贵阳银行(601997) - 2023 Q4 - 年度财报(更正)

Company Profile and Key Financial Indicators The report details the bank's basic corporate information and key financial performance indicators for the past three years Corporate Information Bank of Guiyang Co, Ltd (stock code: 601997) is a commercial bank headquartered in Guiyang, Guizhou Province - The company's legal representative is Zhang Zhenghai, with its A-shares and preferred stocks listed on the Shanghai Stock Exchange[9][14] - The company's 2023 annual financial report was audited by Ernst & Young Hua Ming LLP, which issued a standard unqualified opinion[2][15] Key Financial Data and Indicators In 2023, the bank's revenue and net profit declined, while its asset scale grew steadily amidst rising NPLs Key Performance Indicators | Key Performance Indicators (RMB in thousands) | 2023 | 2022 | Y-o-Y Change | 2021 | | :--- | :--- | :--- | :--- | :--- | | Operating Income | 15,096,125 | 15,642,966 | -3.50% | 15,004,111 | | Net Profit Attributable to Shareholders of the Parent Company | 5,561,921 | 6,106,642 | -8.92% | 6,044,831 | | Basic Earnings Per Share (RMB/share) | 1.45 | 1.60 | -9.38% | 1.65 | Key Scale and Asset Quality Indicators | Key Scale and Asset Quality Indicators | End of 2023 | End of 2022 | Change from Beginning of Period | End of 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Assets (RMB in thousands) | 688,068,214 | 645,998,467 | +6.51% | 608,686,846 | | Total Gross Loans and Advances (RMB in thousands) | 324,040,615 | 285,289,048 | +13.58% | 254,989,245 | | Total Gross Deposits (RMB in thousands) | 400,219,873 | 383,637,967 | +4.32% | 359,743,868 | | Non-Performing Loan (NPL) Ratio (%) | 1.59 | 1.45 | Up 0.14 pp | 1.45 | | Provision Coverage Ratio (%) | 244.50 | 260.86 | Down 16.36 pp | 271.03 | Capital Adequacy Ratios | Capital Adequacy Ratios (%) | End of 2023 | End of 2022 | Change from Beginning of Period | | :--- | :--- | :--- | :--- | | Capital Adequacy Ratio | 15.03 | 14.16 | Up 0.87 pp | | Tier 1 Capital Adequacy Ratio | 12.90 | 12.02 | Up 0.88 pp | | Core Tier 1 Capital Adequacy Ratio | 11.84 | 10.95 | Up 0.89 pp | - The Board of Directors proposes a 2023 profit distribution plan: a cash dividend of RMB 2.90 (tax inclusive) per 10 shares based on a total share capital of approximately 3.656 billion shares, totaling approximately RMB 1.06 billion[2] Chairman's Statement The Chairman highlights the bank's steady development in 2023 by focusing on governance, core business, and risk management Chairman's Statement The Chairman discusses navigating industry pressures in 2023 through strategic focus on governance, local economy, and risk control - Strategically focused on serving the local economy, with credit growth to the province's "Four Modernizations" exceeding 20% and lending to the "Strong Provincial Capital" initiative accounting for over 50% of total corporate loans[32] - Promoted three major transformations: enhancing corporate finance, optimizing retail finance through four key channels and products, and driving digital transformation with technology and data[32][33] - Emphasized risk management by establishing a comprehensive risk framework covering all levels and conducting special governance to ensure overall risk control[33] President's Statement The President reviews the bank's 2023 performance, emphasizing growth in assets and its commitment to the real economy President's Statement The President reviews the bank's steady progress in 2023, highlighting growth in assets and deep integration with the real economy Core Operating Indicators | Core Operating Indicators | End of 2023 / 2023 | Change from Beginning of Year / Prior Year | | :--- | :--- | :--- | | Total Assets | RMB 688.07 billion | +6.51% | | Total Loans | RMB 324.04 billion | +13.58% | | Total Deposits | RMB 400.22 billion | +4.32% | | Operating Income | RMB 15.10 billion | - | | Net Profit Attributable to Parent | RMB 5.56 billion | - | | Provision Coverage Ratio | 244.50% | - | | Capital Adequacy Ratio | 15.03% | - | - Deeply served the real economy with rapid loan growth in multiple sectors: - Loans for "Four Modernizations" and "Strong Provincial Capital" reached RMB 156.14 billion and RMB 126.54 billion, respectively[37][38] - Manufacturing loans grew by over 24%[37][38] - Agriculture-related loans reached RMB 153.72 billion, up 14.41%[37][38] - Green loans amounted to RMB 31.34 billion, an increase of 11.08%[37][38] - Inclusive loans to small and micro enterprises reached RMB 36.57 billion, up 14.21%[37][38] - Risk management proved effective, with forward-looking asset quality indicators improving, achieving a decrease in overdue amount, overdue ratio, and overdue loan migration[38] - Digital transformation advanced steadily, launching online retail inclusive products and growing the personal customer base to 12.54 million with AUM of RMB 246.62 billion[39] Management Discussion and Analysis This section provides a detailed analysis of the bank's operating performance, business segments, core competencies, and risk management Overview of Operating Conditions In 2023, the bank's business scale grew steadily, though net profit declined due to narrower net interest margins and increased credit impairment losses Key Indicators | Indicator | End of 2023 / 2023 | Change from Beginning of Year / Prior Year | | :--- | :--- | :--- | | Total Assets | RMB 688.07 billion | +6.51% | | Total Loans | RMB 324.04 billion | +13.58% | | Total Deposits | RMB 400.22 billion | +4.32% | | Savings Deposit Balance | RMB 189.63 billion | +11.52% | | Operating Income | RMB 15.10 billion | -3.50% | | Net Profit Attributable to Parent | RMB 5.56 billion | -8.92% | | NPL Ratio | 1.59% | Up 0.14 pp | | Provision Coverage Ratio | 244.50% | - | | Capital Adequacy Ratio | 15.03% | Up 0.87 pp | - The decline in net profit was mainly due to two factors: narrower net interest margins from supporting the real economy and falling market interest rates, and increased credit impairment losses from accelerated NPL disposal[42][43] Industry and Business Operations The bank steadily advanced its corporate, retail, and financial market businesses while successfully launching a new core banking system Corporate Business The corporate business focused on serving the real economy, achieving a 16.10% growth in corporate loans Corporate Lending in Key Areas | Corporate Lending in Key Areas | Balance at End of 2023 (RMB billion) | Growth/Growth Rate from Beginning of Year | | :--- | :--- | :--- | | Corporate Loans (incl. discounts) | 275.21 | 16.10% | | "Four Modernizations" Loans | 156.14 | 10.45% | | "Strong Provincial Capital" Corporate Loans | 126.54 | 15.06% | | Manufacturing Enterprise Loans | 21.49 | 24.28% | | Technology-based Enterprise Loans | 13.90 | 20.03% | | Green Loans | 31.34 | 11.08% | | "Shuang Rong Lian" Financing Balance | 1.59 | 81.97% | - The investment banking business achieved a breakthrough by obtaining the independent lead underwriter qualification for non-financial enterprise debt financing instruments, becoming the only local bank in the province with this qualification[52] Retail Business The retail business enhanced its core competitiveness through integrated management and digital empowerment, leading to steady growth in customers and assets Key Retail Business Indicators | Key Retail Business Indicators | End of 2023 | Growth/Growth Rate from Beginning of Year | | :--- | :--- | :--- | | Savings Deposit Balance | RMB 189.63 billion | 11.52% | | Retail Customer AUM | RMB 246.62 billion | 7.27% | | Total Personal Customers (Parent Co) | 12.54 million | +309,600 | | Personal Comprehensive Consumption Loan Balance | RMB 2.47 billion | 57.39% | | Inclusive SME Loan Balance | RMB 36.57 billion | 14.21% | | Wealth Management Customers | 358,800 | 5.19% | | Wealth Management Customer AUM | RMB 191.29 billion | 8.23% | - The credit card business completed an upgrade of its end-to-end digital risk control system, achieving automated risk identification, limit management, and risk monitoring, with a total of 1.66 million cards issued[66][67] Financial Markets and Interbank Business The financial markets business achieved stable development, enhancing its market influence and effectively managing funding costs - The bank was again selected for the central bank's 2023 list of primary dealers in the open market and won the "Annual Market Influence Institution" award from the China Foreign Exchange Trade System, expanding its market influence[68] Asset Management Business The asset management business optimized its product system, with total outstanding wealth management products reaching RMB 64.42 billion Outstanding Wealth Management Products (End of 2023) | Outstanding Wealth Management Products (End of 2023) | Scale (RMB billion) | Proportion | | :--- | :--- | :--- | | Total Outstanding Balance | 64.42 | 100.00% | | Fixed Income | 61.48 | 95.43% | | Hybrid | 1.51 | 2.33% | | Equity | 1.44 | 2.24% | Information Technology and Digital Empowerment The bank advanced its digital transformation by launching a new core banking system and increasing technology investment to 2.08% of operating income - The new-generation core banking system was successfully launched during the reporting period, enhancing overall operational efficiency and market competitiveness[72] Information Technology Investment (2023) | Information Technology Investment (2023) | Amount | Proportion | | :--- | :--- | :--- | | Direct IT Expenses | RMB 314 million | 2.08% of Operating Income | | Innovative R&D Investment | RMB 30 million | 9.54% of Total IT Investment | | IT Staff | 269 | 4.5% of Total Employees | Core Competency Analysis The bank's core competencies lie in its regional advantages, solid customer base, efficient management, sound governance, and prudent risk management - Regional Advantage: As the largest local financial institution in Guizhou, the bank benefits from policy support for the province's development and deeply serves local economic strategies[75][76] - Customer and Channel Advantage: With 27 years of local presence, the bank has a stable customer base and a network covering all cities and 88 counties in Guizhou[77] - Governance and Risk Management: The bank has established a modern corporate governance structure and a comprehensive risk management system covering all processes and institutions[80][81] Financial Analysis of Key Operations This chapter analyzes the bank's financial performance, highlighting a decline in revenue due to lower interest and non-interest income, alongside growth in loans and deposits Analysis of Income Statement and Cash Flow Statement Operating income decreased by 3.50% while operating expenses rose, leading to a 12.53% decline in operating profit Key Items | Key Items (RMB in thousands) | 2023 | 2022 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operating Income | 15,096,125 | 15,642,966 | -3.50 | | Operating Expenses | -9,140,050 | -8,833,900 | 3.47 | | Operating Profit | 5,956,075 | 6,809,066 | -12.53 | | Net Cash Flow from Operating Activities | -570,535 | -4,534,783 | 87.42 | Analysis of Asset Position Total gross loans and advances grew by 13.58% to RMB 324.04 billion, increasing their share of total assets to 47.09% Loan Structure | Loan Structure (RMB billion) | End of 2023 | End of 2022 | Proportion (2023) | | :--- | :--- | :--- | :--- | | Corporate Loans and Advances | 271.69 | 233.95 | 83.84% | | Personal Loans and Advances | 48.83 | 48.25 | 15.07% | | Discounts | 3.52 | 3.09 | 1.09% | | Total Loans and Advances | 324.04 | 285.29 | 100.00% | - Among corporate loans, the real estate sector loan balance was RMB 37.09 billion, accounting for 11.45% of total loans, an increase of 2.54 percentage points year-on-year, mainly due to increased support for housing rentals and urban renewal[92][93] Analysis of Liability Position Total gross deposits grew by 4.32% to RMB 400.22 billion, with an optimized structure as savings deposits rose to 47.38% of the total Deposit Structure | Deposit Structure (RMB billion) | End of 2023 | End of 2022 | Proportion (2023) | | :--- | :--- | :--- | :--- | | Corporate Customer Deposits | 198.50 | 200.02 | 49.60% | | Retail Customer Deposits (Savings) | 189.63 | 170.05 | 47.38% | | Other Deposits | 12.09 | 13.57 | 3.02% | | Total Gross Deposits | 400.22 | 383.64 | 100.00% | Analysis of Income Statement Items Operating income fell 3.50% due to declines in both net interest income and non-interest income, while credit impairment losses increased - Net interest income decreased by 1.85%, primarily due to the impact of supporting the real economy and an overall decline in market interest rates, which further narrowed the net interest margin[104][106] - Non-interest income fell by 16.07%, with net fee and commission income down 32.06% due to reduced wealth management scale, and investment income down 12.75% from deleveraging non-standard assets[108] - Credit impairment losses were RMB 4.90 billion, a year-on-year increase of 14.30%, of which impairment losses on loans and advances were RMB 4.17 billion, up 35.58%[106][115] Analysis of Credit Asset Quality The NPL ratio rose to 1.59%, but forward-looking indicators improved as the overdue loan balance decreased significantly Five-Category Loan Classification | Five-Category Loan Classification (RMB billion) | Balance at End of 2023 | Proportion (%) | | :--- | :--- | :--- | | Normal | 309.61 | 95.55 | | Special Mention | 9.27 | 2.86 | | Non-Performing Loans (Substandard/Doubtful/Loss) | 5.17 | 1.59 | | Total Loans | 324.04 | 100.00 | - The overdue loan balance was RMB 8.16 billion, a significant decrease from RMB 11.81 billion at the beginning of the year, indicating an improvement in forward-looking asset quality indicators[128] - The three industries with the highest NPL ratios were: wholesale and retail (4.07%), construction (2.25%), and real estate (2.21%)[127] Risk Management The bank has established a comprehensive risk management system with three lines of defense, effectively managing credit, liquidity, and market risks - Credit Risk: Ensured stable asset quality and steady growth of credit assets by refining credit policies, reforming systems, optimizing processes, and strengthening risk monitoring[149] - Liquidity Risk: Maintained all liquidity regulatory indicators above requirements through a full-process management mechanism, daily monitoring, and regular stress testing, with no liquidity risk events occurring during the year[150][151] - Operational and Compliance Risk: Enhanced employee behavior management and embedded a culture of compliance through an "annual case prevention enhancement" campaign and training for new employees[155][156] Capital Adequacy As of the end of 2023, the bank's capital levels remained sufficient, with all capital adequacy ratios showing significant improvement and meeting regulatory requirements Capital Adequacy Ratios | Capital Adequacy Ratios (%) (Consolidated) | End of 2023 | End of 2022 | Change | | :--- | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 11.84 | 10.95 | +0.89pp | | Tier 1 Capital Adequacy Ratio | 12.90 | 12.02 | +0.88pp | | Capital Adequacy Ratio | 15.03 | 14.16 | +0.87pp | Risk-Weighted Assets Composition | Risk-Weighted Assets Composition (Consolidated, RMB billion) | End of 2023 | End of 2022 | | :--- | :--- | :--- | | Credit Risk-Weighted Assets | 433.75 | 430.23 | | Market Risk-Weighted Assets | 20.64 | 19.98 | | Operational Risk-Weighted Assets | 28.59 | 29.00 | | Total | 482.98 | 479.21 | Corporate Governance This section outlines the bank's governance structure, key personnel, and profit distribution policies Overview of Corporate Governance The company has established an effective governance mechanism that integrates Party leadership with corporate strategy, decision-making, and supervision - The corporate governance structure is clearly defined, forming an effective mechanism of Party Committee leadership, Board strategic decision-making, Supervisory Board oversight, and Senior Management operational authority[202][203] Directors, Supervisors, and Senior Management This chapter details the composition, remuneration, and changes of the board, supervisory committee, and senior management team during the year - The senior management team underwent changes during the reporting period, with Board Secretary Dong Jing and Vice President Liang Zongmin retiring due to age, and new appointments made for Vice President and Chief Financial Officer[217] - The remuneration of directors, supervisors, and senior management is determined by company policies and shareholder resolutions, with total compensation for 2023 amounting to RMB 10.53 million[233] Profit Distribution Policy The proposed 2023 dividend payout ratio is 20.02% of net profit, balancing shareholder returns with the need to strengthen capital for future growth 2023 Profit Distribution Proposal | 2023 Profit Distribution Proposal | | | :--- | :--- | | Dividend per 10 shares (RMB) (tax incl) | 2.90 | | Total Cash Dividend (tax incl) | RMB 1,060,297 thousand | | Dividend Payout Ratio | 20.02% | Environment and Social Responsibility This section details the bank's commitment to green finance, rural revitalization, and consumer protection Environmental Information (ESG) The bank actively develops green finance, issuing RMB 3 billion in green financial bonds and growing its green loan balance to RMB 31.34 billion - As of the end of 2023, the bank's green loan balance was RMB 31.34 billion, an increase of RMB 3.13 billion from the beginning of the year[289] - The subsidiary, Guiyang Financial Leasing Co, Ltd, had a green leasing principal balance of RMB 14.65 billion, accounting for 51.09% of its total leasing principal[291] Rural Revitalization The bank strategically supports rural revitalization through targeted financial services, achieving significant growth in agriculture-related loans Rural Revitalization Related Loans (End of 2023) | Rural Revitalization Related Loans (End of 2023) | Balance (RMB billion) | Growth/Growth Rate from Beginning of Year | | :--- | :--- | :--- | | Agriculture-related Loans | 153.72 | +14.41% | | Inclusive Agriculture-related Loans | 15.75 | +27.44% | - The bank continues to optimize rural financial services, operating 2,247 rural service points, issuing over 620,000 rural revitalization cards, and launching exclusive products for rural areas[301] Consumer Rights Protection The bank integrates consumer rights protection into its corporate governance, handling 4,797 customer complaints in 2023, primarily related to bank card services - In 2023, a total of 4,797 customer complaints were handled, with bank card business being the main focus, and the Guiyang area accounting for 78.32% of complaints[307][308] Important Matters This section covers significant events during the reporting period, including related-party transactions Related-Party Transactions The bank conducted credit and non-credit related-party transactions, with all major transactions approved and fairly priced - As of the end of the reporting period, the credit exposure to the largest shareholder, Guiyang State-owned Assets Investment Management Co, Ltd, and its affiliates was RMB 9.15 billion, representing 13.90% of the net capital[320] - Four major related-party transactions were reviewed by the Board of Directors during the period, involving Guizhou Wujiang Energy Investment, Guiyang Public Housing Investment, Guiyang Meiyue Real Estate, and Guiyang Financial Leasing[325] Share Capital Changes and Shareholder Information This section provides details on the company's share structure and top ten shareholders Shareholder Information As of year-end 2023, the company's largest shareholder was Guiyang State-owned Assets Investment Management Co, Ltd, holding 12.82% of total shares Top Ten Shareholders | Top Ten Shareholder Name | Number of Shares | Shareholding Ratio (%) | Share Status | | :--- | :--- | :--- | :--- | | Guiyang State-owned Assets Investment Management Co, Ltd | 468,599,066 | 12.82 | Pledged | | Guizhou Wujiang Energy Investment Co, Ltd | 200,832,586 | 5.49 | - | | Guiyang Industrial Investment Co, Ltd | 153,853,380 | 4.21 | Pledged | | Hong Kong Securities Clearing Company Ltd | 119,096,841 | 3.26 | - | | Guizhou Shenqi Holding (Group) Co, Ltd | 100,118,819 | 2.74 | Pledged | | Guiyang Investment Holding Group Co, Ltd | 92,707,293 | 2.54 | Pledged | | Zhongrong Life Insurance Co, Ltd - Participating Products | 88,574,427 | 2.42 | - | | China Kweichow Moutai Distillery (Group) Co, Ltd | 52,975,597 | 1.45 | - | | Beijing Ren'ai Education Technology Co, Ltd | 47,468,600 | 1.30 | Pledged | | Zhongtian Financial Group Co, Ltd | 40,950,000 | 1.12 | Pledged | Information on Preferred Shares This section provides details on the bank's outstanding preferred shares, including dividend payments and rate adjustments Information on Preferred Shares The bank's "Gui Yin You 1" preferred shares paid a dividend of RMB 265 million in 2023, with the dividend rate adjusted to 4.56% for the next cycle - The dividend rate for "Gui Yin You 1" was 5.30% for the first dividend period (2018.11.22-2023.11.21) and was adjusted to 4.56% for the second period starting November 22, 2023[355][361] - On November 22, 2023, the company distributed the annual preferred stock dividend at a rate of 5.30%, totaling RMB 265 million (tax inclusive)[365] Financial Report This section contains the audited financial statements and the independent auditor's report Audit Opinion Ernst & Young Hua Ming LLP issued a standard unqualified audit opinion on the bank's 2023 financial statements - The audit opinion was a standard unqualified opinion, indicating that the financial statements fairly present the company's financial position and operating results[372] - Key Audit Matter 1: Impairment allowance for loans and advances, long-term receivables, and debt investments, due to the complexity of the Expected Credit Loss (ECL) model and significant management judgment[375] - Key Audit Matter 2: Assessment of consolidation of structured entities, which involved evaluating the bank's control over these entities and the appropriateness of related disclosures[377]