2017 Results Announcement - CCB · 2018-03-28 · Full integration into the “big ecosphere” of...

Beijing/Hong Kong March 28, 2018

2017 Results Announcement

China Construction Bank 2017 Results Announcement

Disclaimer

This information was prepared by the China Construction Bank Corporation (“CCB” or the “Bank”), without being independently verified. This information is not to express or imply any representation or warranty, accuracy, fairness or integrity of the information expressed or contained and the information is not and should not be relied upon. The advisors or representatives will not bear any responsibility as expressed in this information or any information contained in any manner whatsoever for any loss caused by the Bank and any of its affiliates, advisors or representatives. Please do not rely on any forward-looking statements, information or language of such nature contained herein.

1

China Construction Bank 2017 Results Announcement 2

Business Development

Financial Performance

Social Responsibilities

Risk Management

Outlook


Key Financial Results

RMB (Billion) 31/12/2017 31/12/2016 Change

Total assets 22,124.4 20,963.7 5.5%

Gross loans and advances to customers

12,903.4 11,757.0 9.8%

Total liabilities 20,328.6 19,374.1 4.9%

Deposits from customers 16,363.8 15,402.9 6.2%

NPL ratio 1.49% 1.52% 0.03pps

Jan-Dec 2017 Jan-Dec 2016 Change

Operating income 594.0 559.9 6.1%

Net interest income 452.5 417.8 8.3%

Operating cost (167.0) (171.5) 2.6%

Net profit 243.6 232.4 4.8%

Earnings per share (RMB Yuan)

0.96 0.92 4.3%


RMB (Billion)

Assets growth of 5.5% Liabilities growth of 4.9%

Balanced Growth of Assets and Liabilities

RMB (Billion)

11,757.0 12,903.4

20,963.7 22,124.4

0

5,000

10,000

15,000

20,000

25,000

2016-12-31 2017-12-31Gross loans and advances to customersTotal assets

15,402.9 16,363.8

19,374.1 20,328.6

0

5,000

10,000

15,000

20,000

25,000

2016-12-31 2017-12-31

Customer deposits Total liabilities


Stable Growth of Profit

RMB (Billion)

Net profit grew 4.8% YoY NIM improving QoQ

232.4 243.6

0.0

50.0

100.0

150.0

200.0

250.0

2016 2017

Net profit

2.13% 2.14% 2.16%

2.21%

2.00%

2.05%

2.10%

2.15%

2.20%

2.25%

2.30%

1Q2017 1-2Q2017 1-3Q2017 1-4Q2017

NIM


Steady Growth of Operating Income

RMB (Billion)

Steady Growth of Net Interest Income Fee and Commission Income Remained Stable

RMB (Billion)

417.8 452.5

0.0

100.0

200.0

300.0

400.0

500.0

2016 2017NII

118.5 117.8

0.0

30.0

60.0

90.0

120.0

2016 2017

Net fee and commission income


Sound Cost Control

RMB (Billion)

Operating Costs Dropped 2.6% YoY Ample Provisions Made for Impairment Losses

RMB (Billion)

92.8 96.3

30.0 30.5 17.5 5.8

31.2 34.4

171.5 167.0

0

40

80

120

160

200

2016 2017OthersTaxes and surchargesPremises and equipment expensesStaff costs

93.2

127.4

0.76%

0.96%

0.00%

0.30%

0.60%

0.90%

1.20%

1.50%

0

30

60

90

120

150

2016 2017Impairment losses Credit cost ratio





Risk Management

Outlook


Exploring the Blue Ocean of Home Leasing Business

“To Lease a Home, Go to CCB” New Business Model

Comprehensive service provider for smart city development

Full integration into the “big ecosphere” of municipal operation and citizen’s livelihood

Continued to enhance customer acquisition and product/service capabilities

New Growth Points

First to launch a comprehensive solution for home leasing

Full coverage of major cities nationwide

“CCB Jian Rong Jia Yuan” brand name

House price index and house rental index

Promoting home leasing related asset management business


Data Warehouse integrating internal and external data

Enterprise data management and application architecture

Big Data Working Platform

AI Robots

Intelligent Risk Management Platform

Biometric verification

10

Completion and Application of the New Generation Core Banking System

Speeding Up Application of New Technologies

Enterprise Big Data Capacity Building

Applying Advanced AI Technologies

Building a Cloud Ecosphere

Biggest private cloud in domestic banking sector

Building public cloud, outputting resources and capabilities

Enterprise-level management of business requirements

Modular development of business applications

Consistency management of system quality


Fintech to Create New Models for Corporate Business

New Momentum with Fintech 1

e-Loan series

Promoting the application of technologies such as IoT, blockchain and big data in industry chain finance, making innovation in launching Internet-based "e Xin Tong", "e Xin Tong" and "e Qi Tong"

Corporate Business Radar

Targeted sales of corporate deposits through analysis of clients’ fund movement based on big data

Commercial Paper Business

Surveillance

Accurately locating potential bill-discounting clients for conducting targeted sales

Smart Government Administrative

Platform

With the goal of building smart cities and leveraging on the New Generation Core Banking System, establishing a comprehensive administrative platform covering all types of businesses, processes and scenarios that is aimed at bringing convenience to citizens


Developing Retail Business with System Thinking and Internet Thinking


Quick Loan Full-process online automated loan developed with Internet Thinking and application of big data technologies

Long Pay Integrated model of “Payment Scenario + Financial Service + Marketing”

Innovation with Mi Band and Huawei Watch as payment tool

Ecosphere Building a closed loop ecosphere comprising of housing, shopping, transportation and travelling, etc.

Smart Customer Service “Xiao Wei”

Deployed WeChat, SMS and Internet channels to automatically answer customers’ questions

Intelligent Wealth Management

Providing individualized wealth management service to customers using AI and big data analytics methodology

Smart Teller Machine

Comprehensive smart financial service equipment that integrates business processing, product advertising and sales, customer experience and interaction


Promoting the strategy of Mobile First

Providing Internet-based financial

services that are smart, convenient,

efficient and comprehensive

WeChat banking users grew by 35.4%

Building an integrated online banking

service that combines transactions, sales

and customer service

13

Developing the Internet Finance Eco System Fast Development of Internet Finance Business


RMB (Trillion)

30.6

57.3 40.5 36.4

214.9

272.4

0

60

120

180

240

300

2016 2017Mobile Banking Transaction Volume

Retail Online Banking Transaction Volume

Corporate Online Banking Transaction Volume


Striving to Develop Inclusive Finance Business

14

Developing the New Model of Digital,

Network-based and Smart Service

The all online financing model of "SME

Quick Loan"

NPL ratio of "SME Quick Loan" was

0.16%

Innovation in "Yun Shui Dai" with tax data

High Quality and Fast Development of All Online “SME Quick Loan”

RMB (Billion)

19.8

97.4

0

20

40

60

80

100

2016-12-31 2017-12-31

Loan balance

Agriculture-related loans grew 5.9%

"Yu Nong Tong" prefecture-level inclusive

financial service

Inclusive Finance Development

Committee and business department


RMB (Billion)

New Competitive Edge of Consumer Finance High Quality Growth of Green Loans

Forging New Competitive Edge of Consumer Finance and Green Finance

RMB (Billion)

75.0

192.7 442.0

563.6

0

100

200

300

400

500

600

0

40

80

120

160

200

240

2016-12-31 2017-12-31

Balance of Personal Consumer LoansBalance of Credit Card Loans (right axis)

889.2 1,002.5

0

300

600

900

1,200

2016-12-31 2017-12-31

Balance of green loans


No.1 underwriter for non-financial

enterprise corporate bonds

consecutively for 7 years

Financial Total Solution（FITS®）

Global Investment Banking Business

Center

Enhanced trading capabilities in

financial market

Deepened business integration

between non-banking subsidiaries

and core banking business

16

Building Competitiveness of Businesses Asset Custody Size Broke 11 Trillion Yuan Mark

Elevating Market Status of Emerging Businesses

RMB (Billion)

9,249.3

11,535.4

0

2,400

4,800

7,200

9,600

12,000

2016-12-31 2017-12-31

Custody size


RMB (Billion)

Infrastructure Loans increased 15.9% Personal Mortgage grew 17.5%

Reinforcing Traditional Advantage in Infrastructure Business and Personal Mortgage

RMB (Billion)

49.4% 52.1%

2,896.2

3,357.5

0

700

1400

2100

2800

3500

0%

20%

40%

60%

80%

100%

2016-12-31 2017-12-31

Percentage of infrastructure loans in domesticcorporate loans and advancesBalance of infrastructure loans

1,853.5 2,049.0

3,585.6

4,213.1

0

1,000

2,000

3,000

4,000

5,000

2016-12-31 2017-12-31

Balance of Housing Provident Fund loansBalance of Personal Mortgage





Risk Management

Outlook


Increased Automation and Intelligence in Risk Management

19

Group-wide Comprehensive Risk Monitoring and Early

Warning Platform

Integrating corporate and retail early warning systems, unifying the monitoring of different exposures

External Fraud Risk Management

System Achieving effective recognition and control of fraud risk

Remote Monitoring

System

Adapting to the fast development of information, network and big data technology, building a monitoring system with unified plans, standards, software, hardware and management

Innovation in Retail Risk

Metrics Tools

Launched “New Generation” Retail Customer Scorecard Model System, elevating the level of automation and intelligence of risk metrics


627.4

461.3

168.7 113.3

45.5 0.6

-34.3

-400

-200

0

200

400

600

800

Personalmortgage

Infrastructure SME Green credit High tech andstrategicemergingsectors

Severe over-capacitysectors

Continued Structural Optimization of Credit Portfolio

20

Continued Structural Adjustment of Credit Portfolio RMB (Billion)

Note: Severe Over-Capacity Sectors include Steel, Cement, Aluminum, Plate Glass and Ship-Building.

Regulated category LGFVs

Increased Loan Balance


Effective Risk Control in Key Areas

21

Asset Management

Asset allocation included in Unified Credit Approval Process

Adjusted product and portfolio structure of wealth management products

Enhanced liquidity management

Local Government

Debt

Enhanced management of local government credit ratings and risk limits

Carrying out local government debt swap prudently

Provisions made for local government bond investment

Real Estate

Adhering to differentiated housing property credit policies

Strictly implementing closed-loop management for loan funds

Conducting property business stress-tests

Interbank Business

Strict counter-party management

Penetration management for asset business

Maintaining “Zero NPL, Zero Violation and Low Risk”

Full provisions for impairment loss

Overseas Business

Enhanced compliance management and AML capabilities


More Solid Trend of Asset Quality Stabilizing and Improving

22

NPL Ratio Dropped, Provision Coverage Increased

Clearer Picture of Asset Quality Trending Up

Balance of Overdue Loans decreased,

and Overdue Loan ratio dropped

0.22pps

Proportion of the Special Mention

Loans fell 0.04pps

NPL formation rate dropped 0.21pps

YoY

Credit loss ratio decreased 0.13pps

YoY

Overdue Loans continued to be

smaller in size than NPL, and the

trend is growing

1.52% 1.49%

150.36%

171.08%

0%

40%

80%

120%

160%

200%

1.25%

1.35%

1.45%

1.55%

1.65%

1.75%

2016-12-31 2017-12-31NPL ratio

Provision coverage ratio (right axis)


Continued Enhancement of Liquidity and Market Risk Management Capabilities

23

RMB (Billion)

Liquidity Remained in Appropriate Levels Market Risk Management Continued to Be

Strengthened

Global Risk Information Analysis

Mechanism

Monitoring and Early Warning Mechanism

Strengthening Limits Management

Strengthening Business Risk

Management

Penetration Management of Proprietary

Business

Risk Metrics Engine

44.21% 43.53% 40.81%

74.52%

0%

20%

40%

60%

80%

2016-12-31 2017-12-31

RMB liquidity ratio

Foreign currency liquidity ratio


12.98% 13.09% 13.15% 13.71%

14.94% 15.50%

0%

4%

8%

12%

16%

In accordance with "Administrative Measures for Capital

Management of Commercial Banks (Trial)", capital adequacy ratio

was calculated using the Advanced Approach, and applying the

rule on parallel run.

Capital-efficient operation

Refined capital management

Optimized capital structure

Deepened application of advanced

capital management approaches

60 billion RMB preference shares in

domestic market

Equivalent of 96 billion RMB Qualified

Tier-2 Capital Instrument

Enhanced Capital Management

24

CAR Remained at High Level

Continued Enhancement of Integrated Capital Management

Common Equity Tier 1 ratio

Tier 1 ratio

Capital adequacy

ratio

2016-12-31 2017-12-31

Common Equity Tier 1 ratio

Tier 1 ratio

Capital adequacy

ratio





Risk Management

Outlook


Being the Leader of Ecological Civilization Construction in the New Era

26

Consumer Protection

Public Projects

Targeted Poverty Alleviation

Perfecting consumer protection mechanism and enhancing customer satisfaction. Retail customer satisfaction rate in 2017 was 2.9 pps above industry average.

Continued to carry out public projects in education, healthcare, poverty alleviation, disaster relief and environment protection, etc., donation in 2017 reached RMB 77.86 million

Low Carbon Operation

Reinforcing education on international perspective and environmental awareness for employees, promoting low carbon operation

Targeted Finance against Poverty Loans increased by 57.4%

Green Credit

Optimizing green credit policy and system, enriching green credit products and services, green loans increased by 12.7%


External Evaluation

The Banker Top 1000 World Banks

2nd

China Banking Association Annual

Most Socially Responsible Financial Institution

Asia Money (Hong Kong) 2017

Best Bank in China

The Asian Banker 2017

Best Large-Scale Retail Bank Best Digital Bank in China





Risk Management

Outlook


Opportunities and Challenges

29

Opportunities Challenges

Global synchronous recovery in economic growth

China’s economy shifting to a phase of high-quality growth

Supply-side structural reform has achieved some results

Important progress made in reducing over-capacity, and realizing market-clearing

Speeding up the establishment of a system of granting equal rights to home buyers and tenants

Spillover from economic policy adjustment of major economies

Anti-globalization and trade protection

Structural risk still exists in domestic economy

Rising leverage of domestic corporations and residents

Stricter regulations resulted in higher requirements for business operation


Responding Measures

30

Continuing to promote the Fintech strategy, forging a new competitive edge in Fintech

Striving to expand core liabilities and maintaining appropriate growth of assets

Promoting the development of home leasing business, nurturing new growth points

Reinforcing traditional advantage in home property finance and infrastructure, developing emerging businesses

Adhering to the Retail First strategy, striving for the rapid development of consumer finance

Accelerating the upgrading of risk and compliance management system and models, safeguarding stable business operations

Achieving High-quality Growth through Refined Management, Prudent Risk Control, Efficient Capital Utilization, Good Return and State-of-the-art Technology


Q&A


Thank You

Date post:	27-May-2020
Category:	Documents
Upload:	others
View:	3 times
Download:	0 times

2017 Results Announcement - CCB · 2018-03-28 · Full integration into the “big ecosphere” of...

Documents