贵州银行(06199) - 2020 - 年度财报

Chapter 1 Leadership Speeches Speech by the Party Committee Secretary The Party Committee Secretary reviewed 2020 achievements in pandemic response and economic support, outlining five strategic pillars for the Bank's high-quality future development - In 2020, facing the pandemic challenge, the company coordinated epidemic prevention and control with transformation and development, fully implementing "six stabilities" and "six guarantees" policies, demonstrating corporate responsibility[23] - Future development will focus on five core areas: - Corporate governance: Strictly implement regulatory requirements, enhance internal management, and practice ESG principles - Distinctive features: Develop green finance around "carbon peaking" and "carbon neutrality", coordinate urban and rural markets, and vigorously develop financial technology - Serving local economy: Adhere to local market positioning and fully serve Guizhou Province's economic and social development - Risk prevention and control: Uphold bottom-line thinking, advance new capital agreement construction, and enhance digital risk control capabilities - Party building: Uphold Party leadership and deeply integrate Party building with business[23][24] Speech by the President The President summarized 2020 operating performance, noting steady growth in assets, loans, and deposits, a 3.00% net profit increase, and significant progress in retail, income diversification, and risk control 2020 Key Operating Performance | Indicator | Amount (Billion Yuan) | Growth Rate from Beginning of Year | | :--- | :--- | :--- | | Total Assets | 4,564.01 | 11.48% | | Total Loans and Advances | 2,139.23 | 18.93% | | Deposits Accepted | 2,890.43 | 11.06% | | Operating Income | 112.48 | 5.06% | | Net Profit | 36.71 | 3.00% | - Retail business grew rapidly, with personal deposits exceeding 100 billion yuan, reaching 101.633 billion yuan, a 24.52% increase from the beginning of the year[26] - Income structure significantly improved, with net fee and commission income increasing by 283.05% year-on-year, and non-interest income proportion rising to 10.01%[26] - Asset quality remained excellent, with a non-performing loan ratio of 1.15% and a provision coverage ratio of 334.36% at the end of the reporting period, ranking among the top urban commercial banks nationwide[28] Chapter 2 Company Profile Basic Information This section provides Bank of Guizhou's fundamental corporate details, including its legal name, registered address, and stock code - Bank of Guizhou Co., Ltd. (BANK OF GUIZHOU CO., LTD.) is listed on the Main Board of the Hong Kong Stock Exchange, with stock code 6199.HK[29] Company Introduction Bank of Guizhou, formed in 2012, is Guizhou's first internationally listed financial institution, with 456.401 billion yuan in assets by 2020 and full provincial county-level coverage, ranking 270th globally Key Data as of End of 2020 | Indicator | Value | | :--- | :--- | | Total Assets | 4,564.01 Billion Yuan | | Total Deposits Accepted | 2,890.43 Billion Yuan | | Total Loans and Advances | 2,139.23 Billion Yuan | | Net Profit | 36.71 Billion Yuan | | Non-performing Loan Ratio | 1.15% | | Provision Coverage Ratio | 334.36% | | Number of Licensed Institutions | 223 | | Number of Full-time Employees | 5,169 | - Bank of Guizhou ranked 270th in The Banker magazine's 'Top 1000 World Banks 2020' and 43rd in the China Banking Association's 'Top 100 Chinese Banks 2020'[30] Major Awards in 2020 The Bank received multiple accolades in 2020, including top global and Chinese bank rankings, and awards for regional influence and mobile banking innovation - Ranked 270th in The Banker magazine's 'Top 1000 World Banks 2020'[31] - Ranked 43rd in the China Banking Association's 'Top 100 Chinese Banks 2020'[31] - Awarded 'Best Mobile Banking Innovation of the Year 2020' by China Financial Certification Authority[31] Chapter 3 Summary of Accounting Data and Financial Indicators Summary of Accounting Data and Financial Indicators In 2020, Bank of Guizhou's total assets grew 11.48% to 456.401 billion yuan, with operating income up 5.06% and net profit up 3.00%, maintaining stable asset quality with a 1.15% non-performing loan ratio 2020 Key Financial Indicators | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Operating Performance (Million Yuan) | | | | | Operating Income | 11,247.61 | 10,705.53 | +5.06% | | Net Profit | 3,670.66 | 3,563.64 | +3.00% | | Scale Indicators (Million Yuan) | | | | | Total Assets | 456,401.20 | 409,388.80 | +11.48% | | Total Loans and Advances | 213,922.91 | 179,867.72 | +18.93% | | Deposits Accepted | 289,042.77 | 260,266.47 | +11.06% | | Total Equity | 36,027.82 | 33,889.24 | +6.31% | | Asset Quality Indicators | | | | | Non-performing Loan Ratio | 1.15% | 1.18% | -0.03pp | | Provision Coverage Ratio | 334.36% | 324.95% | +9.41pp | | Profitability Indicators | | | | | Average Return on Total Assets | 0.85% | 0.95% | -0.10pp | | Average Return on Equity | 10.50% | 12.01% | -1.51pp | | Capital Adequacy Ratio | | | | | Core Tier 1 Capital Adequacy Ratio | 11.63% | 12.30% | -0.67pp | | Capital Adequacy Ratio | 13.67% | 14.45% | -0.78pp | Chapter 4 Management Discussion and Analysis Macroeconomic Environment and Policies In 2020, China achieved 2.3% GDP growth, with Guizhou at 4.5%, while policies focused on interest rate liberalization, capital replenishment for smaller banks, and increased support for micro enterprises - In 2020, China's GDP grew by 2.3%, and Guizhou Province's GDP grew by 4.5%, 2.2 percentage points higher than the national average[36] - The policy environment showed three main characteristics: deepening interest rate liberalization reform, favorable capital replenishment policies for small and medium-sized banks, and guidance to increase financial support for small and micro enterprises[36] Overall Operating Performance Analysis In 2020, the Bank's overall operations improved with double-digit growth in assets, loans, and deposits, steady increases in income and profit, and excellent asset quality with a lower non-performing loan ratio 2020 Operating Performance Overview | Indicator | End of 2020 (Billion Yuan) | Year-on-Year Growth Rate | | :--- | :--- | :--- | | Total Assets | 4,564.01 | 11.48% | | Total Loans and Advances | 2,139.23 | 18.93% | | Total Deposits Accepted | 2,890.43 | 11.06% | | Operating Income | 112.48 | 5.06% | | Net Profit | 36.71 | 3.00% | - Asset quality remained excellent, with a non-performing loan ratio of 1.15%, a 0.03 percentage point decrease from the previous year; provision coverage ratio was 334.36%, a 9.41 percentage point increase from the previous year[37] Income Statement Analysis In 2020, the Bank's pre-tax profit rose 6.45% to 4.355 billion yuan and net profit increased 3.00%, driven by strong non-interest income growth, particularly a 283.05% rise in net fee and commission income, despite a narrowing net interest margin 2020 Income Statement Summary (Unit: Million Yuan) | Item | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Net Interest Income | 10,121.39 | 9,870.96 | 2.54% | | Net Fee and Commission Income | 362.52 | 94.64 | 283.05% | | Operating Income | 11,247.61 | 10,705.53 | 5.06% | | Operating Expenses | (3,555.74) | (3,422.11) | 3.90% | | Asset Impairment Losses | (3,231.79) | (3,172.77) | 1.86% | | Pre-tax Profit | 4,355.30 | 4,091.39 | 6.45% | | Net Profit | 3,670.66 | 3,563.64 | 3.00% | Net Interest Income, Net Interest Margin, and Net Interest Yield In 2020, net interest income grew 2.54% to 10.121 billion yuan, but net interest margin and yield narrowed due to market rate changes, with growth primarily driven by asset scale expansion Interest Yield and Margin | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Net Interest Margin | 2.44% | 2.75% | | Net Interest Yield | 2.55% | 2.82% | - The growth in net interest income was primarily driven by scale effects (contributing 1.511 billion yuan), but was partially offset by the negative impact of interest rate changes (-1.261 billion yuan)[44] Interest Income Analysis In 2020, interest income increased 9.32% to 19.967 billion yuan, mainly from loans and advances which grew 16.44% due to expanded loan scale, while financial investment income slightly rose - Interest income from loans and advances was 11.867 billion yuan, a 16.44% year-on-year increase, primarily due to expanded corporate and personal loan scales[48] - Interest income from financial investments was 7.285 billion yuan, a 1.99% year-on-year increase[47] Interest Expense Analysis In 2020, interest expense rose 17.30% to 9.846 billion yuan, primarily due to increased interest on deposits and interbank funds reflecting liability expansion, while issued bond interest expense decreased - Interest expense on deposits accepted was 6.485 billion yuan, a significant 48.07% year-on-year increase, primarily due to increased deposit scale[52] - Interest expense on issued bonds was 2.153 billion yuan, a 37.73% year-on-year decrease, primarily due to reduced scale and interest rates of interbank certificates of deposit[52] Non-Interest Income Analysis In 2020, non-interest income showed strong performance, with net fee and commission income surging 283.05% to 363 million yuan, driven by agency and guarantee businesses, while net trading gains also increased Net Fee and Commission Income Composition (Unit: Million Yuan) | Item | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Agency business income | 209.73 | 100.68 | 108.31% | | Guarantee and commitment business income | 125.55 | 31.58 | 297.56% | | Bank card business income | 46.04 | 33.63 | 36.90% | | Net fee and commission income | 362.52 | 94.64 | 283.05% | - Net trading gains were 145 million yuan, a 24.29% year-on-year increase[54] Operating Expenses Analysis In 2020, operating expenses increased by 3.90% to 3.556 billion yuan, reflecting good cost control, with employee costs slightly up and office expenses down Operating Expenses Composition (Unit: Million Yuan) | Item | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Employee costs | 2,165.67 | 2,122.06 | 2.06% | | Office expenses | 353.31 | 413.21 | -14.50% | | Other general and administrative expenses | 374.40 | 268.15 | 39.62% | | Total operating expenses | 3,555.74 | 3,422.11 | 3.90% | Asset Impairment Losses In 2020, asset impairment losses slightly increased by 1.86% to 3.232 billion yuan, mainly due to higher losses on loans and financial investments, partially offset by reversals in other areas Asset Impairment Losses Composition (Unit: Million Yuan) | Item | 2020 | 2019 | Change Amount | | :--- | :--- | :--- | :--- | | Loans and advances | 2,108.03 | 2,012.15 | 95.88 | | Financial investments | 1,041.29 | 828.06 | 213.23 | | Credit commitments | 59.61 | 136.18 | (76.57) | | Total | 3,231.79 | 3,172.77 | 59.02 | Income Tax In 2020, income tax expense rose 29.73% to 685 million yuan, primarily due to a 51.05% increase in current income tax expense, with a stronger offsetting effect from deferred income tax Income Tax Expense Composition (Unit: Million Yuan) | Item | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Current income tax expense | 1,235.35 | 817.84 | 51.05% | | Deferred income tax expense | (550.71) | (290.09) | 89.84% | | Income tax | 684.64 | 527.75 | 29.73% | Balance Sheet Analysis As of 2020-end, total assets grew to 456.401 billion yuan, with loans and financial investments as key components, while total liabilities reached 420.373 billion yuan, primarily deposits, and total equity increased by 6.31% Asset Analysis As of 2020-end, total assets reached 456.401 billion yuan, up 11.48%, driven by an 18.93% increase in loans and advances and a 29.91% rise in financial investments, shifting asset allocation towards investment assets Asset Structure (Unit: Million Yuan) | Item | End of 2020 | Proportion | End of 2019 | Proportion | | :--- | :--- | :--- | :--- | :--- | | Net loans and advances | 206,152.61 | 45.17% | 173,349.70 | 42.34% | | Financial investments | 192,309.00 | 42.14% | 148,034.04 | 36.16% | | Cash and balances with central banks | 48,149.56 | 10.55% | 64,150.81 | 15.67% | | Total assets | 456,401.20 | 100.00% | 409,388.80 | 100.00% | Liability Analysis As of 2020-end, total liabilities reached 420.373 billion yuan, up 11.95%, with deposits accepted as the main source, while interbank deposits significantly increased and issued bonds decreased, reflecting liability structure adjustments Liability Structure (Unit: Million Yuan) | Item | End of 2020 | Proportion | End of 2019 | Proportion | | :--- | :--- | :--- | :--- | :--- | | Deposits accepted | 289,042.77 | 68.76% | 260,266.47 | 69.31% | | Issued bonds | 55,836.38 | 13.28% | 84,122.73 | 22.40% | | Deposits from interbank and other financial institutions | 29,995.72 | 7.14% | 16,107.37 | 4.29% | | Borrowings from central bank | 26,641.75 | 6.34% | 2,623.42 | 0.70% | | Total liabilities | 420,373.38 | 100.00% | 375,499.56 | 100.00% | Equity Analysis As of 2020-end, total shareholders' equity grew 6.31% to 36.028 billion yuan, primarily from increased surplus reserves, general reserves, and retained earnings, benefiting from the year's profitability Shareholders' Equity Composition (Unit: Million Yuan) | Item | End of 2020 | End of 2019 | | :--- | :--- | :--- | | Share capital | 14,588.05 | 14,588.05 | | Capital reserve | 8,840.11 | 8,840.11 | | Retained earnings | 7,015.79 | 5,443.36 | | Total equity | 36,027.82 | 33,889.24 | Loan Quality Analysis As of 2020-end, loan quality remained stable with a 1.15% non-performing loan ratio, despite an increase in special mention and non-performing balances due to the pandemic, as the Bank optimized credit structure and disposed of non-performing assets Loan Five-Category Classification | Category | End of 2020 Balance (Million Yuan) | Proportion | End of 2019 Balance (Million Yuan) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Normal | 209,602.92 | 97.98% | 176,339.23 | 98.04% | | Special Mention | 1,863.60 | 0.87% | 1,399.93 | 0.78% | | Non-performing loans | 2,456.39 | 1.15% | 2,128.56 | 1.18% | - Corporate loan non-performing ratio was 1.27%, and personal loan non-performing ratio was 1.29%, with increases in personal operating loans and credit card non-performing ratios due to the pandemic, but overall controllable[83] - The largest single borrower's loan balance was 2.033 billion yuan, accounting for 5.64% of net capital; the total loans to the top ten largest single borrowers accounted for 9.61% of total loans, with concentration meeting regulatory requirements[88] Segment Reporting The Bank's three main segments are corporate, retail, and treasury, with corporate banking contributing 65.00% of operating income and 76.04% of pre-tax profit in 2020, while retail and treasury segments showed increased revenue proportions 2020 Operating Income and Proportion by Business Segment | Business Segment | Operating Income (Million Yuan) | Percentage of Total | | :--- | :--- | :--- | | Corporate Banking Business | 7,311.23 | 65.00% | | Retail Banking Business | 1,729.59 | 15.38% | | Treasury Business | 2,251.64 | 20.02% | | Other Businesses | (44.85) | (0.40)% | Capital Adequacy Ratio and Leverage Ratio Analysis As of 2020-end, the Bank's capital adequacy ratio was 13.67%, with Tier 1 and Core Tier 1 ratios at 11.63%, all meeting regulatory requirements and maintaining a solid capital base despite a slight decrease from 2019 Capital Adequacy Ratio Indicators | Indicator | End of 2020 | End of 2019 | | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 11.63% | 12.30% | | Tier 1 Capital Adequacy Ratio | 11.63% | 12.30% | | Capital Adequacy Ratio | 13.67% | 14.45% | Business Overview In 2020, the Bank made significant progress in corporate, retail, and inclusive finance, enhanced financial market profitability, and successfully launched a new information system, becoming the sixth 'Equator Bank' in China - Corporate Business: Real economy financing balance of 94.295 billion yuan, an increase of 17.16%; green loan balance of 22.852 billion yuan, an increase of 25.68%; became the sixth 'Equator Bank' in China[94][95] - Retail Business: Personal deposit balance exceeded 100 billion yuan, reaching 101.633 billion yuan, with a growth rate of 24.52%[99] - Small and Micro Business: Inclusive small and micro enterprise loan balance of 20.309 billion yuan, with a growth rate of 60.65%[107] - Financial Markets and Wealth Management: Treasury business pre-tax profit of 645 million yuan, with increased proportion; wealth management product outstanding balance of 23.194 billion yuan, a 55.16% increase, with net value-based products accounting for 92.61%[112][117] - Technology Empowerment: Successfully launched a new generation information system, enhancing technical support, customer service, and risk control capabilities[123] Risk Management The Bank established a comprehensive risk management system, maintaining a prudent risk appetite amidst the pandemic by refining policies and adjusting structures, ensuring stable asset quality and compliance with regulatory liquidity and capital indicators - Credit Risk: Adhered to a 'prudent, stable, and compliant' risk appetite, continuously improved credit policies, promoted credit structure adjustment, and accelerated non-performing asset disposal[127] - Liquidity Risk: As of the end of the reporting period, the liquidity coverage ratio was 289.00%, and the net stable funding ratio was 106.11%, both meeting regulatory requirements[129][130][131] - Market Risk: Primarily interest rate risk, monitored through duration and sensitivity analysis, actively responding to interest rate market fluctuations[132] - Operational Risk: Overall operational risk was controllable through measures such as improving systems, strengthening management tools, and enhancing outsourced risk control[133] Chapter 5 Changes in Share Capital and Shareholder Information Changes in Share Capital As of December 31, 2020, the Bank's total share capital remained unchanged at 14,588,046,744 shares, with domestic shares at 84.92% and H shares at 15.08% Share Capital Structure | Share Class | Number of Shares | Proportion | | :--- | :--- | :--- | | Domestic Shares | 12,388,046,744 | 84.92% | | H Shares | 2,200,000,000 | 15.08% | | Total Share Capital | 14,588,046,744 | 100.00% | Shareholder Information As of 2020-end, the Bank's top three shareholders were Guizhou Provincial Department of Finance (13.15%), China Kweichow Moutai Winery (Group) Co., Ltd. (12.00%), and Guian New Area Development and Investment Co., Ltd. (7.20%), with disclosures on major shareholders' holdings and pledges Top Three Shareholders' Holdings | Shareholder Name | Shareholding Proportion | | :--- | :--- | | Guizhou Provincial Department of Finance | 13.15% | | China Kweichow Moutai Winery (Group) Co., Ltd. | 12.00% | | Guian New Area Development and Investment Co., Ltd. | 7.20% | - Major shareholder Zunyi City State-owned Assets Investment and Financing Management Co., Ltd. pledged 200 million shares of its equity[171] - All shares held by shareholder Zunyi Hengtong Industrial Development Co., Ltd. were judicially frozen and voting rights restricted due to disputes[176] Chapter 6 Directors, Supervisors, Senior Management, Employees, and Organizational Structure Directors, Supervisors, and Senior Management This section details the composition and roles of the Bank's Board of Directors (8 members), Board of Supervisors (9 members), and senior management (7 members) as of the reporting period end - As of the end of the reporting period, the Board of Directors consisted of 8 directors, including 2 executive directors, 1 non-executive director, and 5 independent non-executive directors[180] - As of the end of the reporting period, the Board of Supervisors consisted of 9 supervisors, including 3 employee supervisors, 3 shareholder supervisors, and 3 external supervisors[183] - The Bank had 7 senior management members, including the President, Vice Presidents, Board Secretary, and Chief Officers[186] Employee Information As of 2020-end, the Bank had 5,169 employees, with nearly 70% under 40, 52.58% female, and 83.96% holding a bachelor's degree or higher, emphasizing training and a position-value-based compensation policy Employee Composition (As of End of 2020) | Category | Number | Proportion | | :--- | :--- | :--- | | Total Number | 5,169 | 100% | | By Age | | | | 30 and below | 1,739 | 33.64% | | 31 to 40 | 1,865 | 36.08% | | By Education | | | | Bachelor's degree and above | 4,340 | 83.96% | - During the reporting period, the Bank organized 50,137 person-times of various business trainings for internal employees and nearly 50 online training sessions with nearly 10,000 participants[218] Chapter 7 Corporate Governance Report Board of Directors and Special Committees During the reporting period, the Board of Directors operated effectively, holding 15 meetings and reviewing 95 proposals, with its five specialized committees regularly convening to support scientific decision-making - During the reporting period, the Board of Directors held 15 meetings, reviewed and approved 95 proposals, with high director attendance[228][229][230] - The Board of Directors established five specialized committees, whose composition complied with regulations, and effectively performed their review and oversight duties during the reporting period[232] Board of Supervisors and Special Committees During the reporting period, the Board of Supervisors operated compliantly, holding 5 meetings, reviewing 69 proposals, and conducting 7 special supervisions, with its two specialized committees effectively exercising oversight functions - The Board of Supervisors held 5 meetings throughout the year, reviewed 69 proposals, conducted 7 special supervisions, and its meeting procedures complied with regulations[250] - The Supervision Committee and the Nomination, Remuneration and Evaluation Committee under the Board of Supervisors each held 3 meetings, conducting professional reviews on major matters and the performance of directors, supervisors, and senior management[256][257] Risk Management, Internal Control, and Internal Audit The Bank established a comprehensive risk management and internal control system, confirmed as effective by the Board, while the independent internal audit conducted 57 projects to prevent risk exposures - The Board of Directors bears ultimate responsibility for risk management and internal control, deeming the risk control and internal control systems fully effective as of the end of 2020[267][268] - The internal audit department conducted 57 audit projects during the reporting period, issued 64 audit opinions, and supervised the rectification of 641 issues[271] Chapter 8 Board Report Annual General Meeting and Dividends The Board proposed a 2020 final cash dividend of RMB 0.7 per 10 shares, totaling approximately 1.021 billion yuan (tax inclusive), pending shareholder approval - The Board of Directors proposed a final cash dividend for 2020 of RMB 0.7 per 10 shares (pre-tax), totaling approximately 1.021 billion yuan[273] Chapter 9 Supervisors' Report Key Work of the Board of Supervisors In 2020, the Board of Supervisors effectively fulfilled its oversight duties through 5 meetings, 69 proposals, and 7 special supervisions, focusing on performance, risk control, and strategic transformation - The Board of Supervisors held 5 meetings throughout the year, reviewed 69 proposals, conducted 7 special supervisions, and attended shareholder and board meetings as non-voting observers[284] - Supervised the selection and performance of directors, supervisors, and senior management, and reviewed the rationality of the company's organizational structure optimization and compensation incentive policies[286] Independent Opinions of the Board of Supervisors The Board of Supervisors issued independent opinions on the Bank's 2020 operations, financial reports, and related party transactions, affirming compliance, truthfulness, and fairness, with no harm to shareholder interests - The Board of Supervisors believes that the Bank's operations comply with laws, regulations, and the Articles of Association, the Board of Directors' decision-making procedures are standardized, and senior management's performance is compliant[287] - The financial report was audited and received a standard unqualified opinion, truly and objectively reflecting the Bank's financial position and operating results[287] Chapter 10 Significant Matters Significant Related Party Transactions In the reporting period, the Bank disclosed significant related party transactions, including a 6.023 billion yuan credit exposure to Guian New Area Development and Investment Co., Ltd., with all nine approved transactions priced at market rates and compliant - As of the end of the reporting period, the highest net credit exposure to a related party was to Guian New Area Development and Investment Co., Ltd., at 6.023 billion yuan, accounting for 14.32% of the Bank's net capital[290] - During the reporting period, 9 significant related party transactions were approved, including credit and investments to Guizhou Provincial Water Conservancy Investment (Group) and Guian New Area Development and Investment Co., Ltd., as well as the bulk transfer of non-performing assets to Guizhou Provincial Asset Management Co., Ltd[291][292][293] Chapter 11 Independent Auditor's Report Independent Auditor's Report KPMG issued an unqualified audit opinion on Bank of Guizhou's 2020 financial statements, identifying key audit matters including impairment provisions, fair value assessment of financial instruments, and consolidation of structured entities - The auditor issued a standard unqualified opinion on the financial statements[299] - Key audit matters include: 1. Determination of impairment provisions for loans and advances and financial investments measured at amortized cost: Involves complex judgments and assumptions in the Expected Credit Loss (ECL) model 2. Fair value assessment of financial instruments: Especially the valuation of Level 3 financial instruments involves significant management judgment 3. Consolidation of structured entities: Determining control over structured entities (e.g., wealth management products, asset management plans) involves complex assessments[301][302][308][310] Chapter 12 Financial Statements and Notes Statement of Profit or Loss and Other Comprehensive Income In 2020, the Bank's operating income reached 11.248 billion yuan, up 5.06%, with net profit of 3.671 billion yuan, up 3.00%, and total comprehensive income of 3.160 billion yuan Statement of Profit or Loss and Other Comprehensive Income Summary (Unit: RMB Thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net interest income | 10,121,385 | 9,870,959 | | Net fee and commission income | 362,523 | 94,636 | | Operating income | 11,247,612 | 10,705,527 | | Asset impairment losses | (3,231,786) | (3,172,769) | | Pre-tax profit | 4,355,303 | 4,091,386 | | Net profit for the year | 3,670,663 | 3,563,637 | | Other comprehensive income | (510,920) | 91,522 | | Total comprehensive income | 3,159,743 | 3,655,159 | Statement of Financial Position As of 2020-end, total assets were 456.401 billion yuan, up 11.48%, with net loans and advances at 206.153 billion yuan and financial investments at 192.309 billion yuan, while total liabilities were 420.373 billion yuan and total equity was 36.028 billion yuan Statement of Financial Position Summary (Unit: RMB Thousand) | Item | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Assets | | | | Loans and advances | 206,152,610 | 173,349,699 | | Financial investments | 192,308,994 | 148,034,046 | | Total assets | 456,401,199 | 409,388,800 | | Liabilities | | | | Deposits accepted | 289,042,772 | 260,266,471 | | Issued bonds | 55,836,382 | 84,122,732 | | Total liabilities | 420,373,377 | 375,499,558 | | Total equity | 36,027,822 | 33,889,242 | Statement of Cash Flows In 2020, net cash from operating activities was 33.269 billion yuan, while investing activities used 28.571 billion yuan and financing activities used 31.670 billion yuan, resulting in a net decrease of 26.972 billion yuan in cash and cash equivalents Statement of Cash Flows Summary (Unit: RMB Thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net cash generated from operating activities | 33,268,706 | 24,681,593 | | Net cash used in investing activities | (28,570,860) | (11,269,135) | | Net cash (used in) / generated from financing activities | (31,670,356) | 7,051,318 | | Net (decrease) / increase in cash and cash equivalents | (26,971,857) | 20,573,425 |