Financial Performance - Operating income for the first half of 2022 was RMB 19,115 million, an increase of 8.80% compared to RMB 17,569 million in the same period of 2021[31]. - Pre-tax profit rose to RMB 8,536 million, reflecting a growth of 16.77% from RMB 7,310 million year-on-year[31]. - Net profit increased by 20.40% to RMB 7,335 million, up from RMB 6,092 million in the first half of 2021[31]. - Net profit for the first half of 2022 was RMB 73.35 billion, an increase of RMB 12.43 billion or 20.40% year-on-year[39]. - Basic earnings per share rose to RMB 0.52, a 15.56% increase from RMB 0.45 in the first half of 2021[32]. - The total profit before credit risk impairment for the first half of 2022 was RMB 14,867 million, a 7.63% increase from RMB 13,814 million in the same period of 2021[104]. Assets and Liabilities - Total assets reached RMB 1,578,684 million as of June 30, 2022, representing a 14.09% increase from RMB 1,383,662 million at the end of 2021[33]. - Total liabilities amounted to RMB 1,460,719 million, up 14.82% from RMB 1,272,146 million at the end of 2021[33]. - Customer loans and advances totaled RMB 743,929 million, a 13.61% increase from RMB 654,795 million at the end of 2021[33]. - Customer deposits increased by 19.58% to RMB 919,180 million, compared to RMB 768,668 million at the end of 2021[33]. Profitability Ratios - Return on average assets (ROA) improved to 0.99% for the first half of 2022, up from 0.92% in the same period of 2021[34]. - Return on equity (ROE) increased to 14.01% in the first half of 2022, compared to 13.12% in the same period of 2021[34]. - The cost-to-income ratio improved to 23.10%, a decrease of 1.35 percentage points compared to the previous year[35]. Loan Quality - The non-performing loan ratio decreased to 1.56%, down 0.22 percentage points from the end of the previous year[39]. - The coverage ratio for non-performing loans increased to 272.97%, up 33.23 percentage points from the end of the previous year[36]. - Normal loans accounted for 96.87% of total loans as of June 30, 2022, compared to 96.14% at the end of 2021, showing stability in loan quality[88]. - Corporate loans represented 59.94% of total loans, with a non-performing loan rate of 2.08%, while retail loans accounted for 33.15% with a lower non-performing loan rate of 0.94%[89]. Interest Income and Expenses - Net interest income for the first half of 2022 was RMB 137.34 billion, up RMB 6.48 billion or 4.43% year-on-year[42]. - The net interest margin for the first half of 2022 was 1.85%, a decrease of 13 basis points compared to the same period last year[44]. - Interest expenses amounted to RMB 15.924 billion, an increase of RMB 1.069 billion or 7.20% year-on-year[52]. - Customer deposit interest expenses were RMB 8.942 billion, up RMB 1.023 billion or 12.92% year-on-year[53]. Customer and Market Engagement - The bank's cash management business transaction volume reached RMB 2.1 trillion in the first half of 2022, reflecting significant growth in service capabilities[117]. - The bank processed a total of USD 5.966 billion in cross-border settlements, a 33% year-on-year increase, and provided USD 503 million in international trade financing, up 49% from the previous year[117]. - The bank's wealth management business scale (excluding direct banking) reached RMB 233.502 billion, growing by RMB 17.461 billion, representing an 8.08% increase[120]. Risk Management - The bank has focused on enhancing risk management capabilities, particularly in credit risk, market risk, operational risk, and liquidity risk management[143][145][146][147]. - The bank's credit risk management framework includes optimizing credit structure and improving asset quality through effective risk measurement and management policies[144]. - The bank has implemented a comprehensive compliance risk management system, with a three-line defense mechanism and a dual reporting system to ensure effective compliance risk control[152]. Corporate Governance - The company has established a comprehensive corporate governance structure, ensuring compliance and sustainable development through clear responsibilities among shareholders, the board, and management[186]. - The board currently consists of 14 members, which does not meet the requirement of 15 to 19 members as per the articles of association[194]. - The supervisory board has 8 members, meeting the legal minimum but not the required 9 to 11 members as per the articles of association[194]. Shareholder Structure - The top ten shareholders held a total of 8,000,000,000 shares, representing 57.65% of the total ordinary shares, with the largest shareholder being HKSCC Nominees Limited, holding 3,474,932,658 shares (25.02%)[162]. - The ownership structure indicates that Qingdao State-owned Assets Supervision and Administration Commission has full ownership of several subsidiaries controlling Golden Harbour's shares[175]. - The report indicates a complex web of ownership and control among various entities, emphasizing the need for clarity in shareholder rights and equity management[175].
徽商银行(03698) - 2022 - 中期财报