Bank Rankings and Achievements - Bank of Gansu ranked 55th in the "Top 100 Chinese Banks" list for 2023, marking its 8th consecutive year in the ranking[3]. - The bank achieved a ranking of 315th in the "2023 Global Top 1000 Banks" by The Banker magazine, with a domestic ranking of 63rd based on Tier 1 capital[3]. - The bank has received the provincial financial award for the 10th time, reflecting its commitment to excellence in financial services[3]. - Gansu Bank was awarded the "Best Retail Business Small and Medium Bank" in 2023 by Contemporary Banker magazine[12]. Financial Performance - In 2023, Gansu Bank reported a net interest income of RMB 5,434.5 million, an increase of 7.2% from RMB 5,067.9 million in 2022[13]. - The total operating income for 2023 was RMB 6,665.1 million, up from RMB 6,526.8 million in 2022, reflecting a growth of 2.1%[13]. - The bank's annual profit reached RMB 646.6 million, representing an increase of 7% compared to RMB 604.3 million in the previous year[13]. - Gansu Bank's total interest income for 2023 was RMB 13,900.6 million, slightly up from RMB 13,788.6 million in 2022[13]. - The bank's operating expenses increased to RMB 2,388.8 million in 2023 from RMB 2,337.9 million in 2022, marking a rise of 2.2%[13]. - Net profit rose by 7.0% to RMB 646.6 million in 2023, compared to RMB 604.3 million in 2022[21]. Asset and Loan Management - Total assets increased to RMB 388,588.7 million in 2023, up from RMB 377,202.5 million in 2022, representing a growth of 3.7%[14]. - Customer loans and advances totaled RMB 222,871.6 million, an increase from RMB 214,272.4 million in the previous year, reflecting a growth of 3.7%[14]. - The non-performing loan ratio was maintained at 2.00%, consistent with the previous year[14]. - The provision for impairment losses on customer loans and advances increased by 2.3% to RMB 5,781.8 million as of December 31, 2023, reflecting the company's strategy to enhance risk resistance capabilities[69]. Risk Management - The bank emphasizes the importance of risk prevention and has established a comprehensive risk management responsibility system[3]. - The bank's GRC system is used for internal control compliance and operational risk management[6]. - The bank's credit risk management strategy categorizes industries into four types: aggressive growth, selective growth, maintain share, and contraction, with tailored credit strategies for each[144]. - The bank's liquidity risk management framework emphasizes the separation of responsibilities for policy implementation and oversight[149]. Customer Deposits and Funding - The bank's total customer deposits increased to RMB 295,556.2 million, up from RMB 279,039.2 million in 2022, reflecting a growth of 5.9%[14]. - Total liabilities rose to RMB 355,408.6 million, compared to RMB 344,603.2 million in 2022, marking a 3.4% increase[14]. - The average cost of interest-bearing liabilities was 2.48%, compared to 2.64% in the previous year[29]. Strategic Goals and Future Outlook - The bank is committed to high-quality development and aims to enhance operational efficiency and quality in 2024, coinciding with the 75th anniversary of the founding of the nation[3]. - The bank's focus for 2024 includes enhancing party building, addressing weaknesses, and promoting structural adjustments[3]. - The bank plans to enhance risk management and optimize income structure as part of its strategic goals[19]. Corporate Governance and Compliance - The company is committed to maintaining a high level of corporate governance and has complied with the corporate governance code during the reporting period[179]. - The company has established a comprehensive anti-money laundering system and submits large transaction reports daily to the Chinese Anti-Money Laundering Monitoring and Analysis Center[156]. - The company has implemented a market-oriented and standardized compensation system for senior management, aligning with performance evaluations[188]. Community and Environmental Initiatives - The bank actively supports regional development initiatives and has contributed to disaster relief efforts in Gansu Province[3]. - The group has issued RMB 1 billion in "green" financial bonds to support green industry projects[197]. - The establishment of a green finance department in June 2017 focuses on promoting green finance initiatives[197].

Financial Performance - The bank's net profit for the first half of 2023 was RMB 1.5 billion, representing a growth of 10% compared to the same period last year[6]. - Profit before tax increased by 27.3% to RMB 371.4 million, compared to RMB 291.7 million in the first half of 2022[12]. - Net profit for the period was RMB 408.0 million, reflecting a 3.2% increase from RMB 395.2 million in the same period last year[12]. - The total operating income for the first half of 2023 was RMB 3,486.7 million, an increase of 15.9% from RMB 3,007.5 million in the same period of 2022[84]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 398,848 thousand, compared to RMB 371,469 thousand for the same period in 2022, reflecting an increase of approximately 7%[200]. Loan and Asset Quality - The total customer loans and advances amounted to RMB 100 billion, reflecting a year-on-year increase of 12%[6]. - The non-performing loan ratio stood at 1.5%, a decrease from 1.8% in the previous period[5]. - Customer loans and advances (including accrued interest) rose by 6.8% to RMB 228,823.5 million compared to RMB 214,272.4 million at the end of 2022[13]. - The non-performing loan ratio decreased to 1.96% from 2.00% at the end of 2022, indicating improved asset quality[15]. - The total amount of customer loans and advances was RMB 223,672.8 million as of June 30, 2023, representing a 7.8% increase from RMB 207,428.5 million as of June 30, 2022[83]. Income and Expenses - Interest income for the first half of 2023 reached RMB 7,081.6 million, a 4.8% increase from RMB 6,759.8 million in the same period of 2022[12]. - Net interest income increased by 21.0% to RMB 2,869.4 million compared to RMB 2,371.5 million in the first half of 2022[12]. - The bank's net fee and commission income decreased by 8.7% to RMB 206.9 million from RMB 226.6 million in the previous year[12]. - Operating expenses increased by 7.9% to RMB 1,052.5 million compared to RMB 975.8 million in the first half of 2022[12]. - Credit impairment losses increased by 18.6% from RMB 1,740.1 million for the six months ended June 30, 2022, to RMB 2,063.2 million for the six months ended June 30, 2023[57]. Capital and Liquidity - The bank's capital adequacy ratio is reported at 12.5%, above the regulatory requirement of 10.5%[5]. - The liquidity coverage ratio as of June 30, 2023, is 142.42%, down from 148.83% on December 31, 2022[143]. - The net stable funding ratio on June 30, 2023, is 126.03%, a decrease from 132.48% on December 31, 2022[143]. - The core tier one capital adequacy ratio is 11.71%, slightly down from 11.76% as of December 31, 2022[152]. Strategic Initiatives - The bank plans to expand its market presence by opening 10 new branches in key urban areas by the end of 2023[6]. - The bank is investing RMB 200 million in technology development to enhance its digital banking capabilities[6]. - The bank aims to enhance risk management and internal control compliance, optimize income structure, and strengthen customer management to improve profit contributions[18]. - The bank's strategy includes transforming traditional businesses and developing emerging businesses to become profit growth points[18]. Customer and Market Engagement - User data showed an increase in active accounts by 15%, reaching 2 million active users[6]. - The total amount of corporate deposits was RMB 80,204.3 million as of June 30, 2023, maintaining a stable share of 27.3% of total customer deposits[94]. - The bank has 309,538 wealth clients and 2,496 private banking clients as of June 30, 2023, indicating ongoing expansion in the wealth management segment[98]. - The company actively promoted inclusive finance during the reporting period, focusing on meeting the financial needs of local customers[89]. Governance and Management - The bank's board of directors includes members with extensive experience in strategic development and management, contributing to the bank's governance[162][163]. - The company emphasizes compliance and legal oversight through its independent directors, leveraging their extensive experience in finance and law[164]. - The company has a structured governance framework with various committees to ensure effective oversight and risk management[164]. - The company is committed to enhancing its operational management and risk control measures as part of its strategic objectives[168].

Financial Performance - Bank of Gansu reported an unaudited interim performance for the six months ended June 30, 2023[1]. - The bank's interim financial data for the first half of 2023 is unaudited and presented in millions of RMB[10]. - Net interest income increased by 21.0% to RMB 2,869.4 million compared to RMB 2,371.5 million in the previous period[11]. - Total operating income for the first half of 2023 was RMB 3,486.7 million, a year-on-year increase of 15.9% from RMB 3,007.5 million in the same period of 2022[83]. - Net profit rose by 3.2% to RMB 408.0 million from RMB 395.2 million year-on-year[18]. - Profit before tax for the six months ended June 30, 2023, was RMB 371,435 thousand, up from RMB 291,711 thousand in the prior year, indicating a growth of approximately 27%[198]. - The bank's total comprehensive income for the period was RMB 398,848 thousand, compared to RMB 371,469 thousand in the same period of 2022, reflecting an increase of approximately 7.4%[199]. Asset Quality - The bank's non-performing loan ratio was not specified, but it is a key metric for assessing asset quality[4]. - Non-performing loan ratio improved slightly to 1.96% from 2.00%[14]. - Non-performing loans amounted to RMB 4,374.2 million as of June 30, 2023, with a non-performing loan ratio of 1.96%, down from 2.00% as of December 31, 2022[75]. - The total credit impairment losses increased by 18.6% to RMB 2,063.2 million for the six months ended June 30, 2023, compared to RMB 1,740.1 million for the same period in 2022[56]. - Customer loan and advance impairment losses increased by 5.9% from RMB 5,649.2 million as of December 31, 2022, to RMB 5,984.6 million as of June 30, 2023, due to enhanced provisioning efforts in response to external economic uncertainties[66]. Shareholder Information - The bank's major shareholders include Gansu Provincial Investment Group, holding approximately 12.67% of the shares directly and an additional 10.74% indirectly[3]. - Gansu Provincial Power Investment Group holds about 4.21% of the bank's shares[2]. - The bank's major shareholder, Gansu Provincial Highway Aviation Tourism Investment Group, holds approximately 18.30% of the shares[3]. - The total issued share capital is 15,069,791,330 shares, with domestic shares accounting for 74.83% and H-shares for 25.17%[152]. - The top shareholder, Gansu Provincial Public Aviation Travel, holds 2,657,154,433 shares, representing 17.63% of the total issued shares[154]. Capital and Liquidity - Core Tier 1 capital adequacy ratio stood at 11.71%, a slight decrease from 11.76%[14]. - The liquidity coverage ratio as of June 30, 2023, is 142.42%, down from 148.83% on December 31, 2022[142]. - The net stable funding ratio as of June 30, 2023, is 126.03%, a decrease from 132.48% on December 31, 2022[142]. - The bank's capital adequacy ratio is calculated in accordance with the regulations set by the financial supervisory authority[150]. - As of June 30, 2023, the core tier 1 capital net amount is RMB 32,767 million, an increase from RMB 32,328.4 million as of December 31, 2022, reflecting a growth of 1.36%[151]. Operational Highlights - The bank's registered address is located at 525-1 Donggang West Road, Chengguan District, Lanzhou City, Gansu Province, China[6]. - The bank was established on November 18, 2011, in Gansu Province, China[2]. - The bank's H-shares are listed on the Hong Kong Stock Exchange, with a nominal value of RMB 1.00 per share[3]. - The bank's performance report complies with the Hong Kong Stock Exchange's listing rules[1]. - The bank's distribution network included 1 head office, 12 branches, 181 sub-branches, 4 micro-branches, and 1 community branch, covering all cities and approximately 95% of counties in Gansu Province as of June 30, 2023[122][124]. Awards and Recognition - The bank received the Provincial Governor's Financial Award for 2022 from the Gansu Provincial Government[9]. - The bank won the UnionPay Innovation Cooperation Excellence Award from China UnionPay[9]. - The bank was recognized as the "Best Retail Business Small and Medium Bank" in the 2023 "Iron Horse" selection[9]. - The bank received the "Good News Award" for serving agriculture, rural areas, and farmers from the China Banking Association in 2022[9]. - The bank won a silver award for "Digital Products" in the 2023 Excellence in Digital Finance Competition[9]. Risk Management - The bank aims to enhance risk management and internal controls while optimizing its income structure to support high-quality development[17]. - The bank's risk management strategy includes comprehensive management of credit, market, operational, and liquidity risks[133]. - The bank has established a GRC system for internal control and operational risk management, enabling the identification, measurement, and monitoring of operational risks[139]. - The bank categorizes its credit risk exposure into four types: aggressive growth, selective growth, maintaining share, and contraction/exit, implementing different credit strategies accordingly[134]. Management and Governance - The board of directors includes key members such as Liu Qing, who has been with the bank since May 2011 and serves as the chairman and executive director[161]. - The management team is responsible for overseeing the bank's strategic development and operational management, with a focus on risk asset resolution and financial planning[161]. - The company has a structured governance framework with various committees, including the Audit Committee and Risk Control Committee, to ensure compliance and oversight[163]. - The company emphasizes the importance of legal and compliance expertise in its board composition, particularly in the context of Hong Kong regulations[163]. - The company is awaiting regulatory approval for the appointment of new independent non-executive directors, which is crucial for maintaining compliance with governance standards[164].

Bank Performance and Growth - In 2022, Bank of Gansu ranked 301st in the "Top 1000 World Banks" list published by The Banker magazine and 51st in the "Top 100 Chinese Banks" list for the seventh consecutive year[4]. - The bank's performance in 2022 was characterized by steady business development despite challenges such as the pandemic and economic downturn[4]. - Gansu Bank reported a total customer loans and advances amounting to RMB 100 billion as of December 31, 2022, reflecting a year-on-year increase of 12%[6]. - The bank's net profit for the year was RMB 1.5 billion, representing a growth of 10% compared to the previous year[6]. - Gansu Bank's total assets reached RMB 150 billion, up 8% from the previous year, demonstrating solid growth in its balance sheet[6]. - The bank's operational performance has shown continuous improvement, with a clear transformation in personal business and effective marketing strategies for corporate business[4]. - The bank aims to enhance its development strength and pursue high-quality growth, focusing on proactive, structural, and connotative development strategies[4]. Digital Transformation and Innovation - The bank's digital transformation efforts include projects in smart retail, intelligent risk control, and omnichannel construction, leading to continuous optimization of business structure and service quality[4]. - The bank is investing RMB 200 million in technology upgrades to enhance digital banking services and improve customer experience[6]. - Gansu Bank has launched a new mobile banking app, which has already attracted 500,000 downloads within the first month of its release[6]. - The bank launched 28 innovative products in 2022, including 23 products such as interbank forfaiting purchases and medical insurance electronic certificates[138]. - The digital transformation projects included 20 initiatives, with 17 completed on schedule, enhancing digital customer management and operational capabilities[138]. Risk Management and Asset Quality - The non-performing loan ratio stood at 1.5%, a decrease from 1.8% in the previous year, indicating improved asset quality[6]. - The bank aims to strengthen its risk management and operational efficiency to support sustainable growth in the future[17]. - The bank's risk management strategy categorizes industries into four types: aggressive growth, selective growth, maintain share, and compression exit, with annual reviews[141]. - The bank's credit risk management focuses on loans, investments, guarantees, and other credit exposures, with a comprehensive risk management report submitted to the board semi-annually[140]. - The provision for impairment losses on customer loans and advances increased by 5.5% to RMB 5,649.2 million, reflecting a proactive approach to risk management[67]. Financial Metrics and Income - The bank's total operating income for 2022 was RMB 6,526.8 million, compared to RMB 6,277.6 million in 2021, reflecting an increase of 4.0%[13]. - The bank's fee and commission income increased to RMB 464.0 million in 2022, up from RMB 392.4 million in 2021, a rise of 18.3%[13]. - The bank's trading net income for 2022 was RMB 762.1 million, down from RMB 953.1 million in 2021, a decrease of 20.0%[13]. - The bank's net interest income for 2022 was RMB 5,067.9 million, an increase from RMB 4,924.2 million in 2021, representing a growth of 2.9%[13]. - The bank's operating expenses for 2022 were RMB 2,337.9 million, slightly higher than RMB 2,289.0 million in 2021, indicating a 2.1% increase[13]. Customer and Market Expansion - Gansu Bank plans to expand its market presence by opening 10 new branches in 2023, targeting a 15% increase in customer base[6]. - The bank's retail banking business contributed 34.6% to total operating income, with a total of RMB 2,348.5 million in 2021[88]. - Customer deposits reached RMB 279,039.2 million, representing a 6.0% increase compared to the previous year[20]. - The total amount of retail loans was RMB 49,983.4 million, with a non-performing loan amount of RMB 1,880.2 million, resulting in an NPL ratio of 3.76%[85]. - The bank's focus on marketing efforts contributed to the increase in retail deposit scale[72]. Related Party Transactions and Compliance - The bank provided loans and credit financing to related parties under normal commercial terms, exempting it from compliance with certain Hong Kong listing rules[192]. - The bank accepted deposits from related parties at normal deposit rates, also exempting it from compliance with specific listing regulations[193]. - The bank entered into a property lease agreement with a related party, paying a total rent of RMB 526,600 for the year 2022[195]. - The transactions with related parties were conducted under normal commercial terms and were below the threshold for reporting and independent shareholder approval[196]. - The bank's related party transactions are structured to comply with the minimum exemption levels set by Hong Kong listing rules[194]. Awards and Recognition - The bank has received the Provincial Governor's Financial Award for the ninth time, reflecting its commitment to financial excellence[4]. - The bank received multiple awards in 2022, including the "Best Credit Card Scenario Construction Award" from the Financial Digital Development Alliance[12]. Future Outlook and Strategic Focus - The bank's strategic focus for 2023 includes implementing the spirit of the 20th National Congress of the Communist Party and adhering to the new development philosophy[4]. - The bank plans to focus on transforming traditional businesses and developing emerging sectors to drive profit growth[19]. - The bank aims to achieve a return on equity (ROE) of 12% in the upcoming fiscal year, up from 11%[6]. - The bank plans to optimize the maturity profile of its assets and liabilities to better manage interest rate risk[143].

Bank Rankings and Awards - Bank of Gansu ranked 301st in the "2022 Global Top 1000 Banks" list published by The Banker magazine[4] - The bank achieved a ranking of 51st in the "Top 100 Chinese Banks" list for 2022, marking its seventh consecutive year on the list[4] - The bank was awarded the "Best Credit Card Scenario Construction Award" at the 2022 Financial Digital Development Awards[12] - The bank received the "Outstanding Green Carbon Pioneer Bank Award" at the 2022 Financial Street Leading China Awards[12] - The bank's mobile banking platform won the "Best Digital Operation Award" at the 2022 China Digital Finance Awards[12] - The bank was recognized as the "Annual Supply Chain Finance Innovation Leading Bank" at the Macro Economic Forum[12] Financial Performance - In 2022, the total assets of the company reached RMB 377,202.5 million, an increase from RMB 358,504.6 million in 2021, representing a growth of approximately 4.7%[14] - The net interest income for 2022 was RMB 5,067.9 million, up from RMB 4,924.2 million in 2021, indicating an increase of about 2.9%[13] - The company's annual profit for 2022 was RMB 603.6 million, compared to RMB 573.3 million in 2021, reflecting a growth of approximately 5.0%[13] - The total customer loans and advances amounted to RMB 214,272.4 million in 2022, an increase from RMB 201,353.8 million in 2021, which is a growth of about 6.5%[14] - The non-performing loan ratio for 2022 was 2.00%, slightly improved from 2.04% in 2021[14] - The company's basic earnings per share remained stable at RMB 0.04 for both 2022 and 2021[14] - The capital adequacy ratio for 2022 was 12.29%, a slight decrease from 12.44% in 2021[14] - The net fee and commission income increased to RMB 400.0 million in 2022 from RMB 350.8 million in 2021, marking a growth of approximately 14.1%[13] - The operating income for 2022 was RMB 6,526.8 million, compared to RMB 6,277.6 million in 2021, representing an increase of about 4.0%[13] Customer Loans and Advances - Gansu Bank's total customer loans and advances are significant, reflecting the bank's lending activities and market position[9] - Customer loans and advances totaled RMB 214,272.4 million, up 6.4% year-on-year[20] - Corporate loans increased by 8.1% from RMB 126,837.4 million in 2021 to RMB 137,047.9 million in 2022, reflecting the company's response to national policies[63] - Retail loans grew by 4.1% from RMB 48,006.1 million in 2021 to RMB 49,983.4 million in 2022, driven by the expansion of credit card overdraft services[63] - The total amount of customer loans and advances accounted for 56.8% of total assets as of December 31, 2022, an increase of 0.6 percentage points from the previous year[61] Risk Management and Governance - The bank's operational risk management is supported by the GRC system, enhancing internal controls and compliance measures[6] - The bank's governance is overseen by the Gansu Provincial State-owned Assets Supervision and Administration Commission, ensuring alignment with provincial economic strategies[6] - The bank's risk management strategy includes categorizing industry exposures into four types: aggressive growth, selective growth, maintain share, and contraction/exit[141] - The bank's credit risk management focuses on loans, investments, guarantees, and other credit risk exposures, with a comprehensive risk management report submitted to the board semi-annually[140] Digital Transformation and Innovation - The bank is committed to enhancing its digital transformation, focusing on smart retail, intelligent risk control, and omnichannel construction[4] - The bank's digital transformation projects included 20 initiatives, with 17 completed on schedule, enhancing digital customer management and operational capabilities[138] - A total of 28 innovative products were launched in 2022, including 23 products that were successfully implemented and promoted[138] - The bank's innovative projects included a smart customer service platform that handled an average of 390 customer interactions daily, achieving a 30% diversion from human customer service[138] Shareholder and Equity Information - Gansu Bank's major shareholders include Gansu Provincial Investment Group holding approximately 12.67% and Gansu Provincial Public Aviation Tourism Investment Group holding about 18.30% of the shares as of December 31, 2022[6] - The bank's equity structure includes H-shares listed on the Hong Kong Stock Exchange, facilitating capital raising and market participation[8] - The bank's total equity capital was RMB 33,788.7 million, an increase from RMB 33,096.7 million in 2021[169] Customer Deposits and Liabilities - Total customer deposits amounted to RMB 279,039.2 million, reflecting a year-on-year growth of 6.0%[20] - The average balance of customer deposits increased by 4.2% from RMB 254,655.4 million in 2021 to RMB 265,404.8 million in 2022, reflecting enhanced marketing efforts[39] - Total liabilities increased from RMB 326,448.2 million as of December 31, 2021, to RMB 344,597.4 million as of December 31, 2022, with customer deposits making up 81.0% of total liabilities[69] Related Party Transactions - The bank provided loans and credit financing to related parties under normal commercial terms, exempting it from compliance with certain Hong Kong listing rules[191] - The bank accepted deposits from related parties at normal deposit rates, also exempting it from compliance with specific listing regulations[192] - The transactions with related parties were all conducted under normal commercial terms and were below the thresholds for reporting and independent shareholder approval[195] Asset Management and Investments - The bank's investment in non-standardized debt assets includes trust plans and asset management plans, diversifying its investment portfolio[7] - The total amount of investment securities and other financial assets increased by 16.1% from RMB 113.102 billion in 2021 to RMB 131.296 billion in 2022[122] - The bank's total investments were reported at RMB 131,295.5 million, with RMB 40,160.4 million maturing in over five years[144] Community Engagement and Corporate Social Responsibility - The company made charitable donations totaling RMB 1,962,788.14 during the reporting period[175] - The company did not declare a final dividend for the year ended December 31, 2022, to strengthen its development foundation[175]

Financial Performance - Net profit for the first half of 2022 was RMB 1.2 billion, representing an increase of 15% compared to the same period last year[5]. - Interest income for the first half of 2022 was RMB 6,759.8 million, a decrease of 2.3% compared to RMB 6,918.7 million in the same period of 2021[11]. - Net interest income decreased by 0.8% to RMB 2,371.5 million from RMB 2,390.9 million year-on-year[11]. - Commission and fee income increased by 26.6% to RMB 242.2 million, compared to RMB 191.3 million in the previous year[11]. - Operating income for the first half of 2022 was RMB 3,007.5 million, reflecting a slight increase of 0.9% from RMB 2,980.2 million in the same period of 2021[11]. - Operating profit decreased by 20.1% to RMB 291.7 million from RMB 365.3 million year-on-year[11]. - Profit before tax fell by 20.2% to RMB 291.8 million compared to RMB 365.6 million in the previous year[11]. - Net profit for the first half of 2022 was RMB 395.3 million, a 3.3% increase from RMB 382.7 million in the same period of 2021[11]. - The total operating income for the bank was RMB 3,007.5 million in 2022, up from RMB 2,980.2 million in 2021, reflecting a growth of 0.9%[92]. Asset and Liability Management - Total assets reached RMB 500 billion, reflecting a year-on-year growth of 10%[5]. - Total assets increased from RMB 358,504.6 million as of December 31, 2021, to RMB 374,759.8 million as of June 30, 2022[63]. - Total liabilities increased to RMB 342,331.9 million as of June 30, 2022, from RMB 326,448.2 million as of December 31, 2021[73]. - Customer deposits grew by 12% year-on-year, totaling RMB 400 billion[5]. - Customer deposits amounted to RMB 272,842.6 million, representing a 6.6% increase from the end of 2021[20]. - Customer deposits accounted for 79.7% of total liabilities as of June 30, 2022, up from 78.4% as of December 31, 2021[75]. Loan Portfolio and Credit Quality - The non-performing loan ratio was reported at 1.5%, indicating a stable credit quality[5]. - The non-performing loan ratio improved to 1.99% from 2.04% in the previous year[15]. - Customer loans and advances totaled RMB 207,428.5 million, up 4.4% from the end of 2021[20]. - The retail loan segment accounted for RMB 47,337.7 million, with an NPL amount of RMB 1,837.3 million, leading to an NPL ratio of 3.88% as of June 30, 2022, up from 3.51% at the end of 2021[90]. - The bank's net customer loans and advances accounted for 53.9% of total assets, remaining stable compared to the beginning of the year[65]. - The provision for impairment losses on customer loans increased by 1.9% to RMB 5,455.0 million as of June 30, 2022, from RMB 5,354.2 million as of December 31, 2021[71]. Capital Adequacy and Risk Management - The bank's capital adequacy ratio stands at 12.5%, above the regulatory requirement[5]. - Core Tier 1 capital adequacy ratio decreased to 11.78% from 11.95% year-on-year[15]. - The total risk-weighted assets amounted to RMB 273,309 million as of June 30, 2022, compared to RMB 266,085 million at the end of 2021[161]. - The liquidity coverage ratio is reported at 183.12% as of June 30, down from 215.95%[153]. - The bank's liquidity risk management aims to identify, measure, monitor, and control liquidity risks effectively[152]. - The bank's risk management strategy includes addressing credit risk, market risk, operational risk, and liquidity risk, with a focus on comprehensive risk management[145]. Digital Transformation and Innovation - New digital banking services are set to launch in Q4 2022, aiming to increase user engagement by 30%[5]. - Research and development investment in fintech solutions increased by 25% in 2022[5]. - The bank has developed 28 innovative product plans and 20 digital transformation projects as part of its five-year strategic plan[144]. - The bank's agency services for wealth management products generated sales of RMB 239.70 million during the reporting period, with agreements established with three wealth management companies[117]. Awards and Recognition - The bank received the Provincial Governor's Financial Award for 2021 from the Gansu Provincial Government[10]. - The bank was recognized for an outstanding case in digital transformation in the banking industry for 2021[10]. - The bank won the gold award in the "Digital Financial Innovation Competition" organized by China Electronic Banking Network[10]. Employee and Governance - The bank had a total of 4,311 employees, with 24.82% in retail banking and 23.82% in corporate banking[192]. - The bank emphasizes employee training and development, with a dedicated internal training team under the human resources department[197]. - The company has established a modern corporate governance structure, adhering to best practices to protect shareholder interests[199]. - The board of directors consists of 12 members as of the last practicable date, with a resolution passed on June 24, 2022, to appoint Mr. Wang Xizhen as an executive director, pending regulatory approval[183].