Financial Performance - Net interest income for the first half of 2021 was RMB 8,448.6 million, an increase of 1.6% compared to RMB 8,312.6 million in the same period of 2020[41]. - Total operating income decreased by 8.3% to RMB 9,717.8 million from RMB 10,591.7 million year-on-year[41]. - Net profit attributable to shareholders increased by 5.5% to RMB 2,079.5 million, compared to RMB 1,972.0 million in the previous year[41]. - The bank's average return on equity improved to 8.38% from 8.28% year-on-year[41]. - The bank's cost-to-income ratio increased to 30.15% from 28.09% year-on-year[41]. - The company's net profit for the six months ended June 30, 2021, was RMB 2.112 billion, representing a year-on-year increase of RMB 0.086 billion or 4.2%[49]. - The company's operating income for the six months ended June 30, 2021, was RMB 9.718 billion, a decrease of RMB 0.874 billion or 8.3% compared to the previous year[49]. Asset Quality - The non-performing loan ratio improved to 2.17% from 2.21% year-on-year[42]. - The coverage ratio for non-performing loans was 153.57%, slightly up from 153.31% year-on-year[42]. - The non-performing loan ratio as of June 30, 2021, was 2.17%, a decrease of 0.04 percentage points from the beginning of the year[48]. - Non-performing loans amounted to RMB 8.37 billion, with a non-performing loan ratio of 2.17%, a decrease of 0.04 percentage points from the end of the previous year[109]. - The total overdue loans amounted to RMB 12,840.5 million, representing 3.34% of the total loan amount, an increase of 0.20 percentage points from the end of 2020[120]. Capital Adequacy - The capital adequacy ratio increased to 13.59% from 13.20% year-on-year[42]. - The bank's total capital adequacy ratio was 13.59%, an increase of 0.39 percentage points from the end of the previous year[123]. - As of June 30, 2021, the core tier 1 capital adequacy ratio was 8.85%, up 0.26 percentage points from the end of the previous year[122]. Loan and Deposit Growth - The net amount of loans issued increased by 8.0% to RMB 375,314.1 million from RMB 347,656.8 million year-on-year[42]. - The company's deposit balance (excluding accrued interest) was RMB 448.500 billion, an increase of RMB 23.518 billion or 5.5% since the beginning of the year[48]. - Total deposits reached RMB 448.50 billion, an increase of RMB 23.52 billion or 5.5% from the end of the previous year, driven by improved financial services[100]. - The total amount of loans and advances issued was RMB 387.68 billion, an increase of RMB 27.97 billion or 7.8% from the end of the previous year[88]. Digital Transformation - The bank aims to enhance its digital banking capabilities and has initiated a three-phase digital transformation plan[46]. - The bank's digital transformation includes the establishment of a comprehensive customer experience management platform, enhancing real-time monitoring capabilities[46]. - The bank actively supports the development of private small and micro enterprises through various financial services and digital transformation strategies[125]. Operational Efficiency - Operating expenses were RMB 3.032 billion, a decrease of RMB 38 million, or 1.2% year-on-year, due to enhanced cost management[78]. - Employee costs for the first half of 2021 were RMB 1.78 billion, a decrease of RMB 0.18 billion or 1.0% year-on-year, primarily due to a decline in salaries, bonuses, and allowances[80]. - The company's impairment losses for the first half of 2021 were RMB 4.38 billion, a decrease of RMB 0.75 billion or 14.6% year-on-year, due to enhanced credit risk management[81]. Customer Engagement - The company’s online banking clients reached 150,000, with a total transaction amount of RMB 16 trillion, accounting for 83.54% of total transactions in the corporate banking segment[137]. - The number of retail customers reached 18.32 million, with an increase of 1.22 million, reflecting a growth of 7.15%[141]. - The credit card business issued a total of 2.8832 million cards, with a transaction volume of RMB 47.079 billion, representing a year-on-year increase of 23.05%[150]. Risk Management - The bank maintained stable asset quality during the reporting period, optimizing the credit structure and ensuring appropriate credit concentration[170]. - The bank established a comprehensive market risk management framework, enhancing the identification, measurement, monitoring, and reporting processes for market risks[171]. - The bank's liquidity situation remained ample, with all major liquidity regulatory indicators meeting and continuously improving regulatory requirements[174]. Shareholder Information - The bank's total issued ordinary shares amount to 20,075,000,000, including 3,795,000,000 H-shares and 16,280,000,000 domestic shares[180]. - The major shareholder, Henan Investment Group Co., Ltd., holds 10.25% of the total issued ordinary shares, amounting to 2,057,285,479 shares[181]. - The company has not bought, sold, or redeemed any of its listed securities in the six months ending June 30, 2021[190].
中原银行(01216) - 2021 - 中期财报