023, down from 3.22% as of December 31, 2022[92] Capital Adequacy and Capital Ratios - Capital adequacy ratio rose to 14.12% in 2023, an increase of 2.60 percentage points from 2022[8] - Core tier 1 capital adequacy ratio improved to 10.42% in 2023, up by 0.56 percentage points from 2022[8] - Core tier 1 capital adequacy ratio increased to 10.42%, tier 1 capital adequacy ratio to 12.43%, and total capital adequacy ratio to 14.12%, up by 0.56, 2.57, and 2.60 percentage points respectively from the end of the previous year[16] - The core tier 1 capital adequacy ratio was 10.42%, tier 1 capital adequacy ratio was 12.43%, and total capital adequacy ratio was 14.12% as of December 31, 2023[94] Loan-to-Deposit Ratio and Net Interest Margin - Loan-to-deposit ratio decreased to 62.78% in 2023, down by 16.72 percentage points from 2022[8] - Net interest margin declined to 0.96% in 2023, down by 0.38 percentage points from 2022[7] - Net interest margin (NIM) for 2023 was 0.96%, a decrease of 0.38 percentage points year-on-year[26] - Net interest spread for 2023 was 1.14%, a decrease of 0.26 percentage points compared to 2022[26] - Total interest-bearing assets for 2023 averaged RMB 924.74 billion, with an average yield of 4.15%, down from 4.53% in 2022[27] - Total interest-bearing liabilities for 2023 averaged RMB 980.88 billion, with an average cost of 3.01%, down from 3.13% in 2022[28] Interest Expense and Deposit Rates - Interest expense decreased by RMB 983 million (3.2%) year-on-year to RMB 29.51 billion, mainly due to a reduction in deposit interest expense[41] - Deposit interest expense decreased by RMB 734 million (2.9%) year-on-year to RMB 24.29 billion, accounting for 82.3% of total interest expense[42][44] - Interest expense on borrowings from central banks decreased by RMB 430 million (61.4%) year-on-year to RMB 27 million[43] - Total deposits increased to RMB 803.92 billion in 2023, with a slight decrease in interest expense to RMB 24.29 billion, resulting in an average interest rate of 3.02%, down from 3.15% in 2022[45] - Interest expense on interbank and other financial institution deposits decreased by 42.5% to RMB 1.83 billion in 2023, primarily due to a reduction in average balances[46] - Interest expense on repurchase agreements increased by 66.3% to RMB 2.81 billion in 2023, driven by higher average balances[47] - Interest expense on issued bonds rose by 4.4% to RMB 550 million in 2023, attributed to increased average balances[48] - The average deposit interest rate for 2023 decreased by 13 basis points compared to 2022[10] Corporate and Retail Banking - The company's operating income from corporate banking business was RMB 6.873 billion, accounting for 68.5% of total operating income in 2023[99] - Retail banking business contributed RMB 2.749 billion in operating income, representing 27.4% of total operating income in 2023[99] - Corporate deposits balance reached RMB 2,286.08 billion as of December 31, 2023[102] - Corporate loans balance stood at RMB 3,081.04 billion as of December 31, 2023[103] - Transaction banking assets totaled RMB 372.95 billion, with intermediary business income increasing by 71.2% YoY to RMB 238 million[104] - Personal deposits balance grew by 3.2% YoY to RMB 5,188.04 billion as of December 31, 2023[106] - Personal loans balance increased by 8.7% YoY to RMB 1,085.5 billion as of December 31, 2023[107] - Personal customers reached 29.5875 million, with 13.8662 million being first-tier customers, an annual net increase of 354,000[108] - Wealth management customers increased to 302,900, a growth of 24,000 compared to the previous year[108] - Debit card issuance totaled 20.4402 million, an increase of 683,800 from the previous year, with a total consumption transaction volume of RMB 24.172 billion[110] - Wealth management product scale reached RMB 39.044 billion, generating intermediate business income of RMB 201 million[111] - RMB bond trading volume increased by 43% year-on-year, enhancing market activity[112] - The company launched new products such as "Liao Nong Loan," "Liao Gu Loan," and "Liao Wen Loan" to support rural, capital market, and cultural enterprises[113] - The "Fang Yi Loan" product, launched in early 2023, became a key customer acquisition tool, meeting the rapid financing needs of small and micro enterprises[113] - Credit card loan balance reached RMB 13.333 billion, an increase of RMB 4.307 billion compared to the previous year[114] - Cumulative credit card issuance reached 2.3711 million cards[114] - Shengjing Consumer Finance Company has served over 6 million customers[115] - The total assets of 6 village banks increased by 7.2% year-on-year, with liabilities up by 10.7% and net profit increasing by 21.5%[116] Digital Transformation and IT - The bank completed the evaluation of its information technology strategic planning and refined the granularity of IT project and budget management[120] - The bank established an enterprise-level risk management platform, embedding digital risk control tools into business processes[120] - The bank launched a corporate mobile banking app and continuously iterated on mobile banking and WeChat mini-program functionalities[120] - The company improved its information technology risk management by implementing a full-cycle security management process for new systems[127] - The company conducted 5 training courses on cybersecurity emergency response, outsourcing risk management, and information security management, with a cumulative participation of over 5,100 employees[127] - The company emphasized its strategic focus on digital transformation, retail finance, and risk management to drive high-quality development[133] Risk Management - The bank has optimized its credit policies and quota management, focusing on key regions, industries, and target customers to guide financial allocation more precisely[121] - The bank has conducted in-depth reviews and analyses of corporate credit risks, identifying key groups and enterprises to form tailored strategies for each[122] - The bank has established a comprehensive operational risk management system, identifying 1,551 risk points and implementing 1,849 control measures[123] - The bank is set to complete the construction of a comprehensive market risk management system by 2024, enhancing the standardization and refinement of market risk management[124] - The bank has maintained stable interest rate risk levels within acceptable ranges through proactive management and adjustments in asset-liability structures[125] - The bank has implemented a centralized liquidity risk management framework, ensuring balanced liquidity supply and demand with controlled gaps[126] - The company strengthened its reputation risk management by enhancing online monitoring mechanisms and conducting multi-themed training sessions to improve employee awareness[128] - The company optimized its anti-money laundering management framework and improved customer due diligence and transaction monitoring models[130] - The company established a country risk management system, conducting internal assessments and ratings to enhance the accuracy and timeliness of risk identification[131] - The company is committed to strengthening compliance risk management, conducting regular risk assessments, and enhancing internal audits[129] Strategic Focus and Development - The company plans to focus on industrial finance, leveraging local industrial advantages and policy support to reduce investment risks[132] - The company emphasized the importance of digital transformation in Liaoning Province, targeting 22 key industrial clusters and 4 trillion-level industrial bases[132] - The company highlighted the strong recovery of consumer spending in Liaoning Province, with retail sales growth consistently exceeding the national average[132] - The company aims to develop strategic emerging industries, including aviation manufacturing, new materials, robotics, and new energy vehicles[132] - The company implemented the "12345" development strategy, focusing on transformation, reform, and digitalization to enhance overall development capabilities[189] Shareholders and Equity - The total number of shares remained unchanged at 8,796,680,200, with 6,455,937,700 domestic shares and 2,340,742,500 H shares as of December 31, 2023[138] - Domestic institutional shareholders held 72.01% of the total shares, with state-owned entities holding 37.52% and private entities holding 34.49%[139] - The top 10 domestic shareholders collectively held 50.12% of the total shares, with Shenyang Shengjing Financial Holding Group being the largest shareholder at 20.79%[141] - The
盛京银行(02066) - 2023 - 年度财报