Financial Performance - Zhongyuan Bank reported its audited consolidated annual results for the year ended December 31, 2023, in accordance with International Financial Reporting Standards[1]. - Net interest income for 2023 reached RMB 22,263 million, an increase of 4.6% compared to RMB 21,276 million in 2022[11]. - Total operating income was RMB 26,183 million, reflecting a 2.2% growth from RMB 25,611 million in the previous year[11]. - Net profit attributable to shareholders decreased by 11.8% to RMB 3,221 million from RMB 3,650 million in 2022[11]. - The bank's net profit margin decreased to 0.24% from 0.37% in 2022, reflecting a decline in profitability[11]. - Total assets as of December 31, 2023, amounted to RMB 1,346,446.5 million, a 1.5% increase from RMB 1,326,736.4 million in 2022[12]. - Total liabilities increased to RMB 1,249,558.3 million, up 1.3% from RMB 1,233,101.9 million in 2022[12]. - Total equity reached RMB 968.88 billion, an increase of RMB 3.25 billion, or 3.5% from the previous year, mainly due to profit growth[77]. - The company achieved operating revenue of RMB 26.1834 billion for the year ended December 31, 2023, with a net profit of RMB 3.2063 billion, representing a decrease of 16.2% year-over-year[26]. Asset Quality - The non-performing loan ratio increased to 2.04% from 1.93% in 2022, indicating a deterioration in asset quality[12]. - The bank's core tier 1 capital adequacy ratio improved to 8.10% from 7.98% in 2022[12]. - The total amount of overdue loans is approximately RMB 28.144 billion, an increase of about RMB 3.574 billion compared to the end of last year, with an overdue loan ratio of approximately 3.98%[92]. - The non-performing loan (NPL) balance was RMB 14,452.3 million, resulting in a non-performing loan ratio of 2.04%, compared to 1.93% the previous year[82]. - The company’s normal loans accounted for 94.71% of total loans, while the watch category loans increased to 3.25% from 2.60% year-over-year[81]. Governance and Management - The bank's board of directors confirmed the annual results after review by the audit committee[1]. - The bank's governance structure was enhanced, with a focus on modernizing the governance system and ensuring effective decision-making and supervision[16]. - The company has maintained a consistent leadership transition process, ensuring regulatory approvals for new appointments[182]. - The company’s governance structure has been updated with the election of new members to both the board and supervisory board[183]. - The bank has a diverse board with members holding advanced degrees, including PhDs and master's degrees, ensuring a high level of expertise in decision-making[190][191][192][193]. Risk Management - The bank emphasized risk control, integrating risk management into business operations, and established a leadership group for non-performing asset recovery[17]. - The bank's commitment to compliance and risk management has led to improved risk control capabilities[17]. - Strengthened credit risk management by improving credit risk policies and implementing proactive credit limit management[148]. - Implemented a comprehensive liquidity risk management strategy, ensuring liquidity safety and stability[153]. - The bank has developed a robust operational risk management framework, ensuring effective identification and control of operational risks[151]. Customer and Market Engagement - Retail effective customer base increased by 360,000, with mobile banking customers reaching 13.67 million, ranking second among national city commercial banks[21]. - The bank provided liquidity support totaling RMB 6.55 trillion to financial institutions, contributing to market stability[124]. - The company has launched the "E-commerce Payment" service, with a cumulative registered user base of 11.54 million, an increase of 809,000 users compared to the previous year[120]. - The total number of corporate clients reached 453,800, with 90,200 new accounts opened during the reporting period, of which 38,500 were first-time accounts, accounting for 42.68%[98]. Strategic Initiatives - The bank aims to support the real economy by increasing loan issuance to key sectors and small and micro enterprises[17]. - The company launched the first "Technology Achievement Transformation Loan" business, enhancing its service offerings for science and technology enterprises[105]. - The company is committed to enhancing its ESG performance, actively directing credit resources towards energy-saving and environmentally friendly industries[157]. - The bank plans to strengthen its service capabilities by integrating financial and non-financial services, enhancing customer experience through digital transformation[159]. Awards and Recognition - The bank received multiple awards in 2023, including the "Best Social Responsibility Bank" and "Best Brand Construction Bank"[10]. - The bank's ranking in the 2023 Global 1000 Banks by The Banker magazine improved by 35 positions to 145th globally[25]. Shareholder Information - The total issued ordinary shares of the bank reached 36,549,823,322 shares, including 6,945,000,000 H shares and 29,604,823,322 domestic shares[162]. - The top ten shareholders collectively hold 40.06% of the bank's issued ordinary shares, with the largest shareholder, Henan Investment Group Co., Ltd., owning 6.20%[168]. - The bank has no significant contingent liabilities as of December 31, 2023, apart from those disclosed in the financial statements[163].
中原银行(01216) - 2023 - 年度业绩