厦门银行(601187) - 2022 Q4 - 年度财报

Report Overview Chairman's Statement Chairman Yao Zhiping highlighted the bank's steady 2022 development, emphasizing digital transformation, cross-strait financial services, and strong support for the real economy - The company accelerated its digital transformation, with information technology investment increasing by 35.98% year-on-year, successfully launching key projects like the supply chain finance platform and new credit management system[31] - As the first city commercial bank with Taiwanese capital background in mainland China, the company is committed to deepening cross-strait financial services, leading Fujian Province in the number of Taiwanese-funded enterprise credit accounts and credit cards issued to Taiwanese compatriots[32] - The company fully supported the real economy, allocating credit resources to key areas, with manufacturing loans growing by 19.76%, green credit balance by 126.06%, and inclusive small and micro enterprise loans by 37.37% year-on-year[12] President's Statement President Wu Xinhao reviewed the bank's 'stable yet progressive' 2022 performance, noting steady growth in assets, deposits, loans, and profitability, driven by its core business strategies Key Performance Indicators as of End of 2022 | Indicator | 2022 Year-end Value | Change Year-to-date | | :--- | :--- | :--- | | Asset Scale | 371.2 billion yuan | 12.66% growth | | Net Profit | - | 16.21% year-on-year growth | | Non-performing Loan Ratio | 0.86% | Decreased by 0.05 percentage points | | Provision Coverage Ratio | 387.93% | Increased by 17.29 percentage points | - The company firmly advanced its large retail transformation, with active retail customer accounts growing by approximately 18% year-on-year, retail deposit balance by approximately 33% year-on-year, and managed personal financial assets increasing by approximately 10.5 billion yuan[17] - In corporate business, inclusive small and micro enterprise loan balance grew by 37% year-on-year, and green credit balance by 126% year-on-year; transaction banking and investment banking fee income increased by approximately 54% and 43% respectively[70] - Cross-strait financial services deepened, with Taiwanese-funded enterprise credit accounts growing by 88%, Taiwanese-funded enterprise loan balance by 117%, and credit card issuance to Taiwanese compatriots by nearly 40%[41] Section I Definitions This section defines specific terms and acronyms used in the report, providing a foundation for accurate understanding of its content - This chapter defines specific terms and acronyms used in the report, including 'Reporting Period,' 'Company,' 'PBOC,' 'CBIRC,' and major associated company abbreviations[76] Section II Company Profile and Key Financial Indicators Company Basic Information This section provides Xiamen Bank's basic information, including names, legal representative, stock listing, and accounting firm details Company Basic Information Overview | Item | Information | | :--- | :--- | | Chinese Name | Xiamen Bank Co., Ltd | | Stock Abbreviation | Xiamen Bank | | Stock Code | 601187 | | Legal Representative | Yao Zhiping | | Registered Capital | 2,639,127,888 yuan | | Accounting Firm | Ernst & Young Hua Ming LLP | Key Financial Data and Indicators This section presents the company's key accounting data and financial indicators for 2022, showing robust business growth, increased assets, deposits, loans, revenue, and net profit, with excellent asset quality Key Accounting Data for 2022 (Unit: RMB Thousand Yuan) | Item | 2022 | 2021 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,895,086 | 5,315,527 | 10.90% | | Net Profit Attributable to Parent Company Shareholders | 2,506,083 | 2,168,598 | 15.56% | | Net Cash Flow from Operating Activities | 26,295,656 | -21,957,146 | N/A | | Balance Sheet Items (Period-end) | 2022 Year-end | 2021 Year-end | Period-end vs. Beginning of Period Change (%) | | Total Assets | 371,208,019 | 329,494,574 | 12.66% | | Total Customer Loans and Advances | 200,385,134 | 175,039,818 | 14.48% | | Total Deposits | 204,869,727 | 183,800,938 | 11.46% | | Net Assets Attributable to Parent Company Shareholders | 24,191,992 | 22,757,279 | 6.30% | Key Financial Indicators for 2022 | Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.90 | 0.80 | 12.50% growth | | Weighted Average Return on Net Assets | 11.38% | 10.98% | Increased by 0.40 percentage points | | Non-performing Loan Ratio | 0.86% | 0.91% | Decreased by 0.05 percentage points | | Provision Coverage Ratio | 387.93% | 370.64% | Increased by 17.29 percentage points | | Capital Adequacy Ratio | 13.76% | 16.40% | Decreased by 2.64 percentage points | | Core Tier 1 Capital Adequacy Ratio | 9.50% | 10.47% | Decreased by 0.97 percentage points | Key Quarterly Financial Data for 2022 (Unit: RMB Thousand Yuan) | Item | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,367,115 | 1,487,644 | 1,594,997 | 1,445,330 | | Net Profit Attributable to Parent Company Shareholders | 627,107 | 605,179 | 567,844 | 705,953 | Section III Management Discussion and Analysis Discussion and Analysis of Operations In 2022, the company maintained steady business performance amidst a complex macroeconomic environment, achieving double-digit growth in assets, deposits, and loans, improved profitability, and stable asset quality 2022 Annual Operating Performance Overview | Indicator | 2022 Year-end/Annual | Year-on-year/Change from Beginning of Year | | :--- | :--- | :--- | | Total Assets | 371.208 billion yuan | 12.66% growth | | Total Deposits | 204.870 billion yuan | 11.46% growth | | Total Loans | 200.385 billion yuan | 14.48% growth | | Operating Revenue | 5.895 billion yuan | 10.90% growth | | Net Profit Attributable to Parent | 2.506 billion yuan | 15.56% growth | | Non-performing Loan Ratio | 0.86% | Decreased by 0.05 percentage points | | Provision Coverage Ratio | 387.93% | Increased by 17.29 percentage points | Business Operations During the Reporting Period In 2022, the company executed its 'expand retail, strengthen corporate, deepen cross-strait, optimize treasury' strategy, focusing on serving the real economy, enhancing retail and financial market operations, and consolidating its cross-strait financial advantage - The company firmly executed its business development strategy of 'expanding retail, strengthening corporate, deepening cross-strait, and optimizing treasury,' with strategic implementation and execution largely meeting targets[132] Corporate Banking Business In 2022, corporate banking optimized its structure and maintained stable asset quality, with inclusive small and micro enterprise loans growing by 37.37%, green loans by 126.06%, and technology-driven fee income increasing significantly - Corporate loans (excluding bill discounting) balance was 103.638 billion yuan, an increase of 12.68%, with an NPL ratio of 1.39%, down 0.16 percentage points from the beginning of the year[160] - Inclusive finance services achieved remarkable results, with inclusive small and micro enterprise loan balance reaching 61.040 billion yuan, a 37.37% increase from the beginning of the year, and customer numbers growing by 35.72%[110] - Green finance developed rapidly, with green loan balance (PBOC caliber) reaching 4.131 billion yuan, a 126.06% year-on-year increase[143] - Transaction banking fee income increased by 53.97% year-on-year, and underwriting volume of non-financial enterprise debt financing instruments increased by 34.04% year-on-year[145][174] Retail Banking Business In 2022, the company deepened its retail strategic transformation, with AUM growing by 13.43%, personal deposits by 33.01%, and personal loans by 14.98%, driven by a 46.58% increase in personal business loans, enhancing overall retail competitiveness Retail Business Key Indicator Growth | Indicator | 2022 Year-end Balance | Growth from Previous Year-end | | :--- | :--- | :--- | | Managed Personal Financial Assets (AUM) | 88.450 billion yuan | 13.43% | | Personal Deposit Balance | 55.391 billion yuan | 33.01% | | Personal Loan Balance | 76.694 billion yuan | 14.98% | | Personal Business Loan Balance | 40.928 billion yuan | 46.58% | | Personal Consumer Loan Balance | 7.820 billion yuan | 13.56% | - Total retail customers reached 2.4044 million households, a 9.10% increase year-on-year; wealth management customers reached 155.2 thousand households, a 17.84% increase[182][185] - Online channel service capability strengthened, with personal mobile banking signed customers reaching 1.1729 million households, a 20.57% year-on-year increase, and monthly active customers growing by 30.64% year-on-year[190] - Asset quality remained stable, with the personal loan non-performing ratio maintained at a low level of 0.37%[220] Financial Market Business In 2022, the company's financial market business achieved comprehensive development, expanding its interest margin by 28 basis points, enhancing trading capabilities, and growing agency business customer numbers by 27% and transaction volume by 35%, while also advancing digital transformation - By optimizing its asset-liability structure, the financial market business interest margin expanded by 28 basis points compared to the previous reporting period[196] - The customer base for agency business continued to expand, with service customer numbers growing by 27% year-on-year and agency transaction volume by 35% year-on-year[199] - Actively fulfilling its market-making obligations, the company received multiple honors in the interbank local currency market for 2022, including the 'Market Influence Award - Core Dealer'[250] - Digital transformation made progress, with the successful launch of the self-developed intelligent operations platform, establishing a unified management view for business analysis and risk monitoring[231] Cross-Strait Financial Business Leveraging its Taiwanese shareholder background, the company solidified its leading position in cross-strait financial services, ranking first in Fujian for Taiwanese-funded enterprise credit accounts and credit cards issued to Taiwanese compatriots, with all key indicators showing high growth, driven by innovative products and services Cross-Strait Financial Business Key Indicator Growth as of End of 2022 | Indicator | Year-on-year Growth Rate | | :--- | :--- | | Taiwanese-funded Enterprise Customer Accounts | 39% | | Taiwanese-funded Enterprise Credit Accounts | 88% | | Taiwanese-funded Enterprise Deposit Balance | 21% | | Taiwanese-funded Enterprise Loan Balance | 117% | | Taiwanese Compatriot Customer Accounts | 5% | | Credit Cards Issued to Taiwanese Compatriots | 40% | | Taiwanese Compatriot Financial Asset Balance | 5% | - Average deposit per Taiwanese-funded enterprise account was 1.76 times that of all corporate clients, and average financial assets per Taiwanese compatriot account was 2.51 times that of all retail clients, demonstrating a high-quality customer base[232] - Innovatively launched exclusive products like 'Taiwanese Enterprise Express Loan' and 'Taiwanese Farmer Loan,' and launched 'Air Counter' and a dedicated mobile banking section for Taiwanese compatriots, enhancing service convenience[234][260] Analysis of Core Competencies During the Reporting Period The company's core competencies include robust corporate governance, clear development strategies, enhanced small and micro enterprise services, distinctive cross-strait financial services, diversified financial market operations, and a comprehensive internal control and risk management system - The company possesses a sound modern corporate governance structure and a stable mixed-ownership equity structure[236] - The development strategy is clear, forming strategic goals of 'expanding retail, strengthening corporate, deepening cross-strait, and optimizing treasury,' with effective guarantees for strategic execution[262] - Cross-strait financial services are distinctive, making it the financial institution with the most Taiwanese-funded enterprise credit accounts and credit cards issued to Taiwanese compatriots in Fujian Province[264] - The company holds a relatively complete set of financial market business qualifications and licenses, enabling flexible asset and liability allocation in various market environments[240] Key Operating Performance During the Reporting Period This section analyzes the company's operating performance, balance sheet, cash flow, and business segment results, highlighting 2022 revenue growth of 10.90% and net profit growth of 15.56%, with total assets expanding to 371.208 billion yuan, driven by corporate and personal businesses Income Statement Analysis In 2022, the company's operating revenue reached 5.895 billion yuan (10.90% growth), primarily driven by increased net interest and non-interest income, despite narrowing net interest margin due to LPR reductions, with cost-to-income ratio decreasing to 34.30% Key Income Statement Items for 2022 (Unit: RMB Thousand Yuan) | Item | 2022 | 2021 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,895,086 | 5,315,527 | 10.90% | | Net Interest Income | 4,789,581 | 4,430,301 | 8.11% | | Non-interest Net Income | 1,105,504 | 885,226 | 24.88% | | Business and Management Expenses | 2,021,659 | 1,836,465 | 10.08% | | Credit Impairment Losses | 1,306,263 | 1,012,478 | 29.02% | | Total Profit | 2,474,592 | 2,361,858 | 4.77% | | Net Profit Attributable to Parent | 2,506,083 | 2,168,598 | 15.56% | - Net interest margin was 1.53%, and net interest spread was 1.47%, decreasing by 0.09 and 0.05 percentage points year-on-year respectively, primarily due to multiple LPR reductions and policies supporting the real economy[243][268] - Net fee and commission income was 432 million yuan, a 14.81% year-on-year increase, primarily driven by growth in bond underwriting/distribution and bank acceptance bill fee income[275] Balance Sheet Analysis As of year-end 2022, total assets reached 371.208 billion yuan (12.66% growth), with total loans and advances exceeding 200 billion yuan (14.48% growth), and financial investments increasing to 100.171 billion yuan; total liabilities reached 346.464 billion yuan (13.14% growth), with deposits at 204.870 billion yuan (11.46% growth), and strong personal deposit growth of 33.01% Key Balance Sheet Items as of End of 2022 (Unit: RMB Thousand Yuan) | Item | 2022 Year-end | Change from Beginning of Year (%) | | :--- | :--- | :--- | | Total Assets | 371,208,019 | 12.66% | | Loans and Advances | 194,155,098 | 14.55% | | Financial Investments | 100,170,530 | 7.27% | | Total Liabilities | 346,464,169 | 13.14% | | Deposits Accepted | 207,014,864 | 11.58% | | Bonds Payable | 69,439,122 | 4.84% | | Total Shareholders' Equity | 24,743,850 | 6.36% | - Total loans were 200.385 billion yuan, a 14.48% year-on-year increase; corporate loans grew by 12.68%, and personal loans by 14.98%[538] - Total deposits accepted were 204.870 billion yuan, an 11.46% year-on-year increase; personal deposits grew rapidly, reaching 55.391 billion yuan, a 33.01% year-on-year increase[939][546] Cash Flow Statement Analysis In 2022, net cash flow from operating activities was a positive 26.296 billion yuan, a significant improvement from the previous year, primarily due to increased deposits; net cash outflow from investing activities was 9.789 billion yuan due to increased bond investments; and net cash inflow from financing activities was 532 million yuan Net Cash Flow for 2022 (Unit: RMB Thousand Yuan) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 26,295,656 | -21,957,146 | | Net Cash Flow from Investing Activities | -9,788,779 | 3,135,415 | | Net Cash Flow from Financing Activities | 531,517 | 8,608,240 | Discussion and Analysis of the Company's Future Development Looking ahead, the company anticipates increased support for the real economy, intensified regional competition, and digital transformation challenges; 2023 will focus on optimizing loan and deposit structures, supporting manufacturing and green finance, and accelerating inclusive credit loans, while acknowledging risks like trade uncertainty, credit risk, and narrowing interest margins - 2023 marks the 'final year' of the company's fifth three-year development strategic plan, continuing to firmly execute the business development strategy of 'expanding retail, strengthening corporate, deepening cross-strait, and optimizing treasury'[737][738] - Operating plans focus on optimizing the asset-liability structure, increasing asset allocation to manufacturing, green credit, and inclusive small and micro enterprises, and striving to increase the proportion of demand deposits on the liability side[687][739] - The main risks faced by the company include: uncertainty in foreign trade recovery, potential credit risk from slower-than-expected economic recovery, and the risk of narrowing interest margins due to declining loan interest rates[689][742][713][743] Section IV Corporate Governance Overview of Corporate Governance During the reporting period, the company strictly adhered to regulations, continuously improved its corporate governance structure, integrating Party leadership, with a clear division of responsibilities among the Shareholders' Meeting, Board of Directors, Board of Supervisors, and Senior Management; the company has no controlling shareholder or actual controller, maintaining full independence from major shareholders - The company's corporate governance structure is characterized by 'clear responsibilities, distinct duties, mutual coordination, and effective checks and balances,' comprising the Shareholders' Meeting, Board of Directors, Board of Supervisors, and Senior Management[745] - The company has no controlling shareholder or actual controller, maintaining complete independence from major shareholders in all aspects, possessing autonomous operational capabilities[717] Directors, Supervisors, and Senior Management This section details the appointments, shareholding changes, and remuneration of the company's directors, supervisors, and senior management, noting increased holdings by some executives and compensation linked to performance and risk management with deferred payment mechanisms - During the reporting period, Chairman Yao Zhiping, Chairman of the Board of Supervisors Zhang Yonghuan, and several senior management members increased their company shareholdings through share price stabilization plans or secondary market purchases[753] - The remuneration of the company's Chairman, Chairman of the Board of Supervisors, and senior management implements a risk reserve deferral mechanism, with a portion of the remuneration paid over several years[724] Performance of the Board of Directors and Special Committees During the reporting period, the Board of Directors held 14 meetings, deliberating key proposals, and its five specialized committees actively performed their duties, holding multiple meetings and providing professional opinions to support the Board's scientific decision-making - In 2022, the Board of Directors held a total of 14 meetings, including 9 in-person meetings and 5 via communication[1171] - The Board of Directors has sub-committees for Strategy, Nomination, Remuneration, Audit & Consumer Rights Protection, and Risk Control & Related Party Transactions Management, all of which held multiple meetings and effectively performed their duties during the reporting period[776] Profit Distribution Policy The company has a clear, stable, and continuous cash dividend policy, prioritizing cash dividends of no less than 10% of annual after-tax profit; the 2022 plan proposes a cash dividend of 2.90 yuan (tax inclusive) per 10 shares, totaling 765 million yuan, representing a 30.54% cash dividend ratio, pending shareholder approval 2022 Profit Distribution Plan | Item | Amount/Ratio | | :--- | :--- | | Dividend per 10 shares (yuan) (tax inclusive) | 2.90 | | Total Cash Dividend (tax inclusive) | 765,347,087.52 yuan | | Net Profit Attributable to Parent for Dividend Year | 2,506,083,052.14 yuan | | Cash Dividend as Percentage of Net Profit Attributable to Parent | 30.54% | - The company's Articles of Association stipulate that, under profitable conditions and meeting operational funding needs, annual cash dividends shall be no less than 10% of the after-tax profit for the year[845] Section V Environmental and Social Responsibility Environmental Information The company integrates green development into its strategy, actively supporting the green economy; in 2022, green loan balance reached 4.131 billion yuan (126.06% growth), and the company achieved carbon neutrality for 2021 emissions, while also reducing per capita electricity and water consumption - Green loan balance (PBOC caliber) reached 4.131 billion yuan, a significant 126.06% increase from the beginning of the year, primarily invested in green infrastructure upgrades, energy conservation, environmental protection, and clean energy[862] - The company achieved carbon neutrality for its 2021 carbon dioxide emissions by purchasing forestry carbon credits[860] Social Responsibility and Rural Revitalization Adhering to its 'from society, for society' philosophy, the company actively fulfills social responsibility, particularly in rural revitalization by increasing credit support for agriculture, rural areas, and farmers, with agricultural loans growing year-on-year, and supporting local industries - The company actively served 'agriculture, rural areas, and farmers,' establishing 3 new county-level branches during the reporting period, with agricultural loans increasing by 2.43% year-on-year[865] Consumer Rights Protection The company highly prioritizes consumer rights protection, with a robust internal control system and integration of consumer protection reviews; in 2022, it conducted numerous trainings and financial literacy campaigns, handled 3,431 consumer complaints with a 100% resolution rate and 95% satisfaction, primarily related to credit card and loan businesses - In 2022, a total of 3,431 financial consumer complaints were received, with a 100% resolution rate and 95% customer satisfaction[895] Complaint Cause Distribution | Complaint Cause | Quantity (cases) | Percentage (%) | | :--- | :--- | :--- | | Management System/Business Rules/Processes | 1,209 cases | 35.24% | | Service Attitude and Quality | 733 cases | 21.36% | | Information Disclosure | 434 cases | 12.65% | | Other | 1,055 cases | 30.75% | Section VI Significant Matters Significant Related Party Transactions During the reporting period, the company's related party transactions adhered to market-based pricing and approval procedures, with annual credit limits set for major related party groups, and transactions with Xiamen C&D Investment Group, Fujian Septwolves Group, and Fujian Haixi Financial Leasing were identified as significant related party transactions - Transactions with Xiamen C&D Investment Group, Fujian Septwolves Group, and Fujian Haixi Financial Leasing Co., Ltd. were identified as significant related party transactions[518] - As of the end of the reporting period, the loan balance to related natural persons was 165 million yuan[521] Other Significant Matters During the reporting period, two significant matters impacted investor decisions: the gratuitous transfer of 18.19% state-owned equity to Xiamen C&D Investment Group, making it the largest shareholder while maintaining no controlling shareholder status; and the initiation of an A-share convertible bond issuance plan not exceeding 5 billion yuan, which has received regulatory approval and exchange acceptance - In July 2022, the Xiamen Municipal Finance Bureau gratuitously transferred its 18.19% stake in the company to Xiamen C&D Group, making the latter the largest shareholder[335][294] - The company plans to publicly issue A-share convertible corporate bonds totaling no more than 5 billion yuan, a matter that has been accepted by regulators and is currently in progress[336][914] Section VII Changes in Ordinary Shares and Shareholder Information Changes in Share Capital During the reporting period, the company's total ordinary share capital of 2,639,127,888 shares remained unchanged, but the share structure shifted due to gratuitous state-owned equity transfer and the lifting of restrictions on 218.5 million shares - During the reporting period, the company's total share capital remained unchanged at 2,639,127,888 shares[948] - Due to the state-owned equity transfer and the lifting of restricted share status, the proportion of restricted shares decreased from 63.14% to 54.86%, while unrestricted tradable shares increased from 36.86% to 45.14%[971] Shareholder Information As of the end of the reporting period, the company had 56,795 ordinary shareholders; the top four shareholders were Xiamen C&D Investment Group Co., Ltd. (18.27%), Fubon Financial Holding Co., Ltd. (18.03%), Beijing Shengda Xingye Real Estate Development Co., Ltd. (9.63%), and Fujian Septwolves Group Co., Ltd. (8.05%) - As of the end of 2022, the company had a total of 56,795 ordinary shareholders[951] Top Four Shareholders' Shareholding | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Xiamen C&D Investment Group Co., Ltd. | 482,202,748 | 18.27% | | Fubon Financial Holding Co., Ltd. | 475,848,185 | 18.03% | | Beijing Shengda Xingye Real Estate Development Co., Ltd. | 254,088,917 | 9.63% | | Fujian Septwolves Group Co., Ltd. | 212,445,000 | 8.05% | Section VIII Financial Report Audit Report Ernst & Young Hua Ming LLP issued a standard unqualified audit opinion on the company's 2022 financial report, affirming fair reflection of financial position, operating results, and cash flows; key audit matters included impairment provisions for loans, valuation of financial instruments, and consolidation of structured entities - The auditing firm is Ernst & Young Hua Ming LLP, which issued a standard unqualified audit opinion[997] - Key audit matters include: 1) Impairment provisions for loans and advances; 2) Valuation of financial instruments; 3) Structured entities not consolidated[1030][1004][1222] Financial Statements This section includes the company's 2022 audited consolidated and company-level core financial statements: balance sheet, income statement, statement of changes in shareholders' equity, and cash flow statement, comprehensively reflecting the company's financial position, operating results, and cash flows - This section includes the consolidated and company-level balance sheet, income statement, statement of changes in shareholders' equity, and cash flow statement[996] Notes to Financial Statements Notes to financial statements provide detailed explanations and supplementary information on financial statement items, covering the company's basic information, basis of preparation, significant accounting policies and estimates, and detailed notes on major consolidated financial statement items such as loans, investments, deposits, related party transactions, and financial instrument risks - The notes detail the company's significant accounting policies, such as the recognition and measurement of financial instruments, expected credit loss assessment methods, and revenue recognition principles[1067][400] - The notes provide detailed breakdowns and explanations of major balance sheet and income statement items, for example, classifying loans by nature, industry, and collateral type[902][511] - The notes disclose detailed information on related party relationships and transactions, including transaction amounts and balances with major shareholders, subsidiaries, and key management personnel[1240] - The notes provide detailed analysis and disclosure of credit risk, liquidity risk, and market risk for financial instruments[1416]