青农商行(002958) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with the Chairman, President, and CFO affirming the financial report's integrity. No cash dividends, bonus shares, or capital reserve conversions are planned for this reporting period, and the financial report is unaudited - The Bank's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4] - The Bank plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the 2025 semi-annual period[4] - The Bank's semi-annual financial report is unaudited, investors are advised to take note[4] Table of Contents This section lists the structured table of contents for the report, comprising eight main chapters covering important notices, company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, and financial reports Definitions This section provides definitions for common terms used in the report, such as "the Bank," "common shares," and "National Financial Regulatory Administration," to ensure clear understanding of the content. The reporting period is from January 1, 2025, to June 30, 2025 - The reporting period refers to the period from January 1, 2025, to June 30, 2025[12] Part II Company Profile and Key Financial Indicators 1. Company Profile Qingdao Rural Commercial Bank Co., Ltd. (stock abbreviation: Qingnongshanghang, stock code: 002958) is listed on the Shenzhen Stock Exchange, with Wang Xifeng as its legal representative - Stock Abbreviation: Qingnongshanghang, Stock Code: 002958, Listed Stock Exchange: Shenzhen Stock Exchange[15] - Legal Representative: Wang Xifeng[15] 2. Contact Person and Information The Bank's Board Secretary is Zhu Guangyuan, with contact address at Building 1, No. 6 Qinling Road, Laoshan District, Qingdao, Shandong Province, phone 0532-66957767, and email qrcb@qrcb.com.cn - Board Secretary: Zhu Guangyuan, Contact Number: 0532-66957767, Email: qrcb@qrcb.com.cn[16] 3. Other Information The Bank's registered address, office address, website, email, information disclosure, and document storage locations remained unchanged during the reporting period, with no other applicable changes - The Bank's registered address, office address, postal code, website, and email remained unchanged during the reporting period[17] 4. Key Accounting Data and Financial Indicators In the first half of 2025, the Bank's operating revenue decreased by 1.83% year-on-year, but total profit and net profit increased by 15.01% and 6.12% respectively. Net cash flow from operating activities significantly decreased by 91.67%, while total assets and deposits absorbed showed steady growth 2025 H1 Key Accounting Data and Financial Indicators (Unit: RMB thousand) | Item | Jan-Jun 2025 | Jan-Jun 2024 | YoY Change in Reporting Period | Jan-Jun 2023 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5,751,671 | 5,858,890 | (1.83%) | 5,593,161 | | Total Profit | 2,303,343 | 2,002,654 | 15.01% | 1,912,882 | | Net Profit | 2,138,426 | 2,015,115 | 6.12% | 1,906,242 | | Net Profit Attributable to Parent Company Shareholders | 2,134,171 | 2,028,257 | 5.22% | 1,891,767 | | Net Cash Flow from Operating Activities | 736,338 | 8,844,357 | (91.67%) | 16,967,722 | | Basic Earnings Per Share (RMB/share) | 0.36 | 0.34 | 5.88% | 0.31 | | Total Assets (June 30, 2025 vs Dec 31, 2024) | 505,245,867 | 495,032,420 | 2.06% | 467,936,769 | | Deposits Absorbed (June 30, 2025 vs Dec 31, 2024) | 334,387,600 | 326,672,898 | 2.36% | 305,538,569 | 5. Differences in Accounting Data under Domestic and Overseas Accounting Standards During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[22] 6. Non-recurring Gains and Losses and Amounts In the first half of 2025, the Bank's net non-recurring gains and losses were RMB 81,184 thousand, a year-on-year decrease of 25.55%, mainly due to reduced government subsidies and fair value changes not being disclosed as non-recurring items Non-recurring Gains and Losses and Amounts (Unit: RMB thousand) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Jan-Jun 2023 | | :--- | :--- | :--- | :--- | | Net Gains from Disposal of Non-current Assets | 37,485 | 53,690 | 1,721 | | Government Subsidies | 39,888 | 60,384 | 192,892 | | Other Non-recurring Gains and Losses | 3,811 | (5,034) | (3,811) | | Net Non-recurring Gains and Losses | 81,184 | 109,040 | 190,802 | | Less: Income Tax Impact of Above Items | (20,646) | (27,361) | (48,341) | | Total | 60,538 | 81,679 | 142,461 | - The Bank's fair value changes from held-for-trading financial assets and liabilities, and reversals of asset impairment provisions arising from normal operations, were not disclosed as non-recurring gains and losses[25] 7. Supplementary Financial and Regulatory Indicators As of the end of June 2025, the Bank's capital adequacy ratio, liquidity ratio, non-performing loan ratio, and provision coverage ratio all met regulatory requirements, with the non-performing loan ratio continuously decreasing to 1.75% and the provision coverage ratio maintained at a high level of 249.00%. The cost-to-income ratio significantly optimized to 25.20% 2025 H1 Supplementary Financial and Regulatory Indicators | Indicator Category | Indicator | Standard | Jan-Jun 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | Capital Adequacy | Common Equity Tier 1 Capital Adequacy Ratio | ≥7.5% | 10.58% | 10.70% | 9.91% | | | Tier 1 Capital Adequacy Ratio | ≥8.5% | 12.09% | 12.26% | 11.48% | | | Capital Adequacy Ratio | ≥10.5% | 13.78% | 13.96% | 13.21% | | Liquidity Risk | Liquidity Ratio | ≥25% | 95.27% | 104.51% | 98.03% | | | Non-performing Loan Ratio | ≤5% | 1.75% | 1.79% | 1.81% | | Provisions | Provision Coverage Ratio | ≥150% | 249.00% | 250.53% | 237.96% | | Profitability | Cost-to-Income Ratio | ≤45% | 25.20% | 30.74% | 31.70% | | | Return on Total Assets (Annualized) | - | 0.86% | 0.59% | 0.58% | | | Net Interest Margin (Annualized) | - | 1.60% | 1.67% | 1.77% | | | Net Interest Income Ratio (Annualized) | - | 1.61% | 1.67% | 1.76% | - The non-performing loan ratio continued to decline, from 1.79% at the end of 2024 to 1.75% at the end of June 2025[28] - The cost-to-income ratio significantly optimized, decreasing from 30.74% in 2024 to 25.20% in the first half of 2025[28] Part III Management Discussion and Analysis 1. Principal Businesses of the Bank During the Reporting Period The Bank primarily engages in absorbing deposits, issuing loans, domestic and international settlements, and bill acceptance and discounting, maintaining a "serving agriculture and small businesses" market position, driven by retail finance, corporate finance, and treasury operations, while developing distinctive businesses like rural revitalization, international business, and wealth management - The Bank's business scope is extensive, including absorbing domestic and foreign currency public deposits, issuing loans, domestic and international settlements, and bill acceptance and discounting[32] - The Bank adheres to its market positioning of "serving agriculture and small businesses," driving development through three major segments: retail finance, corporate finance, and treasury operations[32] - The Bank focuses on developing distinctive businesses such as rural revitalization, international business, and wealth management, promoting deep integration of online and offline services[32] 2. Analysis of Core Competencies The Bank's core competencies include a promising regional economic outlook, sound corporate governance, unique urban-rural financial service model, professional and efficient SME financial services, excellent financial asset and investment management capabilities, prudent risk control, stringent internal management, and a pragmatic and proactive management team - Qingdao, as a key coastal central city, provides ample space for the Bank to deepen its local market presence[33] - A sound corporate governance structure, centered on the Board of Directors, Supervisory Board, and senior management, with directors, supervisors, and executives possessing years of banking management experience[33] - Possesses the largest and most extensive bank network in Qingdao, pioneering the internet-based micro and small enterprise cloud payment system[34] - Serves micro, small, and medium-sized enterprises through a "special scale, dedicated team, professional process, specialized risk control" model, introducing German microcredit technology[35] - Actively transforming into a "light capital, light asset" transactional bank focused on "financial markets and investment management," with its financial market center being the first to obtain full license operation qualifications[36] - Established a top-down risk management system comprising the Board of Directors, senior management, risk management departments, and branches, forming a "three lines of defense" internal control framework[37] - Senior management possesses excellent strategic vision and deep industry knowledge, implementing a market-oriented talent selection and assessment system[37] 3. Overview of Overall Performance In the first half of 2025, the Bank achieved growth in both scale and profitability, with net profit attributable to parent company shareholders increasing by 5.22% year-on-year. Asset quality continued to improve, with both non-performing loan ratio and balance decreasing, and significant progress was made in serving the "five key areas" of finance, including growth in strategic emerging, technology, green, agriculture-related, and inclusive small and micro loans, alongside active promotion of digital transformation and elderly care financial ecosystem development - Achieved "double growth" in scale and profitability: Total loans and advances RMB 272.199 billion, an increase of 2.11% from the end of last year; total deposits absorbed RMB 334.388 billion, an increase of 2.36% from the end of last year[38] - Net profit attributable to parent company shareholders was RMB 2.134 billion, a year-on-year increase of 5.22%[38] - Asset quality further optimized: Non-performing loan ratio was 1.75%, a decrease of 0.04 percentage points from the end of last year, achieving a "double decrease" in both non-performing loan ratio and balance[39] - New progress in serving the "five key areas" of finance: Strategic emerging loans balance RMB 8.415 billion, an increase of RMB 1.839 billion; technology finance loans balance RMB 15.684 billion, an increase of RMB 1.632 billion; green loans balance RMB 15.486 billion, an increase of RMB 1.560 billion; agriculture-related loans balance RMB 59.1 billion, maintaining first place in the city; inclusive small and micro loans balance RMB 51.617 billion, fully achieving the "two increases" target[40] - Building an elderly care financial ecosystem, continuously promoting the "Colorful Healthy Years" elderly care service brand[40] - Activating the digital finance innovation engine, launching 16 innovation projects in the first half of the year, implementing 3 major AI large model intelligent agent applications such as office assistant, compliance assistant, and credit assistant[40] 4. Financial Statement Analysis This section provides a detailed analysis of the Bank's income statement, balance sheet, and cash flow statement for the first half of 2025. Net interest income grew steadily, while non-interest net income decreased. Both total assets and total liabilities increased, primarily driven by loans and advances and deposits absorbed. Asset quality continued to improve, with a decrease in the non-performing loan ratio. In terms of cash flow, net cash flow from operating activities significantly decreased, net cash flow from investing activities significantly increased, and net cash flow from financing activities turned positive (1) Analysis of Income Statement Items In the first half of 2025, the Bank's operating revenue decreased by 1.83% year-on-year, but operating profit and total profit increased by 14.54% and 15.01% respectively. Net interest income grew by 1.54%, mainly due to liability cost control. Non-interest net income decreased by 7.08%, primarily affected by a reduction in fair value change gains. Credit impairment losses decreased by 19.68% year-on-year, reflecting improved asset quality 2025 H1 Consolidated Income Statement Key Data (Unit: RMB thousand) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5,751,671 | 5,858,890 | (107,219) | (1.83%) | | Net Interest Income | 3,623,539 | 3,568,582 | 54,957 | 1.54% | | Non-interest Net Income | 2,128,132 | 2,290,308 | (162,176) | (7.08%) | | Operating Profit | 2,299,532 | 2,007,685 | 291,847 | 14.54% | | Total Profit | 2,303,343 | 2,002,654 | 300,689 | 15.01% | | Net Profit | 2,138,426 | 2,015,115 | 123,311 | 6.12% | | Credit Impairment Losses | (1,932,229) | (2,405,538) | 473,309 | (19.68%) | - Net interest income increased by 1.54%, primarily due to the Bank's increased support for the real economy, steady growth in credit scale, and strengthened cost control, continuously reducing liability costs[43] - Both net interest margin and net interest income ratio decreased by 0.09 percentage points compared to the same period last year, mainly due to declining market interest rates and concessions to the real economy[46] - Net fee and commission income increased by 1.71% year-on-year, mainly driven by increased income from agency, custody, and bond underwriting businesses[50] - Other non-interest net income decreased by 9.77%, with investment income increasing by RMB 334 million and fair value change gains decreasing by RMB 478 million[53] - Credit impairment losses decreased by 19.68%, mainly due to the Bank's strengthened risk control, improved asset quality, and reasonable provision accrual[57] (2) Analysis of Balance Sheet Items As of June 30, 2025, the Bank's total assets reached RMB 505.246 billion, an increase of 2.06% from the end of last year. Net loans and advances grew by 2.28%, accounting for 51.64% of total assets. Total liabilities increased by 2.07%, with deposits absorbed being the primary source of funds, growing by 2.36%. The non-performing loan ratio decreased to 1.75%, indicating continuous optimization of asset quality. The financial investment structure was adjusted, with a significant increase in other debt investments Consolidated Balance Sheet Key Data as of June 30, 2025 (Unit: RMB thousand) | Item | June 30, 2025 | Dec 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 505,245,867 | 495,032,420 | 10,213,447 | 2.06% | | Loans and Advances | 260,916,524 | 255,106,911 | 5,809,613 | 2.28% | | Total Liabilities | 463,331,564 | 453,921,297 | 9,410,267 | 2.07% | | Deposits Absorbed | 334,387,600 | 326,672,898 | 7,714,702 | 2.36% | | Net Assets Attributable to Parent Company Shareholders | 41,706,152 | 40,747,140 | 959,012 | 2.35% | - Net loans and advances increased by 2.28%, primarily due to the Bank's adherence to its "serving agriculture and small businesses" positioning, increasing loan disbursements in key areas such as agriculture-related loans, inclusive finance, green finance, and strategic emerging industries[60] - Non-performing loan balance was RMB 4.77 billion, with a non-performing loan ratio of 1.75%, a decrease of 0.04 percentage points from the end of last year, achieving a "double decrease"[70] - Total financial investments were RMB 179.12 billion, with other debt investments increasing by 34.80%, mainly due to optimizing asset structure and increasing investments in policy bank bonds and interbank financial bonds[88] - Deposits absorbed balance was RMB 334.388 billion, an increase of 2.36%, representing the Bank's primary source of funds, with individual deposits accounting for 72.76% of total deposits[96] - Borrowings from central bank balance was RMB 17.847 billion, a decrease of 0.11%, mainly due to gradually reducing rediscount balances[97] - Bonds payable balance was RMB 77.608 billion, an increase of 1.35%, mainly due to increased issuance of debt securities[97] (3) Analysis of Cash Flow Statement Items In the first half of 2025, the Bank's net cash flow from operating activities was RMB 736 million, a significant year-on-year decrease of 91.67%, primarily due to increased cash outflows for financial assets held for trading. Net cash flow from investing activities was RMB 1.688 billion, a year-on-year increase of 280.80%, mainly due to reduced cash outflows for investments. Net cash flow from financing activities turned positive at RMB 44.5 million, primarily due to increased cash inflows from bond issuance 2025 H1 Consolidated Cash Flow Statement Key Data (Unit: RMB thousand) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Change Amount | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 736,338 | 8,844,357 | (8,108,019) | | Net Cash Flow from Investing Activities | 1,687,788 | 443,189 | 1,244,599 | | Net Cash Flow from Financing Activities | 44,526 | (6,743,661) | Not applicable | - Cash inflow from operating activities increased by RMB 572 million, mainly due to increased cash inflow from repurchase agreements[100] - Cash outflow from operating activities increased by RMB 8.68 billion, mainly due to increased cash outflow for financial assets held for trading[101] - Cash inflow from investing activities decreased by RMB 4.622 billion, mainly due to decreased cash inflow from investment redemptions[100] - Cash outflow from investing activities decreased by RMB 5.867 billion, mainly due to decreased cash outflow for investments made[101] - Cash inflow from financing activities increased by RMB 6.642 billion, mainly due to increased cash inflow from bond issuance[100] - Cash outflow from financing activities decreased by RMB 147 million, mainly due to decreased cash outflow for dividend distribution, profit, or interest payments[101] (4) Segment Analysis The Bank's segment reporting on business income and expenses is detailed in the segment report section of the financial statement notes - The Bank's business income and expense segment information can be found in "Part VIII Financial Report," "Notes to Financial Statements," "VI. Segment Reporting"[102] 5. Analysis of Assets and Liabilities The Bank's asset and liability position remains stable, with no significant overseas assets. Financial assets and liabilities measured at fair value primarily include financial assets held for trading, derivative financial assets/liabilities, and other debt investments. During the reporting period, investment income, other operating income, interbank placements, other debt investments, and interbank borrowings experienced changes exceeding 30%, mainly influenced by market interest rates, policies, and business structure adjustments (1) Major Overseas Assets The Bank had no major overseas assets during the reporting period - Not applicable[103] (2) Assets and Liabilities Measured at Fair Value As of the end of the reporting period, the Bank's financial assets measured at fair value totaled RMB 129.117 billion, and financial liabilities totaled RMB 166.037 million. These primarily include financial assets held for trading, derivative financial assets/liabilities, and other debt investments. There were no significant changes in the company's major asset measurement attributes during the reporting period Assets and Liabilities Measured at Fair Value (Unit: RMB thousand) | Item | Beginning Balance | Fair Value Change Gains/Losses for the Period | Accumulated Fair Value Changes Recognized in Equity | Impairment Provisions for the Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 47,992,049 | 38,428 | - | - | 51,402,089 | | Derivative Financial Assets | 216,748 | 283,103 | - | - | 476,081 | | Other Debt Investments | 44,460,963 | - | (404,533) | 15,714 | 59,933,010 | | Other Equity Instrument Investments | 5,200 | - | - | - | 5,200 | | Loans and Advances Measured at Fair Value Through Other Comprehensive Income | 17,177,226 | - | (1,183) | (10,995) | 17,300,890 | | Subtotal Financial Assets | 109,852,186 | 321,531 | (405,716) | 4,719 | 129,117,270 | | Derivative Financial Liabilities | (260,922) | 94,885 | - | - | (166,037) | | Subtotal Financial Liabilities | (260,922) | 94,885 | - | - | (166,037) | (3) Asset Rights Restrictions as of the End of the Reporting Period Information on the Bank's asset rights restrictions is detailed in the notes to the financial report regarding pledged/mortgaged assets - Relevant information can be found in "Part VIII Financial Report," "Notes to Financial Statements," "X. Commitments and Contingencies," "(VI) Pledged/Mortgaged Assets"[107] (4) Major Statement Items and Financial Indicators with Changes Exceeding 30% and Their Main Reasons During the reporting period, investment income, other operating income, interbank placements, interbank loans, derivative financial assets, other debt investments, and interbank borrowings experienced changes exceeding 30%, mainly influenced by increased returns on financial asset investments, market interest rate fluctuations, business structure optimization, and increased corporate income tax Major Statement Items and Financial Indicators with Changes Exceeding 30% (Unit: RMB thousand) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Change | Main Reasons | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,024,967 | 691,047 | 48.32% | Increased investment returns from financial assets | | Other Operating Income | 39,094 | 29,246 | 33.67% | Normal business changes, small absolute amount | | Non-operating Income | 9,273 | 1,574 | 489.14% | Normal business changes, small absolute amount | | Income Tax Expense | (164,917) | 12,461 | Not applicable | Due to year-on-year increase in pre-tax profit and decrease in tax-exempt income | | Minority Interest Income/Loss | 4,255 | (13,142) | Not applicable | Due to increased shareholding in rural banks and fluctuations in rural bank profitability | | Net After-tax Other Comprehensive Income | (307,826) | 238,594 | Not applicable | Market interest rate changes, decrease in fair value floating gains on other debt investments | | Interbank Placements (June 30, 2025 vs Dec 31, 2024) | 9,533,895 | 7,118,849 | 33.92% | Increase in placements with domestic banks | | Interbank Loans (June 30, 2025 vs Dec 31, 2024) | 15,757,473 | 11,312,656 | 39.29% | Increase in loans to non-bank financial institutions | | Derivative Financial Assets (June 30, 2025 vs Dec 31, 2024) | 476,081 | 216,748 | 119.65% | Fair value changes of precious metal derivatives | | Financial Assets Purchased Under Resale Agreements (June 30, 2025 vs Dec 31, 2024) | 4,789,546 | 12,659,440 | (62.17%) | Decrease in scale of securities purchased under resale agreements | | Other Debt Investments (June 30, 2025 vs Dec 31, 2024) | 59,933,010 | 44,460,963 | 34.80% | Increase in investment scale of policy bank bonds and interbank financial bonds | | Interbank Borrowings (June 30, 2025 vs Dec 31, 2024) | 9,792,667 | 7,261,103 | 34.86% | Increase in borrowings from domestic banks | | Derivative Financial Liabilities (June 30, 2025 vs Dec 31, 2024) | 166,037 | 260,922 | (36.37%) | Fair value changes of interest rate derivatives | | Taxes Payable (June 30, 2025 vs Dec 31, 2024) | 424,956 | 228,630 | 85.87% | Increase in corporate income tax payable | | Other Liabilities (June 30, 2025 vs Dec 31, 2024) | 1,503,803 | 965,172 | 55.81% | Accrual of dividends payable according to the 2024 profit distribution plan. The Bank executed the profit distribution plan on July 9, 2025 | | Minority Interests (June 30, 2025 vs Dec 31, 2024) | 208,151 | 363,983 | (42.81%) | Due to increased shareholding in rural banks and fluctuations in rural bank retained earnings | (5) Changes in Accrued Interest As of June 30, 2025, the Bank's accrued interest balance was RMB 47.388 million, a decrease of 33.36% from the beginning of the period. Accrued interest impairment provisions were RMB 27.639 million, a year-on-year decrease of 3.85% Changes in Accrued Interest (Unit: RMB thousand) | Item | Dec 31, 2024 | Increase for the Period | Decrease for the Period | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Accrued Interest from: – Loans and Advances | 71,131 | 1,563,818 | (1,587,561) | 47,388 | | Total | 71,131 | 1,563,818 | (1,587,561) | 47,388 | | Accrued Interest Impairment Provisions | 28,745 | - | - | 27,639 | (6) Off-Balance Sheet Items Analysis The Bank's off-balance sheet items primarily include derivative financial instruments, contingencies, and commitments, with specific details provided in the notes to the financial statements - The Bank's off-balance sheet items primarily include derivative financial instruments, contingencies, and commitments[111] 6. Loan Quality Analysis The Bank's loan quality analysis has been detailed in "4. Financial Statement Analysis," "(2) Analysis of Balance Sheet Items," "1. Analysis of Major Assets," "(2) Loan Quality Analysis" of this section - The Bank's loan quality analysis can be found in "Part III Management Discussion and Analysis," "4. Financial Statement Analysis," "(2) Analysis of Balance Sheet Items," "1. Analysis of Major Assets," "(2) Loan Quality Analysis"[112] 7. Investment Analysis The Bank's investment situation is generally stable, with financial investment details disclosed in the financial statement analysis. There were no significant equity or non-equity investments during the reporting period, and derivative investments primarily involved interest rate, credit, and precious metal derivatives (1) Overall Situation The company's investment situation is detailed in "Part III Management Discussion and Analysis," "4. Financial Statement Analysis," "(2) Analysis of Balance Sheet Items," "1. Analysis of Major Assets," "(4) Financial Investments" and "9. Analysis of Major Holding and Participating Companies" of this report (2) Significant Equity Investments Acquired During the Reporting Period The Bank had no significant equity investments during the reporting period - Not applicable[113] (3) Significant Non-Equity Investments Underway During the Reporting Period The Bank had no significant non-equity investments during the reporting period - Not applicable[114] (4) Financial Asset Investments The Bank's financial asset investments primarily include securities investments and derivative investments. Securities investment details are disclosed in the financial statement analysis. Derivative financial instruments had a notional amount of RMB 28.768 billion, fair value assets of RMB 476.081 million, and liabilities of RMB 166.037 million, mainly comprising interest rate, credit, and precious metal derivatives - Securities investment information can be found in "Part III Management Discussion and Analysis," "4. Financial Statement Analysis," "(2) Analysis of Balance Sheet Items," "1. Analysis of Major Assets," "(4) Financial Investments" of this report[115] Derivative Financial Instruments Held (Unit: RMB thousand) | Item | Notional Amount as of June 30, 2025 | Fair Value Assets as of June 30, 2025 | Fair Value Liabilities as of June 30, 2025 | Notional Amount as of Dec 31, 2024 | Fair Value Assets as of Dec 31, 2024 | Fair Value Liabilities as of Dec 31, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Interest Rate Derivatives | 26,222,200 | 136,432 | (166,037) | 28,610,960 | 214,331 | (260,922) | | Credit Derivatives | 200,000 | 193 | - | 597,000 | 2,417 | - | | Precious Metal Derivatives | 2,345,813 | 339,456 | - | - | - | - | | Total | 28,768,013 | 476,081 | (166,037) | 29,207,960 | 216,748 | (260,922) | (5) Use of Raised Funds The Bank had no use of raised funds during the reporting period - The Bank had no use of raised funds during the reporting period[118] 8. Significant Asset and Equity Sales The Bank did not engage in any significant asset or equity sales during the reporting period - The Bank did not sell significant assets during the reporting period[119] - The Bank did not sell significant equity during the reporting period[120] 9. Analysis of Major Holding and Participating Companies The Bank's major holding subsidiaries are 9 rural commercial banks, with Jinxiang Lan Hai Rural Bank demonstrating strong profitability, achieving a net profit of RMB 21.658 million. There were no acquisitions or disposals of subsidiaries during the reporting period, but the Bank acquired minority stakes in Rizhao Lan Hai, Pingyin Lan Hai, Yiyang Lan Hai, and Dexing Lan Hai Rural Banks in the first half of 2025, further increasing its shareholding and voting rights Major Subsidiary Information (Unit: RMB thousand) | Company Name | Company Type | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Luohu Lan Hai Rural Bank | Subsidiary | 500,000 | 1,630,670 | 536,471 | 25,693 | (18,325) | (18,454) | | Dexing Lan Hai Rural Bank | Subsidiary | 90,000 | 995,098 | 110,771 | 11,274 | 2,589 | 1,907 | | Yiyang Lan Hai Rural Bank | Subsidiary | 90,000 | 895,479 | 108,857 | 11,676 | 2,657 | 1,944 | | Rizhao Lan Hai Rural Bank | Subsidiary | 100,000 | 776,655 | 37,666 | 6,975 | (10,307) | (9,592) | | Pingyin Lan Hai Rural Bank | Subsidiary | 100,000 | 832,805 | 74,336 | 3,349 | (6,773) | (5,777) | | Jining Lan Hai Rural Bank | Subsidiary | 100,000 | 1,317,569 | 81,542 | 11,760 | (6,435) | (6,107) | | Jinxiang Lan Hai Rural Bank | Subsidiary | 100,000 | 3,876,959 | 263,835 | 52,846 | 29,469 | 21,658 | | Yinan Lan Hai Rural Bank | Subsidiary | 100,000 | 1,456,579 | 120,540 | 14,863 | 3,094 | 2,394 | | Qingdao Pingdu Huimin Rural Bank | Subsidiary | 124,448.5 | 2,461,121 | 123,010 | 1,069 | (17,716) | (18,922) | - There were no disposals or acquisitions of subsidiaries during the reporting period[124] - In the first half of 2025, the Bank acquired minority stakes in Rizhao Lan Hai, Pingyin Lan Hai, Yiyang Lan Hai, and Dexing Lan Hai Rural Banks, further increasing its shareholding and voting rights in these related Lan Hai Rural Banks after the capital increase[125][126][127][128][129] 10. Structured Entities Controlled by the Bank Information on structured entities controlled by the Bank is detailed in the notes to the financial statements under "Interests in Other Entities" - Information on structured entities controlled by the Bank can be found in "Part VIII Financial Report," "Notes to Financial Statements," "XI. Interests in Other Entities"[131] 11. Business Development The Bank's retail finance business achieved comprehensive high-quality development, with individual deposit balances leading all peers in the city and personal consumption loans growing by over RMB 1 billion. Corporate finance business focused on the "five key areas," with significant growth in strategic emerging, green, technology, agriculture-related, and small and micro loans. Treasury operations maintained stable and compliant operations, demonstrating a clear advantage with full financial market licenses, and wealth management services ranked highly in comprehensive capabilities. Digital transformation continued to advance, with AI large model applications implemented and data management capabilities achieving DCMM Level 3 certification (1) Retail Finance Business The Bank's retail finance business through refined customer segmentation, construction of an elderly care financial ecosystem, and integration of online and offline channels, achieved both quantity and quality growth in individual deposits, with balances exceeding RMB 230 billion by the end of the first half. Personal loans actively responded to consumption stimulus policies, with personal consumption loans growing by over RMB 1 billion. Bank card cumulative issuance exceeded 417,800, and social security card issuance maintained the top position in the city. Channel business digital transformation empowered scenario ecosystems, providing payment and acquiring services to over 20,000 merchants, with extensive coverage of rural inclusive financial service points - By the end of the first half, the Bank's individual deposit balance led all peers in the city, being the first to exceed RMB 230 billion[132] - Personal consumption loans increased by over RMB 1 billion, setting a new historical high for the same period[133] - Cumulative card issuance exceeded 417,800, with 3.7278 million social security cards issued, maintaining the top position in the city[135] - In the first half, provided payment and acquiring services to over 20,000 merchants, with fee reductions exceeding RMB 6 million[136] - Rural inclusive financial payment service points processed 2.4523 million transactions, with a transaction amount of RMB 1.97 billion, directly serving 700,000 basic customers and reaching over 3 million rural residents[136] (2) Corporate Finance Business The Bank's corporate finance business focused on the "five key areas." As of the end of June 2025, strategic emerging loans balance was RMB 8.415 billion, an increase of RMB 1.839 billion; green loans balance was RMB 15.486 billion, an increase of RMB 1.560 billion; technology finance loans balance was RMB 15.684 billion, an increase of RMB 1.632 billion. Agriculture-related loans balance was RMB 59.161 billion, maintaining first place in the city. Small and micro loans balance was RMB 142.815 billion, fully achieving the "two increases" target. International business foreign exchange transaction volume increased by 9% year-on-year - As of the end of June 2025, strategic emerging loans balance was RMB 8.415 billion, an increase of RMB 1.839 billion from the end of last year[139] - Green loans balance was RMB 15.486 billion, an increase of RMB 1.560 billion from the end of last year[139] - Technology finance loans balance was RMB 15.684 billion, an increase of RMB 1.632 billion from the end of last year, with the People's Bank of China's technology finance service effectiveness rated "Excellent" in Q1[139] - Agriculture-related loans balance was RMB 59.161 billion, an increase of RMB 6.726 billion from the beginning of the year, a growth of 12.83%, maintaining first place in both scale and new additions in the city[139] - Small and micro loans balance was RMB 142.815 billion, serving 56,300 households, an increase of RMB 8.072 billion and 800 households from the end of last year, fully achieving the "two increases" target[139] - In the first half, foreign exchange transaction volume reached USD 35.4 billion, a year-on-year increase of 9%[139] (3) Treasury Operations The Bank's treasury operations adhere to stable and compliant management, leveraging its full financial market license advantage to support the real economy through bond underwriting, investment, and bill business. Its wealth management product system is increasingly comprehensive, with comprehensive wealth management capabilities ranking 5th among rural financial wealth management institutions, and wealth management product balance reaching RMB 30.801 billion - The Bank successfully issued the first sci-tech innovation bond among rural commercial banks nationwide and the first local legal entity bank in Shandong Province, steadily enhancing its market influence[141] - In the "Bank Wealth Management Capability Ranking Report (Q2 2025)" published by Puyi Standard, the Bank's wealth management comprehensive capability ranked 5th among rural financial wealth management institutions[142] - At the end of the reporting period, wealth management product balance was RMB 30.801 billion[142] (4) Digital Transformation The Bank continued to implement its digital transformation strategic plan, launching 16 innovation projects in the first half of the year, with mobile banking users exceeding 2.84 million. It actively explored AI large model applications, implementing intelligent agents such as office assistant, compliance assistant, and credit assistant. Data management capabilities received DCMM Level 3 certification, and the proportion of digital talent exceeded 12% - Cumulatively received over 20 national, provincial, and municipal digital finance awards, and 7 national invention patents[144] - In the first half, promoted the successful implementation of 16 innovation projects, including the enterprise-level risk control decision engine, with mobile banking users exceeding 2.84 million[145] - Implemented 3 major AI large model intelligent agent applications: office assistant, compliance assistant, and credit assistant[146] - Data management capabilities received national data management DCMM Level 3 certification, with digital talent accounting for over 12% of the entire bank[147] 12. Risk Management The Bank actively promotes a risk management culture of "compliance, prudence, proactivity, and comprehensiveness," building an integrated "strategy-risk-capital" governance framework and strengthening risk limit management. It primarily faces credit risk, liquidity risk, market risk, and operational risk, and has established comprehensive management systems and response measures, with all risk indicators meeting regulatory requirements and risk management effectiveness continuously improving (1) Credit Risk The Bank continuously strengthens credit risk management by improving credit risk measurement tools, upgrading its risk early warning system, and optimizing risk management processes. Key efforts include credit policy support for the real economy, independent and centralized review and approval mechanisms, optimized disbursement review, deepened application of big data risk control technology, enhanced post-loan management effectiveness, and strengthened loan quality management - The Bank's credit risk assets include various loans, financial investments, and off-balance sheet credit businesses[148] - The Bank continuously improves credit risk measurement tools, utilizes big data mining technology to upgrade its risk early warning system, and optimizes risk management processes[149] - Implements a "separation of loan review and approval, hierarchical approval" credit approval model, establishing a professional disbursement review team[150] - Built a new risk control platform that aggregates multi-dimensional risk information, achieving seamless integration of the entire risk management process from "data-insight-decision-action"[150] - Strictly implements the "three lines of defense" mechanism for post-loan management, establishing a long-term mechanism for loan risk screening[150] (2) Liquidity Risk The Bank has established a liquidity risk management system commensurate with its business scale, with the Board of Directors bearing ultimate responsibility. In the first half of 2025, the Bank closely monitored macroeconomic conditions and proactively arranged the maturity structure of its assets and liabilities to ensure liquidity safety. Liquidity ratio, liquidity coverage ratio, and net stable funding ratio all met regulatory requirements - The Bank has established a liquidity risk management system commensurate with its business scale, nature, and complexity, with the Board of Directors bearing ultimate responsibility for liquidity risk management[151] - In the first half of 2025, the Bank closely monitored macroeconomic conditions and changes in the central bank's monetary policy, ensuring the Bank's liquidity safety[152] - Liquidity ratio was 95.27%, meeting the National Financial Regulatory Administration's requirement of not less than 25%[153] - Liquidity coverage ratio was 348.90%, meeting the National Financial Regulatory Administration's requirement of not less than 100%[153] - Net stable funding ratio was 142.89%, meeting the National Financial Regulatory Administration's requirement of not less than 100%[153] (3) Market Risk The Bank has established a comprehensive market risk management system, with the Board of Directors bearing ultimate monitoring responsibility. Market risk remained stable and controllable, with continuously improving management effectiveness. Regarding interest rate risk, both trading book and banking book adopted prudent management strategies, with overall interest rate risk being controllable. For exchange rate risk, business operations are primarily in RMB, with low foreign exchange exposure, maintaining overall stable exchange rate risk levels - The Bank has established a comprehensive, reliable market risk management system commensurate with the nature, scale, and complexity of its business[156] - During the reporting period, the Bank's market risk remained stable and controllable, with continuously improving market risk management effectiveness[157] - The trading book adopted a relatively prudent investment strategy, with all interest rate risk indicators remaining within target ranges[158] - The banking book interest rate risk level was controlled within the annual interest rate risk management targets, and stress test results showed overall controllability[159] - The Bank's business operations are primarily in RMB, with low foreign exchange exposure, maintaining overall stable exchange rate risk levels, and all indicators are within limits[160] (4) Operational Risk The Bank's Board of Directors considers operational risk as one of the main risks and has established a comprehensive three-lines-of-defense operational risk management system. During the reporting period, the Bank improved its operational risk loss data collection, self-assessment, and key risk indicator management mechanisms, and launched a smart compliance management platform, effectively enhancing its operational risk management level - The Bank's Board of Directors considers operational risk as one of the main risks faced by the Bank, bearing ultimate responsibility for operational risk management[161] - The Group has fully established three lines of defense for operational risk: business lines, risk management lead departments, and internal audit departments[162] - During the reporting period, the Bank further established and improved mechanisms for operational risk loss data collection, operational risk and control self-assessment, and full lifecycle management of key risk indicators[162] - Developed and launched the smart compliance management platform (Phase I), initially achieving online and standardized operation of the three major operational risk tools, process management, and stress testing[162] (5) Compliance Risk The Bank actively carries out compliance risk prevention, strengthening its internal control and compliance management system, inspections and risk monitoring, risk review and resolution, and enhancing compliance culture building and warning education to foster a culture of "not daring to violate, not being able to violate, and not wanting to violate" throughout the bank - The Bank formulated an internal control and compliance management system construction outline and action plan, clarifying internal control and compliance management responsibilities at all levels and business lines[163] - Regularly conducted investigations into abnormal employee behavior, internal control and compliance inspections, and proxy management to address non-compliance issues[164] - Carried out pre-compliance review and embedded review, assessing compliance risks of new products and businesses in advance[164] - Issued the "Qingdao Rural Commercial Bank Compliance Culture Construction Action Plan," focusing on cultivating good habits and conscious actions of proactive compliance among all employees[164] (6) Anti-Money Laundering Management The Bank actively practices a "risk-based" anti-money laundering approach, strengthening internal control mechanisms, supervision and inspection, and daily monitoring to enhance anti-money laundering efforts. Through policy advocacy, assessment rules, internal inspections, and centralized handling of suspicious cases, it effectively improved money laundering and terrorist financing risk management - Actively practices a "risk-based" anti-money laundering approach, strengthening internal control mechanisms, supervision and inspection, risk screening, and daily monitoring[165] - Established a monthly anti-money laundering policy advocacy mechanism, formulated anti-money laundering assessment implementation rules, and improved the inspection and accountability mechanism[165] - Actively promoted anti-money laundering compliance culture building, strengthened anti-money laundering publicity and training, and established a professional anti-money laundering team[165] - Actively promoted the construction and upgrade of anti-money laundering information systems, effectively improving money laundering and terrorist financing risk management levels[165] (7) Large Exposure Risk As of the end of June 2025, all of the Bank's large exposure risk indicators met regulatory requirements. The maximum non-interbank single customer exposure accounted for 6.80% of net Tier 1 capital, and the maximum non-interbank group customer exposure accounted for 11.50% of net Tier 1 capital, both below regulatory limits - The Bank incorporates its large exposure risk management mechanism into its comprehensive risk management framework, achieving effective control of customer concentration risk through dynamic monitoring of risk exposures, regular regulatory reporting, and concentration control measures[166] - As of the end of June 2025, all of the Bank's large exposure risk indicators met regulatory requirements[167] - The maximum non-interbank single customer risk exposure accounted for 6.80% of net Tier 1 capital, meeting the management indicator requirement of less than 15%[167] - The maximum non-interbank group or economically dependent customer risk exposure accounted for 11.50% of net Tier 1 capital, meeting the management indicator requirement of less than 20%[167] 13. Capital Management The Bank's capital management adheres to principles of capital adequacy, optimized allocation, and refined management, ensuring compliance with regulatory requirements and supporting business development. As of the end of June 2025, the Bank's Common Equity Tier 1 capital adequacy ratio was 10.58%, Tier 1 capital adequacy ratio was 12.09%, and total capital adequacy ratio was 13.78%, all meeting regulatory requirements. The leverage ratio was 7.27%, exceeding the National Financial Regulatory Administration's regulatory requirement (1) Capital Adequacy Ratio As of the end of June 2025, the Bank's Common Equity Tier 1 capital adequacy ratio was 10.58%, Tier 1 capital adequacy ratio was 12.09%, and total capital adequacy ratio was 13.78%, all meeting regulatory requirements. Total risk-weighted assets amounted to RMB 330.657 billion Capital Adequacy Ratio (Unit: RMB thousand) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Net Common Equity Tier 1 Capital | 34,969,358 | 34,269,354 | | Net Tier 1 Capital | 39,968,675 | 39,289,612 | | Net Total Capital | 45,556,181 | 44,735,496 | | Total Risk-Weighted Assets | 330,657,445 | 320,364,880 | | Common Equity Tier 1 Capital Adequacy Ratio | 10.58% | 10.70% | | Tier 1 Capital Adequacy Ratio | 12.09% | 12.26% | | Capital Adequacy Ratio | 13.78% | 13.96% | (2) Leverage Ratio At the end of the reporting period, the Bank's leverage ratio was 7.27%, exceeding the National Financial Regulatory Administration's regulatory requirement Leverage Ratio (Unit: RMB thousand) | No. | Item | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Net Tier 1 Capital | 39,968,675 | 39,227,698 | 39,289,612 | 39,458,365 | | 2 | Adjusted On- and Off-Balance Sheet Assets | 549,836,198 | 569,145,896 | 524,556,283 | 502,718,994 | | 3 | Leverage Ratio | 7.27% | 6.89% | 7.49% | 7.85% | 14. Institutional Development As of June 30, 2025, the Bank's head office and branches collectively had 343 outlets, 5,395 employees, and total assets of RMB 492.199 billion. Its subsidiaries collectively had 40 outlets, 476 employees, and total assets of RMB 14.243 billion Basic Information of the Bank's Head Office and Branches (Unit: RMB thousand) | Institution Name | Number of Outlets | Number of Employees | Asset Scale | | :--- | :--- | :--- | :--- | | Head Office | - | 854 | 296,285,160 | | Head Office Business Department | 1 | 12 | 8,278,680 | | Shinan Branch | 8 | 124 | 13,766,944 | | Shibei Branch | 7 | 112 | 12,041,712 | | ... | ... | ... | ... | | Total | 343 | 5,395 | 492,198,695 | Basic Information of the Bank's Subsidiaries (Unit: RMB thousand) | Subsidiary Name | Number of Outlets | Number of Employees | Asset Scale | | :--- | :--- | :--- | :--- | | Shenzhen Luohu Lan Hai Rural Bank | 1 | 49 | 1,630,670 | | Dexing Lan Hai Rural Bank | 3 | 37 | 995,098 | | ... | ... | ... | ... | | Total | 40 | 476 | 14,242,935 | 15. Company's Future Development Outlook The Bank will be guided by high-quality Party building to drive high-quality development, firmly pursuing a differentiated development path, focusing on the "five key areas" strategic deployment, and continuously enhancing its ability to serve the real economy. Concurrently, it will adhere to risk-based and compliance-first principles, solidify risk bottom lines, strengthen cultural immersion, and enhance team cohesion to contribute to building a strong financial nation - Drive high-quality development with high-quality Party building, establishing the new era rural commercial bank values of "serving the nation through finance, serving the people through finance"[176] - Shoulder the responsibility of a local legal entity bank, firmly pursuing a differentiated development path, focusing on building a new high ground for modern marine economic development, boosting consumption, and the "five key areas" strategic deployment[177] - Adhere to risk-based and compliance-first principles, solidify risk bottom lines and compliance defenses, improve a unified risk policy covering all businesses and processes, and optimize the enterprise-level risk control decision engine[178] - Strengthen cultural immersion and enhance team cohesion, improving a full-chain system for "selection, cultivation, utilization, retention, and management" to build a high-quality talent team[179] 16. Investor Relations Activities During the Reporting Period During the reporting period, the Bank hosted multiple on-site research visits by institutional investors, with relevant activity records disclosed on Juchao Information Network - From January to June 2025, the Bank hosted multiple on-site research visits by institutional investors; specific details can be found in the "Investor Relations Activity Record Form" on Juchao Information Network[180] Part IV Corporate Governance, Environment, and Society 1. Changes in Directors, Supervisors, and Senior Management During the reporting period, Liu Bingbing and Li Qingxiang resigned as non-executive directors due to term limits and work reasons, respectively, and Wang Qingjin resigned as an external supervisor due to work reasons Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Liu Bingbing | Non-executive Director | Resignation | June 4, 2025 | In accordance with relevant regulations on tenure for key banking personnel | | Li Qingxiang | Non-executive Director | Resignation | June 4, 2025 | Work reasons | | Wang Qingjin | External Supervisor | Resignation | August 1, 2025 | Work reasons | 2. Profit Distribution and Capital Reserve Conversion to Share Capital for the Reporting Period The Bank plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the 2025 semi-annual period - The Bank plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the 2025 semi-annual period[183] 3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The Bank had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The Bank had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[184] 4. Environmental Information Disclosure The Bank and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The Bank and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[185] 5. Social Responsibility The Bank actively fulfills its social responsibilities, precisely matching new agricultural business entities, with loans to such entities reaching RMB 3.665 billion as of the end of June 2025. It strengthened financial services in key areas of rural revitalization, with grain-related loans reaching RMB 3.095 billion. It innovated characteristic financial products to assist rural revitalization, lowered entry barriers to address collateral difficulties, and consolidated poverty alleviation achievements. It built a "Government-Bank Interconnection e-Station" service system, serving over 7 million county residents - As of the end of June 2025, loans to new agricultural business entities totaled 2,786 households and RMB 3.665 billion, an increase of RMB 234 million from the end of last year[186] - As of the end of June 2025, the Bank's grain-related key area loan balance was RMB 3.095 billion, an increase of RMB 1.451 billion from the end of last year[187] - The Bank, in collaboration with Qingdao Municipal Agriculture and Rural Affairs Bureau, innovated rural asset collateral methods, launching new products such as rural property rights transaction certification loans[188] - Continuously optimized the "Agricultural Guarantee Loan" product model, with a loan balance of RMB 1.301 billion, accounting for 71% of Qingdao's outstanding guaranteed balance[189] - As of the end of June 2025, the Bank provided credit support to 45 provincial and municipal registered impoverished households with a balance of RMB 8.0901 million; and supported 117 national registered impoverished households with a balance of RMB 45.2959 million[190] - Built a "Government-Bank Interconnection e-Station" service system integrating "finance + government affairs + convenience," serving over 7 million county residents[190] Part V Significant Events 1. Commitments Fulfilled During the Reporting Period and Overdue Unfulfilled Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the reporting period, there were no overdue unfulfilled commitments by any commitment-related parties - During the reporting period, there were no commitments by the Bank's actual controller, shareholders, related parties, acquirers, and the Bank that were fulfilled or overdue and unfulfilled as of the end of the reporting period[193] 2. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there was no non-operating fund occupation by controlling shareholders and other related parties of the Bank - During the reporting period, there was no non-operating fund occupation by controlling shareholders and other related parties of the Bank[194] 3. Irregular External Guarantees During the reporting period, the Bank had no irregular external guarantees - During the reporting period, the Bank had no irregular external guarantees[195] 4. Appointment and Dismissal of Accounting Firms The Bank's semi-annual report is unaudited - The Bank's semi-annual report is unaudited[196] 5. Board of Directors' and Supervisory Board's Explanations on the Accounting Firm's "Non-Standard Audit Report" for the Reporting Period No