On the evening of October 30, 2024, China's Industrial Bank (CIB) published its financial results for the first three quarters of the year. The report highlights CIB's commitment to its goal of becoming a value-oriented bank while contributing to China's ongoing economic recovery. As of September 30, 2024, CIB's total assets reached RMB 10.31 trillion, an increase of 1.47% from the beginning of the year. Operating income for the period was RMB 164.217 billion, representing a year-on-year growth of 1.81%. Pre-provision operating profit amounted to RMB 118.913 billion, up 3.74% year on year. Net profit attributable to equity holders of the parent was RMB 63.006 billion. Asset quality remained stable, with the non-performing loan (NPL) ratio at 1.08% and a provision coverage ratio of 233.54%, indicating an adequate buffer.
Balance Sheet Restructuring Drives Revenue Growth of 1.81% Year on Year
In the first three quarters of 2024, CIB prioritized high-quality development, actively advancing its balance sheet restructuring efforts to achieve greater operational efficiency. It implemented a series of initiatives aimed at driving revenue growth and cost optimization. These efforts resulted in operating income of RMB 164.217 billion, up 1.81% year on year. Pre-provision operating profit grew by 3.74% year on year to reach RMB 118.913 billion.
On the asset side, CIB maintained the strategy of "stable disbursement" and "optimal allocation", with the loan balance increasing by 5.14% year-on-year to RMB 5.74 trillion. It also aligned its growth strategy with the China's key national priorities, integrating the development of its "Five New Finance Sectors" and the government's "Five Major Topics". As a result, CIB's green loans, technology loans, and inclusive loans grew by 16.66%, 14.74%, and 10.45%, respectively, all outpacing the average loan growth rate. On the liability side, CIB focused on "stable growth" and "cost optimization", and achieved a 5.61% increase in deposit balances from the end of last year, which reached RMB 5.43 trillion. The average deposit interest rate was 2.03%, a decrease of 23 basis points from the previous year.
As a result of the ongoing optimization of its asset-liability structure, CIB achieved a net interest margin (NIM) of 1.84% in the first three quarters. This translated to net interest income of RMB 111.587 billion, an increase of 2.39% over the same period of last year. Non-interest income increased by 0.61% year-on-year to RMB 52.63 billion, driven by growth in other non-interest income sources and a smaller decline in net fee and commission income. CIB's cost-to-income ratio improved, decreasing by 1.30 percentage points year on year, reflecting greater efficiency in resource utilization.
Customer Base Grows Steadily with Focus on Quality and Structure as Competitive Advantages of Featured Businesses Continue to Consolidate
CIB has remained steadfast in its customer-centric approach, continuously enhancing its customer segmentation and management systems, product cross-selling capabilities, and scenario-based financial services. These efforts contributed to both quantitative and qualitative improvements in its customer base. At the end of September, CIB's retail customer base exceeded 108 million, marking a 6.51% increase from the end of 2023. The number of VIP and private banking customers grew by 5.75% and 7.93%, respectively, while the number of corporate clients increased by 7.25% from the end of last year to 1.503 million. The number of customers classified as "potential" or higher reached 3.464 million, up 11.34% from the end of last year. CIB maintained a high level of cooperation with interbank clients, with the cooperation coverage rate remaining above 95% and the product coverage rate for value customers increasing to 73%.
A stronger customer base has provided strong support for CIB to further strengthen its "Three Business Pillars" and enhance its competitive advantages in key business areas. In green banking, the green financing balance reached RMB 2.18 trillion at the end of September, up 15.34% from the end of 2023. In particular, CIB's green loan balance, according to the People's Bank of China metrics, was RMB 943.8 billion, a 16.66% increase from the end of last year, maintaining the largest green loan portfolio among China's joint-stock commercial banks. In wealth banking, CIB reported a 4.38% growth in retail assets under management (AUM) from the end of last year, which reached RMB 5 trillion by the end of September. The average daily corporate wealth AUM grew by 12.27% from the end of last year to RMB 418.2 billion. The sales balance on CIB's bank-to-bank platform exceeded RMB 600 billion. CIB Wealth Management ranked second in the industry in terms of AUM. In investment banking, finance product aggregate (FPA) increased by RMB 80.3 from the end of last year, reaching RMB 4.47 trillion as of September 30. Its underwriting of non-financial bonds and custody products remained strong, positioning it among the market leaders.
Proactive Risk Management Ensures Stable Asset Quality
Throughout the first three quarters, CIB remained committed to its asset quality control framework, which focuses on "advancing classification, quality assurance and asset disposal to improve performance". It optimized risk management mechanisms in key areas and took advantage of favorable national policies to address non-performing assets in a timely and efficient manner. As of September 30, CIB's NPL ratio stood at 1.08%, a slight increase of 0.01 percentage points compared to the end of 2023. In order to strengthen its risk resilience, CIB made a total provision for asset impairment losses of RMB 47.703 billion, an increase of 14.31% year on year. The provision coverage ratio remained robust at 233.54%, ensuring that the bank maintained a solid risk buffer.