Bank of Beijing (601169) H1 2024 earnings summary

Executive summary

• Operating income for H1 2024 reached RMB 35.54 billion, up 6.37% year-over-year; net profit attributable to shareholders was RMB 14.58 billion, up 2.39% year-over-year.

• Total assets at June 30, 2024, were RMB 3.95 trillion, up 5.25% from year-end 2023; loans and advances grew 7.56% to RMB 2.17 trillion.

• Asset quality remained stable with NPL ratio at 1.31%, down 0.01 percentage points from year-end 2023; provision coverage at 208.16%.

• Capital adequacy ratios met regulatory requirements: core tier-1 at 9.15%, tier-1 at 11.99%, total CAR at 13.11%.

• Non-interest net income rose 13.43% year-over-year, driven by investment and trading gains.

Financial highlights

• Net interest income was RMB 25.54 billion, up 3.84% year-over-year; net interest margin narrowed to 1.47%, down 0.07 percentage points.

• Non-interest net income reached RMB 10.01 billion, up 13.43% year-over-year; fee and commission income fell 16.95% year-over-year.

• Cost-to-income ratio was 25.63%, up 0.74 percentage points year-over-year.

• Operating cash flow was negative RMB 23.82 billion, compared to positive RMB 26.83 billion in H1 2023.

• Basic and diluted EPS were RMB 0.66, up 1.54% year-over-year.

Outlook and guidance

• The bank will continue to focus on digital transformation, risk management, and high-quality growth, emphasizing technology, green, inclusive, pension, and digital finance.

• No interim dividend for H1 2024; future dividend policy will consider profitability, capital, regulatory, and sustainability factors.