Chongqing Rural Commercial Bank(HK:03618)2023-03-30 14:11Financial Performance - Chongqing Rural Commercial Bank reported its audited annual performance for the year ending December 31, 2022[1]. - The financial report for 2022 was audited by KPMG, which issued an unqualified opinion on the financial statements[4]. - In 2022, the company achieved a net profit of 10.478 billion yuan, an increase of 759 million yuan, representing a year-on-year growth of 7.81%[151]. - Net interest income for 2022 was RMB 25,404.2 million, a decrease of 3.17% compared to RMB 26,234.8 million in 2021[44]. - Non-interest income was RMB 3,537.1 million, down 23.35% from RMB 4,614.8 million in the previous year[44]. - The bank's total operating income for 2022 was RMB 28,941.3 million, a decrease of 6.19% from RMB 30,849.6 million in 2021[44]. - The bank's return on average total assets was 0.80%, a slight decrease from 0.81% in the previous year[44]. - The bank's net interest margin decreased to 1.84%, down from 2.01% in 2021[44]. - The cost-to-income ratio increased to 31.90%, compared to 27.51% in the previous year[44]. - The bank's basic earnings per share for 2022 was RMB 0.89, up from RMB 0.84 in 2021[44]. Assets and Liabilities - In 2022, the company's total assets exceeded 1.35 trillion RMB, with deposits of 824.9 billion RMB and loans of 632.7 billion RMB[9]. - Total assets reached RMB 1,352.30 billion, an increase of RMB 86.01 billion or 6.79% compared to the previous year[48]. - Customer loan balance stood at RMB 632.68 billion, growing by RMB 50.51 billion or 8.68% year-on-year[48]. - Customer deposits totaled RMB 824.95 billion, representing 66.70% of total liabilities[92]. - Total liabilities reached RMB 1,236.84 billion, an increase of RMB 77.04 billion or 6.64% from the previous year[92]. - The proportion of personal deposits in total customer deposits increased by 2.56 percentage points year-on-year, reaching 82.11%[95]. Risk Management - The bank confirmed no non-operational fund occupation by controlling shareholders or related parties[5]. - There are no significant risks that require special attention from investors, as detailed in the risk management section of the report[5]. - The company emphasizes risk management, improving its ability to anticipate and address market changes[14]. - The company implemented dynamic classification management to address external risks and improve asset quality, resulting in a decrease in the non-performing loan ratio[101]. - The company’s risk control engine was successfully launched, achieving initial digitalization and automation of risk monitoring[136]. - The group implemented a comprehensive risk management framework, enhancing risk identification and control capabilities, and established a closed-loop risk control mechanism for online credit products[158]. Digital Transformation - The company is focusing on digital transformation, with a full online process for loan management and intelligent marketing[14]. - The company launched over 10 self-developed online products, with mobile banking customers surpassing 13.52 million and online loan balances exceeding 120 billion RMB[9]. - The bank's digital transformation initiatives included the launch of a mobile banking app and the implementation of AI-driven customer service solutions[39]. - The company aims to enhance digital management and build a big data platform for corporate business, achieving customer insights and integrating comprehensive services into the customer business ecosystem[25]. - The company is committed to enhancing financial services for new citizens, focusing on housing and consumption to improve the public's sense of gain and happiness[11]. Customer Engagement and Services - The number of effective merchants increased by 44%, and transaction volume surged by 246%, with a total customer base reaching 28 million, accounting for nearly 90% of the city's population[9]. - The company is committed to creating greater value for shareholders, employees, and society as the national economy recovers[15]. - The company aims to strengthen its "big retail" strategy by enhancing customer engagement and marketing efficiency[13]. - The company has implemented 34 times more robotic process automation scenarios, enhancing operational efficiency[12]. - The online loan application and renewal rates exceeded 90% and 95% respectively, optimizing service functionalities for small and micro enterprises[10]. Strategic Goals and Future Plans - The company aims to become a leading regional bank in China, focusing on "retail banking, technology-driven operations, and talent development" as its strategic goals[19]. - The company plans to continue leveraging monetary policy tools to manage deposit costs effectively[56]. - The company expects overall credit risk to remain controllable in 2023, with key asset quality indicators maintaining good levels compared to peers[155]. - The company plans to maintain the net interest margin at a reasonable level in 2023, focusing on increasing the proportion of low-cost liabilities[153]. - The company aims to enhance retail loan marketing efforts and support small and micro enterprises through tailored products and services[154]. Regulatory Compliance and Governance - The bank operates under the supervision of the China Banking and Insurance Regulatory Commission[3]. - The board meeting that approved the annual report had full attendance from the directors[4]. - The company has revised its related party transaction management measures to comply with regulatory requirements and enhance transaction approval processes[179]. - The bank has established a reputation risk management mechanism to enhance classification management and emergency response to negative public sentiment[176]. - The bank has improved its information technology risk management system, with no significant incidents reported during the reporting period[177].