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 Our Vision | Our Advantages | Our Achievements 

Our Advantages

In 2020, facing the disruptions of the novel coronavirus and various unstable and uncertain factors at home and abroad, the Management pursued the decisions and plans of the CPC Central Committee and the State Council, acted upon the working guideline of “adherence to the guidance of Party building and strict governance, customer first and serving the real economy, technology driven and value creation, international vision and global operation, pragmatic transformation and reform, and solid foundation by risk control and talent-oriented development” in real earnest, solidified the foundation for sound development and made new breakthrough in transformation and innovation with a focus on the “Three Tasks” of financial work, and paid efforts to maintain stable and coordinated operations, thereby faring better than expected.

Making progress while pressing stably ahead with the quality and momentum improvement of operations. At the same time of scarifying a reasonable portion of profit to the real economy, the Bank strove to tap potential and raise cost effectiveness, and achieved hard-won growth in 2020. The Group recorded RMB317.7 billion in net profit, representing an increase of 1.4% from the previous year. Profit before provision was RMB594.8 billion, representing an increase of 4.2% from the previous year. Operating income came in at RMB800.1 billion, representing an increase of 3.1% from the previous year. With all kinds of risks under effective control, the NPL ratio, at 1.58%, was maintained in a stable range. The ratio of both overdue loans and special mention loans fell, and 2020 marked the first year for the price scissors between overdue loans and NPLs to turn negative. Allowance to NPLs reached 180.68%. Cost-to-income ratio stood at 24.76%, staying at a satisfactory level in the industry.

Serving the real economy to the best of our abilities as a responsible large bank. The Bank contributed to the endeavor of “ensuring stability on six key fronts” and “maintaining security in six key areas” across the board, earnestly carried out the counter-cyclical policies and maintained the stability of aggregate investment and financing volumes and the continued optimization of structures. The Bank registered new domestic RMB loans of RMB1.88 trillion, RMB549.1 billion more than the increment a year ago. Bond investments grew by RMB1.19 trillion over the year beginning, ranking the first in the market. The Bank carried out special actions to support COVID-19 relief efforts, resumption of work and production, and supply chain stabilization and strengthening, facilitate foreign trade and foreign investment, and help Hubei and Wuhan fight COVID-19, financially empowering the coordination between pandemic prevention and control and each work in relation to economic and social development. The Bank did well in implementing the loan servicing postponement policy, relieving over 0.10 million customers from such pressure, and relevant loans amounted to RMB1.5 trillion. Concerning key fields and weak areas, the Bank optimized the financial resources it supplied and provided direct access to targeted financial services. Manufacturing loans increased by RMB222.9 billion, with the medium to long-term manufacturing loans growing by 46.7%. The Bank actively developed digital supply chain financing, so that premier financial services could benefit more micro-, small- and medium-sized enterprises. Loans to private enterprises and inclusive loans rose by 12.4% and 58%, respectively. Inclusive finance was pushed to increase volume, expand coverage, enhance quality and cut cost. By actively galvanizing the system building and service innovation of green finance, the Bank increased the balance of green loans to RMB1.85 trillion.

Stepping up risk management with the systemic concept. The Bank improved the enterprise risk management system, stuck to the route of “active prevention, smart control and comprehensive management”, put in place the four-pronged risk management approach to people, money, defense line and bottom line, and realized the full coverage and precise control of risks in each segment of the institutions and all types of risks. With equal emphasis upon off-risk and process reengineering, the Bank reinforced the management of “Three Gates” and “Seven-color Pools”, launched the new regulation on credit approval, steadily pushed forward the resolving of credit risks in an orderly manner, and continued to improve credit asset quality. NPLs recovered and disposed of were valued at RMB217.6 billion, representing an increase of RMB28.9 billion over the prior year. The Bank advanced the building of “Rong An e” risk control systems and built the smart risk control brand. It strengthened the analysis and anticipation of market conditions, dynamically revised the investing and trading strategies, and continued to improve the capacity for identifying, measuring, giving early warning on and controlling market risks to effectively tackle market fluctuations. The Bank continued to manage operational, liquidity and reputational risks well, fostered the compliance culture and performed compliance management of domestic and overseas institutions.

Boosting transformation and innovation while deepening strategy implementation. Being customer-centric, the Bank refined the marketing system, strengthened the interactions among government, business and consumption (GBC), and further solidified the customer base. The Bank saw an increase of RMB2.48 trillion in domestic RMB deposits (including interbank deposits), hitting an all-time high. Key strategies were carried out effectively, comprehensively enhancing the personal banking, foreign exchange business and regional development service capabilities. Personal customers reached 680 million, and the number of monthly active Internet banking customers broke the 100 million-mark at the earliest in the banking industry. In alignment with the New Rules on Asset Management, asset management and private banking transformation moved ahead in an orderly manner. The Bank optimized the international development strategy, improved all-around services, and effectively served global and diversified needs of customers. With a successful progress in ECOS development, the Bank continued to lead the industry with advanced IT infrastructure. The acceleration of digitalization went side by side with further promotion of core product, business model and service ecosystem innovations. The Bank actively empowered the industrial Internet, intelligent government services and intelligent medical care, and provided over ten thousand partners with intelligent financial solutions.