Hua Xia Bank Co. (600015) H2 2023 earnings summary

Executive summary

• Total assets reached RMB4,254.77 billion, up 9.09% year-over-year; net profit attributable to shareholders was RMB26.36 billion, up 5.30% compared to 2022.

• Named a domestic systemically important bank for the third consecutive year and ranked 46th globally by tier-1 capital.

• Focused on high-quality development, digital transformation, and risk management, with allowance to NPLs at 160.06%.

• Green loans grew 9.00%, and personal deposits rose 7.83% year-over-year.

• Board proposes a cash dividend of RMB3.84 per 10 shares, totaling RMB6.11 billion.

Financial highlights

• Operating income was RMB93.21 billion, down 0.64% year-over-year; net profit attributable to shareholders was RMB26.36 billion, up 5.30%.

• Net interest income was RMB70.44 billion, with net interest margin at 1.82%, down 28 bps year-over-year.

• Cost-to-income ratio increased to 31.37% from 30.13% in 2022.

• NPL ratio improved to 1.67%, down 0.08 percentage points; allowance to NPLs at 160.06%.

• Total loans reached RMB2,309.58 billion, up 1.61%; total deposits at RMB2,129.95 billion, up 3.20%.

Outlook and guidance

• 2024 focus on high-quality development, digital transformation, and risk prevention.

• Plans to deepen strategy implementation, optimize liability and asset structure, and expand fee-based income.

• Emphasis on supporting real economy, green finance, inclusive finance, and regional development.