In the first half of 2022, the pandemic continued to affect the global economy, a situation aggravated by the crisis in Ukraine and the tightening of monetary policies in several major economies. The international environment was becoming more and more complicated. Domestically, sporadic coronavirus outbreaks have tested efforts to accelerate economic recovery.
Under these extraordinarily complex and difficult conditions, the China Construction Bank (CCB), as the main public lender, has resolutely pursued the task of “stabilizing the pandemic, stabilizing the economy and ensuring safe development”.
It has strengthened credit support for key sectors and enterprises to scale up pandemic response measures, especially in severely affected regions, and productive activities in support of economic development. It facilitated credit approvals and offered preferential policies to businesses in these priority areas.
By the end of June 2022, the CWB’s domestic corporate lending reached 10.6 trillion yuan ($1.53 trillion), up 10.46% from the end of the previous year. Infrastructure loans amounted to 5.47 trillion yuan, up 8% and accounting for 51.66% of its loans and installments over the period.
Medium and long-term loans to the manufacturing sector increased by 24.44%, private companies by 4.45%, strategic emerging industries by 26.66% and the technology sector by 30.07%. To strengthen supply chains, it granted 438.89 billion yuan to more than 70,000 customers along the industrial chains of 4,113 core enterprises.
While vigorously supporting society’s financial needs and the country’s economic development during these difficult times, CCB has conscientiously maintained its financial strength and the stability of its operations.
The bank recorded robust asset and liability growth and maintained relative advantages in the core indices. In the first half of 2021, its total assets reached 33.69 trillion, up 11.35% from the end of the previous year; the net value of its loans and advances and its financial investments increased by 8.38% and 10.26% respectively.
Total liabilities reached 31.01 trillion yuan, up 12.18%, while deposits rose 8.07%. Its net interest income was 317.34 billion yuan, and income net of management fees and commissions totaled 68.82 billion yuan. Its non-performing loan ratio decreased by 0.02 percentage point to 1.40%.
Despite the difficult circumstances, CCB posted a net profit of 161.73 billion yuan, up 4.95% from a year ago. The annualized return on equity was 1.01%, the annualized weighted average ROE was 12.56% and the capital adequacy ratio was 17.95%.
Help small businesses
With its solid fundamentals, the bank is in a strong position to help companies overcome their difficulties and further support the real economy.
As many micro, small and medium enterprises are facing huge business challenges, the CCB has reduced fees and commissions on struggling merchants; renewal of loans, extension of debt service and grace periods, and adjustment of the frequency of interest compensation to eligible companies in accordance with market principles.
To be able to reach out to his hundreds of millions of customers and meet their financial needs, CCB has strengthened its direct and special services and enriched its network of online-offline digitized integrated services. In doing so, she has established close digital ties with her clients to better understand and meet their needs. It also strengthened its wealth management system under the CCB Dragon Wealth brand.
At the end of June, its domestic retail deposit balance reached 12.36 trillion yuan, up 1.08 trillion yuan from the end of 2021. Individual customer financial assets topped 16 trillion yuan. The bank had a balance of 8.09 trillion yuan of domestic individual loans, up 2.47%.
Digital and mobile services
Considering the rapid adoption of digital in the country due to the pandemic, CCB has upgraded its dual mobile banking platform and the CCB Life app. It has also facilitated the public domain ecology with internet banking and corporate mobile banking.
At the end of June, the number of individual mobile banking users reached 428 million, up 2.53% compared to the end of 2021. On average, there were 156 million monthly active users carrying out 28.07 billion transactions amounting to 43.12 trillion yuan. The CCB Life app had over 66 million registered users, approximately 4 million daily active users, and nearly 280,000 quality registered merchants.
The bank has also supported many government initiatives. It has issued government consumer vouchers worth 1.22 billion yuan in 133 cities. He actively promoted the digital renminbi research and development pilot program under the central leadership of the People’s Bank of China.
Promote strategic companies
To vigorously support the real economy, the CCB has strengthened the quality and efficiency of its services, while protecting itself against financial risks. He forcefully advanced the “big three strategies” of rental housing, inclusive finance and fintech.
Steady progress of the home rental strategy. By the end of June, its housing rental service strategy covered 96% of administrative areas, providing a transparent business platform to 15,000 companies and 40.34 million individual landowners and tenants, as well as a effective market regulation tool for the government. He developed 200 communities called CCB Jiangongjiayuan for long-term leases. The bank actively supported the development of the discount rental house; interface with over 500 discount rental homes in major cities across the country; offered special loans to increase the supply of small, low-rent apartments; and helped meet the residential needs of new citizens and young people. As of the end of June, the balance of real estate leasing loans stood at 180.617 billion yuan, up 35.33 percent from the end of 2021.
Notable results of the inclusive finance strategy. The CCB continued to improve and expand access to its digital services to promote financial inclusion. Its CCB Huidongni app has had over 170 million visits, 22.5 million downloads and 1.65 million customers who have secured loans amounting to over 1.3 trillion yuan. Its quick loan product for small and micro businesses has served more than three million customers and provided 7.41 trillion yuan in credit. To support technological innovation, its Port of Entrepreneurs has provided 37 billion yuan of credit to more than 15,000 enterprises. As of the end of June, it granted 2.14 trillion yuan in loans under its inclusive finance strategy, up 14.25% from the balance at the end of 2021; the program benefited more than 2.25 million customers, an increase of 315,300.
Strong development of the fintech strategy. CCB is constantly strengthening the security and stability of its information system to ensure the qualitative development of its businesses. It enhanced its digital infrastructure building and cloud transformation under the CCB Cloud brand. By the end of June, it had acquired 934 patents, including 540 invention patents, the most in the domestic banking sector. CCB Fintech is the only company in the country’s financial system included in the Scientific Reform Business Model Catalog published by the Office of the State-owned Enterprise Reform Leading Group under the State Council. It established new service routes and contributed to digital government development efforts. As of the end of June, the CCB has established partnerships with 29 provincial governments and participated in the development of the Internet+ Government Service and Internet+ Regulation platforms or application scenarios for 14 provinces and 13 cities.
Continuous increase in green financing. To support China’s commitments to carbon neutrality, the CCB has put in place a strategic plan for the development of green finance with the aim of becoming a “sustainable bank of world reference”. At the end of June, it issued green loans amounting to 2.41 trillion yuan, up 22.93% from the balance at the end of 2021. This included 56.22 billion yuan for reducing carbon emissions and 4.05 billion yuan for clean and efficient use of coal. The bank also issued green bonds in the amount of 10 billion yuan and dual-currency Belt & Road green bonds overseas to raise $1.67 billion. It underwrote 23 issues of green debt financing vehicles for a total of 25.77 billion yuan, with an underwriting value of 16.31 billion yuan.
As the Communist Party of China gathers for its 20th National Congress, the CCB will continue to be guided by President Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era. In the face of complicated domestic and foreign developments, CCB will fully and precisely implement new development concepts; promote its new financial campaigns in real estate leases, inclusive finance and fintech; and continue to serve and support the real economy.