China Construction Bank Corporation (CCB) (Stock code: SH: 601939; HK: 00939) reported operating results for the third quarter of 2023 (The following data for the Group were denominated in RMB). In the first three quarters, CCB resolutely carried out the decision-making and deployment of the CPC Central Committee and the State Council, organically integrated the deep learning and implementation of theme education of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era with operation practices, boosted the upturn of entity economy and the all-round development of main business, continued to release operational efficiency of new finance, and scored good operating results.
The assets grow stably and key indicators keep balanced and coordinated.
As of September 30, 2023, its total assets reached RMB37.85 trillion, up by RMB3.24 trillion or 9.38% over that at the end of 2022. Wherein, its amount of distributed loans and advance payments was RMB23.66 trillion, increased by RMB2.46 trillion or 11.61% compared with those at the end of 2022. The financial investments amounted to RMB9.48 trillion, up by RMB938.255 billion or 10.98% over the year-end of the previous year. The total liabilities amounted to RMB34.75 trillion, up by RMB3.02 trillion or 9.53% over the year-end of the previous year. Wherein, it took RMB27.87 trillion of deposits, up by RMB2.85 trillion or 11.39% over that at the end of 2022. In the first three quarters, the net profit of the Group reached RMB255.440 billion, up 3.15% YOY. The annualised return on average assets stood at 0.94%; the annualised weighted average ROE was 12.05%. The net interest margin (NIM) was 1.75%, the net interest income was RMB468.425 billion, the net income from service charge and commission income was RMB94.907 billion. The group’s capital adequacy ratio, Tier 1 capital adequacy ratio and core Tier 1 capital adequacy ratio are 17.57%, 13.82% and 12.92% respectively, which are at a higher level in the industry.
New finance action keeps deepening and the service effectiveness continues releasing.
CCB further optimized the resource allocation mix, focused on key fields and bottlenecks of national economy and increased financial support.
House rental service effectiveness continues to increase. There were 22 CCB Housing Rental Fund investment projects with the assets of 9.21 billion and the investments of 5.764billion. The balance of loans for company house rental was RMB317.245 billion. It supported over 1,600 property lease enterprises and more than 650 affordable-rental housing projects.
The coverage of inclusive finance service continues to expand. The loan balance of inclusive finance reached RMB2.99 trillion, up by RMB639.701 billion over the year-end of the previous year; 3.1 million clients of inclusive financial loan, up by 574,400 over the year-end of the previous year. New model products including “Rapid Loan for Small and Micro Businesses” have offered credit support of RMB11.92 trillion to 4.46 million inclusive lending customers in total.
CCB continuously improves the comprehensive service system of rural revitalization. The balance of agricultural loans amounted to RMB3.77 trillion, up by RMB769.822 billion over the year-end of the previous year. There were 12.11 million registered users of the “Yu Nong Tong” App and loans to rural households totaled RMB73.071 billion. The balance of “Yu Nong Quick Loan” product bundle loans amounted to RMB189.797 billion, up by RMB80.212 billion over the year-end of the previous year.
Green finance innovation practice continues to deepen. The balance of green loans amounted to RMB3.65 trillion, up by RMB903.882 billion over the year-end of the previous year. The balance of RMB green bonds increased by 50.7% over the year-end of the previous year, and the balance of foreign-currency green bonds increased by 94.6%. It underwrote 29 financial instruments of green and non-financial corporate debt with the scale of RMB12.885 billion.
Fintech continues to gain momentum. CCB strengthened new finance digital infrastructure and pushed forward the application of technologies like Generative Artificial Intelligence, etc in several business scenarios like intelligent customer service, investment research report, account manager assistant, etc, to guarantee the safe and stable operation of the bank’s important information system.
The traffic of the “binary star” platform keeps increasing. Individual clients online reached 530 million, and the active users of mobile banking reached 133 million monthly. The number of registered users of “CCB Life” reached 121 million. CCB helped to issue consumption coupons of RMB1.3 billion in 181 municipal governments, driving consumption of nearly RMB4.7 billion.
CCB copes with risks proactively and keeps the asset quality stable. CCB closely monitored the changes of the situations at home and abroad, made forward-looking judgment and early response, strengthened integrated risk prevention & control of the group and comprehensively and proactively prevented and resolved risks in key areas. As of September 30, 2023, based on five categories of loans, the NPL of CCB amounted to RMB322.981billion, up by RMB30.156 billion over that at the end of 2022. The NPL accounted for 1.37%, down 0.01 pps from the end of the previous year. The provision coverage was 243.31% and the provision-loan ratio was 3.33%.
Since 2023, the global economic growth has still faced pressures due to deglobalization, geopolitical conflicts, tightening monetary policies of main developed economies, etc. With respect to the Chinese economy, the supply goes faster, the domestic demand is expanding steadily, the employment and price of commodities keep overall stable and the fundamentals sustaining its long-term growth remain unchanged, so it’s expected to pick up at large. Facing complicate external environment, CCB will continue learning and implementing the important speech on themed education and instruction spirit of General Secretary Xi Jinping, and carrying out the deployment of the CPC Central Committee. It will effectively transform the learning outcomes of themed education into a strong driving force for gathering strength and doing business with a high sense of political responsibility and steady working style. CCB will unswervingly follow the financial development path with Chinese characteristics and contribute its wisdom and power to the modernization drive with Chinese characteristics.