China CITIC Bank Releases 2024 Semi-Annual Report: Actively Serving the Real Economy and Firmly Promoting High-quality Development

On the evening of August 28, China CITIC Bank Co., Ltd. (hereinafter referred to as "China CITIC Bank", stock code 601998.SH/0998.HK) disclosed its 2024 semi-annual performance report.

According to the report, in the first half of 2024, in the face of a complex and severe internal and external environment, China CITIC Bank conscientiously implemented the decisions and arrangements of the CPC Central Committee and the State Council, strictly implemented regulatory requirements, actively did a good job in the "five major articles" of finance, served and supported the real economy, steadily promoted the construction of "five leading" banks, and sought progress while maintaining stability, and promoted stability through progress, and the overall business development was in line with expectations.

Seek progress in business development and promote stability with progress

Operating efficiency remained stable. During the reporting period, China CITIC Bank achieved operating income of RMB109.019 billion, a year-on-year increase of 2.68%; Among them, the non-interest net income was 36.411 billion yuan, a year-on-year increase of 10.44%, achieving rapid growth; Net profit attributable to shareholders of the Bank was RMB35.490 billion.

Asset quality remained stable. As of the end of the reporting period, the balance of non-performing loans of China CITIC Bank was 66.580 billion yuan, the non-performing loan ratio was 1.19%, a slight increase of 0.01 percentage points over the end of last year, the provision coverage ratio was 206.76%, a decrease of 0.83 percentage points from the end of last year, and the loan-to-provision ratio was 2.46%, an increase of 0.01 percentage points from the end of last year.

The scale of the business has grown steadily. As of the end of the reporting period, the total assets of China CITIC Bank were RMB9,104.623 billion, an increase of 0.58% over the end of the previous year. the total amount of loans and advances was RMB5,593.671 billion, an increase of 1.73% over the end of the previous year; Total customer deposits amounted to RMB5,514.879 billion, an increase of 2.16% over the end of the previous year. During the reporting period, China CITIC Bank organically combined the implementation of the national strategy with the adjustment of credit structure, and the growth rate of loans in key areas such as science and technology innovation financial loans, green credit, inclusive finance, agriculture-related loans, and manufacturing was higher than the overall growth rate of loans.

The fine management of capital has been improved. Guided by light development and value creation, China CITIC Bank continued to optimize its capital allocation model and strengthen refined capital management to achieve a balanced development of business growth, value return and capital consumption. As of the end of the Reporting Period, China CITIC Bank's capital adequacy ratio was 13.69%, Tier 1 capital adequacy ratio was 11.57%, core Tier 1 capital adequacy ratio was 9.43%, and leverage ratio was 7.39%, all of which met regulatory requirements and further improved capital adequacy ratio.

Solidly promote the "five major articles" of finance

During the reporting period, China CITIC Bank thoroughly implemented the spirit of the 20th National Congress of the Communist Party of China and the spirit of the Central Financial Work Conference, formulated and improved the implementation plan of the "Five Major Articles" in finance, established a leading group and five special working groups, formed a "1+5" implementation system, clarified 31 specific measures, and wrote a good CITIC answer sheet to serve the issues in the era of the real economy.

As of the end of the Reporting Period, the balance of CITIC Bank's technology finance loans was RMB433.089 billion, an increase of 4.19% over the end of the previous year. 7,625 state-level "specialized, special and new" enterprises were served, an increase of 991 from the end of the previous year. the balance of green credit was RMB529.277 billion, an increase of RMB70.255 billion or 15.31% from the end of the previous year; The number of green credit customers exceeded 5,500, an increase of more than 600 from the end of the previous year. The balance of inclusive loans to small and micro enterprises was 581.715 billion yuan, an increase of 36.640 billion yuan from the end of the previous year, and the balance of agriculture-related loans was 608.641 billion yuan, an increase of 57.863 billion yuan or 10.51% from the beginning of the year. The "Happiness +" pension financial service system has been updated and iterated, with a total of 4,186,200 users of the "pension ledger" tool, a pension custody scale of 465.395 billion yuan, an increase of 39.160 billion yuan from the end of the previous year, and 1,167,500 individual pension accounts opened, an increase of 25.93% from the end of the previous year. Reshape the bank's management, operation and operation value chain with digitalization, and upgrade the digital human wealth advisor "Xiaoxin" with a service scope covering four types of products: wealth management, funds, insurance and deposits; The industry's first integrated platform for foreign exchange, precious metals and local currency, with an average daily foreign exchange trading volume of 150 million US dollars, and the foreign exchange market-making ranking remains at the forefront of the market.

The "five leading" banks are off to a good start

In 2024, China CITIC Bank proposed to implement the "Five Leading" banking strategies, namely a leading wealth management bank, a leading comprehensive financing bank, a leading transaction settlement bank, a leading foreign exchange service bank, and a leading digital bank, to plan for high-quality development and unswervingly build a value bank.

As of the end of the reporting period, China CITIC Bank's "five leading" banks had made a good start in their strategies, with all key business indicators comprehensively improving. Keeping up with the trend of the era of great wealth and the changes in customers' wealth needs, we are committed to building the preferred wealth management host bank for customers, with a balance of retail assets under management reaching 4.42 trillion yuan, an increase of 4.41% over the end of the previous year. Focusing on the diversified financing needs of customers for "stocks, debts, loans and investment", we promoted the optimization of products, customers and management systems, created a comprehensive financing ecosystem of "commercial bank + investment bank + collaboration + matchmaking", and provided customers with comprehensive financing services of "financing + financial intelligence", with a comprehensive financing balance of 13.43 trillion yuan, an increase of 2.14% over the end of the previous year; To meet the settlement needs of customers in an all-round way, solve the pain points of customer settlement, provide customers with the ultimate user experience, and improve the efficiency of corporate financial management and capital operation, the self-developed treasury management system "Tian Yuan Treasury" system has 1,837 online customers, and the cumulative transaction amount during the reporting period reached 168.706 billion yuan; Closely following the country's high-level opening-up strategy, adhering to the service of "going out" and the construction of the "Belt and Road", creating a product map of the whole account, the whole scenario and the whole life cycle of foreign exchange business and a one-stop service platform for cross-border finance, and building a comprehensive cross-border financial service system, the number of foreign exchange business customers for corporate (including interbank) increased by 14.43% year-on-year during the reporting period; We will comprehensively promote the strategy of compulsory science and technology, adhere to innovation-driven, business-led, and in-depth integration of industry digital technology, accelerate the release of digitally empowered business value, improve the quality and efficiency of data-driven business processes, and explore and accelerate breakthroughs in key innovation areas.

It is worth mentioning that China CITIC Bank is committed to allowing all investors to share the fruits of business development, and in recent years, it has made great efforts to promote the steady growth of dividend levels and continuously improve investors' sense of gain. In 2024, China CITIC Bank will further respond to the call of the regulator and plan to implement an interim dividend, which will further increase the dividend ratio to 29.20% of the net profit of ordinary shareholders.

China CITIC Bank said that it will always adhere to the political and people's nature of financial work, continue to deepen the structural reform of the financial supply side, do a good job in the "five major articles" with high quality, provide the source of living water for the real economy, continuously enhance the ability and level of serving the overall reform and development of the country, and continue to contribute to the promotion of Chinese-style modernization.