Ownership and Control of Banks - Jilin Jiutai Rural Commercial Bank holds a 51.00% stake in Anci District Huimin Village Bank, which was established in December 2011[3] - The bank has a 28.17% stake in Anping Huimin Village Bank, established in December 2013, with a voting agreement in place with other shareholders[3] - Jilin Jiutai Rural Commercial Bank controls Baicheng Taobei Huimin Village Bank with a 49.00% stake, established in November 2015, and has a voting agreement with other shareholders[3] - The bank has a 38.80% stake in Changbai Mountain Rural Commercial Bank, established in December 2011[5] - Jilin Jiutai Rural Commercial Bank holds a 40.00% stake in Changchun Gaoxin Huimin Village Bank, established in September 2013, with a voting agreement with other shareholders[5] - The bank has a 51.20% stake in Changchun Nanguan Huimin Village Bank, established in January 2011[6] - Jilin Jiutai Rural Commercial Bank controls Daan Huimin Village Bank with a 51.46% stake, established in January 2011[6] - The bank has a 42.85% stake in Fuyu Huimin Village Bank, established in December 2015, with a voting agreement with other shareholders[6] - Jilin Jiutai Rural Commercial Bank holds a 56.70% stake in Gaomi Huimin Village Bank, established in May 2011[6] - The bank has a 51.00% stake in Guangzhou Huangpu Huimin Village Bank, established in February 2014[6] - The company holds a 35.00% stake in Huizhou Huimin Village Bank, which is considered a subsidiary under its control[8] - The company owns 46.00% of Jilin Chuanying Huimin Village Bank, also classified as a subsidiary[8] - The company has a 20.20% ownership in Jilin Gongzhuling Rural Commercial Bank, with the remaining 79.80% held by 532 other shareholders[9] - The company controls 33.15% of Jingmen Dongbao Huimin Village Bank, which is classified as a subsidiary[9] - The company has a 17.87% stake in Leizhou Huimin Village Bank, with 82.13% held by other shareholders[10] - The company owns 34.36% of Liaoyuan Rural Commercial Bank, which is also considered a subsidiary[10] - The company holds a 60.00% stake in Lujiang Huimin Village Bank, with the remaining 40.00% held by 49 other shareholders[11] - The company has a 45.25% ownership in Qian'an Huimin Village Bank, classified as a subsidiary[11] - The company has established voting agreements with various shareholders across its subsidiaries, ensuring control over board meetings and shareholder meetings[8][9][10][11] Financial Performance - Interest income for the first half of 2022 was RMB 6,759.5 million, an increase of 18.9% compared to RMB 5,686.7 million in the same period of 2021[23] - Net interest income reached RMB 2,947.6 million, reflecting an 8.6% growth from RMB 2,715.3 million year-on-year[23] - Total assets as of June 30, 2022, amounted to RMB 259,460.1 million, representing a 10.8% increase from RMB 234,140.2 million at the end of 2021[24] - Total liabilities were RMB 241,005.0 million, up 11.4% from RMB 216,365.2 million at the end of 2021[24] - The bank's net profit for the first half of 2022 was RMB 653.6 million, a 27.5% increase from RMB 512.5 million in the same period of 2021[23] - Basic earnings per share for the first half of 2022 were RMB 0.14, up 55.6% from RMB 0.09 in the first half of 2021[23] - Total equity as of June 30, 2022, was RMB 18,455.1 million, a 3.8% increase from RMB 17,775.0 million at the end of 2021[24] - The bank's total loans and advances amounted to RMB 168,340.3 million, reflecting a 10.3% increase from RMB 152,642.7 million at the end of 2021[24] - The bank's commission and fee income was RMB 63.1 million, slightly down by 1.4% from RMB 64.0 million in the previous year[23] - For the six months ended June 30, 2022, the total operating income was RMB 3,151.8 million, an increase of 14.5% compared to RMB 2,752.0 million for the same period in 2021[29] - Net profit rose by 27.5% to RMB 653.6 million for the six months ended June 30, 2022, up from RMB 512.5 million for the same period in 2021[29] - Net interest income increased by 8.6% to RMB 2,947.6 million for the six months ended June 30, 2022, compared to RMB 2,715.3 million for the same period in 2021[29] - As of June 30, 2022, total assets amounted to RMB 259,460.1 million, reflecting a growth of 10.8% since the beginning of the year[29] - The net amount of loans and advances increased by 10.3% to RMB 168,340.3 million compared to the beginning of the year[29] - The non-performing loan ratio was 1.96%, an increase of 0.08 percentage points from the beginning of the year[29] - Total deposits reached RMB 217,528.1 million, representing a growth of 12.6% since the beginning of the year[29] - The cost-to-income ratio improved to 40.64%, down from 44.24% in the previous year, indicating better operational efficiency[25] - The core tier 1 capital adequacy ratio was 8.51%, slightly down from 8.83% in the previous year, reflecting a focus on maintaining capital strength[25] Loan and Asset Management - The company plans to enhance community financial services and expand retail banking operations to capture growth potential in personal financial services[28] - The company expanded its loan issuance to support the real economy, rural revitalization, and small and medium enterprises, contributing to the growth in net interest income[30] - Operating expenses and asset impairment losses increased, partially offsetting the gains in net interest income[30] - The average interest rate on interest-earning assets was 5.49%, slightly down from 5.56% in the previous year[31] - The company plans to continue expanding its funding channels based on market conditions to enhance capital utilization efficiency[30] - The average balance of interest-earning assets rose from RMB 204,698.7 million to RMB 246,200.2 million, contributing to the increase in interest income[40] - The interest income from loans and advances accounted for 85.2% of total interest income in the six months ended June 30, 2022, up from 80.5% in the same period of 2021[41] - Interest income from loans and advances grew by 25.8% to RMB 5,757.1 million, driven by an increase in average balance from RMB 144,393.4 million to RMB 171,652.8 million[42] - The average yield on loans and advances increased from 6.34% to 6.71% due to a higher proportion of medium to long-term loans[42] - Interest income from investment securities and other financial assets decreased by 21.1% to RMB 664.3 million, primarily due to a drop in average yield from 5.96% to 4.14%[43] - Interest income from interbank placements fell by 1.0% to RMB 95.1 million, with the average yield declining from 1.62% to 1.38%[44] - Interest income from repurchase agreements surged by 125.5% to RMB 115.0 million, attributed to an increase in average balance from RMB 3,225.1 million to RMB 10,398.1 million[45] - Interest income from deposits with the central bank increased by 4.7% from RMB 105.3 million for the six months ended June 30, 2021, to RMB 110.3 million for the six months ended June 30, 2022, due to an increase in average balance from RMB 16,162.3 million to RMB 17,298.5 million, despite a slight decrease in average yield from 1.30% to 1.28%[46] - Interest income from funds lent out rose by 3.5% from RMB 17.1 million for the six months ended June 30, 2021, to RMB 17.7 million for the six months ended June 30, 2022, driven by an increase in average balance from RMB 810.1 million to RMB 936.9 million, although offset by a decline in average yield from 4.22% to 3.78%[47] - The net interest margin decreased to 2.29% from 2.52% in the previous year[34] - The company aims to enhance credit support for enterprises affected by the pandemic, focusing on meeting reasonable credit demands[79] - The company has implemented stricter credit assessment standards for guaranteed loans, primarily accepting guarantees from listed companies or guarantee companies[83] Risk Management - The bank has established a comprehensive risk management system to mitigate uncertainties affecting strategic and operational goals[162] - Credit risk management focuses on corporate loans, retail loans, and funding operations, with a structured organization involving various committees and departments[163] - In the first half of 2022, the bank enhanced credit risk management processes, ensuring asset quality and timely identification of credit risks[165] - Market risk management aims to control potential market losses within acceptable levels while maximizing risk-adjusted returns[166] - The bank employs tools such as sensitivity analysis, duration, and Value at Risk (VaR) to measure and manage market risks effectively[167] - Interest rate risk management addresses risks from mismatches in the timing of asset and liability repricing, with a focus on maintaining controllable risk levels[168] - The bank strengthened interest rate risk management by enhancing internal fund transfer pricing (FTP) and loan pricing systems (RPM), optimizing resource allocation and improving risk control capabilities[169] - In the first half of 2022, the bank conducted regular stress tests on interest rate risk, assessing the impact of interest rate fluctuations on economic value under various scenarios[169] - The bank implemented measures to manage foreign exchange risk, including real-time monitoring of foreign exchange positions and hedging strategies to minimize exposure and stabilize earnings[170] - The bank's liquidity risk management framework was reinforced, ensuring stability in liquidity levels despite external pressures such as the pandemic[173] - The bank increased the proportion of core liabilities and enhanced the reserve of high-quality liquid assets to reduce reliance on interbank financing[174] - The bank conducted regular liquidity stress tests to evaluate cash flow gaps and financing capabilities under extreme scenarios, improving its response to liquidity risks[174] - The bank's operational risk management included quarterly checks on employee behavior and accounting practices to mitigate potential risks[172] - The bank's information management systems maintained 100% availability, ensuring operational resilience against power outages and equipment failures[172] - The bank's risk management policies were aligned with its development strategy and shareholder value requirements, balancing growth and risk effectively[169] Shareholder and Capital Structure - The bank's capital adequacy ratios must meet specific regulatory requirements, with a minimum capital adequacy ratio of 10.5% and a minimum Tier 1 capital ratio of 8.5% as of June 30, 2022[191] - The number of shares outstanding as of June 30, 2022, was 4,612,901,427, with domestic shares accounting for 81.0% and H shares for 19.0%[194] - The company issued additional shares, increasing the total to 5,074,191,569 shares post-capitalization[195] - The top ten domestic shareholders held a combined total of 1,805,590,338 shares, representing approximately 39.13% of the issued capital[197] - The largest shareholder, Jilin Trust Co., Ltd., held 443,289,245 shares, accounting for 9.61% of the total[198] - The second-largest shareholder, Changchun Huaxing Construction Co., Ltd., held 379,766,198 shares, representing 8.23%[198] - The company reported an increase in undistributed profits to RMB 2,166.6 million from RMB 1,436.8 million year-over-year[192] - The tier 1 capital ratio was 8.60%, down from 8.96% in the previous year[192] Operational Developments - The bank's data center achieved 100% availability in its overall operation and maintenance as of June 30, 2022[159] - The bank conducted 8 emergency drills in the first half of 2022, enhancing its emergency response capabilities[160] - The bank's technology personnel obtained 14 advanced certifications and qualifications, including RPA Engineer Certification and PMP[161] - The online financial comprehensive service platform project won the "IT Architecture Innovation Excellent Case Award" in 2022[161] - The bank established six service centers in various provinces to support the operations of its village banks[155] - The bank is actively developing a digital banking platform and enhancing self-service equipment functionalities as part of its financial technology innovation plan[158] - The group operated 383 business outlets as of June 30, 2022, with 175 directly managed by the group and the rest by subsidiaries[147] - The group had 395 self-service business outlets and 989 self-service devices as of June 30, 2022, enhancing customer convenience[148] - The number of telephone and SMS banking customers reached 2,829,820 as of June 30, 2022, indicating a significant customer base for remote banking services[149] - Online banking customers totaled 468,205 as of June 30, 2022, reflecting the group's digital service adoption[150] - The group reported 964,243 mobile banking customers as of June 30, 2022, showcasing the popularity of mobile banking services[151] Wealth Management and Retail Banking - The total amount of wealth management products sold to retail customers was RMB 4,719.7 million for the six months ended June 30, 2022, compared to RMB 3,198.1 million for the same period in 2021, representing a growth of 47.5%[131] - The total amount of investment securities and other financial assets increased by 7.9% from RMB 30,806.5 million as of December 31, 2021, to RMB 33,240.5 million as of June 30, 2022[140] - The group’s net fee and commission income for the six months ended June 30, 2022, was RMB 20.4 million, compared to RMB 0.3 million in the same period of 2021, indicating a significant increase[133] - The group’s total assets under management for wealth management services included customized financial services amounting to RMB 360.0 million for the six months ended June 30, 2022, compared to RMB 331.5 million in the same period of 2021[131] - The company is committed to expanding its retail banking services and enhancing customer engagement through various financial products[124] - The total number of retail loan customers reached 69,756, with total loans and advances amounting to RMB 27,279.9 million as of June 30, 2022[124] - Retail banking operating income was RMB 1,444.3 million in 2022, reflecting a 13.5% increase from RMB 1,272.1 million in 2021[125] - Retail deposits totaled RMB 168,964.3 million as of June 30, 2022, compared to RMB 143,412.8 million as of December 31, 2021, representing 77.7% of total deposits[127] Corporate Banking and Client Relationships - The company aims to strengthen long-term relationships with corporate clients, particularly focusing on small and medium-sized enterprises[116] - The company has partnered with various financial institutions to provide comprehensive financial services to corporate clients[116] - The company reported a pre-tax profit of RMB 559.6 million for corporate banking, a significant increase from a loss of RMB 92.9 million in the previous year[114] - The net interest income for corporate banking was RMB 2,045.7 million in 2022, a 47.8% increase from RMB 1,384.5 million in 2021[114] - The operating income from corporate banking increased to RMB 2,051.8 million in 2022, up 45.1% from RMB 1,413.7 million in 2021[114] - As of June 30, 2022, the total loan amount for corporate clients reached RMB 144,577.5 million, representing an increase from RMB 130,241.9 million as of December 31, 2021, accounting for 84.1% of total loans issued[116]
九台农商银行(06122) - 2022 - 中期财报