Chongqing Rural Commercial Bank(HK:03618)2023-04-11 08:32Dividend and Financial Reporting - The board of directors proposed a dividend of RMB 2.714 per 10 shares for the year 2022, subject to approval at the annual general meeting [2]. - The financial reports for 2022 have been audited by KPMG, with unqualified opinions issued for both Chinese and international financial reporting standards [2]. - The bank's financial report for 2022 covers the period from January 1, 2022, to December 31, 2022 [6]. - The board meeting on March 30, 2023, included all 11 directors, confirming the accuracy and completeness of the annual report [2]. Risk Management and Compliance - The bank has no significant risks that require special attention from investors, and it has implemented measures to manage operational risks [3]. - The bank's annual report confirms that there are no non-operational fund occupations by controlling shareholders or related parties [3]. - The bank has no violations of decision-making procedures regarding external guarantees [3]. - The bank's governance structure and compliance with regulations are detailed in the corporate governance report [4]. - The company aims to enhance its risk management mechanisms to stabilize asset quality amid economic fluctuations [12]. Business Performance and Financial Metrics - In 2022, the company's total assets exceeded 1.35 trillion yuan, with a deposit balance of 824.9 billion yuan and a loan balance of 632.7 billion yuan, achieving a net profit of 10.5 billion yuan and a non-performing loan ratio of 1.22% [7]. - The company reported a provision coverage ratio of 357.74% and a core Tier 1 capital adequacy ratio, ranking 113th in the "2022 Global Top 1000 Banks" list by The Banker magazine, an improvement of 6 places from the previous year [7]. - Net profit for 2022 reached RMB 10,477.8 million, an increase of 7.81% from RMB 9,718.4 million in 2021 [42]. - The average return on total assets for 2022 was 0.80%, slightly down from 0.81% in 2021 [42]. - The cost-to-income ratio for 2022 was 31.90%, an increase from 27.51% in 2021 [42]. Customer Engagement and Digital Transformation - The number of effective merchants increased by 44%, and the transaction amount surged by 246%, with a total customer base reaching 28 million, accounting for nearly 90% of the local population [7]. - The company aims to enhance financial services for new citizens' housing and consumption, improving the sense of gain and happiness for the public [9]. - The company achieved an average of 850,000 intelligent decisions per day, representing a year-on-year growth of 120% [10]. - The company is committed to digitalization, aiming to automate and enhance credit and risk management processes [21]. - The company is focused on integrating technology to solve offline bottlenecks and reshape customer journey through digital banking services [25]. Retail Banking and Market Position - The retail banking business is centered on serving agriculture, small and medium enterprises, and county economies, with a goal to establish a strong customer experience brand in the Midwest [18]. - Retail business revenue, pre-tax profit, and retail loan proportion for 2022 were 42.07%, 40.28%, and 44.69% respectively [31]. - The company aims to enhance contributions from personal banking, credit cards, microfinance, rural revitalization, and direct banking, maximizing the growth potential of its "big retail" segment [196]. Green Finance and Social Responsibility - Green loan balance exceeded 48.7 billion yuan, with a continuous growth rate of over 30% for three consecutive years, supporting carbon peak and carbon neutrality goals [9]. - The company actively engaged in green finance and increased credit investments in the "benefiting people's livelihood" sector and advanced manufacturing [79]. - The company established over 60 specialized service institutions and 1,067 inclusive finance bases to enhance rural financial services [8]. Talent Development and Operational Efficiency - The proportion of employees with a bachelor's degree or higher reached 76%, with financial technology talent accounting for 3.5% [10]. - The company has implemented 34 times more robotic process automation scenarios, significantly enhancing operational efficiency [10]. - The group held a total of 522 financial technology talents by the end of 2022, accounting for 3.54% of the workforce, including 5 PhDs [136]. Credit and Loan Management - The total amount of loans and advances as of December 31, 2022, was RMB 632.6771 billion, with a total non-performing loan amount of RMB 7.7165 billion, resulting in a non-performing loan rate of 1.22% [100]. - The retail loan non-performing balance and ratio increased compared to the previous year, primarily due to macroeconomic recovery slowing down and individual borrowers facing operational difficulties [100]. - The company has implemented dynamic classification management to address external risks and improve asset quality [99]. Liquidity and Capital Management - The liquidity coverage ratio was 296.92% as of December 31, 2022, with qualifying liquid assets amounting to RMB 178,727.93 million against expected net cash outflows of RMB 60,194.40 million [171]. - The group's capital adequacy ratio as of the end of 2022 was 15.62%, an increase of 0.85 percentage points from the previous year [185]. - The group successfully issued CNY 2 billion of perpetual capital bonds to supplement other tier 1 capital [185]. Future Outlook and Strategic Initiatives - The projected GDP growth for the Chongqing region in 2023 is expected to exceed 6%, with industrial added value and fixed asset investment anticipated to grow by 8% and 10%, respectively [195]. - The company plans to continue its strategic initiatives in product development and market expansion to capitalize on emerging opportunities in the financial sector [195]. - The company aims to enhance its market position in the Chongqing region, leveraging the potential of the Chengdu-Chongqing economic circle and the development of the Western financial center [195].