Financial Performance - For the year ended December 31, 2023, Jinshang Bank reported interest income of RMB 11,614.9 million, an increase of 8.3% from RMB 10,728.8 million in 2022[3]. - Net interest income rose by 17.9% to RMB 4,236.2 million, compared to RMB 3,593.0 million in the previous year[3]. - The bank's net profit for 2023 was RMB 2,000.6 million, reflecting a 9.0% increase from RMB 1,835.4 million in 2022[5]. - The operating revenue for 2023 reached RMB 5.80 billion, an increase of RMB 540 million year-on-year[16]. - Total operating income for 2023 reached RMB 5,802.2 million, a 10.3% increase from RMB 5,260.2 million in 2022[101]. - The company's net profit for the year ended December 31, 2023, increased by 9.0% to RMB 2,000.6 million from RMB 1,835.4 million in 2022[20]. - The company's total comprehensive income for 2023 was RMB 2,043,033 thousand, up from RMB 1,779,928 thousand in 2022, reflecting a growth of approximately 15%[146]. Asset and Liability Management - Total assets increased by 7.4% to RMB 361,305.0 million, up from RMB 336,419.5 million in 2022[6]. - The bank's total liabilities increased by 7.5% to RMB 336,492.2 million, compared to RMB 313,065.9 million in 2022[6]. - The total amount of deposits as of December 31, 2023, reached RMB 288,250.4 million, marking a 13.6% increase from RMB 253,770.9 million as of December 31, 2022[73]. - The total amount of loans and advances issued by the group was RMB 191,436.1 million, a slight increase from RMB 186,051.9 million as of December 31, 2022[83]. - The total amount of bond investments reached RMB 71,561.6 million as of December 31, 2023, a 26.2% increase compared to December 31, 2022, due to optimized asset-liability structure[126]. Credit Quality and Risk Management - The non-performing loan ratio improved slightly to 1.78% from 1.80% in the previous year[8]. - The provision coverage ratio was 198.71%[16]. - The company's non-performing loan (NPL) ratio for corporate loans decreased from 2.52% as of December 31, 2022, to 2.16% as of December 31, 2023, with the NPL balance reducing from RMB 2,759.5 million to RMB 2,602.7 million[91]. - The total amount of non-performing loans as of December 31, 2023, was RMB 3,412.3 million, with a total NPL ratio of 1.78%[92]. - The company plans to enhance credit support for the real economy while actively managing non-performing loans through improved collection efforts[82]. Capital Adequacy and Financial Ratios - The bank's capital adequacy ratio rose to 13.17%, an increase of 0.77% from 12.40% in 2022[9]. - The core tier 1 capital ratio as of December 31, 2023, was 11.14%, up 0.64 percentage points from 10.50% at the end of 2022[104]. - The leverage ratio decreased to 5.92% as of December 31, 2023, down 0.10 percentage points from 6.02% at the end of 2022[104]. - The cost-to-income ratio improved slightly from 39.93% in 2022 to 38.94% in 2023, indicating better operational efficiency[44]. Operational Efficiency and Expenses - Operating expenses increased by 7.4% from RMB 2,186.7 million in 2022 to RMB 2,348.4 million in 2023, primarily due to rising labor costs and other general and administrative expenses[44]. - Labor costs rose by 8.0% from RMB 1,326.8 million in 2022 to RMB 1,432.4 million in 2023, with significant increases in social insurance and pensions by 21.1%[45][46]. - The net commission and fee income decreased by 4.2% from RMB 734.0 million to RMB 702.9 million, with total commission and fee income dropping by 8.1%[39]. Strategic Initiatives and Future Outlook - The company plans to focus on high-quality development and digital transformation in 2024, emphasizing structural reforms in financial supply[18]. - The company aims to enhance its risk management framework and compliance standards to ensure stable growth[17]. - The organization is undergoing a transformation to strengthen its operational capabilities and improve the overall quality of its workforce[17]. - The company has implemented a digital transformation strategy focused on enhancing customer experience and operational management, including the launch of a new mobile banking app and remote video banking services[130]. Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Listing Rules, maintaining high standards of transparency and accountability[133]. - The board consists of 12 members, including 2 executive directors and 5 independent non-executive directors, ensuring compliance with governance standards[134]. - The company has confirmed compliance with the securities trading standards for directors and supervisors during the reporting period[138]. Market and Economic Context - In 2023, China's GDP grew by 5.2% year-on-year, reaching RMB 12.61 trillion[14]. - The total retail sales of consumer goods in China for 2023 amounted to RMB 4.71 trillion, reflecting a year-on-year growth of 7.2%[14]. - The total fixed asset investment in China for 2023 was RMB 5.03 trillion, with high-tech industry investment growing by 10.3%[14].
晋商银行(02558) - 2023 - 年度业绩