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【introduction】at the citic bank performance conference, senior executives responded to hot issues

china fund news reporter ma jiaxin

on august 29, china citic bank held a press conference on its 2024 semi-annual performance. at the conference, liu cheng, president of china citic bank, and several senior executives attended and responded to market concerns such as the bank's operating conditions in the first half of the year, net interest margin, and mid-term dividend plan.

overall business development remains stable

the financial report shows that as of the end of the second quarter, the total assets of citic bank reached 910.4623 billion yuan, an increase of 0.58% over the end of last year; the total amount of loans and advances was 559.3671 billion yuan, an increase of 1.73% over the end of last year; the total amount of deposits was 551.4879 billion yuan, an increase of 2.16% over the end of last year.

in terms of operating results, the bank achieved operating income of 109.019 billion yuan in the first half of the year, up 2.68% year-on-year; and achieved net profit attributable to shareholders of 35.490 billion yuan, down slightly by 1.60% year-on-year.

among them, the interest income of china citic bank showed a certain decline year-on-year. during the reporting period, the bank realized interest income of 156.933 billion yuan, a year-on-year decrease of 2.304 billion yuan, a decrease of 1.45%. china citic bank explained that this was mainly due to the decline in the yield of interest-bearing assets.

however, in terms of non-interest net income, china citic bank has achieved rapid growth. in the first half of the year, the bank achieved non-interest net income of 36.411 billion yuan, a year-on-year increase of 10.44%, mainly due to the bank's investment income and fair value changes have achieved a large increase.

regarding the slight year-on-year decline in net profit, liu cheng responded at the performance briefing that the bank will give priority to improving its risk prevention and control capabilities to provide space for better risk response in the future, and did not further lower the provision coverage ratio to supplement net profit.

in addition, in terms of asset quality, as of the end of the reporting period, the non-performing loan ratio of citic bank was 1.19%, up 0.01 percentage point from the end of the previous year; the provision coverage ratio was 206.76%, down 0.83 percentage point from the end of the previous year.

in terms of capital adequacy, as of the end of the reporting period, citic bank's capital adequacy ratio was 13.69%, its tier 1 capital adequacy ratio was 11.57%, its core tier 1 capital adequacy ratio was 9.43%, and its leverage ratio was 7.39%, all of which met regulatory requirements.

executives respond to mid-term dividend plan

at the same time as announcing its semi-annual report, china citic bank also disclosed its interim profit distribution plan for 2024. the report shows that the bank plans to pay a cash dividend of 1.847 yuan per 10 shares. based on the total number of a shares and h shares as of june 30, 2024, the total amount of cash dividends distributed on ordinary shares in the interim period of 2024 is approximately 9.873 billion yuan (including tax).

zhang qing, secretary of the board of directors of china citic bank, said that this year the bank has proactively responded to regulatory requirements and actively promoted the mid-term dividend work. so far, the profit distribution plan has been reviewed and approved by the board of directors and will be submitted to the extraordinary general meeting of shareholders for review. this dividend will account for 29.2% of the bank's net profit attributable to ordinary shareholders after the mid-term merger in 2024.

in addition, zhang qing also stated that under the guidance of the new three-year development strategic plan, the bank will continue to work hard to consolidate its positive business development trend. during this period, it will continue to establish and improve a normalized dividend mechanism to enable investors to share the bank's business development results.

regarding the much-discussed issue of stabilizing net interest margin, liu cheng said that the bank will focus on improving business capabilities and optimizing business structure, and in the long run, optimizing the debt structure is crucial.

liu cheng said that the bank will also make efforts in assets in the future, and continue to improve the overall asset return rate under the premise of effectively controlling risks. in particular, it will develop high-quality business growth points, follow industrial policies, enrich asset investment, expand and deepen customer base, increase product coverage, and better serve the real economy.

editor: captain

review: xu wen

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