2014 Annual Results Announcement

Transcription

1 214 Annual Results Announcement Hong Kong 27 March 215

2 Disclaimer This document may contain time-sensitive information which is only current as of the date of publication. In addition, this document may also contain forward looking statements which are subject to risks and uncertainties. No reliance may be placed on the information contained in this document or on its completeness, accuracy or fairness, nor is any responsibility accepted for any errors, misstatements, or omissions or any direct or consequential loss howsoever arising from any use of, or reliance on, this document or otherwise in connection with it. Please refer to the Company s latest issued annual report for detailed financials. 2

3 Financial Performance Business Development Risk Management 215 Outlook 3

4 Stable Profitability with Strong Growth in Net Profit Net Profit Return on Average Assets (RMB mn) 2.% 7, 1.5% 1.48% 1.39% 1.31% 6, 5,676 1.% 5, 4,36 4,926.5%.% 4, Return on Average Equity 3, 3.% 2, 2.% 22.93% 18.89% 16.64% 1, 1.%.% 4

5 Steady Net Interest Income Growth Net Interest Income Net Interest Margin (NIM) (RMB mn) 14, 4.% 3.% 3.3% 2.63% 2.74% 12, 11,423 2.% 1, 8,569 9,63 1.%.% 8, Net Interest Spread (NIS) 6, 4.% 4, 3.% 2.88% 2.44% 2.47% 2.% 2, 1.%.% 5

6 Robust Growth in Net Fee and Commission Income Net Fee and Commission Income Fee and Commission Income Breakdown (RMB mn) 1, % 3.32% 9.72% % 38.98% % 17.15% 2 Custodian and other fiduciary service fees Bank card fees Consultancy and advisory fees Settlement and clearing fees Guarantee and commitment fees Agency services commissions Others¹ (1) Mainly includes syndicated loan fees, domestic factoring fees and arrangement fees for international trade financing 6

7 Industry Top Cost Efficiency Operating Cost Increased due to business expansion Cost to Income Ratio Remains Low (RMB mn) 6, 5.% 5, 4.% 4, 4, % 33.29% 33.8% 3,132 3,386 3.% 3, 2.% 2, 1, 1.%.% 7

8 Financial Performance Business Development Risk Management 215 Outlook 8

9 Steadily Expanding Business Scale (RMB bn) 5 Total Assets : RMB482.8 bn Total Loans Growth: 12.25% YOY 483 (RMB bn) Total Liabilities: RMB446.2 bn Total Deposits Growth: 16.52% YOY Total Loans and Advances Total Assets Total Deposits Total Liabilities 9

10 Increasingly Optimized Business Structure Loan Mix Profit Before Tax Mix (RMB bn) (RMB bn) % % % 25.% 6.19% 25.79% % 21.97% % 15.46% 34.34% % % 28.71% 21.99% % 7.2% 68.2% % 53.56% 4.82% Coporate Loans Retail Loans Discounted Bills Coporate Banking Retail Banking Treasury Others 1

11 Steady Growth of Corporate Business (RMB bn) Corporate Loan Growth: 9.4% YOY Corporate Deposit Growth: 17.64% YOY (RMB bn) Corporate Loans grew 9.4% to RMB bn For the seven consecutive year, the Bank ranked #1 in Anhui Province by corporate deposit market share % % % % 62.91% 54.7% Demand Deposits Time Deposits 11

12 Fast Growth of Retail Business Retail Loan Growth: 15.81% YOY Retail Deposit Growth: 18.58% YOY (RMB bn) (RMB bn) % 19.34% 1.79% 18.41% % 9.85% 18.31% % 6.1% % 71.19% 7.8% % 39.9% 38.2% Residential Mortgage Loans Personal Business Loans Others Demand Deposits Time Deposits 12

13 Fast Growth of Retail Business (Cont d) Accumulated Number of Valid Credit Cards (in thousands) Income From Credit Card Business (in millions) Total Number of Debit Cards Issued 5.5 Yi Ka Tong POS transaction volume reached RMB Bn, up 26.71% YOY Income From Bank Card Fees (RMB mn) (RMB mn)

14 Rapid Development of Other Businesses International settlement volume reached US$5.57 billion in 214, up 11.19% YoY Among the 25 financial institutions in Anhui Province, the Bank ranks #5 by international settlement and foreign exchange settlement volume Innovative products such as cross-border RMB settlement and forward foreign exchange settlement witnessed robust growth. 214 cross-border RMB settlement volume reached RMB2.98 billion, up 115% YoY By 214 year end, the Bank established correspondent banking relationship with 76 banks in more than 8 countries and regions across six continents in the world (RMB mn) 1 8 International Business Maintains Steady And Rapid Growth Settlement and Clearing Fee Income E-banking Channels Further Improved In 214, trading via alternative electronic channel accounted for 71.52% Number of online retail banking customers reached million; number of online retail banking transactions reached million, up ~32.3% YoY, and total transaction volume reached RMB billion, up ~26.35% YoY Coverage ratio of online corporate banking service reached 66.24%; number of online corporate banking transactions reached million, up ~2.61% YoY; total transaction volume reached RMB trillion, up ~13.47% YoY Number of registered mobile customers reached thousand, number of transactions reached 3,595.5 thousand and total transaction volume reached RMB 4.491billion Commission Income from Custodian and other Fiduciary Service Fees (RMB mn)

15 Financial Performance Business Development Risk Management 215 Outlook 15

16 Sufficient Capital to Support Future Business Development Capital Adequacy Ratios 16.% 15.19% 14.% 12.61% 12.6% 13.41% 12.% 11.51% 11.5% 1.% 8.% 6.% 4.% 2.%.% At the end of 213 At the end of 214 CAR Tier 1 CAR Core Tier 1 CAR 16

17 Asset Quality Remains Stable Stable NPL Levels Proportion of Special Mention Loans Kept at Low Levels (RMB mn) 3, 1.% 3.% 2,5.83%.8% 2,.58%.54% 1,826.6% 2.5% 2.34% 1,5 1, 949 1,51.4% 2.% 2.7% 5.2% 1.91%.% 1.5% Total NPL NPL Ratio % of special mention loans 17

18 Effective Risk Management Sufficient Coverage Ratios Strict Control over Industry Exposure (1) 2.8% 2.6% 46.% % % 5% 3% Transportation 4.21% Construction 9.47% Others 6.56% Commerce & Services 28.13% 2.4% 2.35% Real Estate 11.6% 1% 2.2% 2.13% 2.13% Public Utilities 13.13% Manufacturing 27.44% 2.% -1% NPL Coverage Ratio Provision Coverage Ratio (1) Corporate loans by industry distribution, others include Energy and chemistry, Catering and travelling, Education and media, Financial services, etc. (discounted bills not included) 18

19 Highlights of 214 Enhancement of Brand Name Full institution coverage for all counties Exploration of Internet Finance Business Key Development of Business Qualifications 19

20 Financial Performance Business Development Risk Management 215 Outlook 2

21 215 Outlook The Year of Reformation 215 will be a crucial year for the implementation of new strategic development plan, reform and upgrade for Huishang Bank Integrated corporate business development Professional penetration into Small & Micro business Enhancement of its intelligence-based retail business Diversification of its interbank business 21

22 Q & A 22

23 Main Financial Indicators RMB in billions 31 Dec Dec. 213 Variance Total assets % Total loans and advances % Total liabilities % Total deposits % Total equity attributable to shareholders of the bank % Core Tier 1 capital adequacy ratio (1) 11.5% 12.6% 1.1ppts Total capital adequacy ratio 13.41% 15.19% 1.78ppts NPL ratio.83%.54%.29ppts Provision coverage ratio % % ppts Provision-to-loan ratio 2.13% 2.13%.ppts (1) Since 1 st Jan the company began to implement Administrative Measures for the Capital Management of Commercial Banks (Provision) of CBRC promulgated on 7 June,

24 Main Financial Indicators (cont d) RMB in millions Variance Net interest income 11,423 9, % Net fee and commission income % Operating income 12,748 1, % Profit before income tax 7,411 6, % Net profit 5,676 4, % Earnings per share (RMB Yuan) % Dividends per share (1) (RMB Yuan) Net Interest Margin (NIM) 2.74% 2.63%.11ppts Cost to income ratio (2) 33.8% 33.29%.21ppts Return on average assets 1.31% 1.39%.8ppts Return on average equity 16.64% 18.89% 2.25ppts (1) [Announced in 214 board meeting, subject to obtaining the shareholder s approval at the forthcoming 214 general meeting] (2) Calculated by dividing total operating expenses by operating income. 24

25 Thank You 25