2022-03-25 16:00Financial Performance - Net interest income for 2021 reached RMB 161,693 million, an increase of 5.45% from RMB 153,336 million in 2020[15]. - Total operating income for 2021 was RMB 269,390 million, reflecting a growth of 9.42% compared to RMB 246,200 million in 2020[15]. - Net profit attributable to shareholders for 2021 was RMB 87,581 million, up 11.89% from RMB 78,274 million in 2020[15]. - Total assets at the end of 2021 amounted to RMB 11,665,757 million, a 9.05% increase from RMB 10,697,616 million in 2020[15]. - Customer loans reached RMB 6,560,400 million, representing a 12.17% increase from RMB 5,848,424 million in 2020[15]. - The non-performing loan ratio improved to 1.48% in 2021, down from 1.67% in 2020[16]. - The capital adequacy ratio for 2021 was 15.45%, an increase of 0.20 percentage points from 15.25% in 2020[16]. - Basic and diluted earnings per share for 2021 were RMB 1.10, reflecting an 11.11% increase from RMB 0.99 in 2020[15]. - The company reported a net cash flow from operating activities of RMB (34,775) million for 2021, a significant decrease from RMB 149,398 million in 2020[15]. - Non-recurring gains and losses totaled RMB 590 million in 2021, down from RMB 879 million in 2020[20]. Risk Management - The bank is actively managing risks including credit risk, market risk, operational risk, and compliance risk, with ongoing measures to effectively control these risks[4]. - The bank's focus on green finance and support for key sectors such as small and micro enterprises and advanced manufacturing is evident in its credit structure adjustments[168]. - The bank has implemented a digital transformation in risk management, enhancing its risk monitoring system across the group[167]. - The bank's credit risk management framework has been strengthened, with an emphasis on agile iteration of credit policies and online processing of mortgage registrations[168]. - The group has established a comprehensive cross-industry and cross-border risk management system, enhancing risk assessment mechanisms and emergency response plans to ensure stable operations amid uncertainties from the COVID-19 pandemic and external conditions[195]. Digital Transformation and Technology - The bank's mobile banking applications for both personal and corporate clients provide a range of financial services, enhancing customer convenience and engagement[5][6]. - The bank's wealth management brand "Yuntong Wealth" aims to provide comprehensive wealth management solutions through digital transformation[5]. - The company plans to deepen digital transformation and enhance long-term development momentum, focusing on customer needs and product innovation[32]. - The bank's financial technology investment reached 88.75 billion yuan, a year-on-year increase of 23.60%, accounting for 4.03% of operating income[154]. - The bank's digital currency ecosystem was established, with the first nationwide digital RMB tax payment service launched in Hainan Province, creating the largest educational pilot scene in the province[163]. Customer Engagement and Growth - The number of mid-to-high-end customers increased by 15.29% year-on-year, with AUM reaching CNY 4.26 trillion[28]. - The personal financial assets under management (AUM) reached 4.256 trillion yuan, up 9.26% from the previous year[111]. - The personal loan balance increased by 15.36% year-on-year, reaching 2.285 trillion yuan[111]. - The retail customer base reached 185 million, a year-over-year increase of 3.76%, with AUM growing to 4.256 trillion CNY, up 9.26% from the previous year[112]. - The bank's wealth management product cooperation with external institutions expanded, establishing partnerships with six non-bank institutions[113]. Corporate Structure and Strategy - The bank's registered address is located in the Shanghai Free Trade Zone, indicating its strategic positioning for financial services[10]. - The bank has been operational since 1908, making it one of the oldest banks in China, and it became a nationwide joint-stock commercial bank in 1987[12]. - The bank's stock is listed on both the Shanghai Stock Exchange and the Hong Kong Stock Exchange, enhancing its market presence and investor access[11]. - The group aims to enhance support for the real economy, focusing on inclusive finance, green development, and strategic emerging industries, while improving complex financial product design capabilities[199]. - The group has set a strategic goal to build a world-class bank with wealth management characteristics and global competitiveness, focusing on high-quality development[95]. Community and Social Responsibility - The total donations during the reporting period exceeded CNY 51 million, supporting various public welfare initiatives[24]. - The group is committed to enhancing inclusive finance, targeting small and micro enterprises, and addressing financial needs in urban governance and rural revitalization[98]. - The balance of inclusive small and micro enterprise loans increased by 49.23% year-on-year, reaching 338.82 billion yuan[107]. - The number of clients with loans in the inclusive small and micro enterprise sector grew by 43.49% to 212,200 clients[107]. Market Position and Competition - The bank ranked first in the market for clearing business volume at the Shanghai Clearing House during the reporting period[123]. - The trading volume in the domestic RMB money market reached 71.3 trillion yuan, while the foreign currency money market trading volume was 1.84 trillion USD[125]. - The company’s offshore business achieved net operating income of USD 137.0441 million, a year-on-year increase of 13.51%, with total assets of USD 15.936 billion, up 35.69% from the previous year[146]. Compliance and Regulatory - The effective tax rate was 5.34%, significantly lower than the statutory rate of 25%, due to tax-exempt income from government bonds[66]. - The group has complied with regulatory requirements regarding large risk exposures, continuously monitoring and managing these risks to enhance the ability to prevent systemic and regional risks[196]. - The capital adequacy ratio is measured in accordance with the regulatory requirements set by the China Banking and Insurance Regulatory Commission[88].