Bank of Beijing (601169) H2 2023 earnings summary

Executive summary

• Achieved stable growth in 2023, with total assets reaching RMB 3.75 trillion, up 10.65% year-over-year, maintaining the largest asset scale among city commercial banks.

• Net profit attributable to shareholders was RMB 25.624 billion, up 3.49% year-over-year, and operating income was RMB 66.711 billion, up 0.66% year-over-year.

• Non-performing loan (NPL) ratio improved to 1.32%, down 0.11 percentage points from the start of the year; provision coverage ratio rose to 216.78%.

• Maintained top rankings in technology, green, and inclusive finance loan growth, all above 30%.

• Continued digital and AI transformation, launching major digital initiatives and enhancing customer-centric services.

Financial highlights

• Total assets: RMB 3.75 trillion (+10.65% YoY); total liabilities: RMB 3.42 trillion (+11.15% YoY).

• Net profit attributable to shareholders: RMB 25.624 billion (+3.49% YoY); basic EPS: RMB 1.06 (+3.92% YoY).

• Operating income: RMB 66.711 billion (+0.66% YoY); operating profit: RMB 28.112 billion (+4.33% YoY).

• NPL ratio: 1.32% (down 0.11pp YoY); provision coverage: 216.78% (up 6.74pp YoY).

• ROA: 0.72%; weighted average ROE: 9.32%.

• Net cash flow from operating activities: RMB 41.978 billion (down 66.70% YoY).

• Capital adequacy ratio: 13.37%; core tier-1: 9.21%; tier-1: 12.18%.

Outlook and guidance

• 2024 expected to remain complex and uncertain, but high-quality development remains a priority.

• Focus on technology, green, inclusive, pension, and digital finance; continued digital transformation and risk control.

• Plans to further improve customer service, deepen reform, and enhance risk management.