Financial Performance - Operating income for the six months ended June 30, 2024, was RMB 374,831 million, a decrease of 3.43% compared to RMB 388,155 million for the same period in 2023[7]. - Net interest income decreased by 5.17% to RMB 296,059 million from RMB 312,185 million year-over-year[7]. - Net profit attributable to shareholders was RMB 164,326 million, down 1.80% from RMB 167,344 million in the previous year[7]. - The net cash flow from operating activities was RMB 290,805 million, a significant decline of 64.30% compared to RMB 814,615 million in the same period last year[7]. - The net profit for the first half of 2024 was RMB 165.04 billion, a decrease of 1.35% compared to the same period last year[12]. - The total amount of loans and advances reached RMB 24.63 trillion, increasing by 6.70% year-on-year[11]. - The total amount of loans and advances issued was RMB 2,482.46 billion, with an annualized average yield of 3.55%, down from 3.94% in the previous year[20]. Asset and Liability Management - Total assets as of June 30, 2024, reached RMB 40,294,387 million, reflecting a 5.14% increase from RMB 38,324,826 million at the end of 2023[8]. - The total liabilities increased by 5.37% to RMB 37,038,911 million from RMB 35,152,752 million[8]. - The capital adequacy ratio increased to 19.25%, up from 17.95% at the end of 2023, indicating a stronger capital position[8]. - The total financial assets measured at amortized cost were RMB 6,961,515 million, representing 70.15% of total financial investments[44]. - The total deposits absorbed by the group reached 28.71 trillion RMB, up by 1.05 trillion RMB or 3.81% from the end of the previous year[53]. Risk Management - The bank's major risks include credit risk, market risk, operational risk, liquidity risk, reputation risk, country risk, information technology risk, and strategic risk[2]. - The non-performing loan ratio improved slightly to 1.35% from 1.37% in the previous period[8]. - The non-performing loan (NPL) coverage ratio stood at 238.75%, with a loan loss provision ratio of 3.22% as of June 30, 2024[41]. - The company has enhanced its credit risk management capabilities by optimizing the credit structure and increasing financial support for key sectors such as manufacturing and rural revitalization[130]. - The company reported a steady increase in the amount of non-performing loans, which rose by RMB 17,648 million compared to the end of the previous year[132]. Dividend and Shareholder Information - The board proposed a mid-year cash dividend of RMB 0.197 per share (tax included) for the year 2024[2]. - The company has declared a cash dividend of RMB 0.400 per share for the fiscal year 2023, totaling approximately RMB 100.004 billion[183]. - The board has proposed an interim cash dividend of RMB 0.197 per share for the fiscal year 2024, amounting to about RMB 49.252 billion, representing 29.97% of the net profit attributable to shareholders for the first half of 2024[183]. - As of June 30, 2024, the total number of shares outstanding is 250,010,977,486, with 58.07% being other shares, 38.09% foreign-listed shares, and 3.84% RMB ordinary shares[194]. Business Development and Strategy - The bank's business review covers various sectors, including corporate finance, personal finance, asset management, and overseas commercial banking[3]. - The outlook section will discuss future strategies and market expansion plans[3]. - The company aims to maintain stable credit growth to meet the reasonable financing needs of the real economy[172]. - Focus will be on enhancing operational quality through five major actions, including maintaining a leading position in personal housing loans[173]. - The company plans to strengthen risk compliance management and enhance proactive control over asset quality[173]. Employee and Corporate Governance - The total number of employees as of June 30, 2024, is 372,081, with 349,402 being bank employees and 22,679 from subsidiaries[180]. - The bank's board consists of 12 directors, including 3 executive directors, 4 non-executive directors, and 5 independent non-executive directors[175]. - The bank held its annual general meeting on June 27, 2024, where key resolutions regarding financial reports and profit distribution were approved[174]. - The bank's supervisory board has 5 members, including 1 shareholder representative and 1 employee representative[176]. Technology and Digital Transformation - The company has achieved a distributed core system transformation, with over 99.6% of core business volume supported by the distributed system as of June 30, 2024[117]. - The company has accumulated 2,679 financial technology patents, an increase of 511 patents compared to the end of the previous year, including 1,643 invention patents[117]. - The company has enhanced its digital infrastructure, focusing on AI applications and risk management, ensuring stable operation of information systems[116]. - The mobile banking app has 414 million asset customers, a year-on-year increase of 1.04%, with active customers holding over 100,000 yuan growing by 10.59% compared to the same period last year[123]. Environmental and Social Responsibility - The company aims to enhance its green operational capabilities through various initiatives, including energy management and waste management optimization[185]. - The "Shanrong Business" initiative generated a transaction volume of RMB 297 million in the first half of the year, supporting rural revitalization efforts[185]. - The company established over 3,400 "Yunong Schools" to provide financial knowledge and agricultural technology training for farmers[82]. - The company is committed to enhancing its green operational capabilities through various initiatives, including energy management and waste management optimization[185].
建设银行(00939) - 2024 - 中期业绩