贵州银行(06199) - 2023 - 中期业绩

Company Overview Company Profile and Basic Information Guizhou Bank, established in 2012 and listed in 2019, reported 575.418 billion yuan in total assets by mid-2023 and ranked 252nd globally among banks - Guizhou Bank was established through the merger and restructuring of Zunyi, Anshun, and Liupanshui City Commercial Banks, and was listed on the Main Board of the Hong Kong Stock Exchange on December 30, 2019[8] Key Financial Indicators (As of June 30, 2023) | Indicator | June 30, 2023 | | :--- | :--- | | Total Assets | 575.418 billion yuan | | Total Loans and Advances | 320.991 billion yuan | | Total Deposits | 357.648 billion yuan | | Non-performing Loan Ratio | 1.38% | | Provision Coverage Ratio | 367.84% | | Capital Adequacy Ratio | 13.24% | | Branches | 225 (within Guizhou Province) | - Guizhou Bank ranked 252nd globally in The Banker magazine's 2023 Top 1000 World Banks list[8] Financial Highlights Core Financial Indicators In H1 2023, the bank saw 6.90% revenue growth and 1.00% net profit increase, with asset quality improving despite a decline in profitability metrics Operating Performance (H1 2023) | Operating Performance (H1 2023) | Amount (Million Yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 6,429.95 | 6.90% | | Net Interest Income | 5,036.29 | -0.40% | | Net Fee and Commission Income | 201.54 | -19.85% | | Total Profit | 2,570.56 | 2.26% | | Net Profit | 2,206.35 | 1.00% | Scale and Asset Quality (As of June 30, 2023) | Scale and Asset Quality (As of June 30, 2023) | Value | Change from End of 2022 | | :--- | :--- | :--- | | Total Assets (Million Yuan) | 575,418.14 | 7.80% | | Total Loans and Advances (Million Yuan) | 320,991.28 | 9.36% | | Total Deposits (Million Yuan) | 357,647.53 | 9.60% | | Non-performing Loan Ratio | 1.38% | -0.09 percentage points | | Provision Coverage Ratio | 367.84% | +16.63 percentage points | | Capital Adequacy Ratio | 13.24% | -0.58 percentage points | - Profitability indicators declined: net interest margin decreased from 2.30% to 2.16%, net interest yield from 2.26% to 2.07%, and average return on assets (ROA) and average return on equity (ROE) also decreased by 0.05 and 1.30 percentage points, respectively[9] Management Discussion and Analysis (MD&A) Operating Performance Analysis In H1 2023, the bank achieved robust business growth with nearly 10% increase in assets, deposits, and loans, alongside stable asset quality and improved operating efficiency - The bank established seven key development directions, including focusing on "Four Modernizations" construction, expanding rural markets, developing green finance, strengthening small and micro businesses, accelerating digital transformation, solidifying risk management, and actively supplementing capital[12] Core Operating Indicators (As of June 30, 2023) | Core Operating Indicators (As of June 30, 2023) | Amount/Ratio | Increase from Beginning of Year | | :--- | :--- | :--- | | Total Assets | 575.418 billion yuan | 7.80% | | Total Loans and Advances | 320.991 billion yuan | 9.36% | | Total Deposits | 357.648 billion yuan | 9.60% | | Operating Revenue (H1) | 6.430 billion yuan | 6.90% (YoY) | | Net Profit (H1) | 2.206 billion yuan | 1.00% (YoY) | | Non-performing Loan Ratio | 1.38% | -0.09 percentage points | Corporate Banking Business Corporate banking saw steady growth in deposits and loans, improved asset quality, and significant lending increases in agricultural modernization and new industrialization Corporate Banking Core Data (As of June 30, 2023) | Corporate Banking Core Data (As of June 30, 2023) | Amount/Ratio | Growth from Beginning of Year | | :--- | :--- | :--- | | Corporate Deposits | 175.585 billion yuan | 8.24% | | Corporate Loans | 269.578 billion yuan | 7.72% | | Corporate Loan NPL Ratio | 1.23% | -0.14 percentage points | - Strong loan growth in areas focused on serving the "Four Modernizations" initiatives: - Agricultural Modernization Loans: Balance of 20.327 billion yuan, up 34.30% from the beginning of the year[16] - New Industrialization Loans: Balance of 22.507 billion yuan, up 27.22% from the beginning of the year[16] - Tourism Industrialization Loans: Balance of 18.622 billion yuan, up 6.67% from the beginning of the year[16] - New Urbanization Loans: Balance of 160.582 billion yuan, up 1.94% from the beginning of the year[16] - Continued growth in green finance and rural revitalization loans: - Green Credit Balance: 50.879 billion yuan, an increase of 4.249 billion yuan from the beginning of the year[18] - Rural Revitalization Loan Balance: 59.139 billion yuan, an increase of 8.190 billion yuan from the beginning of the year, a 16.08% increase[19] Retail Banking Business Retail banking saw significant revenue and profit growth, steady increases in personal deposits and loans, and strong expansion in inclusive small and and micro enterprise lending Retail Banking Core Data (H1 2023) | Retail Banking Core Data (H1 2023) | Amount/Ratio | YoY/Growth from Beginning of Year | | :--- | :--- | :--- | | Business Revenue | 1.377 billion yuan | 25.84% (YoY) | | Pre-tax Profit | 0.862 billion yuan | 49.32% (YoY) | | Personal Deposits | 166.874 billion yuan | 11.92% (from beginning of year) | | Personal Loans | 43.913 billion yuan | 12.88% (from beginning of year) | - Inclusive small and micro business grew rapidly, with loan balance reaching 44.930 billion yuan by the end of the reporting period, an 18.44% increase from the beginning of the year; customer count reached 48,100, a significant 47.09% increase from the beginning of the year[22] - Consumer finance asset balance reached 30.64 billion yuan, an increase of 1.966 billion yuan from the beginning of the year; cumulative credit card issuance reached 829,100, a 24.30% year-on-year increase[23] Financial Markets and Asset Management Business Financial markets business saw steady growth in net financial investments and treasury revenue, while asset management focused on net-value products and "fixed income plus" strategies Financial Markets Business Core Data (As of June 30, 2023) | Financial Markets Business Core Data (As of June 30, 2023) | Amount/Ratio | Change from Beginning of Year/YoY Change | | :--- | :--- | :--- | | Net Financial Investments | 217.125 billion yuan | 7.53% (from beginning of year) | | Treasury Business Operating Revenue (H1) | 1.720 billion yuan | - | | Outstanding Wealth Management Products Net Value Scale | 23.795 billion yuan | - | - The bank adheres to a safety and liquidity-first strategy, dynamically adjusting its asset portfolio and continuously expanding the breadth and depth of interbank cooperation[27] Income Statement Analysis H1 2023 net profit grew 1.00% to 2.206 billion yuan, driven by strong non-interest income growth despite a slight decline in net interest income Key Income Statement Items (H1 2023) | Key Income Statement Items (H1 2023) | Amount (Million Yuan) | YoY Change (%) | | :--- | :--- | :--- | | Net Interest Income | 5,036.29 | -0.40% | | Net Fee and Commission Income | 201.54 | -19.85% | | Net Trading Gains | 506.88 | 88.23% | | Net Gains on Investment Securities | 502.65 | 24.67% | | Operating Revenue | 6,429.95 | 6.90% | | Operating Expenses | (1,695.35) | 3.17% | | Asset Impairment Losses | (2,155.54) | 15.69% | | Net Profit | 2,206.35 | 1.00% | - The primary reason for the decrease in net interest income was the narrowing net interest margin. The scale effect (+436 million yuan) was insufficient to offset the negative impact from interest rate changes (-456 million yuan), resulting in a year-on-year decrease of 20 million yuan in net interest income[35] - Net fee and commission income decreased by 19.85%, primarily due to reduced income from guarantee and commitment business and fund supervision and advisory business, which decreased by 19.30% and 50.23% year-on-year, respectively[42] Balance Sheet Analysis By mid-2023, total assets grew 7.80% to 575.418 billion yuan, driven by increases in loans and financial investments, supported by a 9.60% rise in deposits Asset Structure (As of June 30, 2023) | Asset Structure (As of June 30, 2023) | Amount (Million Yuan) | % of Total Assets | | :--- | :--- | :--- | | Net Loans and Advances | 307,132.23 | 53.39% | | Financial Investments | 217,125.20 | 37.73% | | Cash and Balances with Central Banks | 22,987.28 | 3.99% | | Total Assets | 575,418.14 | 100.00% | Liability Structure (As of June 30, 2023) | Liability Structure (As of June 30, 2023) | Amount (Million Yuan) | % of Total Liabilities | | :--- | :--- | :--- | | Deposits Absorbed | 357,647.53 | 67.67% | | Debt Instruments Issued | 93,332.67 | 17.66% | | Borrowings from Central Banks | 37,591.80 | 7.11% | | Total Liabilities | 528,496.90 | 100.00% | - Total loans and advances increased by 9.36% from the beginning of the year, with corporate loans growing by 7.72% and personal loans by 12.88%[53][55] - Among deposits absorbed, corporate demand deposits and personal time deposits grew relatively fast, increasing by 11.08% and 15.54% respectively from the beginning of the year[63] Loan Quality Analysis By mid-2023, asset quality improved with NPL ratio at 1.38%, though real estate NPLs remained high, and loan concentration risk was notable Loan Five-Category Classification (As of June 30, 2023) | Loan Five-Category Classification (As of June 30, 2023) | Amount (Million Yuan) | % of Total | | :--- | :--- | :--- | | Pass Loans | 308,201.74 | 96.01% | | Special Mention Loans | 8,372.89 | 2.61% | | Substandard Loans | 1,571.87 | 0.49% | | Doubtful Loans | 2,209.64 | 0.69% | | Loss Loans | 635.14 | 0.20% | | Total Non-performing Loans | 4,416.65 | 1.38% | - The non-performing loan ratio for the real estate industry remained high at 19.13%, but decreased from 20.21% at the beginning of the year, with the NPL balance reducing by 421 million yuan[72][73] - The non-performing loan ratio for personal loans increased from 2.29% at the beginning of the year to 2.49%, primarily due to rising NPLs in personal business loans and credit cards[69][70] - As of the end of the reporting period, the overdue loan ratio was 1.86%, consistent with the beginning of the year, while the proportion of loans overdue for more than three months increased[76] Segment Reporting Corporate banking remained the largest revenue contributor at 51.75%, while retail banking and treasury business significantly increased their revenue and profit contributions Operating Revenue by Business Segment (H1 2023) | Operating Revenue by Business Segment (H1 2023) | Amount (Million Yuan) | % of Total Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | | Corporate Banking | 3,327.61 | 51.75% | -12.07% | | Retail Banking | 1,376.75 | 21.41% | 25.84% | | Treasury Business | 1,719.95 | 26.75% | 51.50% | Pre-tax Profit by Business Segment (H1 2023) | Pre-tax Profit by Business Segment (H1 2023) | Amount (Million Yuan) | YoY Change (%) | | :--- | :--- | :--- | | Corporate Banking | 1,226.48 | -2.11% | | Retail Banking | 861.72 | 49.32% | | Treasury Business | 489.43 | -29.15% | Capital Adequacy Ratio By mid-2023, all capital adequacy ratios met regulatory requirements despite slight declines due to increased risk-weighted assets Capital Adequacy Ratio Indicators | Capital Adequacy Ratio Indicators | June 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 Capital Adequacy Ratio | 10.93% | 11.20% | -0.27% | | Tier 1 Capital Adequacy Ratio | 11.84% | 11.91% | -0.06% | | Capital Adequacy Ratio | 13.24% | 13.82% | -0.58% | | Total Risk-Weighted Assets (Million Yuan) | 382,838.30 | 356,341.99 | +7.44% | Risk Management The bank maintained a comprehensive risk management system, with all major risks, including credit, market, and liquidity, remaining controllable and within regulatory limits - The bank's risk management adopts a "three lines of defense" model: business departments as the first line, risk and compliance departments as the second, and audit departments as the third[83][87] - Credit risk management: Adhering to a "prudent and balanced" risk appetite, strengthening credit fundamental management, and maintaining stable asset quality[83] - Market risk management: Primarily interest rate risk, managed through Value-at-Risk (VaR), limit management, and sensitivity analysis, with all risk indicators within limits during the reporting period[84][85] - Liquidity risk management: As of the end of the reporting period, the liquidity coverage ratio was 374.64% and the net stable funding ratio was 111.29%, both meeting regulatory requirements and indicating ample reserves[99][100] - During the reporting period, the bank experienced no significant technology risk, operational risk, money laundering risk, legal risk, or reputational risk events[86][87][88][89][90] Information Technology and Digital Transformation In H1 2023, the bank advanced digital transformation by establishing a dedicated department, launching an intelligent micro-loan system, and implementing digital projects across various business areas - A Digital Finance Department was established to coordinate bank-wide digital transformation efforts, with 66 transformation tasks formulated[103] - An intelligent micro-loan system was built, centralizing credit operations, and enabling rapid development and launch of "Business Express Loan" and "Rural Prosperity Loan" products[104] - Data governance was deepened, with 5 data development knowledge bases established; active users on the BI platform increased by 142% year-on-year, and operation frequency grew by 488%, demonstrating significant data-driven decision-making empowerment[105] Social Responsibility The bank actively fulfilled social responsibilities through rural revitalization, inclusive and green finance, establishing 2,100 rural service points, and growing inclusive small and micro enterprise loans by 18.44% - Fully supporting rural revitalization, cumulatively establishing 2,100 rural benefit service points to bridge the "last mile" of financial services[106] - Dedicated to developing private small and micro businesses, inclusive small and micro enterprise loan balance increased by 6.995 billion yuan from the beginning of the year, a growth rate of 18.44%[106] - Actively developing green finance, successfully launching Guizhou Province's first carbon emission reduction support loan by a local legal entity financial institution[107] - Organized over 1,600 financial literacy education and promotion activities, reaching over 620,000 consumers[107] Share Capital and Shareholder Information Share Capital Structure By mid-2023, the bank's total share capital remained unchanged at 14.588 billion shares, with domestic shares comprising 84.92% and H-shares 15.08% Share Class | Share Class | Number of Shares | % of Total Share Capital | | :--- | :--- | :--- | | Domestic Shares | 12,388,046,744 | 84.92% | | H-Shares | 2,200,000,000 | 15.08% | | Total Share Capital | 14,588,046,744 | 100.00% | Major Shareholders and Share Pledges By mid-2023, the top two shareholders held 18.29% and 12.00% respectively, with significant share pledges by some major shareholders restricting voting rights for 6.23% of total share capital Top Three Shareholders | Top Three Shareholders | Shareholding (%) | | :--- | :--- | | Guizhou Provincial Department of Finance | 18.29% | | China Guizhou Maotai Distillery (Group) Co., Ltd. | 12.00% | | Zunyi State-owned Assets Investment and Financing Management Co., Ltd. | 6.55% | - Major shareholder share pledge status: - Zunyi State-owned Assets Investment and Financing Management Co., Ltd.: Holds 955 million shares, of which 475 million shares (approx. 49.7%) are pledged[133] - Renhuai State-owned Assets Investment and Financing Management Co., Ltd.: Holds 104 million shares, of which 100 million shares (approx. 95.9%) are pledged[133] - Due to shareholders pledging 50% or more of their holdings in the bank, the voting rights for a total of 909 million domestic shares (accounting for 6.23% of total share capital) held by 13 domestic shareholders are restricted[134] Directors, Supervisors, Senior Management, and Employees Overview of Directors, Supervisors, and Senior Management By the end of the reporting period, the bank's Board of Directors had 17 members, the Board of Supervisors 7, and senior management 7, with some personnel changes - The Board of Directors consists of 17 directors, including 3 executive directors, 7 non-executive directors, and 7 independent non-executive directors (of whom 5 new directors' qualifications are pending approval)[137][138] - The Board of Supervisors consists of 7 supervisors, including 3 employee supervisors, 2 shareholder supervisors, and 2 external supervisors[140] - The senior management team comprises 7 members, including the President, 3 Vice Presidents, Board Secretary, Chief Compliance Officer, and Assistant President[142] Employee Information By June 2023, the bank employed 5,366 staff, with over 70% under 40 and 86.50% holding bachelor's degrees or higher Employee Composition (As of June 30, 2023) | Employee Composition (As of June 30, 2023) | Number of Employees | % of Total | | :--- | :--- | :--- | | Total Employees | 5,366 | 100% | | 40 years old and below | 3,789 | 70.61% | | Female Employees | 2,810 | 52.37% | | Bachelor's degree and above | 4,641 | 86.50% | Corporate Governance Corporate Governance Overview The bank maintained a robust corporate governance framework, complying with Hong Kong Listing Rules and ensuring effective oversight through its Board, Supervisory Board, and their respective committees - During the reporting period, the bank complied with all code provisions of the Corporate Governance Code in Appendix 14 of the Hong Kong Listing Rules[177] - The Board of Directors has six specialized committees: Strategy and Development, Audit, Nomination and Remuneration, Risk and Connected Transactions Management, Compliance Management, and ESG Management[183] - The Board of Supervisors has two specialized committees: the Supervision Committee and the Nomination, Remuneration and Appraisal Committee[187] - The bank adopted the "Model Code" to regulate securities transactions by directors, supervisors, and relevant employees, with all relevant personnel confirming compliance during the reporting period[191] Significant Matters Dividends and Connected Transactions The bank distributed a 875 million yuan final dividend for 2022 but no 2023 interim dividend, while approving two significant connected transactions under fair terms - The bank distributed a final dividend for 2022 totaling 875 million yuan, but will not declare an interim dividend for 2023[202] - Two significant connected transactions were approved during the reporting period, both conducted on terms no more favorable than comparable transactions with non-connected parties, in compliance with regulatory requirements[205] Major Litigation and Penalties By mid-2023, the bank had 5 pending plaintiff cases totaling 1.982 billion yuan and 2 defendant cases totaling 199 million yuan, with no material adverse impact expected or significant penalties received Major Pending Litigation/Arbitration (As of June 30, 2023) | Major Pending Litigation/Arbitration (As of June 30, 2023) | Number of Cases | Principal Amount Involved (Million Yuan) | | :--- | :--- | :--- | | As Plaintiff/Applicant | 5 | 1,982 | | As Defendant/Respondent | 2 | 199 | - During the reporting period, the bank, its directors, supervisors, and senior management were not subject to investigations by competent authorities, compulsory measures, or significant administrative penalties[208] Interim Financial Information Review Report Auditor's Review Opinion The bank's interim financial information received an unmodified review opinion from BDO Limited, Hong Kong, confirming its preparation in accordance with IAS 34 - BDO Limited, Hong Kong, issued an unmodified review report on the interim financial information[215][217] - The scope of a review is significantly narrower than an audit, thus the auditor does not express an audit opinion[216] Financial Statements and Notes Income Statement H1 2023 saw operating revenue grow 6.9% to 6.430 billion yuan and net profit increase 1.0% to 2.206 billion yuan, primarily driven by non-interest income Income Statement Summary (For the Six Months Ended June 30, 2023) | Income Statement Summary (For the Six Months Ended June 30, 2023) | Amount (Thousand Yuan) | YoY Change | | :--- | :--- | :--- | | Net Interest Income | 5,036,294 | -0.4% | | Net Fee and Commission Income | 201,536 | -19.9% | | Operating Revenue | 6,429,950 | +6.9% | | Asset Impairment Losses | (2,155,535) | +15.7% | | Profit Before Tax | 2,570,558 | +2.3% | | Net Profit | 2,206,348 | +1.0% | | Total Comprehensive Income | 2,826,046 | +25.4% | Balance Sheet By mid-2023, total assets reached 575.418 billion yuan (+7.8%), driven by loans and deposits, with total equity growing 6.7% Balance Sheet Summary (As of June 30, 2023) | Balance Sheet Summary (As of June 30, 2023) | Amount (Thousand Yuan) | Change from Beginning of Year | | :--- | :--- | :--- | | Total Assets | 575,418,143 | +7.8% | | Loans and Advances | 307,132,233 | +9.8% | | Financial Investments | 217,125,201 | +7.5% | | Total Liabilities | 528,496,898 | +7.9% | | Deposits Absorbed | 357,647,528 | +9.6% | | Debt Instruments Issued | 93,332,673 | +10.1% | | Total Equity | 46,921,245 | +6.7% | Statement of Changes in Equity By mid-2023, total equity reached 46.921 billion yuan, primarily increasing from net profit and perpetual bond issuance, offset by 875 million yuan in dividend distributions - Beginning-of-period total equity was 43.971 billion yuan, increasing to 46.921 billion yuan by period-end, a net increase of 2.951 billion yuan[230] - Key items affecting equity changes include: - Net Profit: +2.206 billion yuan - Other Comprehensive Income: +620 million yuan - Issuance of Perpetual Capital Bonds: +1 billion yuan - Appropriation to General Risk Reserve: +520 million yuan (internal transfer) - Distributions to Shareholders: -875 million yuan[230] Cash Flow Statement H1 2023 saw operating cash flow improve to 392 million yuan, driven by increased deposits, with significant financing cash inflows from bond issuance Cash Flow Statement Summary (For the Six Months Ended June 30, 2023) | Cash Flow Statement Summary (For the Six Months Ended June 30, 2023) | Amount (Thousand Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 391,913 | | Net Cash Flow Used in Investing Activities | (1,339,866) | | Net Cash Flow from Financing Activities | 8,279,051 | | Net Increase in Cash and Cash Equivalents | 7,335,350 | | Cash and Cash Equivalents at End of Period | 62,163,586 | Supplementary Financial Information Regulatory Indicators By mid-2023, the bank's liquidity coverage ratio of 374.64% and leverage ratio of 7.77% significantly exceeded regulatory requirements, indicating strong financial health Regulatory Indicators | Regulatory Indicators | June 30, 2023 | Regulatory Requirement | | :--- | :--- | :--- | | Liquidity Coverage Ratio | 374.64% | ≥ 100% | | Leverage Ratio | 7.77% | ≥ 4% |