Bank Overview - Huishang Bank's registered capital reached RMB 13,889,801,211 as of June 30, 2023[26]. - The bank was established on April 4, 1997, and was the first regional joint-stock commercial bank formed by the merger of urban commercial banks and credit cooperatives in China[26]. - The bank's H shares were listed on the Hong Kong Stock Exchange on November 12, 2013, with the stock code 3698[26]. - The bank's headquarters is located in Hefei, Anhui Province, China[26]. - The bank's financial license is approved by the former Anhui Banking Regulatory Bureau[26]. - The bank's main operating location in Hong Kong is at 40th Floor, Daxin Financial Center, 248 Queen's Road East, Wanchai[25]. Financial Performance - As of June 30, 2023, the total assets of the company reached RMB 1,732.89 billion, an increase of RMB 152.66 billion or 9.66% compared to the end of the previous year[39]. - The total customer loans and advances amounted to RMB 853.12 billion, up RMB 88.81 billion or 11.62% year-on-year[39]. - The company reported operating income of RMB 197.88 billion for the first half of 2023, an increase of RMB 6.73 billion or 3.52% compared to the same period last year[39]. - The net profit for the first half of 2023 was RMB 84.86 billion, reflecting a year-on-year increase of RMB 11.51 billion or 15.69%[39]. - The non-performing loan ratio improved to 1.32%, down 0.17 percentage points from the end of the previous year[40]. - The pre-tax profit for the first half of 2023 was RMB 98.81 billion, an increase of RMB 13.45 billion or 15.76% year-on-year[40]. - Customer deposits totaled RMB 1,005.13 billion, an increase of RMB 110.98 billion or 12.41% from the end of the previous year[39]. Income and Expenses - Net interest income for the first half of 2023 was RMB 15.142 billion, an increase of RMB 1.408 billion or 10.25% year-on-year[42]. - Total interest income reached RMB 32.808 billion, up RMB 3.150 billion or 10.62% compared to the same period in 2022[48]. - Interest expenses amounted to RMB 17.666 billion, reflecting an increase of RMB 1.742 billion or 10.94% year-on-year[52]. - The net interest margin decreased to 1.79%, down 6 basis points from the previous year, while the net interest yield was 2.00%, down 8 basis points[42]. - Non-interest net income for the first half of 2023 was RMB 4.646 billion, a decrease of RMB 735 million or 13.66% year-on-year, primarily due to a decline in net fee and commission income[56]. - Net fee and commission income for the first half of 2023 was RMB 1.787 billion, a decrease of RMB 1.156 billion or 39.28% year-on-year, mainly due to a reduction in agency business fee income[59]. Asset and Liability Management - As of June 30, 2023, total liabilities amounted to RMB 1,602.04 billion, an increase of 9.92% compared to the end of the previous year, primarily driven by steady growth in customer deposits[79]. - The bank's equity attributable to shareholders was RMB 127.28 billion as of June 30, 2023, an increase from RMB 119.61 billion at the end of 2022[81]. - The capital adequacy ratio stood at 11.80%, a slight decrease from 12.02% at the end of the previous year[36]. - The allowance for loan impairment was RMB 30.86 billion, representing 1.78% of total loans, slightly improved from 1.99% at the end of 2022[68]. Loan Portfolio - The total amount of customer loans and advances reached RMB 853.12 billion, an increase of 11.62% compared to the end of 2022, accounting for 49.23% of total assets[68]. - The corporate loans accounted for RMB 565.53 billion, representing 66.29% of the total loans, with an NPL amount of RMB 0.84 billion and an NPL ratio of 1.49%[83]. - Personal loans amounted to RMB 256.91 billion, making up 30.11% of total loans, with an NPL amount of RMB 2.79 billion and an NPL ratio of 1.09%[83]. Risk Management - The bank is focusing on enhancing risk management capabilities and maintaining asset quality stability amid complex risk conditions[133]. - The bank aims to optimize its asset structure and strengthen credit risk management tools to support sectors like green finance and rural revitalization[134]. - The company has implemented a dynamic risk monitoring system for large key clients, enhancing risk control measures in the real estate sector[135]. Corporate Governance - The company emphasizes the integration of party leadership with corporate governance to enhance operational efficiency and compliance[194]. - The company has maintained a stable governance structure with no changes in major responsibilities of the board and supervisory committees during the reporting period[194]. - The company has established a comprehensive risk control mechanism for related party transactions to improve the precision of its management[157]. Employee and Management - As of June 30, 2023, the company had a total of 11,163 employees, with 22.77% holding a master's degree or higher, and 51.06% holding a full-time bachelor's degree[190]. - The company appointed Mr. Kong Qinglong as the CEO on April 14, 2023, with his qualifications approved by the regulatory authority[186]. - The company emphasizes a professional, inclusive, and diverse work environment, respecting differences in the workplace[190]. Digital Transformation and Innovation - The bank has completed the implementation of key projects in its fintech strategy, including the launch of an internet financial cloud platform and the development of mobile banking systems[150]. - The company is focusing on digital transformation and enhancing operational efficiency through the construction of a new generation wide area network and a unified monitoring platform[151]. Legal and Compliance Issues - The ongoing litigation regarding the equity transfer disputes has not reached a final judgment as of the latest report[179]. - The financial implications of these disputes and share transactions could impact the company's market position and shareholder equity[178].
徽商银行(03698) - 2023 - 中期业绩