Business Maintained Steady Growth; Transformation and Upgrading Showed Performance
HONG KONG — Jilin Jiutai Rural Commercial Bank Corporation Limited (“Jiutai Rural Commercial Bank” or the “Group” or the “Bank”, Stock Code:6122) is pleased to announce its Interim results of the Group and its subsidiaries for the six months ended 30, June 2017 (the “Reporting Period”) recently.The Group’s strategic goal is to position itself as a professional financial services provider with unique values and strong competitive advantages.
In the first half of 2017, the global economy continued to recover moderately, and the Chinese economy continued to develop steadily in a favourable momentum, and stabilized within a reasonable range. Supply-side structural reform achieved remarkable results. The GDP of China recorded a year-on-year growth of 6.9%. In the face of the complicated external situations and increasingly fierce peer competition, Jiutai Rural Commercial Bank maintained steady growth.
During the Reporting Period, the Group recorded a total operating income of RMB2,868.3 million, representing an increase of 8.2% as compared to the six months ended June 30, 2016. The Group’s total assets amounted to RMB195,661.4 million, representing an increase of 2.2% as compared with the beginning of the year. Net profit was RMB900.2 million. Net loans and advances to customers amounted to RMB72,020.4 million, representing an increase of 19.5% as compared with the beginning of the year. The non-performing loan ratio remained at a reasonable level of 1.59%, which was lower than the average rate of National Agricultural Bank. According to the main indicators of 2017 in the first half of the year, the non-performing loan rates of large commercial banks, joint-stock commercial banks and urban commercial banks were 1.60%, 1.73% and 1.51% respectively, while the rural commercial banks The loan rate was 2.81%. Total deposits from customers amounted to RMB130,503.1 million, representing an increase of 2.4% as compared with the beginning of the year. Net interest income amounted to RMB 2,188.3 million, representing an increase of 6.1% as compared with the same period of last year. Net fee and commission income amounted to RMB334.3 million, representing an increase of 28.2% as compared with the same period of last year..
As of June 30, 2017, the Group had an aggregate of 423 outlets, of which 129 outlets, including three branches in Changchun, Songyuan and Tonghua, were operated by the Bank and the rest by the Group’s subsidiary banks under their own names. The focus of the Group’s business outlets is to serve the three rural and small and medium enterprises. The Bank was the first rural commercial bank in China and first financial institution in Jilin province to provide robot bank lobby managers and 3-D printing, and was also the first financial institution in Jilin’s rural credit bank system to offer 24-hour automatic safe deposit boxes and remote video self-service loan application machines.
Corporate Banking Business Encouraged the Growth of SMEs
As of June 30, 2017, the Group had approximately 2,238 corporate borrowers. The Group had loans totalling RMB55,984.2 million, representing an increase of 23.6% compared to the end of 2016. During the Reporting Period, operating income from the Group’s corporate banking business accounted for 43.5%, representing an increase of 6.4% compared to 37.1% of the end of 2016.
The Group seeks to grow with its corporate customers, especially SMEs with strong growth potential, and the Group focuses on developing long-term customer relationships. As of June 30, 2017, the Group had 2,217 SME customers with loans totaling RMB52,003.2 million.
Specialized Retail Banking Provided Comprehensive Financial Services
As of June 30, 2017, the Group had 82,741 retail borrowers with total loans and advances to customers of RMB18,268.1 million, increasing 8.8% compared to the end of 2016.
As of June 30, 2017, the Group had issued approximately 2.868 million debit cards. The Group’ s debit cards are classified into platinum,gold and basic cards based on customers’ daily average financial asset balances.The Group also issues specialized debit cards with added features such as theme cards for different market segments and co-branded cards offering preferential value-added services. The Bank cooperates with Changchun Federation of Trade Unions to offer trade union member cardholders comprehensive financial services, including membership management, subsidies and allowances. In addition, the Group has cooperated with well-known domestic third-party payment companies to develop Internet payment services to enhance cardholder experience.
The Bank’ s private banking department provides one-stop financial services tailored for individual customers. These products and services primarily include wealth planning and customized wealth management products. For the six months ended June 30, 2017, the Bank’ s sales of wealth management products to private banking customers totalled RMB3,520.9 million. The Bank also provides private banking customers with various value-added services, primarily including priority banking services, one-on-one consultancy services, bank fee discounts, and health consultancy services offered in cooperation with third parties.
In addition, the Bank was selected as one of the Top 100 Trading Banks in the Interbank RMB Market by the China Foreign Exchange Trade System and National Interbank Funding Center in 2016, and one of the Top 100 Banks in the Interbank RMB and Foreign Exchange Market by the China Foreign Exchange Trade System and National Interbank Funding Center in 2016. In 2017, the Bank was named the “Active Dealer in Interbank RMB Market in 2016” by the China Foreign Exchange Trade System and National Interbank Funding Center.
Looking forward, Jiutai Rural Commercial Bank is facing with opportunities and challenges. It shows that the PRC economy is well-prepared to enter the stage of rapid growth in the mid-to-long run. From the perspective of provincial economy, the Jilin economy has picked up its growth momentum. Benefitted from the favourable policies including the revitalization of Northeastern China and the development of Changjitu and Changchun New Area, development advantage of the Bank has been further enhanced. Nonetheless, despite the challenges and difficulties inherent in the economic cycle and the new policy stage of the financial industry, the PRC economy is expected to maintain steady growth with more consolidated and expanded foundation as the supply-side structural reforms continue to deepen.
In the second half of 2017, to achieve its goal, the Group plans to reinforce advantages in banking services for the “three rurals” and small and medium sized enterprises; To exploit the growth potential of personal financial services to promote the growth of its retail banking business; To develop emerging businesses to promote the transformation of the growth model; To further strengthen the Group’s risk management and internal control, and to attract, develop, retain and motivate high-quality talent.
Leveraging on the economic, financial and regional development trends, the Bank will seize the new opportunities arising from various policies and the new growth potential from the industry upgrade with focus on the new consumption pattern to facilitate steady growth and transformation, in order to achieve better operating results and new growth points through differentiating its development advantage and cultivating new momentum.