上海银行(601229) - 2020 Q3 - 季度财报

Important Notice Report Statement and Basis of Preparation The board, supervisory board, and senior management guarantee the report's truthfulness and completeness, approved on October 23, 2020, with unaudited financial statements prepared under Chinese accounting standards - The board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[2] - The report was approved by the 16th meeting of the Fifth Board of Directors on October 23, 2020[2] - Financial statements are prepared in accordance with Chinese accounting standards and are unaudited[2] - Chairman Jin Yu, President Zhu Jian, and Vice President and CFO Shi Hongmin guarantee the truthfulness, accuracy, and completeness of the financial statements[2] Company Profile Key Accounting Data and Financial Indicators As of September 2020, total assets grew by 9.25% and net assets attributable to parent company shareholders by 5.72%, while January-September operating revenue slightly decreased by 0.91%, net profit fell by 7.99%, and operating cash flow turned positive | Item | Jan-Sep 2020 (RMB in thousands) | Jan-Sep 2019 (RMB in thousands) | YoY Change | | :----------------------------------- | :-------------------------- | :-------------------------- | :------------- | | Operating Revenue | 37,535,511 | 37,881,297 | -0.91% | | Net Profit Attributable to Parent Company Shareholders | 15,051,909 | 16,359,160 | -7.99% | | Net Cash Flow from Operating Activities | 15,168,781 | -12,547,328 | N/A | | Basic Earnings Per Share (RMB/share) | 1.06 | 1.15 | -7.83% | | Annualized Return on Average Assets | 0.86% | 1.04% | down 0.18 percentage points | | Annualized Weighted Average ROE Attributable to Parent Company Common Shareholders | 12.33% | 14.74% | down 2.41 percentage points | | Net Interest Margin | 1.92% | 1.93% | down 0.01 percentage points | | Net Interest Spread | 1.77% | 1.69% | up 0.08 percentage points | | Item | Sep 30, 2020 (RMB in thousands) | Dec 31, 2019 (RMB in thousands) | Change from Prior Year-End | | :----------------------------------- | :------------------------------ | :------------------------------- | :----------- | | Total Assets | 2,443,968,364 | 2,237,081,943 | 9.25% | | Net Assets Attributable to Parent Company Shareholders | 186,815,945 | 176,708,612 | 5.72% | | Net Assets Per Common Share Attributable to Parent Company Common Shareholders (RMB/share) | 11.75 | 11.03 | 6.53% | Non-recurring Gains and Losses and Amounts From January to September 2020, the company's net non-recurring gains and losses totaled RMB 125,304 thousand, with RMB 122,952 thousand impacting net profit attributable to parent company shareholders, primarily from other net gains and losses | Non-recurring Gains and Losses Item | Jan-Sep 2020 (RMB in thousands) | | :----------------------------------- | :-------------------------- | | Gains or Losses from Disposal of Non-current Assets | -284 | | Other Net Gains and Losses | 169,149 | | Income Tax Impact of Non-recurring Gains and Losses | -43,561 | | Net Amount of Non-recurring Gains and Losses | 125,304 | | Of which: Non-recurring Gains and Losses Affecting Net Profit Attributable to Parent Company Shareholders | 122,952 | | Non-recurring Gains and Losses Affecting Net Profit Attributable to Minority Shareholders | 2,352 | Common Shareholder Information As of the end of the reporting period, the company had 128,528 common shareholders, with the top ten remaining stable, led by Shanghai United Investment Co., Ltd. at 14.68%, and some foreign corporate shareholders holding shares via Hong Kong Securities Clearing Company Limited - Total common shareholders at period-end were 128,528 accounts[6] | Shareholder Name | Shares Held at Period-End (shares) | Percentage | | :----------------------------------- | :------------------ | :--- | | Shanghai United Investment Co., Ltd. | 2,085,100,328 | 14.68% | | Shanghai International Port Group Co., Ltd. | 1,178,744,443 | 8.30% | | Banco Santander, S.A. | 929,137,290 | 6.54% | | TCL Technology Group Corporation | 792,386,855 | 5.58% | | China Jianyin Investment Ltd. | 687,322,763 | 4.84% | | China Shipbuilding Trading Co., Ltd. | 579,764,799 | 4.08% | | Ping An Life Insurance Company of China, Ltd. – Universal – Individual Universal | 495,270,716 | 3.49% | | Shanghai Commercial Bank Limited | 426,211,240 | 3.00% | | HKSCC Nominees Limited | 339,307,668 | 2.39% | | Shanghai Jing'an District Finance Bureau | 290,856,868 | 2.05% | - The top ten shareholders list remained consistent with the beginning of the period, with some changes due to share increases or decreases[8] Preferred Shareholder Information At period-end, the company had 24 preferred shareholders, with Jiangsu Bank Co., Ltd. - Jubao Wealth Caiyirong holding the largest stake at 15.25%, and the company preliminarily identified potential related party relationships among some preferred shareholders or with common shareholders - Total preferred shareholders at period-end were 24 accounts[9] | Shareholder Name | Shares Held at Period-End (shares) | Percentage | | :----------------------------------- | :------------------ | :--- | | Jiangsu Bank Co., Ltd. – Jubao Wealth Caiyirong | 30,500,000 | 15.25% | | China Post & Capital Fund Management Co., Ltd. – Huaxia Bank – Huaxia Bank Co., Ltd. | 20,000,000 | 10.00% | | CICC Fund Management Co., Ltd. – China Merchants Bank – China Merchants Bank Co., Ltd. | 20,000,000 | 10.00% | | Changjiang Pension Insurance Co., Ltd. – Bank of China – China Pacific Life Insurance Co., Ltd. | 15,000,000 | 7.50% | | BOCOM Schroders Asset Management Co., Ltd. – Bank of Communications – BOCOM Schroders Asset Management Zhuoyuan No. 2 Collective Asset Management Plan | 15,000,000 | 7.50% | | Bank of Tianjin Co., Ltd. – Gangwan Wealth Closed Net Value Series Wealth Management Product | 14,980,000 | 7.49% | | Postal Savings Bank of China Co., Ltd. | 10,000,000 | 5.00% | | Ping An Life Insurance Company of China, Ltd. – Universal – Individual Universal | 10,000,000 | 5.00% | | Ping An Life Insurance Company of China, Ltd. – Participating – Individual Participating | 10,000,000 | 5.00% | | CCB Trust Co., Ltd. – Hengxin Antai Bond Investment Collective Fund Trust Plan | 10,000,000 | 5.00% | | Jiangsu International Trust Co., Ltd. – Jiangsu Trust MinSheng Wealth Single Fund Trust | 10,000,000 | 5.00% | - Based on public information, the company preliminarily determined that some preferred shareholders have related party relationships, such as Jiangsu Bank Co., Ltd. - Jubao Wealth Caiyirong and Jiangsu International Trust Co., Ltd. - Jiangsu Trust MinSheng Wealth Single Fund Trust[10] Capital Adequacy Ratio As of September 30, 2020, the Group's capital adequacy ratios remained robust and compliant, with Common Equity Tier 1 at 9.53%, Tier 1 at 10.71%, and total capital adequacy at 13.17%, all exceeding minimum regulatory requirements | Item | Sep 30, 2020 (Consolidated) | Dec 31, 2019 (Consolidated) | | :------------------- | :------------------------ | :------------------------- | | Common Equity Tier 1 Capital Adequacy Ratio | 9.53% | 9.66% | | Tier 1 Capital Adequacy Ratio | 10.71% | 10.92% | | Capital Adequacy Ratio | 13.17% | 13.84% | - Calculated according to the 'Measures for the Capital Management of Commercial Banks (Trial)', all capital adequacy ratios exceed the minimum regulatory requirements (Common Equity Tier 1 5%, Tier 1 6%, Total Capital 8%, Capital Conservation Buffer 2.5%)[11] Leverage Ratio As of September 30, 2020, the Group's leverage ratio was 6.69%, consistent with June 2020 but slightly lower than year-end 2019 | Item | Sep 30, 2020 | Dec 31, 2019 | | :------------------- | :----------------- | :------------------ | | Leverage Ratio | 6.69% | 6.92% | Liquidity Coverage Ratio As of September 30, 2020, the Group's liquidity coverage ratio was 168.80%, a decrease from 178.25% at June 2020 but still maintained at a high level | Item | Sep 30, 2020 | Jun 30, 2020 | | :------------------- | :----------------- | :----------------- | | Liquidity Coverage Ratio | 168.80% | 178.25% | Asset Quality As of September 30, 2020, the Group's non-performing loan ratio was 1.22%, slightly up from year-end but remaining low and stable, with a high provision coverage ratio of 328.07% and loan loss provision ratio of 4.00%, indicating ample risk absorption capacity | Item | Sep 30, 2020 | Dec 31, 2019 | | :------------------- | :----------------- | :------------------ | | Non-performing Loan Ratio | 1.22% | 1.16% | | Provision Coverage Ratio | 328.07% | 337.15% | | Loan Loss Provision Ratio | 4.00% | 3.98% | - The non-performing loan ratio slightly increased from the prior year-end, but the fluctuation remained within a reasonable and controllable range, maintaining a low and stable level[14] - Both the overdue-to-NPL ratio and overdue loan ratio decreased from June-end, falling by 34 percentage points and 0.35 percentage points, respectively[18] Discussion and Analysis of Operations From January to September 2020, Shanghai Bank actively responded to external economic conditions, served the real economy, promoted business transformation, strengthened risk control, achieved steady business growth, stable asset quality, and enhanced corporate and retail services through digital transformation, with rapid development in internet finance - The Group strengthened its analysis and response to external economic and financial conditions, seized opportunities in market trends, actively responded to national macroeconomic policy guidance, and proactively served the real economy[15] - Continuously promoted business transformation and structural adjustment, deepened specialized operations, strengthened risk prevention and non-performing asset resolution, and fully advanced the conclusion of this three-year plan[15] Steady Business Growth, Increased Fee Reductions, and Positive Interaction with the Real Economy As of September 2020, the Group's total assets reached RMB 2,443.97 billion, up 9.25% from year-end, with customer loans and advances growing by 9.69% and deposits by 10.06%, optimizing the asset-liability structure and increasing credit to key areas like inclusive and supply chain finance - Total assets reached RMB 2,443.97 billion, an increase of 9.25% from the prior year-end[16] - Total customer loans and advances were RMB 1,066.74 billion, up 9.69% from the prior year-end, accounting for 43.65% of total assets[16] - Total deposits were RMB 1,305.38 billion, up 10.06% from the prior year-end, accounting for 57.85% of total liabilities[16] - Increased credit support to key areas, with rapid growth in inclusive finance, supply chain finance, and livelihood finance loans, further optimizing the credit structure[16] Overall Stable Operating Performance, Enhanced Risk Response, and Proactive Increase in Provisioning From January to September 2020, the Group's operating revenue was RMB 37.54 billion, a slight decrease of 0.91% year-over-year; net interest income grew by 18.50%, with net interest margin widening by 0.08 percentage points; net profit attributable to parent company shareholders fell by 7.99% to RMB 15.05 billion, primarily due to a proactive 19.84% increase in provisions | Indicator | Jan-Sep 2020 | Jan-Sep 2019 | YoY Change | | :------------------- | :------------- | :------------- | :------- | | Operating Revenue | 37.54 billion RMB | 37.88 billion RMB | -0.91% | | Net Interest Income | up 4.07 billion RMB | - | +18.50% | | Net Interest Spread | 1.77% | 1.69% | up 0.08 percentage points | | Net Fee and Commission Income | up 0.36 billion RMB | - | +7.32% | | Net Profit Attributable to Parent Company Shareholders | 15.05 billion RMB | 16.36 billion RMB | -7.99% | | Provisioning Amount | up 19.84% | - | +19.84% | - Total other income decreased by RMB 4.78 billion year-over-year, mainly due to a decrease in fair value measured financial assets, declining market interest rates, and exchange rate fluctuations impacting valuation net gains/losses[17] Stable Asset Quality, Ample Risk Provisions and Capital Levels The Group's asset quality is stable and controllable, with a non-performing loan ratio of 1.22%, slightly up from year-end but remaining low; provision coverage ratio is 328.07% and loan loss provision ratio is 4.00%, indicating ample risk absorption capacity, while capital adequacy, Tier 1, and Common Equity Tier 1 ratios remain compliant and robust - Non-performing loan ratio was 1.22%, slightly increased from the prior year-end, but remained within a reasonable and controllable range, maintaining a low and stable level[18] - Provision coverage ratio was 328.07%, and loan loss provision ratio was 4.00%, both maintained at a high level[18] - Capital adequacy ratio was 13.17%, Tier 1 capital adequacy ratio 10.71%, and Common Equity Tier 1 capital adequacy ratio 9.53%, demonstrating compliant and robust capital levels[18] - Continuously strengthened risk management for large credit exposures, key regions, sectors, and clients, curbing new risk exposure, and intensified efforts in non-performing asset resolution[18] Rooted in Regional Markets, Digital Transformation Enhances Corporate Business Service to the Real Economy The company deepened its presence in key regions like the Yangtze River Delta, enhancing corporate services to the real economy through digital transformation, with inclusive finance loan disbursements up 136.95%, supply chain finance credit support up 37.68%, and tech-enterprise loan balances up 6.12%; it actively participated in urban construction, with livelihood finance loan balances up 71.37% and debt financing instrument underwriting up 55.92% - Corporate customers totaled 233.6 thousand accounts, an increase of 8.4 thousand accounts from the prior year-end[19] - Inclusive finance loan disbursements amounted to RMB 36.55 billion, a year-over-year increase of 136.95%; loan balance was RMB 42.12 billion, up 77.50% from the prior year-end[19] - Supply chain finance credit support balance was RMB 40.50 billion, an increase of 37.68% from the prior year-end[19] - Loans to technology-based enterprises totaled RMB 90.03 billion, up 6.12% from the prior year-end[19] - Livelihood finance loan balance was RMB 49.96 billion, an increase of 71.37% from the prior year-end[20] - Debt financing instrument underwriting volume was RMB 141.29 billion, a year-over-year increase of 55.92%[20] Technology Empowerment Drives High-Quality Development of Retail Business Retail business, a strategic priority, achieved high-quality development through technology empowerment, with personal loans and advances growing by 2.80%, including a 20.41% increase in housing mortgage loans; retail customer numbers rose by 9.61%, AUM by 13.93%, and wealth customers (AUM ≥ RMB 1 million) by 20.13%; cumulative credit card issuance exceeded 10 million, up 16.04% - Personal loans and advances balance was RMB 329.84 billion, an increase of 2.80% from the prior year-end[22] - Housing mortgage loan balance was RMB 113.67 billion, an increase of 20.41% from the prior year-end[22] - Retail customer accounts totaled 17.65 million, an increase of 9.61% from the prior year-end[22] - Assets Under Management (AUM) for retail customers reached RMB 724.49 billion, an increase of 13.93% from the prior year-end[22] - Wealth customers with average daily AUM of RMB 1 million or more totaled 144.4 thousand accounts, an increase of 20.13% from the prior year-end[22] - Cumulative credit card issuance reached 10.41 million cards, an increase of 16.04% from the prior year-end, achieving the strategic goal of a 'ten-million-card issuer' ahead of schedule[23] Continuous Product and Service Innovation, Rapid Development of Internet Finance Business The company's internet finance business achieved rapid growth through product innovation and an open banking model, with online individual customers up 24.60% and annual active customers up 54.03%; average daily internet deposit balances increased by 51.73%, internet SME loan balances by 79.99%, internet fee and commission income by 37.87%, and mobile banking app monthly active users by 16.85% - Online individual customer accounts totaled 37.39 million, an increase of 24.60% from the prior year-end[25] - Annual active customer accounts reached 7.17 million, a year-over-year increase of 54.03%[25] - Average daily internet business deposit balance was RMB 47.71 billion, an increase of 51.73% from the prior year's average daily balance[25] - Internet SME loan balance was RMB 17.65 billion, an increase of 79.99% from the prior year-end[25] - Internet fee and commission income was RMB 1.11 billion, a year-over-year increase of 37.87%[25] - Mobile banking app monthly active users reached 2.15 million, an increase of 16.85% from the prior year-end[25] Significant Matters Significant Changes and Reasons for Key Financial Statement Items and Indicators During the reporting period, several financial statement items experienced significant changes; derivative financial assets and liabilities increased due to exchange rate fluctuations, while other assets and liabilities rose due to pending settlements; trading financial liabilities sharply decreased due to reduced short selling, and net gains from fair value changes and exchange gains turned into losses, mainly impacted by declining equity instrument valuations and market interest and exchange rate fluctuations | Item | Sep 30, 2020 (RMB in thousands) | Dec 31, 2019 (RMB in thousands) | Change from Prior Year-End | Primary Reason for Change | | :------------------- | :-------------------------- | :-------------------------- | :----------- | :------------- | | Derivative Financial Assets | 24,670,581 | 16,443,915 | 50.03% | Valuation of foreign exchange derivative financial instruments affected by exchange rate fluctuations | | Other Assets | 30,138,943 | 14,024,086 | 114.91% | Increase in pending settlement items | | Trading Financial Liabilities | 20 | 400,427 | -100.00% | Decrease in short selling activities | | Derivative Financial Liabilities | 26,096,300 | 16,690,672 | 56.35% | Valuation of foreign exchange derivative financial instruments affected by exchange rate fluctuations | | Other Liabilities | 8,110,512 | 6,117,750 | 32.58% | Increase in pending settlement items | | Item | Jan-Sep 2020 (RMB in thousands) | Jan-Sep 2019 (RMB in thousands) | YoY Change | Primary Reason for Change | | :------------------- | :-------------------------- | :-------------------------- | :----------- | :------------- | | Net Gains/(Losses) from Fair Value Changes | -54,267 | 1,945,908 | -102.79% | Valuation of equity instruments affected by scale reduction and market interest rate fluctuations | | Net Gains/(Losses) from Exchange | -522,549 | 233,804 | -323.50% | Valuation of foreign exchange derivative financial instruments affected by exchange rate fluctuations | | Other Operating Income | 41,241 | 94,698 | -56.45% | Decrease in other operating income | | Income Tax Expense | -918,294 | -2,039,902 | -54.98% | Decrease in taxable income | | Minority Interest | 24,849 | 36,954 | -32.76% | Decrease in subsidiary profits | Progress of Significant Matters The company's application for public issuance of convertible corporate bonds is progressing, with a public disclosure of its response to the China Securities Regulatory Commission's feedback on July 18, 2020, though the plan still requires regulatory approval - The company's application for public issuance of convertible corporate bonds has received feedback from the China Securities Regulatory Commission (CSRC), and the response has been publicly disclosed[28] - This issuance plan still requires approval from the CSRC and other regulatory bodies before implementation[28] Overdue Unfulfilled Commitments During the reporting period, the company had no overdue unfulfilled commitments - There were no overdue unfulfilled commitments during the reporting period[28] Warning of Significant Changes in Cumulative Net Profit The company has not issued any warning or explanation regarding potential losses or significant changes in cumulative net profit from the beginning of the year to the end of the next reporting period, indicating no such major risk is currently anticipated - The company has not issued any warning regarding potential losses or significant changes in cumulative net profit[29] Changes in Accounting Policies Effective January 1, 2020, the company adopted the revised 'Enterprise Accounting Standard No. 14 – Revenue,' a change approved and disclosed by the board, which has no significant impact on the company's revenue recognition methods or financial statements - The company adopted the revised 'Enterprise Accounting Standard No. 14 – Revenue' effective January 1, 2020[30] - The change in accounting policy did not significantly alter the company's revenue recognition methods and had no material impact on the financial statements[30] Appendix: Financial Statements Prepared Under Chinese Accounting Standards Consolidated and Bank Balance Sheets This section presents the consolidated and bank balance sheets as of September 30, 2020, and December 31, 2019, detailing the composition and period-end balances of assets, liabilities, and shareholders' equity Consolidated Balance Sheet (Excerpt) | Item | Sep 30, 2020 (RMB in thousands) | Dec 31, 2019 (RMB in thousands) | | :------------------------- | :-------------------------- | :-------------------------- | | Total Assets | 2,443,968,364 | 2,237,081,943 | | Total Liabilities | 2,256,616,250 | 2,059,855,312 | | Total Equity Attributable to Parent Company Shareholders | 186,815,945 | 176,708,612 | Consolidated and Bank Income Statements This section presents the consolidated and bank income statements for January-September 2020 and 2019, covering key financial performance indicators such as operating income, operating expenses, total profit, and net profit Consolidated Income Statement (Excerpt) | Item | Jan-Sep 2020 (RMB in thousands) | Jan-Sep 2019 (RMB in thousands) | | :------------------------- | :-------------------------- | :-------------------------- | | Operating Revenue | 37,535,511 | 37,881,297 | | Operating Profit | 15,885,945 | 18,296,855 | | Total Profit | 15,995,052 | 18,436,016 | | Net Profit | 15,076,758 | 16,396,114 | | Net Profit Attributable to Parent Company Shareholders | 15,051,909 | 16,359,160 | | Basic and Diluted Earnings Per Share (RMB) | 1.06 | 1.15 | Consolidated and Bank Cash Flow Statements This section provides the consolidated and bank cash flow statements for January-September 2020 and 2019, detailing net cash flows from operating, investing, and financing activities, as well as period-end balances of cash and cash equivalents Consolidated Cash Flow Statement (Excerpt) | Item | Jan-Sep 2020 (RMB in thousands) | Jan-Sep 2019 (RMB in thousands) | | :----------------------------------- | :-------------------------- | :-------------------------- | | Net Cash Flow from Operating Activities | 15,168,781 | -12,547,328 | | Net Cash Flow from Investing Activities | -17,047,660 | -11,507,678 | | Net Cash Flow from Financing Activities | 11,263,222 | -7,630,024 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 9,151,980 | -31,251,430 | | Cash and Cash Equivalents at Period-End | 56,460,993 | 54,150,335 |