Financial Performance - For the six months ended June 30, 2024, the bank reported interest income of RMB 5,670.3 million, a decrease of 13.2% from RMB 6,533.5 million in the same period of 2023[5]. - Net interest income for the same period was RMB 1,792.7 million, down 25.8% from RMB 2,417.1 million year-on-year[5]. - The bank's net profit for the period was RMB 130.2 million, a slight increase of 1.6% compared to RMB 128.1 million in the same period of 2023[5]. - The total operating income for the six months ended June 30, 2024, was RMB 2,045.2 million, a decrease of 18.8% compared to RMB 2,517.5 million for the same period in 2023[11]. - The pre-tax profit for the six months ended June 30, 2024, was RMB 134.0 million, an increase of 39.9% year-on-year[13]. - The basic earnings per share for the six months ended June 30, 2024, was RMB 0.02, down 33.3% from RMB 0.03 in the previous year[5]. - The company reported a profit for the period of RMB 130,205, slightly up from RMB 128,071 in the same period of 2023, indicating a growth of 1.7%[178]. - The company’s total equity increased to RMB 19,150,215 as of June 30, 2024, from RMB 18,864,537 at the end of 2023, representing a growth of 1.5%[180]. Asset and Liability Management - The bank's total assets as of June 30, 2024, were RMB 265,068.0 million, a decrease of 1.7% from RMB 269,775.0 million at the end of 2023[6]. - Total liabilities decreased by 2.0% to RMB 245,917.8 million from RMB 250,910.5 million as of December 31, 2023[6]. - Total deposits decreased by 1.7% to RMB 232,586.4 million compared to the beginning of the year[11]. - The total amount of loans and advances issued increased by 1.7% from RMB 178,111.4 million as of December 31, 2023, to RMB 181,173.5 million as of June 30, 2024[56]. - The total amount of investment securities and other financial assets decreased by 7.2% from RMB 38,696.0 million as of December 31, 2023, to RMB 35,890.9 million as of June 30, 2024[111]. Loan and Asset Quality - The non-performing loan ratio increased to 2.44% from 2.34% at the end of 2023, indicating a deterioration in asset quality[7]. - The non-performing loans (NPLs) reached RMB 4,419.9 million, resulting in a non-performing loan ratio of 2.44%, up from 2.34% as of December 31, 2023[75]. - Retail loans saw an increase in the non-performing loan ratio from 5.56% to 6.20% during the same period, attributed to economic pressures and slow income growth for some borrowers[82]. - The impairment loss on assets decreased to RMB 616,043 thousand for the six months ended June 30, 2024, compared to RMB 1,043,898 thousand for the same period in 2023, representing a reduction of approximately 41%[198]. Interest Income and Expenses - Interest income decreased by 13.2% from RMB 6,533.5 million for the six months ended June 30, 2023, to RMB 5,670.3 million for the six months ended June 30, 2024, primarily due to a decline in the average yield on interest-earning assets from 4.94% to 4.24%[22]. - Total interest expenses decreased from RMB 4,116.4 million in 2023 to RMB 3,877.6 million in 2024, reflecting a reduction in the average interest rate from 3.20% to 2.90%[17]. - The average yield on loans and advances decreased from 6.13% to 5.20%[16]. - The average interest rate on interest-bearing liabilities decreased by 0.30 percentage points, primarily due to adjustments in deposit pricing strategies[37]. Operational Efficiency - Operating expenses decreased by 6.3% from RMB 1,380.2 million to RMB 1,292.7 million, attributed to enhanced cost control measures[45]. - Employee costs fell by 4.7% from RMB 921.6 million to RMB 878.0 million, mainly due to a reduction in salaries and bonuses[47]. - The company has three branches, 89 sub-branches, and 35 subsidiaries as of June 30, 2024, indicating a stable operational structure[186]. Risk Management - The bank implemented a comprehensive risk management system to mitigate uncertainties affecting strategic and operational goals, focusing on credit, market, operational, liquidity, reputational, legal compliance, and information technology risks[131]. - The liquidity risk management framework is established to ensure timely access to sufficient funds for debt repayment, influenced by both external and internal factors[141]. - The company conducted liquidity risk stress tests quarterly, setting appropriate stress scenarios to reflect cash flow gaps and financing capabilities under risk mitigation[142]. - The company has established a comprehensive network security protection system to respond to major threats and incidents effectively[146]. Strategic Initiatives - The bank aims to enhance retail transformation and optimize operational management to promote high-quality development[10]. - The strategic vision includes becoming a competitive professional financial service provider with a focus on supporting the real economy and local development[10]. - The company plans to continue focusing on market expansion and new product development to drive future growth[181]. - The company launched several digital financial products, including "Jiu e Loan," "Trade Union Loan," and "Cloud Car Loan," enhancing its service offerings in the first half of 2024[128].
九台农商银行(06122) - 2024 - 中期业绩