On the evening of April 25th, Industrial Bank released its Q1 2024 performance report which showed that as of the end of March, the total assets of Industrial Bank reached 10.26 trillion yuan, a 0.97% increase compared to the beginning of the year. Its operating revenue reached 57.751 billion yuan, returning to the positive growth, a 4.22% year-on-year increase. Its net profit reached 24.336 billion yuan, with a narrower decline compared to the same period last year and the entire year. Its asset quality remains stable, with a non-performing loan ratio of 1.07%, unchanged from the end of the previous year. Its provision coverage rate is 245.51%, an increase of 0.3 % compared to the end of the previous year.
In the reporting period, Industrial Bank, focusing on high-quality development, actively made efforts to transform methods and adjust structures to enhance quality and increase efficiency and benefits. By consolidating its foundation of development, accelerating its transformation and upgrading, and improving its business quality, Industrial Bank makes great efforts to create more values for customers, shareholders, staff and the society, turning into a high-value bank with Industrial Bank characteristics, popular in the market.
Increasing Revenue and Reducing Expenditure to Reach a Revenue Recovery and a Positive Growth
The Q1 2024 performance report shows that Industrial Bank has achieved a revenue of 57.751 billion yuan, a year-on-year increase of 4.22%. While increasing provisions and enhancing risk resistance, the bank met a decline in net profit narrowed by 3.10% year-on-year, achieving a pre-provision profit of 43.54 billion yuan, a year-on-year increase of 7.23%.
In terms of its revenue structure, the bank’s net interest income has achieved a positive growth, reaching 37.242 billion yuan, a year-on-year increase of 5.09%. Its non-interest net income has steadily increased, reaching 20.509 billion yuan, a year-on-year increase of 2.69%. Thanks to the year-on-year increase in investment income from bond assets, other non-interest net incomes were 14.311 billion yuan, a year-on-year increase of 16.16%.
While increasing revenue, Industrial Bank actively reduced various expenditures, resulting in a year-on-year decrease of 3.73% in business management expenses.
Optimizing the Asset Liability Structure and Making the Volume and Price of Corporate Loans Stable While Continuously Reducing Deposit Costs
In the first quarter of this year, Industrial Bank continuously promoted the restructuring of its balance sheet while serving new quality productivities and high-quality development, with total assets approaching 10.26 trillion yuan, maintaining steady growth, an increase of 98.929 billion yuan from the end of the previous year.
On the asset side, corporate loans (excluding bills) have increased by 217.145 billion yuan compared to the end of last year, with an average interest rate of 4.10% for newly issued loans. The increment and price continue to maintain good levels for joint-stock commercial banks. Meanwhile, the asset layout is more in line with the transformation of the real economy, focusing on fields related to “Five Major Areas” and “Five New Tracks”. At the end of last year, technology finance loans have increased by 7.54%, digital finance loans have increased by 7.66%, and pension finance loans and green finance loans have also grown steadfastly. On the debt side, oriented on keeping the scale and reducing costs, the bank absorbed low-cost deposits while reducing high-cost deposits. On the basis of maintaining a stable deposit scale of 5.10 trillion yuan, the deposit interest rate has decreased by 12 BPs year-on-year to 2.12%, and the cost control has achieved expected results.
Thanks to the synchronous efforts of the asset and liability sides, Industrial Bank effectively stabilized the decline in interest rate spreading, with a net interest rate spread of 1.87% in the first quarter and a decrease of only 2 BPs compared to the previous quarter.
Stable Quality of Assets and the Non-performing Loan Ratio Remaining Unchanged from the End of the Previous Year
In the first quarter of this year, following the asset quality management principle of “conducting good categories, improving good qualities, making good arrangements, and promoting benefits and efficiencies”, the Industrial Bank established a good foundation for high-quality development. As of the end of March, its non-performing loan ratio was 1.07%, unchanged from the end of the previous year.
At the same time, the risk resistance ability of Industrial Bank has been further enhanced, with a provision coverage rate of 245.51% and an increase of 0.30 percentage points from the end of last year. Its loan-to-equity ratio is 2.63%, which is the same as the end of the previous year. The coverage level of its non-credit asset provisions has steadily increased.