Financial Performance - As of June 30, 2024, total assets reached RMB 370.86 billion, with deposits at RMB 290.23 billion and loans at RMB 202.02 billion[26]. - Net interest income increased by 9.4% to RMB 2,218.8 million compared to RMB 2,028.3 million in the previous year[27]. - Pre-tax profit slightly increased by 0.5% to RMB 1,046.6 million compared to RMB 1,041.0 million[27]. - Net profit attributable to equity holders decreased by 0.4% to RMB 1,030.4 million from RMB 1,034.1 million[27]. - For the six months ended June 30, 2024, the company's operating income decreased by 1.7% to RMB 2,786.7 million from RMB 2,834.7 million for the same period in 2023[39]. - The average return on total assets decreased by 0.05 percentage points to 0.56%, while the average return on equity fell by 0.53 percentage points to 8.22%[39]. - The company's trading gains turned negative, with a net loss of RMB 98.9 million compared to a gain of RMB 172.2 million in the prior year[39]. - The total operating income for the first half of 2024 was RMB 2,786.7 million, a slight decrease from RMB 2,834.7 million in the same period of 2023[139]. Asset Quality - Non-performing loan ratio increased to 1.85% from 1.78%[29]. - The total amount of non-performing loans was RMB 3,746.9 million as of June 30, 2024, with a non-performing loan rate of 1.85%[130]. - The company reported a significant increase in the NPL ratio for corporate loans primarily due to difficulties faced by coal mining and coking enterprise clients[128]. - The NPL ratio for personal loans decreased from 2.54% as of December 31, 2023, to 1.93% as of June 30, 2024, with the NPL balance declining from RMB 809.6 million to RMB 638.6 million[128]. - The total amount of loans under special mention increased to RMB 10,134.2 million, accounting for 5.0% of total loans, up by RMB 3,036.5 million[115]. - The group has implemented various measures to recover non-performing loans, including direct collection and legal actions against borrowers[123]. Capital and Liquidity - Capital adequacy ratio stands at 11.59%, while the core tier 1 capital adequacy ratio is 9.78%[26]. - The liquidity coverage ratio decreased to 225.27% from 242.06%[31]. - The bank's provisions for impairment losses on loans and advances increased to RMB 7,414.2 million from RMB 6,780.7 million at the end of 2023[138]. - The capital reserve stood at RMB 6,627.6 million, representing 26.2% of total equity as of June 30, 2024[109]. - The total core tier 1 capital amounted to RMB 25,298.2 million, an increase from RMB 24,802.6 million at the end of 2023[140]. Strategic Development - The bank is advancing its 2021-2025 strategic development plan, focusing on safety, regional service, and supporting local economies[26]. - The bank's strategic vision includes strengthening corporate services, refining retail banking, and optimizing inclusive finance[26]. - The bank is focusing on enhancing financial services for the real economy, particularly in supporting manufacturing upgrades and strategic emerging industries[36]. - The bank aims to maintain a stable financial environment while exploring specialized operational paths to achieve high-quality development[37]. - The bank is actively implementing its 2021-2025 strategic plan while adapting to external environmental changes to enhance its market adaptability[155]. Digital Transformation - The bank is enhancing its digital banking capabilities through online, mobile, and WeChat banking services, creating an integrated financial service model[26]. - The bank has implemented a digital transformation strategy to broaden the depth and breadth of financial services[37]. - The focus of the digital transformation includes enhancing customer service, operational management, data governance, and technological support[173]. - The company has established a digital technology platform, including data middle platform and artificial intelligence capabilities[173]. Customer Service and Market Position - The bank has achieved full coverage of branches across 11 prefecture-level cities in Shanxi Province, operating 152 business outlets[26]. - The bank has been recognized with multiple awards, including "Most Competitive National Brand of Chinese City Commercial Banks" and "Most Beloved Bank in Shanxi Province"[26]. - The number of retail banking customers increased from 3,313.0 thousand as of December 31, 2023, to 3,410.4 thousand as of June 30, 2024[163]. - The bank aims to enhance its private banking brand and develop a differentiated service model for high-net-worth individuals[163]. Shareholder Information - The total issued share capital of the company as of June 30, 2024, is 5,838,650,000 shares, comprising 4,868,000,000 domestic shares and 970,650,000 H shares[174]. - Domestic state-owned shares account for 20.25% of the total share capital, while domestic legal person shares account for 34.52%[175]. - The top three shareholders hold a combined total of 1,982,000,686 shares, representing 34.53% of the total share capital[177]. - The largest shareholder, Shanxi Guoyun, indirectly holds 1,212,220,564 domestic shares, accounting for 20.76% of the bank's equity[183]. Governance and Management - The company appointed Mr. Wang Qi as an executive director and vice president, effective from July 25, 2024, after obtaining regulatory approval[198]. - The company’s chairman, Ms. Hao Qiang, has over 29 years of banking experience and has been with the company since September 2008[200]. - The company’s board of directors is actively working on filling the vacancy of independent non-executive director following the resignation of Mr. Sai Zhiyi[197]. - The company is focused on maintaining compliance with the Hong Kong Listing Rules regarding board composition and qualifications[199].
晋商银行(02558) - 2024 - 中期财报