Since the beginning of the year, in the face of severe and complex external environment, the Bank carried out in depth the themed education on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and earnestly implemented the decisions and plans made by the Communist Party of China (“CPC” or the “Party”) Central Committee and the State Council. It adhered to the general principle of pursuing progress while ensuring stability and fully and faithfully applied the new development philosophy on all fronts. Focusing on the central task of serving Chinese modernization, the primary task of high-quality development and the strategic task of fostering a new pattern of development, the Bank practiced in depth the political and people-oriented nature of financial work, and firmly followed the financial development path with Chinese haracteristics. According to the “48-character” guideline of the CPC ICBC Committee, it steadily advanced the tasks of maintaining stable growth, adjusting structure, increasing growth drivers, preventing risks and breaking new ground, with a focus on supporting the “stability” of the general economic situation with the “stability” of the Bank’s own operations and helping the economy realize effective improvement in quality and reasonable growth in quantity.
In the first half of 2023, the Group’s operating results were better than expected, with the core indicators of “Strong, Excellent and Large” maintaining steady growth. In terms of being “Strong”, the Group’s capital adequacy ratio was 18.45% and allowance to NPLs was 218.62%, indicating further enhanced risk resilience capacity. NPL ratio was 1.36%, meaning that asset quality maintained stable. In terms of being “Excellent”, while making more profit concessions to the real economy, the return on average assets (“ROA”) and the return on weighted average equity (“ROE”) were maintained at a relatively good level; the net interest margin (“NIM”) stayed within a reasonable range; cost-to-income ratio was at a stable and reasonable level. In terms of being “Large”, the Group’s operating income, net profit, assets, deposits, loans, capital, etc. all maintained a leading position among peers.
The Bank actively supported the national strategy of maintaining stable growth and continuously fulfilled its responsibilities as a large bank. With a focus on “addressing the country’s needs, giving full play to finance, meeting customers’expectations and tapping into ICBC strengths”, it continued to increase financial supply, gave play to its role as a leading large bank, and supported the sustained recovery and improvement of the economy. In terms of total amount, the balance of RMB loans of domestic branches increased by RMB1.99 trillion, with the increment increased by RMB387.6 billion year on year. Both the increment and the year-on-year growth are industry-leading. The total amount, increment and new investment amount all maintained leading positions in the market. In terms of credit extended areas, with a focus on its main responsibilities and main businesses, the Bank increased the support to key areas and weak links of the real economy. The balance of loans to manufacturing reached RMB3.6 trillion, the balance of loans to strategic emerging industries exceeded RMB2 trillion, and the balance of green credit loans recorded over RMB5 trillion, with both the total amount and the increment leading the industry. The balance of inclusive loans exceeded RMB2 trillion and agriculture-related loans were nearly RMB4 trillion, both registering an industry-leading growth. The balance of loans to private enterprises exceeded RMB5 trillion. The increase of loans to Specialization, Refinement, Differentiation and Innovation (“SRDI”) enterprises was higher than that in the same period of last year. More than RMB650.0 billion on- and off-balance sheet financing was granted to domestic key foreign trade and foreign investment enterprises. The increment in personal consumption and business loans increased by RMB146.5 billion year on year, which promoted consumption and benefited people’s livelihood.
Asset quality remained stable, due to comprehensive and systematic risk control. The Bank firmly established a holistic view of national security, adhered to the bottom-line thinking, and ensured both development and security. It deepened the Five-pronged Risk Management Approach, namely, the overall risk management of domestic and overseas institutions, on- and off-balance sheet business, commercial banking and investment banking and other services, online and offline business, and Head Office and subordinate institutions. According to the guideline of “active prevention, smart control and comprehensive management”, the Bank ensured the prevention of credit risk, market risk, operational risk, etc. and put forth effort to create a “security-first” benchmark for large bank. The level of intelligent risk control was effectively improved, work relating to asset quality was steadily advanced, the new rules on credit approval were thoroughly implemented, the key work of internal control and case prevention were vigorously promoted, consumer protection efforts produced positive results, and the safety operation barrier was further strengthened. The Group’s asset quality was generally stable and all types of risks were under control.
With more efforts invested in adjusting structure and increasing growth drivers, the Bank developed more powerful engines of growth. The Bank continued to promote the four strategic layout of “leveraging our strengths, tackling areas of weaknesses and solidifying the foundation” and the strategic priorities of personal finance, foreign exchange business, key areas and urban-rural collaborative development, etc. We made new progress in implementing the group development plan. We deepened the GBC+ (government, business and consumer) fundamental project, and increased the number of personal customers to 729 million and corporate customers to over 11 million. We accelerated the formation of a diversified customer structure that coordinated large, medium, small, micro and personal customers, which drove the balance of RMB deposits to exceed RMB30 trillion and the increment to exceed RMB3 trillion. The balance of personal assets under management (“AUM”) posted over RMB20 trillion. The Bank adhered to the principle of “balancing large and small customers and giving priority to retail business” and made coordinated efforts to serve large customers, large projects, micro and small enterprises, self-employed businesses and SRDI “little giants”. Such adjustments to the diverse credit structure produced remarkable results. Jeddah Branch in Saudi Arabia opened successfully. The Bank was authorized to act as the RMB clearing bank in Brazil, and the number of ICBC RMB clearing banks increased to 11, further refining the Bank’s global financial service network. Focusing on “serving customers, empowering employees”, the Bank deepened the development of D-ICBC and accelerated digital transformation of financial services. A number of digital innovation achievements in areas including mobile banking, open banking and ICBC e Life were launched successively, further strengthening the drive of high-quality development.