In 2023, China Construction Bank delivered a brilliant report card. The world's leading large commercial bank achieved a net profit of 332.6 billion yuan, ranking second in the global banking industry, second only to ICBC.
However, what is remarkable is that CCB's total liabilities are as high as 35.15 trillion yuan, total assets are 38.32 trillion yuan, and the asset-liability ratio is 91.7%. This data reflects CCB's dual advantages in terms of business scale and profitability, and also triggers in-depth thinking about its debt management model.
As one of the four major state-owned commercial banks in China, CCB occupies a pivotal position in the domestic financial system. In 2023, CCB achieved operating income of RMB769.7 billion, including net interest income of RMB566.9 billion and net fee and commission income of RMB148.2 billion.
These data show that CCB has achieved good results in both traditional deposit and loan business and intermediate business. In particular, in terms of deposit business, CCB absorbed a total of 23.08 trillion yuan, ranking among the best in the domestic banking industry.
However, CCB's high-debt business model has also raised some concerns. As of the end of 2023, CCB's total liabilities reached 35.15 trillion yuan, of which deposits accounted for 78.66%.
This means that CCB mainly relies on deposits to support the expansion of its asset scale. While deposits are the most stable and lowest-cost source of funding for banks, over-reliance on deposits can also bring certain liquidity risk and interest rate risk.
In order to cope with these risks, CCB has taken a variety of measures to optimize the debt structure and improve the efficiency of capital use. CCB has actively expanded diversified debt channels such as interbank liabilities and bond issuance to reduce its dependence on deposits, while CCB has strengthened its asset and liability management and improved the efficiency and profitability of funds through maturity mismatch and interest rate sensitivity analysis.
Overall, CCB delivered an impressive report card in 2023. The debt scale of 35.15 trillion yuan and the net profit of 332.6 billion yuan fully demonstrate the strength and status of CCB as a leading global bank.
At the same time, CCB is also actively responding to the challenges brought about by its high-debt business model, and continuously improving its risk management and sustainable development capabilities by optimizing its liability structure and strengthening its asset and liability management.
In the future, CCB will continue to face a complex and volatile internal and external environment. As China's economy enters a stage of high-quality development, CCB needs to continue to deepen reforms, accelerate the pace of transformation, and provide more high-quality and efficient financial services for the real economy.
At the same time, CCB should also attach great importance to risk prevention and control, strengthen comprehensive risk management, ensure the stability of asset quality, and maintain the safety and soundness of the financial system.
As ordinary people, we should not only affirm and appreciate CCB's business results, but also remain rational and vigilant against its high-debt business model. As depositors, we need to choose the right wealth management products and services according to our own risk appetite and financial situation;
As investors, we should objectively analyze CCB's financial indicators and business strategies and make rational investment decisions, while as members of the public, we should support CCB to better serve the real economy, fulfill its social responsibilities, and contribute to the sustainable development of the economy and society.
Only when the banking industry develops in tandem with the real economy and shares the fruits of development with the general public can we truly achieve high-quality and sustainable development. As a leading large-scale commercial bank in China, CCB should play an exemplary role in this process, be brave in innovation and responsibility, and make unremitting efforts to build a modern economic system and realize the Chinese dream of the great rejuvenation of the Chinese nation.