Financial Performance - Net interest income for the six months ended June 30, 2022, was RMB 5,318.6 million, an increase of 5.20% compared to RMB 5,055.8 million in the same period of 2021[9]. - Net fee and commission income rose to RMB 375.8 million, reflecting a significant increase of 25.14% from RMB 300.3 million year-on-year[9]. - Total operating income reached RMB 6,993.2 million, marking a 14.00% growth compared to RMB 6,134.5 million in the previous year[9]. - Profit before tax decreased by 24.37% to RMB 949.2 million, down from RMB 1,255.0 million in the prior year[9]. - Net profit for the period was RMB 588.0 million, representing a decline of 37.47% compared to RMB 940.3 million in the same period of 2021[9]. - The net profit attributable to shareholders of the parent company was RMB 494.6 million, down 41.89% from RMB 851.2 million year-on-year[9]. - Earnings per share dropped to RMB 0.01, a decrease of 87.50% from RMB 0.08 in the previous year[9]. - The average return on total assets decreased to 0.18%, down from 0.31% in the same period last year[9]. - The cost-to-income ratio improved to 29.37%, a decrease from 30.14% in the previous year[9]. Asset and Liability Management - As of June 30, 2022, the total assets of Harbin Bank amounted to RMB 661.6549 billion, with total customer loans and advances reaching RMB 287.0476 billion, and total customer deposits at RMB 509.5103 billion[6]. - The total customer loans and advances decreased to RMB 287.0476 billion, a decline of RMB 7.3116 billion or 2.48% from the end of the previous year[14]. - The total customer deposits increased to RMB 509.5103 billion, an increase of RMB 7.7591 billion or 1.55% compared to the end of the previous year[14]. - Total liabilities amounted to RMB 598.8223 billion as of June 30, 2022, an increase of RMB 16.5560 billion or 2.8% compared to the end of the previous year[69]. - The total equity attributable to shareholders of the parent company was RMB 60.7535 billion, a slight decrease of 0.07% compared to the end of the previous year[10]. Risk Management - The non-performing loan ratio stood at 2.95%, an increase of 0.07 percentage points from the end of the previous year[16]. - The provision coverage ratio improved to 174.67%, an increase of 12.22 percentage points from the end of the previous year[16]. - The bank implemented stricter risk management policies, focusing on optimizing the credit structure and enhancing the management of non-performing loans[81]. - The bank has established a comprehensive risk management system to adapt to the complex external environment and the impacts of the COVID-19 pandemic[151]. - The bank's credit impairment losses totaled RMB 3,876.3 million, reflecting the impact of the ongoing COVID-19 pandemic on borrowers[93]. Strategic Initiatives - The bank's strategic focus remains on serving local economies, small and medium enterprises, and urban and rural residents, amidst economic challenges[13]. - The bank plans to enhance asset-liability management and optimize the asset portfolio to stabilize net interest margin and yield amid ongoing market competition and external uncertainties[18]. - The bank's strategy includes increasing support for the "three rural issues" (agriculture, rural areas, and farmers) to align with national rural revitalization efforts[81]. - The bank is committed to supporting green finance and the development of high-tech industries, aligning its credit policies with national strategies[152]. Customer and Market Engagement - The bank established 390 operating institutions across seven major administrative regions in China as of June 30, 2022[6]. - The bank's retail deposit customers reached 14.1455 million, an increase of 149,400 customers or 1.07% from the end of the previous year[101]. - The cumulative number of serviced clients exceeded 32 million, with total loans surpassing RMB 140 billion[141]. - The bank's wealth management customer base with personal financial assets exceeding RMB 300,000 reached 360,700, an increase of 7.8% from the previous year[101]. Corporate Governance and Management - The company has a diverse board of directors, including 8 directors with varying roles and responsibilities, ensuring a broad range of expertise[182]. - The supervisory board consists of 7 members, including external supervisors, enhancing oversight and governance[183]. - The company emphasizes compliance and risk management, with key positions held by experienced professionals in these areas[187]. - The management team includes a chief risk officer and a chief credit approval officer, indicating a robust risk management framework[184]. Digital Transformation and Technology - The bank is focused on digital transformation and enhancing its financial technology capabilities to support the development of a modern financial system[149]. - The bank is actively promoting the digital RMB project and has completed the construction of the digital RMB project, enhancing its service capabilities[150]. - The bank has implemented a mobile financial app accessibility project to provide convenient services for elderly and disabled customers[150]. Related Party Transactions - The major related party transactions with Harbin Investment Group and its affiliates amounted to a credit limit and guarantee business of RMB 7.559 billion, with a business balance of RMB 5.596 billion, accounting for 9.4% of the company's net capital as of the end of Q2 2022[125]. - The company has established a standardization of bond products for its related party transactions, ensuring compliance with regulatory requirements[127]. - The company’s related party transactions have been approved by the board of directors, with independent non-executive directors confirming the legality and fairness of the processes[129].
哈尔滨银行(06138) - 2022 - 中期财报