On August 31, IB held a briefing on its 2023 interim results in Shanghai. On the evening of August 30, the bank released its 2023 half-year report. In the first half of the year, IB firmly implemented the "1234" strategy, continued to polish the "three business cards", actively consolidated the basic market, laid out new tracks, accelerated the construction of digital industry, and made new breakthroughs in promoting its own transformation and development in the course of effectively serving the national strategy and economic recovery and development.
According to the report, the bank's total assets were 9.89 trillion yuan, an increase of 6.73% over the end of the previous year. The scale of deposits and loans both exceeded 5 trillion yuan, and the balance of various deposits was 5.14 trillion yuan, an increase of 8.43% over the end of the previous year; The balance of various loans was 5.22 trillion yuan, an increase of 4.81% over the end of the previous year. The operating income was 111.047 billion yuan and the net profit was 42.680 billion yuan. The non-performing loan ratio was 1.08%, down 0.01 percentage points from the end of the previous year.
The "three curves" are generally good
In the first half of the year, IB maintained its strategic focus, made every effort to cope with difficulties and challenges, actively increased revenue and saved expenditure, and its operating results were generally better than expected at the beginning of the year, and its main operating indicators showed a good trend compared with the first quarter.
The revenue curve turned upwards. In the first half of the year, the operating income was 111.047 billion yuan, down 4.15% year-on-year, 2.57 percentage points narrower than the first quarter, and rebounded significantly.
Profit curve marginal repair. In the first half of the year, the two-pronged approach to revenue increase and expenditure reduction achieved obvious results, revenue growth rebounded, administrative expenditure continued to decline, and net profit was 42.680 billion yuan, down 4.92% year-on-year, 4.01 percentage points narrower than the first quarter.
The mass curve remains flat. The non-performing loan rate at the end of June was 1.08%, down 0.01 percentage points from the end of the previous year, continuing to maintain a low level; the concern loan rate was 1.35%, down 0.14 percentage points from the end of the previous year; and the overdue loan rate was 1.43%, down 0.24 percentage points from the end of the previous year. The provision coverage ratio was 245.77%, up 9.33 percentage points from the end of the previous year, and the provision ratio was 2.65%, up 0.06 percentage points from the end of the previous year, with sufficient provisions.
Asset quality is stable and improving
In the first half of the year, IB coordinated development and security, deepened the integration of risk and business, continued to strengthen risk control and resolution in key areas such as real estate, local government financing, and credit cards, and fought a solid battle to ensure stable asset quality.
According to the half-year report, the bank's non-performing loan ratio was 1.08%, down 0.01 percentage points from the end of the previous year, the asset quality was stable and improving, and the loan provision coverage ratio was 245.77%, and the loan ratio was 2.65%, up 9.33 percentage points and 0.06 percentage points respectively from the end of the previous year, and the risk offset ability was further improved.
The asset quality in the real estate and local government financing sectors that the market is concerned about is stable, with new non-performing products falling by 75% and 95% respectively year-on-year. As of the end of June, the bank's full-caliber real estate financing totaled 1.72 trillion yuan, with a non-performing rate of 1.41%, down 0.07 percentage points from the end of the previous year. The balance of local government financing debt was 204.890 billion yuan, a decrease of 15.988 billion yuan from the end of the previous year, and the balance of non-performing assets was 2.722 billion yuan.
The asset quality of the credit card business has improved in stages. At the end of the reporting period, the balance of credit card loans was 414.140 billion yuan, with a non-performing rate of 3.94%, down 0.07 percentage points from the end of the previous year; the concern rate was 3.08%, down 0.30 percentage points from the end of the previous year. The forward-looking indicator "collection rate", which reflects the new non-issuance of credit cards, decreased by 0.69 percentage points from the end of the previous year.
In addition, IB also continued to promote the classified operation and refined management of special assets, seeking benefits from non-performing assets, and achieved a clearance of 6.212 billion yuan in the first half of the year, a year-on-year increase of 41%, and the collection level reached a high point in the past three years. Through risk resolution and disposal, cash recovery of non-performing loans reached 4.487 billion yuan, a year-on-year increase of 24%.
The pace of digital transformation is accelerating
Anchoring the goal of "building the ability to connect everything and building the best eco-enabled bank", IB continued to accelerate the pace of digital transformation in the first half of the year, with the Group investing 3.327 billion yuan in science and technology, a year-on-year increase of 44.4%, with more than 6,800 scientific and technological talents, accounting for 12.14%.
The digital base is further strengthened. In the first half of the year, IB adhered to the methodology of "enterprise-level and standardization", further promoted the construction of "five standardizations" of demand, data, model, openness and operation, basically completed the "five major enterprise frame projects" of marketing, wealth, investment banking, risk control and operation, gradually expanded the supply of computing power, accelerated the "cloudification" transformation of infrastructure, initially completed 21,000 enterprise-level data dictionary standards, and launched the large-model product ChatCIB, accelerating the release of data asset value.
Digital operation capabilities have been further enhanced. Focusing on the "three business cards" and "five new tracks" to strengthen scientific and technological support, the growth trend of monthly active customers (MAU) of the "five major online platforms" of IB Puhui, IB Butler, IB Life, Money Manager, and Bank Platform remained good. As of the end of June, the number of IB inclusive certified users exceeded 30,000, an increase of 70.19% over the end of the previous year; The number of IB Butler users increased to 1,092,000, and the number of monthly active customers (MAU) was 643,300, an increase of 9.98% over the end of the previous year; The number of IB Bundle Card users increased by 4,195,700 from the end of the previous year, and the number of monthly active customers (MAU) increased by 11.09% from the end of the previous year; There were 16,474,400 registered users of Qian Da, and the number of monthly active customers (MAU) increased by 12.17% over the end of the previous year; There are more than 5,300 bank-bank platform cooperative institutions, and the institutional investment scale is 271.4 billion yuan, an increase of 25.01% over the end of the previous year.
The digital risk floor is further reinforced. IB continued to consolidate the foundation of data security, network security, personal information security, R&D security, operation and maintenance security and outsourcing security, continuously improved the overall security system, steadily promoted the construction of digital risk control, and intercepted 380 million yuan of fraud-related funds during the reporting period of the enterprise-level digital intelligent anti-fraud platform.
In the second half of the year, IB will maintain its strategic focus, continue to deepen the implementation of the strategy, forge its strengths and make up for its weaknesses, give full play to its endowment advantages, enhance its comprehensive competitiveness, better balance the relationship between immediate performance and medium- and long-term sustainable development, better coordinate development and security, anchor goals, strive to be the first, and create new achievements in the new journey of high-quality development.
Source: Industrial Bank Zhangzhou Branch