Dividends and Shareholder Proposals - The board of directors proposed a mid-term cash dividend of RMB 0.197 per share (tax included) for the year 2024[1]. - The company has approved a cash dividend of RMB 0.400 per share for the fiscal year 2023, totaling approximately RMB 100.004 billion[182]. - The board has proposed an interim cash dividend of RMB 0.197 per share for 2024, amounting to about RMB 49.252 billion, representing 29.97% of the net profit attributable to shareholders for the first half of 2024[182]. - The company emphasizes a cash dividend distribution of no less than 10% of the net profit attributable to shareholders in the current year, provided there are profits and retained earnings[183]. 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[5]. - Net profit attributable to shareholders was RMB 164,326 million, down 1.80% from RMB 167,344 million in the previous year[5]. - The net cash flow from operating activities significantly decreased by 64.30% to RMB 290,805 million compared to RMB 814,615 million in the same period last year[5]. - 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[25]. - The pre-tax profit for the first half of 2024 was RMB 193.01 billion, down 2.3% from RMB 197.26 billion in the first half of 2023[46]. Risk Management - The company is actively managing various risks, including credit risk, market risk, operational risk, liquidity risk, reputation risk, country risk, information technology risk, and strategic risk[1]. - The company has implemented measures to effectively manage the identified risks, as detailed in the "Management Discussion and Analysis - Risk Management" section[1]. - The report includes forward-looking statements based on current plans and estimates, emphasizing the importance of risk awareness among investors[1]. - The company is committed to ensuring the accuracy and completeness of the financial report, with assurances from senior management[1]. - The bank has strengthened its credit risk management capabilities, focusing on key sectors such as manufacturing, rural revitalization, and green finance[127]. - The bank has implemented a comprehensive risk management system to ensure asset quality remains stable[126]. Asset and Liability Management - Total assets as of June 30, 2024, reached RMB 40,294,387 million, an increase of 5.14% from RMB 38,324,826 million at the end of 2023[15]. - The total liabilities amounted to RMB 37.04 trillion, reflecting a growth of 5.37% year-on-year[24]. - The total equity of the group reached RMB 3.26 trillion, an increase of RMB 83.40 billion or 2.63% compared to the end of 2023, primarily due to an increase in undistributed profits by RMB 64.10 billion[66]. - The leverage ratio is 7.65% as of June 30, 2024, slightly down from 7.83% at the end of 2023[168]. - The liquidity coverage ratio averaged 125.43% in Q2 2024, while the net stable funding ratio was 134.99% at the end of June 2024, both meeting regulatory requirements[157]. Loan and Advance Management - The loan and advance net amount was RMB 24.63 trillion, with a growth rate of 6.70%[24]. - The total amount of loans and advances was RMB 25.44 trillion, up RMB 1.58 trillion or 6.63% from RMB 23.86 trillion at the end of 2023[48]. - The non-performing loan ratio improved slightly to 1.35% from 1.37% at the end of 2023[15]. - The total amount of restructured loans and advances as of June 30, 2024, was RMB 92,723 million, representing 0.37% of total loans, an increase of RMB 38,899 million from the end of 2023[135]. Digital Transformation and Technology - The bank's digital financial services are being enhanced with the launch of the 2024 version of the mobile banking app, focusing on core functionalities and user experience[74]. - The bank is focusing on enhancing digital capabilities and optimizing service systems to support diverse consumer financing needs[81]. - The group has completed the decentralized transformation of its domestic core systems, with over 99.6% of core business volume supported by decentralized systems[118]. - The efficiency of marketing data analysis decision-making has improved from 4 hours to 20 seconds due to the implementation of a big data platform[117]. Corporate Governance and Management - The bank's board consists of 12 members, including 3 executive directors and 5 independent non-executive directors[172]. - The bank's supervisory board has 5 members, including 1 shareholder representative and 1 employee representative[173]. - The bank's management team includes 8 senior executives, with Zhang Yi appointed as the president from May 2024[175]. - The total number of employees in the group is 372,081, with 349,402 being bank employees and 22,679 from subsidiaries[178]. Environmental, Social, and Governance (ESG) Initiatives - The company has established 293 green branches as of June 2024, promoting green operations and low-carbon banking[184]. - The group has established a comprehensive ESG risk management system, integrating ESG risk management into the entire investment and credit process[161]. - The bank participated in underwriting 37 domestic and foreign green and sustainable development bonds, with a total issuance scale of approximately RMB 594.94 billion[73]. Market and Economic Conditions - The total financing scale and broad money (M2) increased by 8.1% and 6.2% respectively as of June 2024[24]. - The bank's credit impairment losses totaled RMB 87.65 billion, a decrease of 8.13% compared to the previous year[25]. - The bank's interest income from loans contributed 69.90% of total interest income[32]. Customer Engagement and Services - The number of personal customers reached 762 million, with managed personal financial assets exceeding CNY 19.74 trillion[80]. - The number of acquiring merchants reached 5.84 million, an increase of 242,100 compared to the end of the previous year[82]. - The bank's cumulative savings in operational hours from process optimizations amounted to 279,800 hours in the first half of the year[121].
建设银行(00939) - 2024 - 中期财报