BANK COMM(03328)2024-04-22 08:30Financial Performance - The bank's net interest income for 2023 was RMB 164,123 million, a decrease of 3.3% from RMB 169,882 million in 2022[16]. - The net operating income for 2023 was RMB 258,014 million, slightly up from RMB 257,346 million in 2022[16]. - The net profit attributable to shareholders for 2023 was RMB 92,728 million, an increase from RMB 92,102 million in 2022[16]. - Total assets reached RMB 14,060,472 million at the end of 2023, up from RMB 12,991,571 million in 2022[16]. - Customer loans increased to RMB 7,957,085 million in 2023, compared to RMB 7,294,965 million in 2022, reflecting a growth of 9.1%[16]. - Customer deposits rose to RMB 8,551,215 million in 2023, up from RMB 7,949,072 million in 2022, marking a growth of 7.6%[16]. - The bank's average return on assets for 2023 was 0.69%, down from 0.75% in 2022[16]. - The net profit for 2023 was RMB 278.49 billion, with a cash dividend of RMB 0.375 per share, representing 32.67% of the net profit[20]. - The core tier 1 capital increased to RMB 905.39 billion, up from RMB 840.16 billion in 2022, reflecting a growth of 7.0%[17]. - The non-performing loan ratio improved to 1.33%, a decrease of 0.02 percentage points compared to the previous year, while the provision coverage ratio rose to 195.21%, an increase of 14.53 percentage points[20]. Risk Management - The company has faced various risks including credit risk, market risk, operational risk, and compliance risk, and has implemented measures to effectively manage these risks[2]. - The company emphasizes the importance of risk awareness among investors regarding forward-looking statements and future plans[2]. - The bank aims to enhance its risk management capabilities by integrating AI frameworks for better risk identification and pricing[25]. - The bank's overall risk preference is established as "stable, balanced, compliant, and innovative," with strict control over various types of risks[135]. - The bank has strengthened risk identification and accelerated risk disposal, enhancing credit risk management in key areas[138]. - The bank's credit risk management framework has been continuously optimized to align with national strategies and regulatory requirements[138]. Digital Transformation and Innovation - The company reported a significant focus on digital transformation and wealth management solutions, aiming to enhance service offerings for corporate and individual clients[6]. - The company operates under the brand "Yuntong Wealth," providing comprehensive wealth management solutions through digital services[6]. - The bank aims to enhance its digital transformation and expand its services in green finance and inclusive finance[13]. - Digital transformation investments increased, with fintech talent comprising 8.29% of the total workforce[88]. - The bank's cloud layout continues to optimize, with the establishment of a T4 certified financial data center, enhancing its network security capabilities[131]. - The bank launched new products such as "Jingcai Loan" and "Employee Loan" to meet the financial needs of new citizens[130]. Governance and Compliance - The financial statements have been audited by KPMG, which issued standard unqualified audit opinions for both Chinese and international financial reporting standards[2]. - The company is committed to maintaining transparency and accuracy in its financial reporting, as stated by the chairman and senior management[2]. - The company emphasizes the importance of board diversity, considering factors such as skills, industry experience, and gender, with a goal of maintaining at least one female director[190]. - The company’s governance practices align with legal and regulatory requirements, with no significant discrepancies noted[185]. - The company has established various committees to enhance corporate governance, including risk management and consumer rights protection committees[184]. - The company is committed to improving its data governance and financial technology planning[199]. Customer and Market Development - The bank is actively expanding its market presence and enhancing its product offerings in response to evolving customer needs[6]. - The number of corporate clients grew by 8.18% year-over-year, reaching a total of 97,500 clients[89]. - The number of small and micro enterprise clients increased by 188,800, totaling 2,444,700 clients[89]. - The balance of inclusive small and micro enterprise loans grew by 29%, and the number of loan customers increased by 17% compared to the end of the previous year[19]. - The number of technology finance credit customers increased by 41.2%, with loans to strategic emerging industries growing by 31.12%[85]. - The bank's total loan balance was CNY 7.957 trillion, with a slight increase from CNY 7.295 trillion in the previous year[139]. Awards and Recognition - The bank has been recognized with multiple awards, including the Best Personal Mobile Banking Award and the Best Corporate Mobile Banking Award in 2023[14]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shares is 74,262,726,645, with A-shares accounting for 52.85% and H-shares for 47.15%[163]. - The total number of ordinary shareholders at the end of the reporting period is 308,784, with A-share holders numbering 278,402 and H-share holders 30,382[165]. - The Ministry of Finance is the largest shareholder, holding 17,732,424,445 shares, which represents 23.88% of the total shares[169]. - HSBC Holdings plc is the second largest shareholder, with 14,135,655,913 shares, accounting for 19.03% of the total shares[169]. - The National Social Security Fund holds 12,148,857,900 shares, representing 16.36% of the total shares[169].