甘肃银行(02139) - 2025 - 中期财报

Definitions Glossary of Terms This chapter defines key terms and abbreviations used in the interim report, covering company articles, regulatory bodies, and financial products - The 'Bank' refers to Bank of Gansu Co., Ltd., incorporated in Gansu Province, China on November 18, 2011[3] - The 'National Financial Regulatory Administration' replaced the former 'China Banking and Insurance Regulatory Commission' in March 2023[3][5] - The 'Reporting Period' refers to the six months ended June 30, 2025 (i.e., January 1, 2025 to June 30, 2025)[7] About the Bank Basic Information of the Bank This section provides the Bank's legal name, representative, addresses, contact, and H-share listing information - The legal Chinese name is Bank of Gansu Co., Ltd., with Liu Qing as the legal representative[8] - The Bank's H-shares were listed on the Main Board of the Hong Kong Stock Exchange on January 18, 2018, with stock code 2139[8][11] History of the Bank Bank of Gansu was established on November 18, 2011, as a provincial-level city commercial bank to promote Gansu's economic development - Bank of Gansu was officially established on November 18, 2011, as a provincial-level corporate city commercial bank in Gansu Province[9] - The Bank is not an authorized institution as defined by the Hong Kong Banking Ordinance, is not supervised by the HKMA, and is not permitted to conduct banking business and/or accept deposits in Hong Kong[10] Awards Received by the Bank in H1 2025 The Bank received multiple honors in H1 2025, including a global ranking and digital marketing innovation awards Major Honors in H1 2025 | Award and Honor | Awarding Body/Media | | :--- | :--- | | Ranked 356th in The Banker's Top 1000 World Banks 2025, 73rd among Chinese banks | The Banker magazine (UK) | | Awarded "Most Innovative Digital Marketing Brand Award" at the 2025 Golden Mouse International Digital Marketing Festival | Netwin World | Financial Highlights Overview of Operating Results Net profit increased by 1.1% to RMB 399.0 million, while operating income decreased by 13.9% due to market rates and concessions Overview of Operating Results in H1 2025 (RMB million) | Indicator | H1 2025 | H1 2024 | Change Percentage (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 2,247.1 | 2,537.1 | (11.4) | | Net Fee and Commission Income | 228.3 | 218.9 | 4.3 | | Net Trading Gains | 107.4 | 344.0 | (68.8) | | Net Gains from Investment Securities | 130.1 | 35.1 | 270.7 | | Operating Income | 2,717.4 | 3,156.8 | (13.9) | | Operating Expenses | (1,060.1) | (1,075.7) | (1.5) | | Asset Impairment Losses | (1,317.9) | (1,742.5) | (24.4) | | Profit for the Period | 399.0 | 394.5 | 1.1 | | Basic Earnings Per Share (RMB) | 0.03 | 0.03 | 0.0 | Key Balance Sheet Indicators Total assets reached RMB 427,481.6 million, up 3.1%, with customer loans and deposits growing by 4.5% and 4.1% respectively Key Balance Sheet Indicators as of June 30, 2025 (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change Percentage (%) | | :--- | :--- | :--- | :--- | | Total Assets | 427,481.6 | 414,707.6 | 3.1 | | Of which: Total Customer Loans and Advances (including accrued interest) | 241,906.0 | 231,414.3 | 4.5 | | Total Liabilities | 393,360.1 | 380,869.7 | 3.3 | | Of which: Total Customer Deposits (including accrued interest) | 334,421.3 | 321,379.3 | 4.1 | | Total Equity | 34,121.5 | 33,837.9 | 0.8 | Profitability and Asset Quality Indicators Net interest margin and spread narrowed by 13.4% and 15.2%; NPL ratio decreased by 4.1% to 1.85%, and provision coverage ratio increased by 2.0% to 136.79% Profitability and Asset Quality Indicators in H1 2025 (%) | Indicator | H1 2025 | H1 2024 | Change Percentage (%) | | :--- | :--- | :--- | :--- | | Return on Assets | 0.19 | 0.19 | 0.0 | | Return on Equity | 2.35 | 2.36 | (0.4) | | Net Interest Spread | 0.97 | 1.12 | (13.4) | | Net Interest Margin | 1.12 | 1.32 | (15.2) | | Net Fee and Commission Income to Operating Income Ratio | 8.40 | 6.93 | 21.2 | | Cost-to-Income Ratio | 37.28 | 32.45 | 14.9 | | Non-Performing Loan Ratio | 1.85 | 1.94 | (4.1) | | Provision Coverage Ratio | 136.79 | 134.71 | 2.0 | | Provision to Total Loans Ratio | 2.53 | 2.61 | (2.3) | | Loan-to-Deposit Ratio | 70.44 | 73.17 | 0.4 | - As a non-systemically important bank in China, the Bank's provision to total loans ratio is maintained at a minimum standard of 2.5%[16] Management Discussion and Analysis Environment and Outlook China's economy grew by 5.3% in H1 2025, with easing monetary policy; Gansu's GDP grew by 6.3%, and the banking sector focuses on financial strength - China's GDP in H1 2025 was RMB 66,053.6 billion, a year-on-year increase of 5.3%[18] - Prudent monetary policy shifted to moderately loose in H1, with RRR cuts and policy rate reductions, leading to new corporate loan weighted average interest rates falling to 3.3% and personal housing loan rates to 3.1%, both historical lows[19] - As of end-June 2025, Gansu Province's GDP was RMB 646.88 billion, a year-on-year increase of 6.3%, with the provincial economy continuing its stable and improving trend[20] Development Strategy The Bank aims to be a 'high-quality listed city commercial bank and preferred regional comprehensive financial service provider,' balancing scale, profitability, risk, and capital - The Bank's development strategy centers on 'value creation' and 'high-quality development,' aiming for balanced growth in scale, profitability, risk, and capital[22] - The Bank plans to establish government-related finance as a cornerstone business, transform traditional retail and corporate businesses, and develop emerging businesses like special asset management as new profit drivers[22] - The Bank will continuously enhance core capabilities in risk and internal control compliance, asset-liability management, omni-channel management, and digitalization, while strengthening risk control and promoting light-capital transformation[22] Overall Business Review Operating income decreased by 13.9% to RMB 2,717.4 million, net profit increased by 1.1% to RMB 399.0 million; assets, loans, and deposits grew, and NPL ratio improved - The Bank's total operating income was RMB 2,717.4 million, a 13.9% decrease year-on-year, with net profit increasing by 1.1% to RMB 399.0 million[23] - As of June 30, 2025, total assets were RMB 427,481.6 million, total customer loans and advances were RMB 241,906.0 million, and total customer deposits were RMB 334,421.3 million, representing increases of 3.1%, 4.5%, and 4.1% respectively from year-end 2024[23] - The non-performing loan ratio was 1.85%, a decrease of 0.08 percentage points from early 2025[23] Consolidated Income Statement Analysis Net interest income decreased by 11.4%; net gains from investment securities increased by 270.7%, while net trading gains decreased by 68.8%, resulting in a 1.1% profit increase - Net interest income decreased by 11.4% year-on-year to RMB 2,247.1 million, primarily due to declining market interest rates and the Bank's proactive interest rate reductions to support the real economy[23][26] Changes in Non-Interest Income in H1 2025 (RMB million) | Indicator | H1 2025 | H1 2024 | Change Percentage (%) | | :--- | :--- | :--- | :--- | | Net Fee and Commission Income | 228.3 | 218.9 | 4.3 | | Net Trading Gains | 107.4 | 344.0 | (68.8) | | Net Gains from Investment Securities | 130.1 | 35.1 | 270.7 | | Net Exchange (Loss)/Gain | (15.9) | 15.9 | (200.0) | | Other Net Operating Income | 20.4 | 5.8 | 251.7 | - Asset impairment losses decreased by 24.4% year-on-year to RMB 1,317.9 million, primarily due to improved asset quality and reduced provision accruals[24][65] - Net interest spread decreased from 1.12% in H1 2024 to 0.97% in H1 2025, and net interest margin decreased from 1.32% to 1.12%, mainly due to a larger decrease in the average yield on interest-earning assets than in the average cost of interest-bearing liabilities[50] Consolidated Balance Sheet Analysis Total assets reached RMB 427,481.6 million, up 3.1%; customer loans grew 4.5% to 55.2% of assets, and deposits grew 4.1% to 85.0% of liabilities Composition of Total Assets as of June 30, 2025 (RMB million) | Asset Category | June 30, 2025 | Percentage of Total (%) | December 31, 2024 | Percentage of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Net Customer Loans and Advances | 235,969.1 | 55.2 | 225,595.6 | 54.4 | | Investment Securities and Other Financial Assets | 141,968.7 | 33.2 | 137,451.3 | 33.1 | | Due from Banks and Other Financial Institutions and Placements with Banks and Other Financial Institutions | 13,905.5 | 3.3 | 6,030.5 | 1.5 | | Cash and Balances with Central Bank | 19,988.9 | 4.7 | 23,171.6 | 5.6 | | Financial Assets Held Under Resale Agreements | 1,855.3 | 0.4 | 8,989.2 | 2.2 | - Total customer loans and advances (including accrued interest) increased by 4.5% from year-end 2024 to RMB 241,906.0 million, with both corporate and retail loans growing[23][70][73] Composition of Total Liabilities as of June 30, 2025 (RMB million) | Liability Category | June 30, 2025 | Percentage of Total (%) | December 31, 2024 | Percentage of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Total Customer Deposits (including accrued interest) | 334,421.3 | 85.0 | 321,379.3 | 84.4 | | Due to Banks and Other Financial Institutions | 9,967.2 | 2.5 | 15,708.6 | 4.1 | | Debt Instruments Issued | 31,914.2 | 8.1 | 27,392.6 | 7.2 | - Total customer deposits increased by 4.1% from year-end 2024 to RMB 334,421.3 million, primarily due to the Bank's increased marketing efforts[23][83] Asset Quality Analysis NPL ratio was 1.85%, down 0.08 percentage points, showing improved asset quality; retail NPLs decreased, corporate NPLs slightly increased, and secured loans remain dominant Non-Performing Loans and NPL Ratio as of June 30, 2025 (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change in Percentage Points | | :--- | :--- | :--- | :--- | | Total Non-Performing Loans | 4,340.0 | 4,340.7 | (0.7) | | Non-Performing Loan Ratio | 1.85% | 1.93% | (0.08) | - The non-performing loan ratio for retail loans decreased from 4.01% as of December 31, 2024, to 3.63% as of June 30, 2025, while that for corporate loans increased from 1.42% to 1.46%[97] - Mortgage loans, pledged loans, and guaranteed loans collectively accounted for 78.2% of total customer loans and advances, with secured loans remaining the primary form[75] Segment Information The Bank operates corporate, retail, and financial markets segments; corporate banking remains the largest revenue source, but its share decreased, while financial markets' share increased, with most operations in Gansu Operating Income Contribution by Business Segment in H1 2025 (%) | Business Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Corporate Banking Business | 39.3 | 43.6 | | Retail Banking Business | 31.5 | 32.3 | | Financial Markets Business | 27.5 | 22.2 | - The majority of the Group's business is conducted in Gansu Province, China, with all non-current assets and income originating from operations in this region[102] Off-Balance Sheet Commitments Off-balance sheet commitments increased by 14.9% to RMB 25,409.6 million, mainly due to increases in letters of credit, bank acceptance bills, and unused credit card limits Off-Balance Sheet Commitments as of June 30, 2025 (RMB million) | Commitment Type | June 30, 2025 | December 31, 2024 | Change Percentage (%) | | :--- | :--- | :--- | :--- | | Bank Acceptance Bills | 7,173.1 | 6,583.5 | 8.9 | | Guarantees | 1,250.1 | 1,276.5 | (2.0) | | Letters of Credit | 6,222.9 | 4,103.9 | 51.6 | | Unused Credit Card Limits | 10,718.2 | 10,109.9 | 6.0 | | Subtotal | 25,364.3 | 22,073.8 | 14.9 | | Capital Commitments | 45.3 | 47.0 | (3.6) | | Total | 25,409.6 | 22,120.8 | 14.9 | Other Matters The Bank disbursed RMB 20.7 million in ADB re-lending and RMB 6.52 billion in inclusive small and micro loans, achieving growth, cost reduction, and structural optimization - The Bank cumulatively disbursed RMB 20.7 million in Asian Development Bank re-lending[105] - As of June 30, 2025, the Bank cumulatively extended RMB 6.52 billion in inclusive small and micro loans, effectively achieving the overall goals of 'increasing volume, reducing costs, and optimizing structure' for inclusive finance business[105] Business Review This section reviews the operations, products, and financial performance of corporate, retail, and financial markets segments, including distribution network, subsidiaries, and IT systems Corporate Banking Business Corporate banking generated RMB 1,067.5 million in H1 2025, 39.3% of total income, offering diverse products and supporting the real economy - Corporate banking business operating income was RMB 1,067.5 million, accounting for 39.3% of total operating income, a year-on-year decrease of 22.4%[106][107] - As of June 30, 2025, total corporate loans were RMB 158,048.4 million, and total corporate deposits were RMB 85,672.8 million[106] - The Bank's domestic settlement transaction volume was approximately RMB 545.35 billion, and international settlement transaction volume was USD 229.9 million, both showing growth[114] Retail Banking Business Retail banking generated RMB 856.8 million in H1 2025, 31.5% of total income, expanding its customer base with diverse products and enhancing brand recognition - Retail banking business operating income was RMB 856.8 million, accounting for 31.5% of total operating income, a year-on-year decrease of 15.9%[116][117] - As of June 30, 2025, total retail loans were RMB 56,081.8 million, and total retail deposits were RMB 232,393.8 million[116] - Cumulative debit card issuance was approximately 8.9 million cards, credit card issuance was 1,022,300 cards, and acquiring business merchants reached 220,000[123][124][125] - Total sales of retail wealth management products were RMB 16,789.65 million, agency insurance sales were RMB 103.29 million, and agency wealth management sales were RMB 11,253.41 million[128][129] Financial Markets Business Financial markets business generated RMB 747.1 million in H1 2025, 27.5% of total income, up 6.7%, involving money market, investment, and wealth management, with optimized strategies enhancing returns - Financial markets business operating income was RMB 747.1 million, accounting for 27.5% of total operating income, a year-on-year increase of 6.7%[132][133] - Net interest income significantly increased by 59.3% year-on-year to RMB 500.5 million, but net trading gains decreased by 68.8%[133] - Total investment securities and other financial assets increased by 3.3% to RMB 141,968.7 million, with a significant increase in the proportion of financial assets measured at fair value through profit or loss[14