ICBC(01398)2024-04-26 09:43Client Base and Market Position - ICBC serves over 1,205 million corporate clients and 740 million individual clients globally[2] - ICBC has been ranked first in the "Top 1000 World Banks" by The Banker for eleven consecutive years[2] - ICBC was ranked as the Best Bank in China, Best Corporate Bank in China, and Best Belt and Road Bank by various international financial magazines[8] - ICBC received multiple awards including Best Digital Solutions Bank, Best Green Financial Services Bank, and Best Wealth Management Bank in Asia Pacific[8] Strategic Goals and Corporate Governance - ICBC aims to build a world-class modern financial enterprise with Chinese characteristics[3] - ICBC focuses on serving the real economy and enhancing risk control capabilities[4] - ICBC emphasizes the importance of financial technology and digital transformation[4] - ICBC is committed to international expansion and global operations[4] - ICBC has a strong emphasis on corporate governance and decision-making effectiveness[4] - ICBC values innovation, stability, and excellence in its operations[5] Financial Performance and Reporting - ICBC's 2023 annual report was approved by the board on March 27, 2024, and audited by Deloitte with an unqualified opinion[9] - ICBC proposed a cash dividend of RMB 3.064 per 10 shares for 2023, subject to shareholder approval[9] - ICBC's 2023 annual report was prepared in accordance with both Chinese Accounting Standards and International Financial Reporting Standards[9] - Total customer loans and advances reached RMB 26,086,482 million in 2023, up from RMB 23,210,376 million in 2022[11] - Non-performing loan ratio decreased to 1.36% in 2023 from 1.38% in 2022[11] - Capital adequacy ratio stood at 19.10% in 2023, slightly down from 19.26% in 2022[12] - Provision coverage ratio increased to 213.97% in 2023 from 209.47% in 2022[12] - Net interest income for 2023 was RMB 655,013 million, compared to RMB 691,985 million in 2022[13] - Net fee and commission income for 2023 was RMB 119,357 million, down from RMB 129,325 million in 2022[13] - Operating income for 2023 was RMB 806,458 million, compared to RMB 842,352 million in 2022[13] - Net profit attributable to shareholders of the parent company was RMB 363,993 million in 2023, up from RMB 361,132 million in 2022[13] - Net cash flow from operating activities was RMB 1,417,002 million in 2023, compared to RMB 1,404,657 million in 2022[13] - Total assets increased to RMB 44,697,079 million in 2023, up from RMB 39,609,657 million in 2022[14] - Customer loans and advances reached RMB 26,086,482 million in 2023, compared to RMB 23,212,312 million in 2022[14] - Corporate loans grew to RMB 16,145,204 million in 2023, up from RMB 13,826,966 million in 2022[14] - Personal loans increased to RMB 8,653,621 million in 2023, compared to RMB 8,236,561 million in 2022[14] - Net interest margin decreased to 1.61% in 2023 from 1.92% in 2022[16] - Non-performing loan ratio improved to 1.36% in 2023 from 1.38% in 2022[16] - Provision coverage ratio rose to 213.97% in 2023 from 209.47% in 2022[16] - Core tier 1 capital adequacy ratio stood at 13.72% in 2023, down from 14.04% in 2022[16] - Total capital adequacy ratio was 19.10% in 2023, slightly lower than 19.26% in 2022[16] - Operating revenue for Q4 2023 was RMB 182,938 million, compared to RMB 189,799 million in Q4 2022[17] - ROA and ROE reached 0.87% and 10.66% respectively, with a cost-to-income ratio of 28.28%[19] - Net profit increased to 365.1 billion yuan, with assets, deposits, and loans all growing by over 10%[19] - Non-performing loan ratio decreased by 2 basis points to 1.36%, with a provision coverage ratio of 213.97% and a capital adequacy ratio of 19.10%[19] - Loans increased by 2.88 trillion yuan, and bond investments increased by 1.29 trillion yuan, growing by 12.4% and 12.9% respectively[19] - The number of overseas RMB clearing banks increased to 11[19] - Personal customers increased by nearly 20 million, and corporate customers exceeded 12 million for the first time[20] - Mobile banking monthly active users reached 229 million[21] - The company established 15,500 "ICBC Station" service points[20] - The company built a trillion-level AI model technology system, leading the industry[21] - The company's financial digital capability maturity received the highest level certification[21] - Net profit for 2023 reached RMB 365.116 billion, an increase of RMB 3.006 billion, up 0.8% year-on-year[27] - Interest income for 2023 was RMB 1,405.039 billion, an increase of RMB 126.365 billion, up 9.9% year-on-year[29] - Interest expense for 2023 was RMB 750.026 billion, an increase of RMB 163.337 billion, up 27.8% year-on-year[29] - Net interest income for 2023 was RMB 655.013 billion, a decrease of RMB 36.972 billion, down 5.3% year-on-year[29] - Non-interest income for 2023 was RMB 151.445 billion, an increase of RMB 1.078 billion, up 0.7% year-on-year[28] - Operating income for 2023 was RMB 806.458 billion, a decrease of RMB 35.894 billion, down 4.3% year-on-year[28] - Asset impairment losses for 2023 were RMB 150.816 billion, a decrease of RMB 31.861 billion, down 17.4% year-on-year[28] - Operating expenses for 2023 were RMB 238.698 billion, a decrease of RMB 653 million, down 0.3% year-on-year[28] - The net interest margin and net interest spread for 2023 were 1.61% and 1.41%, respectively, both down by 31 basis points year-on-year[29] - The cost-to-income ratio for 2023 was 28.28%, with operating expenses decreasing by 0.3% year-on-year[27] - Customer loans and advances interest income increased by 51.782 billion yuan, up 5.8%, driven by a 12.4% growth in average balance, partially offset by a 24 basis points decline in average yield[33] - Investment interest income rose by 41.161 billion yuan, up 13.9%, primarily due to a 14.4% increase in average investment balance[35] - Deposits with central banks interest income grew by 8.390 billion yuan, up 18.5%, mainly due to higher average interest rates on overseas deposits and increased domestic deposit scale[35] - Deposits interest expense increased by 109.605 billion yuan, up 22.8%, driven by a 13.8% growth in average customer deposits balance and a 14 basis points rise in average interest rate[37] - Placements with and loans to other banks and financial institutions interest income surged by 25.032 billion yuan, up 69.4%, mainly due to higher foreign currency lending rates[36] - Issued debt securities and certificates of deposit interest expense rose by 20.935 billion yuan, up 58.4%, primarily due to increased issuance of interbank certificates of deposit and higher interest rates on overseas issued debt securities[40] - Net interest income decreased by 36.972 billion yuan, down 5.3%, mainly due to a 104.661 billion yuan decline caused by interest rate changes[32] - Total interest-bearing assets increased to 40,676,019 million yuan, up 12.7%, with an average yield of 3.45%, down 9 basis points[30] - Total interest-bearing liabilities grew to 36,708,081 million yuan, up 13.7%, with an average interest rate of 2.04%, up 22 basis points[30] - Non-interest income reached 151.445 billion yuan in 2023, an increase of 1.078 billion yuan, up 0.7% year-on-year, accounting for 18.8% of operating income[41] - Net fee and commission income decreased by 9.968 billion yuan to 119.357 billion yuan in 2023, down 7.7% year-on-year[42] - Other non-interest income increased by 11.046 billion yuan to 32.088 billion yuan in 2023, up 52.5% year-on-year, driven by gains in bond investments and financial assets[43] - Total assets grew by 12.8% to 44,697.079 billion yuan in 2023, with customer loans and advances increasing by 12.4% to 26,086.482 billion yuan[49] - The company's loan portfolio increased by 12.4% to 26,086.482 billion yuan in 2023, with domestic RMB loans rising by 13.5% to 24,391.525 billion yuan[51] - Asset impairment losses decreased by 17.4% to 150.816 billion yuan in 2023, with loan impairment losses increasing slightly by 0.2% to 143.422 billion yuan[45] - Income tax expenses decreased by 9.2% to 56.850 billion yuan in 2023, with an effective tax rate of 13.47%, lower than the statutory rate of 25% due to tax-exempt income from government bonds[46] - Operating income was distributed across regions, with the Yangtze River Delta contributing 19.3% (155.716 billion yuan) and the Bohai Rim region contributing 20.1% (161.992 billion yuan) in 2023[47] - Corporate loans increased by RMB 2,318.238 billion, a growth of 16.8%, with short-term loans up by RMB 530.547 billion and medium-to-long-term loans up by RMB 1,787.691 billion[53] - Personal loans increased by RMB 418.996 billion, a growth of 5.1%, with personal consumption loans up by RMB 95.844 billion and personal business loans up by RMB 417.096 billion[54] - Total investments reached RMB 11,849.668 billion, an increase of RMB 1,315.966 billion, a growth of 12.5%, with bonds accounting for RMB 11,357.727 billion, up by RMB 1,294.157 billion, a growth of 12.9%[55] - Government bonds increased by RMB 1,298.422 billion, a growth of 17.5%, while central bank bonds decreased by RMB 18.557 billion, a drop of 32.7%[57] - RMB-denominated bonds increased by RMB 1,279.851 billion, a growth of 13.9%, while USD-denominated bonds decreased by RMB 5.016 billion, a drop of 0.9%[59] - Financial investments measured at fair value through profit or loss amounted to RMB 811.957 billion, accounting for 6.9% of total investments[60] - The company held financial bonds totaling RMB 11,786.784 billion, including RMB 811.946 billion in policy bank bonds and RMB 974.838 billion in interbank and non-bank financial institution bonds[61] - Buyback and resale items increased by 360.135 billion yuan, a growth of 41.7%, reaching 1,224.257 billion yuan[63] - Total liabilities increased by 482.5764 billion yuan, a growth of 13.4%, reaching 4,092.0491 trillion yuan[64] - Customer deposits increased by 365.0683 billion yuan, a growth of 12.2%, reaching 3,352.1174 trillion yuan[67] - Corporate deposits increased by 153.8774 billion yuan, a growth of 10.5%, while personal deposits increased by 202.0262 billion yuan, a growth of 13.9%[67] - Time deposits increased by 417.6147 billion yuan, a growth of 27.6%, while demand deposits decreased by 61.7111 billion yuan, a decline of 4.4%[67] - RMB deposits increased by 368.4821 billion yuan, a growth of 13.1%, reaching 3,183.7835 trillion yuan, while foreign currency deposits decreased by 3.4138 billion yuan, a decline of 2.0%[67] - Sell-back repurchase items increased by 443.328 billion yuan, a growth of 77.1%, reaching 1,018.106 billion yuan[72] - Issued debt securities increased by 463.824 billion yuan, a growth of 51.2%, reaching 1,369.777 billion yuan[72] - Shareholders' equity increased by 261.169 billion yuan, a growth of 7.4%, reaching 3,776.588 billion yuan[73] - Net cash inflow from operating activities increased by 12.345 billion yuan, reaching 1,417.002 billion yuan, mainly due to the increase in net customer deposits[75] - Company's financial business revenue in 2023 was RMB 381.914 billion, accounting for 47.3% of total revenue[80] - Personal financial business revenue in 2023 was RMB 317.856 billion, accounting for 39.4% of total revenue[80] - Corporate loans increased by RMB 2.318238 trillion in 2023, a growth of 16.8% year-over-year[81] - Manufacturing loan balance reached RMB 3.8 trillion in 2023, an increase of RMB 828.87 billion, up 27.3% year-over-year[82] - Strategic emerging industries loan balance was RMB 2.7 trillion in 2023, an increase of RMB 948.405 billion, up 54.1% year-over-year[82] - Green loan balance under financial regulatory standards was nearly RMB 5.4 trillion in 2023, an increase of nearly RMB 1.4 trillion[82] - Inclusive finance small and micro enterprise loans reached RMB 2.227752 trillion in 2023, an increase of RMB 677.436 billion, up 43.7% year-over-year[83] - Number of inclusive finance small and micro enterprise loan customers was 1.467 million in 2023, an increase of 451,000[83] - Average interest rate for newly issued inclusive finance small and micro enterprise loans in 2023 was 3.55%[83] - Corporate deposits increased by RMB 1.538774 trillion in 2023, a growth of 10.5% year-over-year[81] - The company's "Smart Law Enforcement" platform has been adopted by over 200 law enforcement agencies, with a cumulative total of over 400 agencies[85] - The company has more than 4,000 "Social Security-Bank Integration Branches" domestically, leading the industry in branch count[85] - The company's corporate settlement accounts reached 13.738 million by the end of 2023, an increase of 1.455 million from the previous year[87] - The company's cash management clients totaled 202,700, with global cash management clients reaching 11,563 by the end of 2023[87] - The company led 2,711 bond underwriting deals in 2023, with a total scale of RMB 2.08 trillion[88] - The company underwrote 95 ESG bonds in 2023, totaling RMB 112.875 billion[88] - The company's bill discounting business volume reached RMB 2.716741 trillion in 2023, a year-on-year increase of 23.2%[89] - The company benefited over 10.44 million small and micro enterprises and individual businesses through fee reduction policies in 2023[86] - The company's "Smart Brain" platform enhances marketing precision for all clients, improving customer satisfaction and experience[90] - The company launched the "Lingtong Account" service brand, offering full lifecycle account services and improving penetration of basic settlement products[90] - Personal customers reached 740 million, an increase of 19.8 million from the previous year[92] - Total personal financial assets amounted to RMB 20.71 trillion, with personal deposits increasing by RMB 2.02 trillion, a growth of 13.9%[92] - Private banking clients increased to 262,900, up by 36,900, a growth of 16.3%, with managed assets reaching RMB 3.07 trillion, an increase of RMB 443.1 billion, a growth of 16.9%[93] - Bank card issuance reached 1.23 billion, an increase of 10.88 million from the previous year, with debit cards accounting for 1.077 billion and credit cards for 153 million[94] - Bank card consumption amounted to RMB 20.84 trillion, with debit card consumption at RMB 18.60 trillion and credit card consumption at RMB 2.24 trillion[94] - The "Smart Brain" strategy reached 200 million customers, directly driving customer purchases of key products worth RMB 1.87 trillion, 2.14 times the amount in 2022[95] - Intelligent asset configuration services were provided to nearly 6 million customers, driving AUM growth of over RMB 440 billion and facilitating product transactions of approximately RMB 500 billion[95] - The wealth community's fan base exceeded 39 million by the end of 2023[97] - Wealth management product balance reached 1,857.056 billion yuan at the end of 2023, with ICBC Wealth Management product balance at 1,607.477 billion yuan[100] - Insurance asset custody scale was 7.0 trillion yuan, public fund custody scale was 3.7 trillion yuan, and pension custody scale was 2.8 trillion yuan at the