Bank Overview - Huishang Bank's registered capital reached RMB 13,889,801,211 as of the end of 2023[37]. - The bank was established through the merger of multiple regional banks and credit cooperatives, officially starting operations on January 1, 2006[37]. - The bank's headquarters is located in Hefei, Anhui Province, China[37]. - The bank's financial license was approved by the former China Banking Regulatory Commission[37]. - The bank's major operating location in Hong Kong is at 40th Floor, Daxin Financial Center, 248 Queen's Road East, Wanchai[35]. - The bank's H-shares were listed on the Hong Kong Stock Exchange on November 12, 2013, with stock code 3698[37]. - The bank is not subject to supervision by the Hong Kong Monetary Authority and is not authorized to operate banking or deposit-taking businesses in Hong Kong[2]. - The bank's official website is www.hsbank.com.cn, providing contact information and further details[35]. Financial Performance - Operating revenue for 2023 reached RMB 36,365 million, a slight increase of 0.37% compared to RMB 36,230 million in 2022[47]. - Net profit for 2023 was RMB 14,991 million, representing a growth of 9.56% from RMB 13,683 million in 2022[47]. - Total assets as of December 31, 2023, amounted to RMB 1,806,144 million, an increase of 14.30% from RMB 1,580,236 million in 2022[49]. - Customer loans and advances totaled RMB 874,223 million, reflecting a growth of 14.38% compared to RMB 764,309 million in 2022[49]. - Customer deposits reached RMB 1,020,158 million, up 14.09% from RMB 894,156 million in the previous year[49]. - Basic earnings per share for 2023 were RMB 1.00, a 7.53% increase from RMB 0.93 in 2022[48]. - The non-performing loan ratio improved to 1.26% in 2023, down from 1.49% in 2022[51]. - The capital adequacy ratio increased to 13.21% in 2023, compared to 12.02% in 2022[51]. - The return on average assets (ROA) for 2023 was 0.89%, a decrease from 0.92% in 2022[50]. Awards and Recognition - The bank ranked 123rd in the "Top 1000 World Banks" and 152nd in the "Top 500 Bank Brands" by The Banker magazine in 2023[38]. - The bank was listed 253rd in the "China Top 500" and 352nd in the "China Listed Companies Top 500" rankings[38]. - The bank was recognized as one of the top 40 companies with the highest net profit margin among the "China Listed Companies Top 500," ranking 25th[38]. - The bank received multiple awards in 2023, including recognition as one of the top 10 state-owned enterprises in tax contributions in Anhui Province[39]. - The bank was awarded for its excellent data quality in the personal credit system by the People's Bank of China in August 2023[42]. - The bank's project "Housekeeper e-Account" was recognized as one of the top five in the national digital banking innovation application competition[43]. - The bank received the "Outstanding Service Case Award" for its intelligent voice technology application in account management[43]. - The bank was acknowledged as an advanced unit in financial business and financial enterprise financial statements work by the Anhui Provincial Finance Department[43]. Digital Transformation and Technology - The company plans to continue expanding its digital supply chain financial services and enhance customer engagement through new technology initiatives[46]. - The company launched 83 financial technology projects, enhancing digital transformation and operational efficiency[60]. - The bank has initiated a new generation data warehouse project and is constructing an enterprise-level metadata information library to improve data service efficiency[184]. - The bank is building a secure and efficient digital infrastructure, including a private cloud platform and a new generation wide area network architecture, to support business development[185]. - The bank processed over 3,000 consumer rights protection reviews and conducted more than 140 training sessions, covering over 23,400 personnel, while reaching over 40 million consumers through 5,600 educational activities[189]. Risk Management - The company has implemented a comprehensive risk management framework focusing on maintaining asset quality and enhancing risk management capabilities[171]. - The company has strengthened market risk management by strictly enforcing market risk limits and enhancing the ability to identify and manage market risks[172]. - The company emphasizes the importance of ensuring sufficient liquidity while pursuing profitability growth and value creation[175]. - The company has conducted liquidity risk stress tests, showing that liquidity risk remains within a controllable range under various stress scenarios[176]. - The bank actively enhances its foreign exchange risk management through qualitative and quantitative analyses, employing hedging, limit management, and Value at Risk (VaR) calculations to control potential losses within acceptable limits[179]. - The bank's compliance risk management system is robust, with a three-line defense mechanism and a dual reporting system to ensure effective oversight and control of compliance risks[181]. Customer Engagement and Services - The bank's customer complaints increased by 20.19% year-on-year, totaling 2,423 complaints, primarily related to credit card, personal loan, account management, and internet loan services[189]. - The bank aims to enhance its financial services to support the high-quality development of the real economy, focusing on key areas such as modern industrial systems, technological innovation, and green development[192]. - The bank is committed to supporting the development of small and micro enterprises, aiming to stabilize the economy and reduce financing costs[188]. - The bank's focus on key sectors such as infrastructure, green finance, and advanced manufacturing has led to a robust growth in loans to these areas[138]. Economic Context - The macroeconomic environment in China showed a stable growth rate of 5.2% in 2023, with total economic output exceeding RMB 126 trillion[135]. - The global economic growth is expected to slow down in 2024 due to tightening monetary policies and weak global trade, according to the World Bank[190].
徽商银行(03698) - 2023 - 年度业绩