Bank of Shanghai (601229) H2 2024 earnings summary

Executive summary

• Operating revenue reached RMB52.99 billion, up 4.79% year-over-year; net profit attributable to shareholders was RMB23.56 billion, up 4.50% year-over-year.

• Total assets grew to RMB3,226.66 billion, a 4.57% increase from the previous year.

• Non-performing loan (NPL) ratio declined to 1.18%, marking a two-year consecutive decrease.

• Capital adequacy ratio improved to 14.21%, with core tier 1 at 10.35%.

• Dividend payout ratio rose to 31.22%, with total annual cash dividends of RMB7.10 billion.

Financial highlights

• Net interest income was RMB32.49 billion, down 7.62% year-over-year due to lower market rates and loan repricing.

• Net fee and commission income fell 19.46% year-over-year to RMB3.96 billion.

• Other net non-interest income surged 57.75% year-over-year to RMB16.54 billion, driven by higher investment returns.

• Operating profit rose 4.89% to RMB27.30 billion; total profit up 4.34% to RMB27.02 billion.

• Basic earnings per share increased to RMB1.60; net assets per share rose to RMB16.49.

• Cost-to-income ratio improved to 23.82% from 24.61% last year.

Outlook and guidance

• The bank expects stable economic growth in China and will focus on the "Five Priorities": technology, green, inclusive, pension, and digital finance.

• Plans to optimize asset structure, increase allocation to key sectors, and expand low-cost deposits.

• Will strengthen risk management, compliance, and digital transformation to support sustainable growth.