Chongqing Rural Commercial Bank(HK:03618)2024-03-28 14:06Financial Performance - Net profit for the year was RMB 11.125 billion, reflecting a growth of 6.18% compared to RMB 10.478 billion in 2022[7]. - Revenue for the year was CNY 28 billion, with a net profit of CNY 11.1 billion, showing a growth rate of 6.18%[26]. - Operating income totaled RMB 27,957.2 million, down 3.40% from RMB 28,941.3 million in 2022[43]. - Net profit attributable to shareholders was RMB 10,902.4 million, reflecting a growth of 6.10% from RMB 10,275.6 million in 2022[43]. - Basic earnings per share for 2023 was RMB 0.94, an increase of RMB 0.05 compared to RMB 0.89 in 2022[43]. - The average return on total assets remained stable at 0.80%[43]. - The cost-to-income ratio was 33.94%, an increase from 31.90% in the previous year[43]. Asset and Loan Growth - Total assets reached RMB 1,441.5 billion, an increase of 6.60% from RMB 1,352.3 billion in 2022[7]. - Total loans amounted to RMB 676.7 billion, up 6.96% from RMB 632.7 billion in 2022[7]. - Total deposits increased to RMB 824.9 billion, representing an 8.64% growth from RMB 759.4 billion in 2022[7]. - The total amount of loans and advances to customers was RMB 676.71 billion, with a non-performing loan balance of RMB 8.06 billion, an increase of RMB 0.34 billion year-on-year[107]. - The total customer deposits reached RMB 896.20 billion, an increase of RMB 71.26 billion, with a growth rate of 8.64% year-on-year[95]. Risk Management - The non-performing loan ratio was 1.22%, a slight decrease from 1.25% in 2022[8][9]. - The provision coverage ratio stood at 366.70%, indicating strong risk management practices[10]. - The bank has no significant risks that require special attention from investors, as detailed in the risk management section of the report[15]. - The impairment provision for loans increased to RMB 29,433.8 million by December 31, 2023, from RMB 27,591.7 million at the end of 2022, reflecting a proactive approach to risk management[115]. - The company has implemented a comprehensive risk management system, enhancing monitoring and proactive response to risk changes in the new normal[172]. Digital Transformation and Innovation - The company aims to enhance digital transformation as a driving force for innovation and development, focusing on four key value areas: digital development, intelligent risk control, smart outlets, and beneficial operations[26]. - The company has established a financial technology organization structure to improve independent research and development capabilities, with the proportion of financial technology talent increasing to 4.13%[26]. - The bank has launched three online products with a scale of over RMB 10 billion each, enhancing the convenience of financial services[20]. - The company has actively engaged in digital transformation, with the establishment of Chongqing Yuyin Financial Technology Co., Ltd. to enhance its digital banking framework[20]. - The intelligent data decision platform provided 422 million decision services in 2023, with a daily average of 1.156 million, representing a year-on-year increase of 156% and a decision success rate of 99.9%[147]. Green Finance and Social Responsibility - The bank's green credit balance reached RMB 62 billion, with a year-on-year growth of 27.2%[22]. - The bank has been recognized as a financial institution for carbon reduction support tools, contributing to the construction of a green finance reform and innovation pilot zone[22]. - The company is committed to supporting rural revitalization and small enterprises, aligning with the dual circulation development trend[34]. - The company has issued nearly 13 billion yuan in rural revitalization financial products, with a current scale of over 10 billion yuan[157]. - The company has supported over 80% of the entrepreneurial guarantee loans in Chongqing, serving more than two-thirds of the "specialized, refined, distinctive, and innovative" enterprises in the region[21]. Market Position and Recognition - The bank's industry ranking has risen to 115th globally, maintaining its leading position among banks in Central and Western China and nationwide rural commercial banks[19]. - The company has been recognized in multiple rankings, including 430th in the 2023 Fortune China 500 and 142nd in the Brand Finance Global Banking 500[41]. - The company maintained a Moody's rating of Baa2 (stable) and was rated A-class by the State Administration of Foreign Exchange for eight consecutive years[139]. Operational Efficiency - The group achieved a net interest income change of RMB 1.237 billion, impacted by average asset and liability balance changes, while a decrease of RMB 3.148 billion was due to changes in average yield and cost rates[64]. - The group reported a significant increase in transaction net income of RMB 1.886 billion, up RMB 687.4 million, reflecting a growth rate of 174.43%[69]. - The group has strengthened its digital transformation efforts, leading to increased investments in digital infrastructure and technology talent[71]. - The company plans to enhance its digital banking transformation and improve credit risk management to maintain asset quality in 2024[164]. - The company aims to optimize its asset-liability structure to mitigate the narrowing of net interest margin in the face of external uncertainties[166].