INDUSTRIAL BANK(SH:601166)2022-03-24 16:00Financial Performance - Total assets of the group reached RMB 8.6 trillion by year-end 2021, with operating income of RMB 221.236 billion and net profit attributable to shareholders of RMB 82.68 billion[10]. - The company's operating revenue for 2021 was RMB 221,236 million, an increase of 8.91% compared to RMB 203,137 million in 2020[25]. - The net profit attributable to shareholders of the parent company reached RMB 82,680 million, reflecting a growth of 24.10% from RMB 66,626 million in the previous year[25]. - The total assets as of December 31, 2021, amounted to RMB 8,603,024 million, representing an 8.98% increase from RMB 7,894,000 million at the end of 2020[25]. - The company achieved a basic earnings per share of RMB 3.77, which is a 22.40% increase from RMB 3.08 in 2020[25]. - The company reported a cost-to-income ratio of 25.68%, an increase of 1.52 percentage points year-on-year[94]. - The company achieved net commission and fee income of RMB 42.68 billion, an increase of RMB 4.97 billion or 13.18% year-on-year[138]. Asset Quality and Risk Management - The non-performing loan ratio and balance continued to decline, while the provision coverage ratio increased to 268.73%[10]. - The non-performing loan ratio improved to 1.10%, down from 1.25% in 2020, indicating a decrease of 0.15 percentage points[25]. - The company's non-performing loan balance was 48.714 billion yuan, a decrease of 0.942 billion yuan from the end of the previous year, with a non-performing loan ratio of 1.10%, down 0.15 percentage points year-on-year[71]. - The company has emphasized a customer-centric approach, leveraging technology to innovate and create new products, thereby establishing a distinct operational characteristic in the financial services sector[39]. - The company has established a risk management mechanism for potential risk clients and has prioritized the management of credit card risk and real estate credit risk[74]. Digital Transformation and Innovation - The company aims to enhance its digital transformation and integrate financial services into various business and consumer scenarios[6]. - The company launched over 3,000 projects in its digital ecosystem, enhancing its digital transformation efforts[13]. - The company has built 89 algorithm models and deployed over 1,800 robots, saving more than 550,000 hours of work[186]. - The company has launched 670 APIs on its open banking platform, with a total of 1.396 billion calls during the reporting period[185]. - The company is focusing on high-quality, digital, and green development trends, directing credit resources towards industries that meet ESG requirements[106]. Wealth Management and Client Base - The number of corporate clients exceeded 1 million, and retail clients approached 80 million, demonstrating the effectiveness of the "commercial bank + investment bank" strategy[11]. - Wealth management scale approached CNY 1.8 trillion, with retail wealth sales exceeding CNY 5 trillion[12]. - The company established the first dedicated private banking institution, enhancing its wealth management capabilities[12]. - The number of private banking clients increased by 19.96% to 58,255, with average assets under management (AUM) rising by 17.16% to 742.45 billion CNY[198]. - The retail wealth management product sales reached 5.07 trillion CNY, with a year-on-year growth of 10.98% in intermediary business income[197]. Green Finance Initiatives - The company is committed to green finance innovation, being the first "Equator Bank" in China, and aims to support ecological civilization construction[5]. - The green financing balance reached CNY 1.4 trillion, positioning the company at the forefront of green development[12]. - The company has positioned itself as a leader in green finance, being the first domestic bank to adopt the Equator Principles, and has received an MSCI ESG rating of A for three consecutive years[39]. - The company’s green finance financing balance reached 1.3867 trillion yuan, an increase of 230.943 billion yuan compared to the previous year[191]. - The company’s green loan balance reached 453.94 billion yuan, an increase of 134.505 billion yuan year-on-year, with a 92.38% growth in clean energy industry green loans[191]. Capital Management and Funding - The company issued CNY 75 billion in subordinated bonds and CNY 50 billion in convertible bonds, strengthening its capital base[14]. - The company issued a total of RMB 56 billion in non-cumulative preferred shares, pending approval for dividend distribution[26]. - The company issued RMB 500 billion in convertible bonds and RMB 750 billion in secondary capital bonds during the reporting period[151]. - The total capital amount as of December 31, 2021, was RMB 879.277 billion, with core Tier 1 capital at RMB 599.661 billion, reflecting a year-on-year increase[154]. - The liquidity coverage ratio as of December 31, 2021, is 138.86%, with qualified liquid assets amounting to RMB 1,146,577 million and net cash outflows over the next 30 days at RMB 825,734 million[160]. Operational Efficiency and Organizational Structure - The company plans to implement a three-line organizational reform focusing on technology, retail, and corporate finance to enhance operational efficiency[7]. - The company has initiated a talent development plan, including a "10,000 technology talents plan" to drive innovation[7]. - The company aims to adapt to high-quality development amidst economic pressures, focusing on stabilizing growth and maintaining economic operation within a reasonable range[85]. - The company plans to maintain stable growth in total assets, net income, and net profit while optimizing the asset-liability structure and controlling the cost-to-income ratio[93]. - The company has strengthened its risk management system in interbank and financial market operations, embedding specialized risk control departments since 2012 to enhance business effectiveness and risk management[81].