Financial Performance - Operating income for the first half of 2024 was RMB 6,405,142 thousand, a decrease of 7.22% compared to RMB 6,903,597 thousand in the same period of 2023 [11]. - Total profit for the first half of 2024 was RMB 1,869,575 thousand, down 26.02% from RMB 2,526,990 thousand in the first half of 2023 [11]. - Net profit attributable to shareholders for the first half of 2024 was RMB 1,593,861 thousand, a decline of 22.12% compared to RMB 2,046,633 thousand in the same period of 2023 [11]. - Basic earnings per share for the first half of 2024 were RMB 0.18, down 21.74% from RMB 0.23 in the same period of 2023 [11]. - The company achieved operating income of RMB 6.405 billion, a year-on-year decrease of 7.22% [27]. - Net profit for the period was RMB 1.649 billion, down 22.01% compared to the previous year [27]. - The company reported a significant decrease in pre-tax profit of RMB 657 million, down 26.02% from the previous year [28]. Assets and Liabilities - Total assets as of June 30, 2024, reached RMB 645,680,374 thousand, reflecting a 2.37% increase from RMB 630,709,429 thousand at the end of 2023 [12]. - Total liabilities as of June 30, 2024, were RMB 589,356,033 thousand, up 2.25% from RMB 576,394,573 thousand at the end of 2023 [12]. - Total deposits (excluding accrued interest) reached RMB 386,360,381 thousand, a growth of 7.04% compared to RMB 360,961,439 thousand at the end of 2023 [12]. - The bank's total liabilities amounted to RMB 589.36 billion, reflecting an increase of RMB 12.96 billion or 2.25% compared to the end of the previous year [68]. - The bank's total assets amounted to RMB 645.68 billion, an increase of RMB 14.97 billion, reflecting a growth rate of 2.37% from the end of the previous year [55]. Capital and Ratios - As of June 30, 2024, the core tier 1 capital adequacy ratio increased to 9.26%, up from 8.90% at the end of 2023, reflecting a 0.36% improvement [13]. - The total capital ratio improved to 12.68% as of June 30, 2024, up from 12.38% at the end of 2023 [112]. - The bank's leverage ratio stood at 7.50% as of June 30, 2024, slightly down from 7.60% at the end of 2023 [113]. - The liquidity coverage ratio decreased to 207.98% as of June 30, 2024, down from 265.83% at the end of 2023, a decline of 57.85% [14]. - The liquidity ratio is 74.83%, exceeding the regulatory requirement of at least 25% [135]. - The net stable funding ratio is 114.63%, also above the regulatory threshold of 100% [135]. Risk Management - The bank has not identified any significant risks that could adversely affect its future development strategy and operational goals during the reporting period [4]. - The provision coverage ratio improved significantly to 191.47% from 174.87% at the end of 2023, indicating a 16.60% increase [13]. - The bank has established a comprehensive reputation risk management system, enhancing risk assessment and monitoring mechanisms [137]. - The bank has strengthened risk management capabilities, continuously improving the comprehensive risk management system [131]. - The bank's operational risk management framework has been improved with new standards for risk measurement and management [134]. Loans and Advances - Total loans and advances (excluding accrued interest) amounted to RMB 372,827,943 thousand, an increase of 3.39% from RMB 360,608,206 thousand at the end of 2023 [12]. - The total amount of loans and advances is RMB 372,827,943 thousand, with 95.88% classified as normal loans as of June 30, 2024 [77]. - The bank's credit loans amounted to RMB 73.09 billion, with an NPL ratio of 1.31%, while guaranteed loans totaled RMB 165.56 billion with an NPL ratio of 1.74% [82]. - The overdue loans totaled RMB 17.32 billion, representing 4.65% of total loans, an increase of RMB 2.5 billion or 16.87% from the previous year [86]. - The bank's agricultural loan balance reached RMB 83.295 billion, an increase of RMB 1.056 billion or 1.28% compared to the end of the previous year [140]. Income and Expenses - Interest income decreased by RMB 630 million, a decline of 10.64%, accounting for 82.68% of total operating income [29]. - Interest expenses for the period totaled RMB 6.48 billion, an increase of RMB 10 million or 0.16% year-on-year, influenced by changes in liability scale and interest costs [40]. - The total income tax expense for the reporting period was RMB 220.46 million, a decrease of RMB 192.04 million, representing a decline of 46.56% compared to the same period last year [54]. - Operating expenses totaled RMB 1.66 billion, up RMB 141 million or 9.26% year-over-year [48]. - The bank's net interest margin decreased to 1.70%, down 0.36 percentage points year-on-year, while the net interest yield fell to 1.80%, a decrease of 0.33 percentage points compared to the previous year [34]. Corporate Governance - The company has established a comprehensive corporate governance structure, ensuring compliance with relevant laws and regulations [192]. - The company held its 2023 Annual General Meeting on June 27, 2024, with a participation rate of 40.60% [193]. - The board of directors confirmed that no cash dividends or bonus shares will be distributed for the first half of 2024 [4]. - The company has a total of 52,470 shares held by the deputy president, with no changes during the reporting period [171]. - The company has adopted a securities trading code of conduct for directors and supervisors, ensuring compliance with relevant regulations [176]. Employee and Workforce - As of the reporting period, the company had a total of 5,822 employees, with 5,258 in the main bank and 564 in subsidiaries [180]. - The largest employee group is in retail banking, comprising 1,874 employees, which accounts for 32.19% of the total workforce [181]. - The employee age distribution shows that 3,583 employees are aged between 31 and 40, making up 61.61% of the workforce [182]. - The bank's compensation policy emphasizes fairness, competitiveness, and incentivization, with a focus on performance-based pay to motivate employees [185]. - The bank has established a comprehensive training system to enhance the overall capabilities and innovation skills of its employees, aligning with the provincial government's goal of building a first-class urban commercial bank [184]. Strategic Initiatives - The bank is focused on supporting local economic development and small and medium-sized enterprises, aligning with national and regional strategic initiatives [114]. - The bank aims to enhance financial services for rural revitalization, with 4,947 new merchant service points established in rural areas [141]. - The bank plans to focus on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance to support business development [142]. - The bank has actively implemented the national rural revitalization strategy, enhancing rural financial service channels and experiences [124]. - The bank is committed to supporting the stable and healthy development of the real estate market and local industry clusters [142].
郑州银行(06196) - 2024 - 中期财报