哈尔滨银行2020年度业绩发布会-ENG.pdf

Stock code：HK.6138 April，2021，Harbin Disclaimer The information contained in this material does not form an offer or an invitation proposal to purchase or subscribe the securities of Harbin Bank Co., Limited (the “Company") in Hong Kong, the United States or any other regions. The securities of the Company is neither registered under the Securities Act of 1933 nor in its revision, shall not be offered or sold in the United States, except its registration in accordance with the applicable laws or exempted from registration. This announcement contains “forward-looking statements” defined in Article 27A of the Securities Act of 1933 (Revised) and Article 21E of the Securities Exchange Act of 1934 (Revised). These forward looking statements involve known or unknown risks, uncertainties and other factors, and are made based on the Company's existing industry expectations, assumptions, forecast and prediction. Unless otherwise required by law, the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances in the future will not bear the corresponding changes to its expected duty. Although the Company believes that the expectation described in the forward-looking statements are reasonable, it does not assure you that the expectations in the future will prove to be correct, and investors should pay attention that the actual results may have difference with the prediction results. 1 Content 1 2 Financial Performance 3 Business Operation 4 Risk Management Prospects 2 01 Financial Performance 3 Key Financial Indicators Scale indicators （RMB 100 million） 2020.12 2019.12 Change(%) Total assets 5,986.04 5,830.89 2.66% Of which：Loans and advances to customers 2,805.67 2,636.04 6.44% Total liabilities 5,474.95 5,314.48 3.02% Of which：Due to customers 4,692.80 4,256.84 10.24% Equity attributable to Shareholders 492.47 498.27 1.16% Total equity 511.09 516.41 1.03% 2020.12 2019.12 Change(%) Operating income 146.06 151.24 3.43% Net profit 7.96 36.35 78.11% NIS 2.18% 2.02% 0.16 NIM 2.20% 2.10% Net asset value per share（RMB） 4.48 4.53 Profitability indicators （RMB 100 million） percentage point 0.10 percentage point 1.10% Source: Annual Report 4 Scale Of Assets Made Steady Progress, Indicators Of Deposits & Loans Maintained Well Growth Trend Total assets Due to customers （ RMB 100 million ） （ RMB 100 million ） 5,830.9 2019.12 5,986.0 2020.12 4,692.8 4,256.8 2019.12 2020.12 Total liabilities Loans and advances to customers （ RMB 100 million ） （ RMB 100 million ） 5,314.5 5,474.9 2019.12 2020.12 2,636.0 2019.12 2,805.70 2020.12 Source: Annual Report 5 The Ability of Generating Income Remained Stable, Cost Management Achieved Notable Effects Operation income Earnings before provision （ RMB 100 million ） （ RMB 100 million ） 151.2 2019.12 146.1 99.7 97.1 2020.12 2019.12 2020.12 Cost-to-income ratio Total equity （ RMB 100 million ） 516.4 511.1 2019.12 2020.12 32.7% 32.1% 2019.12 2020.12 Source: Annual Report 6 Interest Income Kept Solid Growth, Interest Rate Margin and Spread Was Gradually Increased Interest income Interest income structure （ RMB 100 million ） 2020.12 2019.12 123.1 117.0 cash and balance with central bank Due from banks and other financial institutions 1% 166.9 Long receivables Investments in debt securities 175.9 3% 6% 29% 61% net interest income Loans and advances to customers interest expense Profitability indicators Items 2020.12 2019.12 Change Yield of interest earning assets 5.18% 5.26% -8bps Cost rate of interestbearing liabilities 2.99% 3.24% -25bps NIM 2.20% 2.10% +10bps NIS 2.18% 2.02% +16bps Source: Annual Report 7 02 Business Operation 8 Branches Operated Steadily ,The Advantages Of Holding Licenses Tend To Emerge Proportions of assets in each of the geographical regions Other regions 1.8% Northern China Southwestern China 9.9% Other regions in Northeastern China City Commercial Bank with Most Domestic Subsidiaries 7.2% Heilongjiang 6.6% Heilongjiang region Harbin Branch 74.5% Jilin Beijing Liaoning Shenyang Branch Dalian Branch Assets of Subsidiaries （ RMB 100 million ） 544.9 73.9 248.5 HBCF 620.9 Sichuan 222.5 253.7 2019.12 2020.12 HB Leasing Gansu 113.9 253.3 Village and township banks Tianjin Branch Hebei Henan Jiangsu Hebei Chengdu Branch Hunan Chongqing Branch Jiangxi Guangdong Henan Source: Annual Report 9 Retail Business Transformation Achieved Remarkable Results, With Explicitly Effect Of “Deposit As The Foundation” Total retail deposits Average balance of retail deposits （ RMB 100 million ） （ RMB 100 million ） 2,793.3 2,616.0 2,295.6 1,856.6 2019.12 2020.12 Sales of personal finance 2019.12 2020.12 Total retail loans （ RMB 100 million ） （ RMB 100 million ） 1058.9 1096.0 2019.12 2020.12 1,190.8 1,201.7 2019.12 2020.12 Source: Annual Report 10 Retail Customers Continued to Grow, Credit Cards Business Developed Steadily Number of deposit customers Number of issued credit cards （ Ten thousand ） （ Ten thousand ） 1,315.9 1,365.2 127.8 106.9 2019.12 2020.12 2019.12 Number of value customers （ Ten thousand ） 2020.12 Balance of credit card assets （ RMB 100 million ） 75.45 85.49 2019.12 2020.12 137.9 2019.12 150.0 2020.12 Source: Annual Report 11 The Position Of Microcredit Was Consolidated, SinoRussia Finance Hold Market Leadership Total microcredit Sino-Russia finance （ RMB 100 million ） ✓ Total interbank credit to Russian banks amounted to RMB 8 billion; Small business legal person ✓ Small business natural person million ; personal consumption farmer The total amount of cross-border cash transfer is RMB362 ✓ 1784.4 1791.2 126.9 151.4 681.0 681.4 The membership of Sino-Russian Financial Union had grown to 73 ; ✓ 24 account banks in Russia; ✓ Has successfully obtained the qualification of CIPS (RMB cross border payment system) as a direct participant ✓ The first foreign exchange settlement business of NRA account in Heilongjiang Free Trade Zone 383.0 368.9 ✓ Cross border e-commerce platform business ✓ 593.5 589.5 ✓ 2019.12 2020.12 Launch of special exchange rate hedging products for Russia ✓ The total transaction settlement volume is RMB15.3 billion The first commercial bank cooperating with Russia world card in China It supports more than 10 overseas payment instruments such as MasterCard, JCB and YANDEX. Source: Annual Report 12 Corporate Finance Business Stably Developed, Profitability Significantly Improved Operating income from corporate finance （ RMB 100 million ） Company deposit cost 2.74% 2.32% 69.36 60.66 2019.12 2020.12 Total corporate loans （ RMB 100 million ） 2019.12 2020.12 Corporate finance business 1,585.5 1,405.8 ✓71 professional service teams for corporate customers were established ✓Docking with 50000 customers with stabilizing enterprises and posts ✓ Actively marketing "top 100 projects" and "top 100 enterprises" in Heilongjiang Province ✓ Online service to fight against epidemic 2019.12 2020.12 ✓ Seven financial measures to fight the epidemic Source: Annual Report 13 Financial Market Business Stably Operated, Advantages of bond investment Emerge Interbank financial business income （ RMB 100 million ） Total amount of cash & bond transactions （（ RMB trillion） 6.97 45.86 39.88 3.42 2019 2020 Bond lending volume （ RMB 100 million ） 2019 2020 Financial services 2,620.0 ✓The balance of non breakeven financial products was ✓RMB 52.986 billion ✓The remaining balance of net worth products was ✓RMB 22.126 billion. 1,272.5 ✓The number of financial customers was 945,800, ✓an increase of 16.12%. ✓ Launch medium and long term "fixed income +" ✓series products 2019 2020 ✓ X-Lending star Source: Annual Report 14 Made an Accurate Arrangement for Fin-tech, With Better Support Operation Online banking customers （ten thousand） ） 317.3 2019 Mobile banking customers （ten thousand） 268.7 392.7 194.3 2020.12 2019.12 Mobile channel replacement rate 61% 2019.12 2019.12 87 2019.12 2020.12 93% 2020.12 2019.12 87 218 2020.12 Electronic channel replacement rate 95% 2020.12 472 No. of self-service equipments (sets) 2020.12 309.9 254.7 67% 212 15 We-chat banking customers （ten thousand） 310 236 478 269 130 15 Card issuing machine Multimedia inquiry machine Non cash super counter smart cabinets ATM BCDMs Source: Annual Report 15 Practice Social Responsibility , Brand Features Became More Distinctive Give full play to the advantages of financial science and technology, launch "seven financial measures to fight the epidemic special together" service resources, by formulating measures, integrating enriching online service functions, and strengthening scientific and technological operation guarantee, so as to meet the needs of financial services in special periods and protect the fight against the epidemic and the resumption of work and production. 199 th of Brand Finance's "top 500 global banking brand value in 2020" It will give full play to the leading role of the policy of rediscount of refinancing, and provide accurate financial services for small and medium-sized and micro enterprises affected by the epidemic. 《The Banker》 "Top 1000 global banks in 2020“ 199th In order to prevent and control the epidemic, focus on ensuring small and micro businesses to issue working capital loans, effectively support enterprises to resume work and production, and reduce the financing cost of enterprises. 31st of Top 100 banking industry in 2019 03 Risk Management 17 The Level of Capital Remained Adequate and Managed Capital With More Proactive Approaches Net Capital More Proactive on Capital Managing （RMB 100million） 615.9 614.60 503.10 497.90 2019.12 2020.12 Net tier 1 capital Net capital Capital Adequacy Ratio 12.53% 12.59% 10.22% 10.18% 10.24% 10.20% ✓Further improved the capital management mechanism, effectively conducted regulatory requirements, and while carried out the capital managerial requirements as preplanned, and continued to strengthen the fundamental capacity of capital management. By the end of 2020, the Bank’s net capital is 61.46 billion, with capital adequacy ratio of 12.59%, remained relatively stable compare with the previous year. ✓Built a steady internal capital adequacy evaluation procedure. According to the Bank’s comprehensive risk management framework, various substantive risk assessments, and results of stress tests, the Bank rationally planned its capital usage, so that the Bank’s capital adequacy level, operational planning and financial planning achieved a dynamic balance. ✓Adhere to the capital planning requirements, Core tier 1 capital tier 1 capital ratio capital ratio enhanced fundamental capital management capacity, the guidance and constraints of capital impaction of business development are further enhanced, allocated capital into those businesses which relatively low capital occupation while generating high yield. ratio 2019.12 2020.12 Source: Annual Reports 18 The Assets Quality Declined Slightly, With Impairment Provision Sufficiently Accrued Assets quality & Loan impairment provision （RMB 100million） NPLs ratio & Loan impairment provision ratio 111.05 3.96% 83.33 80.08 52.52 2.97% 3.04% 1.99% Non-performing Loan Balance of loan impairment provision 2019.12 2020.12 Write-off & Disposal Loan loss reserve ratio 2019.12 2020.12 Assets Quality Control Measures （RMB 100million） 39.76 31.04 2019.12 NPL ratio 2020.12 ✓ The Bank will actively respond to various risks in this post covid19 pandemic era with the proactive risk management concept. ✓ Strengthened the active management of potential risk exposure, prudently adjusted the assets classification, increased the provision accrual, and increased the provision and loan impairment provision ratio largely. ✓ Adhere to the loan collecting policy of "implementing approaches by classification and accurately tackling key obstacles", increased the efforts on disposal of NPLs, and increased intensity on litigation and compliance accountability, and utilized marketoriented disposal measures. ✓ Rigorous control of new customers' entrance, imposed quota management in term of industrial, regional and highly risky areas. Strengthened risk prevention and control of strategic customers and major projects, and strictly prevent the downward migration of assets quality which has been newly granted. Source：Annual reports 19 Risk Control Kept Strengthening, Risk Management System Increasingly Improved Credit Risk Continuously improve the level of credit risk management, and constantly improve the construction of intelligent risk control system; Set up the strategic-customers service team to strengthen the risk management on those strategic-customers and risk control ability on related major projects; Establish a brand new credit approval mechanism on corporate finance, improve the centralized credit approval mechanism on retail finance, and continuously improve the credit risk management capacity; adhere to the loan collecting policy of "implementing approaches by classification and accurately tackling key obstacles", increase litigation and compliance efforts input, and utilized market-oriented disposal measures through online live auction. Liquidity Risk Take the initiative to adjust the structure of assets and liabilities, broaden and stabilize the sources of funding, strengthened the monitoring of daily cash positions, further ensure the overall liquidity safeness. Market Risk Comprehensively implemented market risk management preferences, optimized market risk management and control procedures, improved market risk quota managerial system, made varied market risk measurement methods. Operational Risk Strengthened the substantive application of the three major management tools of operational risk, namely RCSA, KRI and LDC, to prevent the occurrences on highly operational risky domains effectively. Information Technology Risk Continuously optimize and improve the analysis and methodology on business impact, actively promote the disaster recovery of Bank’s important systems citywidely, carry out the information system emergency drill in orderly manner, and escort the Bank to continuously carry out business and daily operations. Compliance Risk Deepened the integrated managerial method of "prevention, control, inspection and revise", prompted the level of internal control and compliance management meticulousness, and improved the business suitable comprehensive internal control and compliance risk management system development and transform. 20 04 Prospects 21 未来主要策略 Achieve “Three Major High Quality Development" Tasks Green Funding Valuable Customers NPLs collecting Put Efforts into “Five Deepening Transformation” Operation Retail Finance Corporate Finance Interbank Business Regional Business Russia-related Business Implementation of “Seven Foundation Remolding" Project Technology Operating Risk Management Internal Control & Compliance Strategic Management Assets & Liabilities Management Talent Team Construction Enterprise Culture Leads 22 Q & A！ 23 Appendix： Financial Statements Of 2020 Profit & Loss （Million RMB） 2019 Jan.-Dec. 2020 Jan.-Dec. Change Operating income 15,124.4 14,606.3 3.43% Of which: Net interest income 11,695.2 12,309.2 5.25% Net fee and commission income 1,366.5 880.0 35.60% Net profit 3,635.1 795.8 78.11% Net profit attributable to shareholders of the Bank 3,558.4 745.7 79.04% Assets & Liab. （Million RMB） 2019.12.31 2020.12.31 Change Total assets 583,089.4 598,603.6 2.66% Of which: Loans and advances to customers 263,604.1 280,567.2 6.44% Total Liabilities 531,448.2 547,494.5 3.02% Of which: Due to customers 425,683.7 469,280.0 10.24% Share capital 10,995.6 10,995.6 — Total equity 51,641.2 51,109.1 1.03% 2019.12.31 2020.12.31 (percentage point) NPLs ratio 1.99 2.97 0.98 Net assets per share attributable to shareholders of the Bank 4.53 Profitability（%） 2019 Jan.-Dec. 2020 Jan.-Dec. (percentage point) Return on average total assets 0.61 0.13 0.48 Impairment losses on loans 3.04 3.96 0.92 Return on average equity 7.41 1.51 5.90 Impairment coverage ratio 152.50 133.26 19.24 Net interest spread 2.02 2.18 0.16 Core tier 1 capital adequacy ratio 10.22 10.18 0.04 Net interest margin 2.10 2.20 0.10 10.24 10.20 0.04 Net fee & commission income to operating income ratio Tier 1 capital adequacy ratio 9.04 6.02 3.02 Capital adequacy ratio 12.53 12.59 0.06 Cost-to-income ratio 32.71 32.06 0.65 Loan-deposit ratio 61.92 59.79 2.13 4.48 1.10% Change Assets quality indicators（%） Change Source: Annual Reports 24 Thank You！