CITIC BANK releases 2023 annual report: Achieves net profit of 67 billion, substantial improvement in asset quality

On the evening of March 21st, CITIC BANK released its 2023 annual performance report.

The report shows that in 2023, CITIC BANK achieved operating income of RMB 205.896 billion, a decrease of 2.60% from the previous year, and achieved a net profit attributable to the bank's shareholders of RMB 67.016 billion, an increase of 7.91% from the previous year.

According to the profit distribution plan for ordinary shares disclosed in the annual report for 2023, CITIC BANK plans to distribute cash dividends to all ordinary shareholders, with a cash dividend of RMB 3.56 per 10 shares (including tax). The total dividend amount is RMB 17.432 billion (including tax), accounting for 28.01% of the net profit attributable to ordinary shareholders of the bank in 2023, which is not significantly different from the previous year.

In terms of asset quality, in 2023, CITIC BANK's non-performing loan balance and non-performing loan ratio both showed a downward trend, which is one of the highlights of the annual report.

As of the end of 2023, CITIC BANK's non-performing loan balance was RMB 64.8 billion, a decrease of RMB 4.13 billion from the end of the previous year, a decrease of 0.63%; the non-performing loan ratio was 1.18%, a decrease of 0.09 percentage points from the end of the previous year; and the provision coverage ratio was 207.59%, an increase of 6.40 percentage points from the end of the previous year.

In terms of corporate loans, in 2023, CITIC BANK's corporate non-performing loans (excluding bill discounting) decreased by RMB 6.45 billion from the end of the previous year, and the non-performing loan ratio decreased by 0.35 percentage points from the end of the previous year; in terms of real estate-related business, the balance of corporate real estate loans decreased, with a real estate non-performing loan ratio of 2.59%, a decrease of 0.49 percentage points from the end of the previous year.

Regarding personal loans, in 2023, CITIC BANK's personal non-performing loan balance increased by RMB 5.934 billion from the end of the previous year, and the non-performing loan ratio increased by 0.18 percentage points from the end of the previous year. The balance of personal residential mortgage loans was RMB 971.171 billion, an increase of RMB 27.083 billion from the end of the previous year. The non-performing loan ratio for personal housing loans was 0.50%, an increase of 0.08 percentage points from the end of the previous year; the watch rate was 0.25%, a decrease of 0.03 percentage points from the end of the previous year.

Overall, CITIC BANK's non-performing loan ratio has continued to decrease for three consecutive years. Horizontally, among A-share listed banks, at the end of 2019, CITIC BANK's non-performing loan ratio was still in the bottom third; by the third quarter of 2023, the bank's non-performing loan ratio had squeezed into the middle of the A-share "pack."

CITIC BANK's Chairman, Fang Heying, stated in the annual report that the potential benefits of its risk control system construction are gradually being transformed into visible effects. CITIC BANK's asset quality has substantially improved, achieving a transition from the risk "correction period" and "adjustment period" to the "healthy period," further solidifying the foundation for high-quality development