Realization of Financial Innovation;
Attaining Remarkable Achievements in Operating income
Bank of Tianjin Co., Ltd. (“Bank of Tianjin” or the “Bank”; Stock Code: 1578.HK) hereby announces the audited consolidated annual results of the Company for the twelve months ended December 31, 2019 (the “Reporting Period”).
Financial Summary
– The bank materialized an operating income of RMB17.053 billion in 2019, representing an increase of 40.5% as compared to 2018, achieving a record high;
– The Bank materialized net interest income of RMB14.65 billion (including “investment income”), representing an increase of 39.6% as compared to 2018;
– Profit before provision of RMB13.06 billion, 50.2% higher than the same period in 2018;
– Net profit achieved of RMB4.609 billion increased by 8.9% as compared to 2018;
– Net interest margin increased by 62 basis points to 2.21% in 2019. Net interest spread increased by 65 basis points to 1.88% in 2019.
– Return on average assets increased by 7 basis points to 0.69% while Return on average equity increased by 17 basis points to 9.32% as compared to 2018. Earnings per share are up to RMB0.75, 8.7% higher than the same period in 2018.
– Capital adequacy ratio reached 15.24%, representing an increase of 0.71 percentage point as compared to 2018; Tier-one capital adequacy ratio reached 10.63%, representing an increase of 0.79 percentage point as compared to 2018. Capital adequacy ratio reaching 10.62%, representing an increase of 0.79 percentage point as compared to 2018;
– For the year ended December 31, 2019, interest income from loans and advances to customers increased by 44.7% from RMB14,038.3 million for the year ended 31 December 2018 to RMB20,311.1 million for the year ended 31 December 2019;
– Total equity reached RMB669.4 billion as of 31 December 2019, representing an increase of 1.5% compared to 2018. Total loans and advances to customers reached RMB618.22 billion as of 31 December 2019, representing an increase of 1.5% compared to 2018.
– Total liabilities of RMB618.22 billion increased by 1.1% as compared to 2018. Total due to customers of RMB351 billion increased by 2.4% as compared to 2018.
In 2019, the Bank materialized an operating income of RMB17.05 billion, representing an increase of 40.5% as compared to 2018. Profit before provision increased by 50.2% to RMB13.06 billion as compared to 2018. Impairment provisions for the year amounted to RMB7.43 billion, representing an increase of 113.4% as compared to 2018. Net profit reached RMB4.61 billion, representing an increase of 8.9% as compared to 2018. Return on average total assets reached 0.69%, representing an increase of 0.07 percentage point as compared to 2018. Return on average equity reached 9.32%, representing an increase of 0.17 percentage point as compared to 2018. Capital adequacy ratio reached 15.24%, representing an increase of 0.71 percentage point as compared to 2018. Tier-one capital adequacy ratio reached 10.63% with core tier-one capital adequacy ratio reaching 10.62%, both representing an increase of 0.79 percentage point as compared to 2018. Other major regulatory indicators also showed steady increment, suggesting the Bank’s transformation and innovative measures during the past two years were effective.
Promote the strategy of “transformation + innovation”
In 2019, we further realized our six core strategic visions of becoming the “mainstream bank in Beijing-Tianjin-Hebei region, dual-track bank, value-driven bank, bank proud of compliance and integrity, bank offering superior experience, bank that cares for employees”. The Bank strictly complied with the requirements of the Hong Kong Listing Rules and the Articles of Association in a manner responsible to all the shareholders. Under the leadership of the Board of Directors, the Board of Supervisors and the senior management, all staff members worked together to push through adversity, and have established the new development concept of “putting quality first and giving priority to performance” solidly through determination on strategic goals. The Bank firmly promoted the dual-track development strategy of “transformation + innovation” and strived to implement each of the measures under the “Ten Major Projects (2.0)”,adhering to its blueprint all along.
Our corporate banking business adhered to the “Four Tailor-made Approaches”. A “Corporate Customer Account Management” mechanism was set up across the Bank to strengthen management of group customers and government customers, and thus enhanced the quality and efficiency of the Bank’s corporate banking business while serving the real economy. Our personal banking continued to priorities boundless connections. With the aim of bringing convenience to people, the Bank has developed a new model which enables it to acquire customers in massive number through utilizing financial technologies and product innovation. The Bank promoted the intelligent reformation of its outlets and optimized its personnel layout at its outlets and its business structure, which thoroughly enhanced the service capability of its outlets. The Bank continued to insist on returning to the origins for its financial market business, and it had further optimized its asset portfolio and continued to increase the allocation of assets with high credit rating and standard securities in this regard, achieving enhanced quality and efficiency.
Asset and liability structure optimization and Sources of financing expansion
In 2019, total assets and total liabilities increased by 1.5% and 1.1% as compared to the same period of last year. As our focus turned back to real instead of virtual assets, our support to real economy further strengthened. The average balance of loans and advances to customers increased by 18.8% as compared to 2018. We continued to squeeze and reduce our investment assets while adjusting the investment portfolio. The average balance of our investment securities and other financial assets decreased by 9.6% as compared to 2018. Among them, the average balance of investment in assets, such as trust beneficiary rights, wealth management products, and asset management plans, decreased by 19.9% as compared to 2018, and the average balance of standard assets such as security investments increased by 3.2% as compared to 2018. In terms of liabilities, the Bank stepped up its marketing effort for deposit-taking business, with the average amount due to customers increased by 0.9% as compared to 2018. Taking full advantage of various financing instruments, we broadened our liability sources, hence further optimizing our liability structure and reducing our financing costs. Our ratio of interbank borrowings to total liabilities (measured in accordance with the standards of the PBoC and CBIRC, excluding subsidiaries) decreased from 30.09% as at the end of 2018 to 26.72% as at the end of 2019.
The Bank further strengthened its pricing management while adjusting its asset-liability structure. Average yield of the loans and advances to the Bank’s customers reached 6.76%, representing a significant increase of 121 basis points as compared to the same period in 2018. The Bank’s net interest margin increased by 62 basis points from 1.59% in 2018 to 2.21% in 2019. Net interest spread increased by 65 basis points from 1.23% in 2018 to 1.88% in 2019. Net interest margin and net interest spread demonstrated a “double increment” for two consecutive years.
Keep financial risks at bay and deepen the financial reform
Looking forward to 2020, it is expected that the world economic growth will continue to slow and remain in a period of deep adjustment following the international financial crisis. Sources of global turbulence and risk will increase noticeably. In the face of the challenges and opportunities, while based on the regional economic development, the Bank will closely abide by the State’s policy, “improve the real economy, keep financial risks at bay and deepen the financial reform”, in order to provide diversified and differentiated financial services for the coordinated development of the Beijing-Tianjin-Hebei region and actively promote the transformation and paradigm shift in the development of the region. We will continue to uphold the dual-track strategy of “transformation + innovation”, consolidate our core competitiveness with an aim to comprehensively enhance the economic efficiency and overall strength of Bank of Tianjin.
About Bank of Tianjin Co., Ltd.
Bank of Tianjin Co., Ltd. (“Bank of Tianjin” or the “Company”) is the only city commercial bank headquartered in Tianjin (one of the four municipalities in China). The company is one of the first urban commercial Banks in China to realize trans-regional operation. Bank of Tianjin listed in Hong Kong in March 2016, it became the largest listed company with the highest capital and assets of the state-owned enterprise in Tianjin city. Bank of Tianjin created a business network headquartered in Tianjin, with strong presence in the Beijing-Tianjin-Hebei region, covering the Bohai Economic Zone, the Yangtze River Delta and the western China, through which, the Company is able to successfully implement cross-region business operations in China. The Company has received a number of honors and awards for its excellent business performance and sound management capability. The Bank ranked 197th in Top 1,000 World Banks 2019 published by the Banker, a UK publication. The Bank was successfully among the 2019 Top 500 Chinese Enterprises, and ranked 170th in the 2019 Top 500 China Service Industry Enterprises, up 2 places from that of the previous year. The Bank has been granted “AAA” rating by China Lianhe Credit Rating Co.,Ltd. for three consecutive years.