Financial Performance - Operating income for the first half of 2021 was RMB 15,802.87 million, a decrease of 1.51% compared to RMB 16,045.20 million in the same period of 2020[9] - Pre-tax profit increased by 6.93% to RMB 6,720.78 million from RMB 6,285.34 million year-on-year[9] - Net profit rose by 5.90% to RMB 5,344.57 million compared to RMB 5,046.71 million in the first half of 2020[9] - Basic earnings per share attributable to ordinary shareholders decreased by 14.29% to RMB 0.30 from RMB 0.35 in the previous year[10] - The bank's net profit for the period was RMB 5.34 billion, representing a year-on-year growth of 5.90%[29] Asset and Liability Management - Total assets increased by 11.97% to RMB 1,560,327,530 as of June 30, 2021, compared to RMB 1,393,523,125 at the end of 2020[12] - Total liabilities grew by 12.62% to RMB 1,453,124,227, up from RMB 1,290,277,295[12] - Total deposits increased by 13.39% to RMB 846,729,827, compared to RMB 746,725,783 at the end of 2020[12] - The bank's total equity as of June 30, 2021, was RMB 107.20 billion, representing a growth of 3.83% from the previous year-end[64] Loan and Credit Quality - Total loans and advances rose by 10.06% to RMB 976,828,197 from RMB 887,537,545[12] - Non-performing loan ratio slightly improved to 1.76% as of June 30, 2021, from 1.77% at the end of 2020[14] - The non-performing loan balance was RMB 17.19 billion, with a non-performing loan ratio of 1.76%, a slight decrease of 0.01 percentage points from the previous year[28] - The total overdue loans reached RMB 32.98 billion, representing an increase of RMB 8.33 billion compared to RMB 24.65 billion at the end of 2020, with an overdue loan ratio of 3.38%[80] Income and Expenses - Net interest margin decreased by 0.45 percentage points to 1.79% in the first half of 2021, down from 2.24% in the same period of 2020[14] - The net interest income was RMB 13.54 billion, down 3.48% year-on-year[32] - Total interest expenses amounted to RMB 18.044 billion, reflecting an 18.53% year-on-year increase[39] - Operating expenses rose by 6.66% to RMB 4,711.56 million from RMB 4,417.20 million in the previous year[50] Risk Management - The report includes a detailed description of the main risks faced by the bank and the measures taken to address them[7] - The bank has implemented a robust large exposure risk management system, ensuring compliance with regulatory requirements throughout the reporting period[86] - The bank's risk management framework includes a three-line defense system to ensure effective risk control across all business lines and branches[122] - The bank's liquidity risk management strategy aims to ensure compliance with liquidity regulatory indicators while minimizing additional liquidity costs[126] Capital Adequacy - Capital adequacy ratio increased by 0.68 percentage points to 12.76% from 12.08%[14] - The core tier 1 capital adequacy ratio stood at 8.73%, while the total capital adequacy ratio was 12.76%, both meeting regulatory requirements[66] - The bank's capital management strategy aims to balance capital constraints, risk management, and shareholder returns while maintaining adequate capital levels[141] Business Development and Strategy - The bank's business development philosophy for the second half of 2021 emphasizes innovation and transformation, aligning with national strategies and focusing on high-quality development[152] - The bank aims to enhance its marketing capabilities and ensure steady growth across all business sectors, focusing on corporate and retail business expansion[153] - The bank's strategic vision includes becoming the best experience modern financial manager, providing comprehensive financial services with a focus on retail banking and transaction banking[146] Employee and Governance - The bank's governance structure includes a shareholders' meeting, board of directors, supervisory board, and senior management, ensuring effective communication and governance[182] - The bank's management team underwent significant changes, with multiple resignations and new appointments effective from May 28, 2021[169] - The bank's training programs included courses on party history, financial technology, big data, and artificial intelligence[178] Shareholder Information - The bank's total ordinary shares remained unchanged at 17,762,000,000 shares, with domestic shares accounting for 65.09% and H shares for 34.91%[154] - Tianjin TEDA Investment Holding Co., Ltd. is the largest shareholder, holding 3,612,500,000 shares, which is 20.34% of the total[155] - The top ten shareholders hold a total of 12,000,000,000 shares, representing approximately 67.5% of the total ordinary shares[155]
渤海银行(09668) - 2021 - 中期财报