On the afternoon of October 31, the Bank of China held a performance briefing for the third quarter of 2024, attended by Secretary of the Board Zhuo Chengwen and staff from the Board Office.
In response to questions about effective measures taken to ensure revenue growth, the completion of credit plans, and asset quality, the management provided detailed answers.
<h2>What is the recovery situation for consumer loans and housing loans?</h2>
Regarding the completion of this year's credit issuance plan, the management introduced that since the beginning of this year, the Bank of China has continuously increased credit support for major strategies, key areas, and weak links. As of the end of September, domestic RMB loans achieved total growth and structural optimization.
Serving the national strategy for regional coordinated development. RMB loans in key areas such as the Yangtze River Delta, the Yangtze River Economic Belt, the Yellow River Basin, and the central and western regions have all achieved double-digit growth.
Strengthening the promotion of large-scale equipment updates. Successfully realized the first interbank equipment update loan issuance in multiple regions including Hebei, Qingdao, and Ningxia.
Actively promoting consumption recovery and expanding domestic demand. Implementing the action plan for replacing old consumer goods with new ones, launching various products such as the Bank of China Renewal Consumer Loan, and accelerating the online transformation of products, effectively increasing the market share of personal consumer loans.
Supporting the stable and healthy development of the real estate market. Promoting the implementation of the urban real estate financing coordination mechanism has achieved phased results, with both the balance of personal housing loans and the market share of new issuances increasing.
Increasing support for rural revitalization. The balance of agricultural loans exceeded 2.3 trillion yuan, an increase of 18.68% compared to the beginning of the year. Supporting the expansion of fixed asset investment. The balance of medium- and long-term loans in the manufacturing industry increased by 16.47% compared to the beginning of the year. Supporting the development and growth of the private economy. Loans to private enterprises increased by 15.34% compared to the beginning of the year.
Specifically, regarding the recovery of retail consumption business including consumer loans and housing loans in the third quarter, Secretary of the Board Zhuo Chengwen introduced that since the beginning of this year, the Bank of China has actively implemented national policies to promote consumption recovery and expand domestic demand. Implementing the action plan for replacing old consumer goods with new ones, launching various products such as the Bank of China Renewal Consumer Loan, and accelerating the online transformation of products have effectively increased the market share of personal consumer loans. Supporting the stable and healthy development of the real estate market. The balance of personal housing loans and the market share of new issuances have both increased.
<h2>How is the operational efficiency evaluated?</h2>
Regarding operational efficiency, Secretary of the Board Zhuo Chengwen introduced that since the beginning of this year, the financial performance of the Bank of China has remained stable.
As of the end of September, the group's total assets amounted to 34.07 trillion yuan, an increase of 5.05% compared to the beginning of the year; total liabilities amounted to 31.20 trillion yuan, an increase of 5.12% compared to the beginning of the year, with a stable increase in business scale. Achieving operating income of 479.1 billion yuan, a year-on-year increase of 1.74%; achieving after-tax profit of 187.5 billion yuan, a year-on-year increase of 0.53%, with stable growth in financial performance. The net interest margin is 1.41%, the average return on total assets (ROA) is 0.75%, and the return on equity (ROE) is 9.55%, with major indicators remaining within a reasonable range. The cost-to-income ratio (according to mainland regulatory standards) is 26.80%, a year-on-year decrease of 0.18 percentage points, further improving operational efficiency
<h2>How to Address Asset Quality Challenges?</h2>
In response to the issue of asset quality, the management stated that Bank of China has effectively enhanced its risk prevention and control capabilities, leading to an improvement in asset quality.
As of the end of September, the non-performing loan ratio decreased by 0.01 percentage points compared to the end of last year, and the provision coverage ratio increased by 7.20 percentage points compared to the end of last year; the capital adequacy ratio is 19.01%.
Bank of China coordinates development and security, actively preventing and resolving financial risks, and solidifying the foundation for stable operations. The construction of a comprehensive risk management system continues to deepen. Market risk and liquidity risk management are solid and effective, proactively conducting stress tests in key areas, implementing risk prevention bottom-line plans and support schemes, and strengthening the foundation for risk prevention and control. Asset quality remains stable, and the ability to absorb risks continues to strengthen.
<h2>How to Implement the &#34;Five Major Articles&#34;?</h2>
Regarding the effective measures taken to ensure revenue growth and the practical initiatives in promoting the financial &#34;Five Major Articles,&#34; the management introduced that as of the end of the third quarter, Bank of China achieved operating income of 479.1 billion yuan, a year-on-year increase of 1.74%; net profit after tax reached 187.5 billion yuan, a year-on-year increase of 0.53%, with financial benefits showing steady growth.
Since the beginning of this year, Bank of China has been deeply promoting the &#34;Five Major Articles.&#34; It focuses on advancing Chinese-style modernization and further deepening reforms, coordinating the implementation of the &#34;Five Major Articles,&#34; and developing new quality productivity according to local conditions.
Supporting the innovative development of financial technology. Focusing on technological innovation, industrial innovation, and innovation in development methods, it has increased support for the entire cycle of financial technology. New loans for financial technology amounted to 401.7 billion yuan, a growth of 27.24% compared to the beginning of the year, with the number of credit clients increasing by over 35%.
Consolidating advantages in green finance. New green credit amounted to 758.6 billion yuan, a growth of 24.42% compared to the beginning of the year. The underwriting scale of domestic green bond issuance ranks first in the interbank market.
Promoting rapid growth in inclusive finance. The balance of loans for inclusive small and micro enterprises increased by 23.23% compared to the beginning of the year, with approximately 1.4 million loan accounts. Credit of 554.8 billion yuan has been provided to over 38,000 national and provincial-level &#34;specialized, refined, distinctive, and innovative&#34; small and medium-sized enterprises.
Steadily improving the quality and efficiency of pension financial services. The number of corporate annuity personal accounts ranks among the top in the market, increasing by 7.33% compared to the beginning of the year, and the scale of entrusted pension funds increased by 17.56% compared to the beginning of the year, with the market share of personal pension account openings steadily rising, and the number of publicly offered funds for personal pensions sold remains leading among comparable peers.
Strengthening the development of digital finance. The number of monthly active users of personal mobile banking increased by 9.08% year-on-year; the consumption amount of digital currency ranks among the top in the market, with nearly ten million effective merchants.
<h2>How is Differentiation Reflected?</h2>
In what aspects does Bank of China differentiate itself from other large state-owned commercial banks? Board Secretary Zhuo Chengwen stated that in recent years, Bank of China has continuously consolidated its global advantages and comprehensive characteristics.
Firstly, it leverages the advantages of its global layout network to comprehensively support high-level opening up, providing global clients with integrated and specialized financial services with &#34;one-point access and global response.&#34;
Second, assist in steadily and solidly promoting the internationalization of the Renminbi. The number of participating banks in CIPS remains the highest in the industry, and the volume of cross-border Renminbi settlement and clearing maintains a leading position in the global market.
Third, actively serve &#34;going out&#34; and &#34;bringing in.&#34; Actively support international economic and trade investment cooperation, and promote new achievements in the high-quality co-construction of the &#34;Belt and Road&#34;; the market share of Panda bond underwriting, offshore bond underwriting by Chinese entities, cross-border custody, and overseas custody remains the highest among Chinese peers.
Fourth, effectively support stable foreign trade and foreign investment. Maintain industry leadership in international trade settlement, foreign-related letters of guarantee, cross-border cash pooling, and other areas; the coverage of cross-border e-commerce settlement cooperation platforms continues to expand, and the scale of new business formats maintains rapid growth; the volume of foreign exchange settlement and sales leads comparable peers. The operating performance of overseas commercial banks has grown well, and their contribution to the group's profits continues to increase.
Fifth, enhance quality and efficiency in comprehensive operations. Focused on serving the real economy and high-quality development requirements, deepen group collaboration, and continuously improve comprehensive service capabilities and market competitiveness

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On October 31, the Bank of China held a performance briefing for the third quarter of 2024, where management addressed issues related to asset quality, operational efficiency, mortgage loans, and consumer loans. The bank continues to increase credit support to promote the development of the consumption and real estate markets, with an increase in market share for personal consumer loans and an 18.68% growth in the balance of agricultural loans. At the same time, medium- and long-term loans for the manufacturing sector and loans for private enterprises also achieved significant growth

- On October 31, the Bank of China held a performance briefing for Q3 2024, addressing income growth, credit plans, and asset quality.  
- The bank reported a stable financial performance with total assets reaching 34.07 trillion yuan, a 5.05% increase from the beginning of the year, and a net profit of 1,875 billion yuan, up 0.53%.  
- The management emphasized enhanced risk control measures, resulting in improved asset quality, with a non-performing loan ratio slightly decreasing and a capital adequacy ratio of 19.01%.

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Bank Of China

Bank of China

BANK OF CHINA

The Bank of China performance meeting directly addresses the "thorny" topics: asset quality, operational efficiency, mortgage loans, and consumer loans all have responses