“Total assets exceeded 9 trillion yuan, and the scale of deposits and loans both crossed the 5 trillion yuan mark. The compound growth rate of net profit reached double digits over three years, and the volume ratio of non-performing loans continued to decline for three consecutive years.”
This impressive set of data comes from China CITIC Bank's 2023 report card. Also receiving much attention is China CITIC Bank Chairman Fang Heying's wonderful views at the recent annual report press conference.
On March 22, at the China CITIC Bank headquarters building, China CITIC Bank Chairman Fang Heying and management answered questions from analysts and media about the 2023 results. “Behind our achievements, our 'value bank' concept is taking root, our resilience to do difficult things is increasing, and the reshaping of our capabilities and systems is gaining momentum. In the face of changes in the world, changes in the times, and changes in history, we wrote a questionnaire on the high-quality development of China CITIC Bank based on the business philosophy of 'seeking future, seeking good, and seeking fast'.” Fang Heying, Chairman of China CITIC Bank, not only explained the financial indicators in a rare way, but also explained through the data the business approach and transformation path behind the financial report.
Ingenious, the characters are immaculate. It can be clearly felt that over the past year, China CITIC Bank's business development has progressed steadily, and the quality has been improved. The momentum for endogenous growth has become stronger, market recognition has further improved, evaluations and expectations from all sectors of society have been getting better and better, and its brand appeal continues to show.
Achieve comprehensive and coordinated development and outperform the market with comprehensive performance
The series of data in the annual report is China CITIC Bank's interpretation of “stability” and “progress.”
What is “stable”? In a situation where the coverage rate of interbank provision has generally declined, China CITIC Bank's provision coverage rate was 207.59%, up 6.40 percentage points from the end of the previous year, and its ability to offset risk was further enhanced.
What is “in”? Facing the changing times, China CITIC Bank still achieved a strong development momentum in 2023, with net profit attributable to the Bank's shareholders of 67.016 billion yuan, an increase of 7.91% over the previous year.
Against the backdrop of increasingly intense competition in the industry and increasing operating pressure, China CITIC Bank's balance sheet is getting healthier. The non-performing loan ratio is 1.18%, down 0.09 percentage points from the end of the previous year. The non-performing loan volume ratio has been declining for three consecutive years, and the asset quality index continues to improve.
Behind steady progress, China CITIC Bank is inseparable from the new round of changes initiated by China CITIC Bank in recent years. Three years ago, China CITIC Bank formulated the “342 Strong Core Action Plan” on the basis of a three-year plan to fully launch a new round of development focusing on building wealth management, asset management, and comprehensive financing capabilities.
Over the course of three years, China CITIC Bank continued to implement the four major business themes of “stabilizing interest spreads, stabilizing quality, expanding income, and expanding customers”, and advanced in depth the “342 Strong Nuclear Action”, seeking progress in the midst of difficulties and achieving results in the midst of progress. After “breaking ground” and “sprouting,” “Operation Strong Nuclear Power” has finally ushered in the harvest season. China CITIC Bank's 2023 annual report shows that the bank's business development has “blossomed a bit more.”
Among them, the scale of retail assets managed surpassed the 4 trillion dollar level, and the retail revenue contribution increased to 42%, achieving historic progress; the omnipotent asset management business system is bursting with vitality, financial management sales scale is at the top of the industry, and value creation ability has gained market reputation; bond underwriting continues to maintain a leading position, and the scale of capital market investment has grown against the market; launched the industry's first self-developed treasury management system “Tianyuan Treasury”, and the “Build Treasury Seek CITIC” market reputation has been formed; Center, RMB foreign exchange market trading volume breakthrough $2.6 trillion...
Guided by the “Strong Core” initiative, China CITIC Bank's “three core competencies” have improved markedly, and the scale of wealth management, asset management, and comprehensive financing has grown rapidly in the past three years. The pattern of mutual promotion and co-progress between the three business sectors of retail, public sector, and financial markets is becoming more and more stable, and the potential for coordinated development is gathering at an accelerated pace.
China CITIC Bank ranked 19th in the UK's “Bankers” “Top 1000 Global Banks” Tier 1 capital ranking and 20th in the “Top 500 Global Banking Brands”. The main international ratings rank among the top stocks, and the increase in market capitalization significantly outperformed the market.
Serve the country's major strategies and support the development of the real economy
Financial services to the real economy are an unshirkable responsibility of commercial banks. Only by integrating their own development into the trend of the times and responding to the needs of the country and people at all times can they unleash a steady stream of vitality.
As can be seen from the annual report, in 2023, China CITIC Bank's loans in key areas such as green credit, strategic emerging industries, medium- to long-term manufacturing, rural revitalization, and inclusive finance increased by 37%, 25%, 28%, 15%, and 22% respectively, far exceeding the bank's average loan growth rate. Furthermore, the bank promotes regional integration and coordinated development in an integrated manner. Loans from strategic key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong, Hong Kong, Macao, and Chengdu and Chongqing together account for nearly 70% of loans to the public. Actively laying out new tracks such as “specialization, excellence and innovation”, the balance of loans for science and innovation finance exceeds 400 billion yuan, fully supporting the country's technological self-reliance and self-improvement to a new level.
In 2023, China CITIC Bank will thoroughly implement the country's decisions and arrangements to prevent and mitigate local debt risks, implement the “16 Financial Rules” regulatory policy, secure the handover of buildings, stabilize people's livelihood, reduce risks, and protect the real economy with practical actions.
Fang Heying said that China CITIC Bank will stick to the “Five Great Articles” and focus on being a “booster” for economic development with the hearts of those who are big in the country and those who take responsibility.
Pursue long-term value creation and create a unique competitive advantage
Thousands of sails compete, and the brave ones win. Go against the water; retreat if you don't advance.
In order to stay invincible in the fierce market competition, China CITIC Bank has formulated a development plan for 2024-2026 based on thorough research and evaluation of the internal and external situation.
In her annual report address, Fang Heying said that there is no permanent “moat”. Only by keeping up with the times and continuously iterating and upgrading to build one's own unique advantage can we stand invincible in the fierce market competition.
After sorting out its strengths and assets and finding shortcomings and weaknesses, China CITIC Bank matched its development strategy with the Chinese-style modernization process, echoed China's construction of a “financial power”, and planned a unique path of value creation: comprehensively build “four” banks with responsibility, value, characteristics, and warmth, and implement the “five leading” banking strategy.
Leading wealth management bank: aiming to “win the future”It closely follows the trends of the era of big wealth and changes in customer wealth needs, builds structured capabilities and systemic advantages in wealth management, and strives to become the preferred wealth management host bank for customers.
Leading comprehensive finance bank: aiming to “take the lead”It is based on serving the real economy, grasping the diverse financing needs of customers, focusing on building a large commercial bank, big investment bank, big collaboration, and big matching ecosystem, striving to become the best comprehensive financing service provider in the industry, and forging comprehensive financing into a “moat style” long-term strength.
Leading bank for transaction settlement: aiming to “make up for shortcomings”It returns to the basic function of commercial banking and the original customer needs of commercial banks, excellent systems, excellent platforms, excellent products, strong service, strong experience, and strong innovation, and strives to become the best transaction settlement service provider in the market, making transaction settlement a new ballast stone for the transformation and development of the entire bank.
Leading foreign exchange service bank: aiming for “strong characteristics”, seize the country's high-level opportunities to open up to the outside world, build a first-class foreign exchange and cross-border service system, strive to become an outstanding foreign exchange service expert in the entire market, and polish the gold sign of the foreign exchange business.
Leading digital banks: aiming to “increase momentum”It closely follows the “digital China” construction layout, relies on innovation drive and deep integration of industry digital technology, and strives to become a leader in the digital transformation of the banking industry and develop strong battery life.
At the top of a mountain, you can see a large river flowing. Standing at a new starting point, China CITIC Bank said it will continue to be confident, continue to write a new chapter of high-quality development one by one, and move forward in striving to enter the front line of competition for world-class banks.