2021-09-01 08:44Financial Performance - The bank reported a mid-year financial performance with no profit distribution or capital reserve increase in 2021[4]. - Operating income for the six months ended June 30, 2021, was RMB 15,171.5 million, an increase of 8.97% from RMB 13,923.0 million in the same period of 2020[13]. - Net profit attributable to shareholders was RMB 5,733.3 million, representing a growth of 10.62% compared to RMB 5,182.7 million in the previous year[13]. - The total operating income for the first half of 2021 was RMB 15.172 billion, compared to RMB 13.923 billion in the same period of the previous year[97]. - The net profit for the same period was 5.818 billion yuan, up by 553 million yuan year-on-year, with a growth rate of 10.5%[148]. Asset and Liability Management - Total assets as of June 30, 2021, amounted to RMB 1,224,219.4 million, a rise of 7.73% from RMB 1,136,366.6 million at the end of 2020[14]. - Total liabilities reached RMB 1,125.74 billion as of June 30, 2021, an increase of 84.45 billion or 8.11% from the end of 2020[74]. - The group's total assets reached RMB 1,224.22 billion, an increase of RMB 87.85 billion compared to the end of the previous year, maintaining the top position among rural commercial banks in China[34]. - The capital adequacy ratio stood at 14.29%, slightly down from 14.28% at the end of 2020, reflecting stable capital management[14]. - The core tier 1 capital adequacy ratio was 11.99%, up 0.03 percentage points from the end of the previous year[195]. Risk Management - The bank emphasizes risk management, stating there are no significant risks that require special attention from investors[4]. - The non-performing loan ratio improved to 1.28% from 1.31% in the previous period, indicating better asset quality[14]. - The provision coverage ratio was 312.50% as of June 30, 2021, with a loan provision ratio of 3.99%[155]. - The company has implemented a comprehensive operational risk management strategy, focusing on risk monitoring, identification, and enhancing internal control capabilities[181]. - The overall credit risk remained controllable, with asset quality showing a positive trend during the reporting period[161]. Business Strategy and Development - The bank's core business strategy focuses on rural commercial banking, serving agriculture, rural areas, and farmers[7]. - The company aims to become a leading regional bank in China, focusing on retail banking, technology-driven operations, and talent development as part of its strategic goals[18]. - The company is transitioning from traditional product marketing to a customer-centric approach, enhancing service capabilities across various customer segments[23]. - The company is committed to increasing its financial technology investments, focusing on big data, AI, and cloud computing to drive innovation and operational efficiency[26]. - The company aims to optimize its loan structure and increase retail loan issuance as part of its strategic transformation efforts[98]. Customer and Market Engagement - The company has established 1,456 county-level outlets to leverage rural financial needs and support rural revitalization initiatives[24]. - The company is focused on improving online and offline service integration, aiming to transform customer journeys and enhance service delivery[28]. - The bank's international business showed positive growth, achieving an international settlement volume of $3.451 billion, a year-on-year increase of 32.52%[116]. - The bank's foreign exchange trading volume reached $4.185 billion in interbank spot trading, maintaining the top position among local legal entities in Chongqing[116]. - The bank's wealth management products balance reached RMB 142.62 billion, an increase of RMB 4.36 billion compared to the end of the previous year[121]. Financial Technology and Innovation - The company is committed to building a digital banking model, continuously iterating its smart banking services to meet modern financial needs[27]. - The company has developed 21 standardized capabilities across 7 key financial technology platforms, enhancing operational efficiency[125]. - The company has strengthened its technology team, with 422 technology personnel and nearly 800 outsourced technology staff as of June 30, 2021[124]. - The company has implemented over 300 transaction event risk control strategies, monitoring approximately 251 million events[127]. - The company has integrated 23 data sources into its external data management platform, providing 123 data services[128]. Employee and Operational Efficiency - Employee costs accounted for 64.68% of total operating expenses in the first half of 2021, amounting to RMB 2.720 billion, up RMB 262 million or 10.64% year-on-year[57]. - The company recognized impairment losses of RMB 3.953 billion in the first half of 2021, an increase of RMB 239 million or 6.44% compared to the previous year[61]. - The company has been focusing on retail banking and technology-driven strategies to enhance its service capabilities and support local economic development[96]. - The company has established a dedicated management department for agricultural finance to improve service capabilities and efficiency[132]. - The company has processed 3.09 million personal pension payments totaling CNY 10.47 billion in the first half of 2021, providing a broad customer base for business development[135]. Regulatory Compliance and Governance - The bank's financial reports for the first half of 2021 were reviewed by PwC and Deloitte, ensuring compliance with Chinese and international standards[4]. - The management system is designed to be efficient and continuously improved, integrating risk management, operational management, and financial management to enhance overall effectiveness[33]. - The company has revised its anti-money laundering internal control systems and is advancing its anti-money laundering system upgrade project to improve effectiveness[184]. - The internal audit system has been strengthened through the use of big data technology to enhance audit accuracy and coverage[186]. - The bank approved three major related party transactions during the reporting period, with a credit balance of RMB 4.211 billion, accounting for 3.65% of net capital[190].