As one of China’s largest public lenders, China Construction Bank (CCB) is vigorously aligning its programs and strategies with the 14th Five-Year Plan (2021-2025), the overarching framework guiding the country’s social and economic development. The bank is deepening the implementation of its “three big strategies” – rental housing, inclusive finance and financial technology (fintech).
The CWB actively promotes high-quality development of the real economy by increasing credit for inclusive finance, advanced manufacturing, strategic emerging industry, green finance and other sectors.
In the first six months of 2021, net interest income increased 5.18% while net commission income increased 6.82% compared to a year ago. Net profit increased 10.92% to 154.106 billion ($ 23.83 billion).
It announced an annualized average return on equity (ROE) of 1.06%, an annualized weighted average ROE of 13.10% and a capital adequacy ratio of 16.58%. The bad debt rate stood at 1.53%, down 0.03 percentage point compared to the end of 2020. The provision coverage rate stood at 222.39%.
House rental strategy
For the first half of 2021, the bank recorded stable progress in its housing rental strategy. Covering 96% of cities at prefecture level or above, its transparent transaction platforms served 14,000 businesses as well as 37 million tenants and tenants.
The lender has also completed the verification of over 10 million real estate properties and registered over six million contracts as an effective tool for the government to oversee the market. She took the initiative to found an industrial alliance of real estate leases, covering more than 130 upstream and downstream companies in areas such as decoration design, furniture, household appliances and services, in order to promote standardization and strengthen the development of the industry.
It continued to launch pilot services for equity transactions of rental housing companies; makes innovations in policy, standard, nature of ownership, business structure, etc. ; diversify the financing channels for housing rental companies; developed the CCB Jiangongjiayuan community for long-term leases that integrated a smart community, a utility, a financial service and an adventure service; and offered a comfortable living environment for blue and white collar workers, young innovators, etc.
Inclusive funding strategy
The bank continued to promote online businesses and improve operations on platforms such as CCB Huidongni, a terminal that allows businesses to get quick loans and one-stop financial services. As of June 2021, the platform has been accessed by over 130 million people who have made over 17 million downloads, as well as over 5.56 million businesses and one million credited customers, resulting in the approval of loans amounting to more than 700 billion yuan.
The bank has more than 14,000 outlets with more than 18,000 service agents to expand the reach of its financial services. It continued to improve its products and services to promote financial inclusion, such as quick loans for small and micro businesses.
As part of its inclusive financing system, the bank granted loans totaling more than 4.7 trillion yuan to more than 2.1 million rental companies in June 2021. The number of customers increased by 106,300 to 1.8 million over the period.
As part of its fintech strategy, CCB has developed 180 models in five major industries – computer vision, intelligent voice, natural language processing, knowledge graphing and intelligent decision making – and launched them in 507 scenarios. It has built a blockchain services platform across 12 industries, including trade finance, cross-border payments, smart government, and housing rentals.
CCB Cloud is committed to establishing a secure and reliable multi-regional and multi-functional network for its customers. Its cloud services support 401 projects in nine major industries, including government, real estate, and interbank.
CCB FinTech attracted three strategic investors, which led to an increase in its statutory capital and its valuation reaching 10 billion yuan. In June, it had 14,012 employees, or 3.79% of the group’s total workforce. It has acquired 606 patents, including 389 invention patents, making it a leader in the field of the national banking sector.
Support for the real economy
The bank aggressively supports the real economy, strengthening key sectors while addressing weaknesses in economic development. The loan balance has increased by 1.32 trillion yuan since the start of the year. Additional institutional loans to the Beijing-Tianjin-Hebei, Yangtze River Delta and Guangdong-Hong Kong-Macao regions accounted for more than half of the total. The balance of infrastructure loans increased 11.48% to 4.83 trillion yuan during the period.
The ratio of loans to medium and long-term manufacturing projects, strategic emerging industries and private enterprises continued to increase. Credit resources were provided through multiple channels – bond investments increased by $ 281.3 billion, while investment banking services provided more than 400 billion yuan in direct financing to companies.
The bank has strengthened its support for foreign trade clients and established a new development model where national and international cycles have mutually favored each other. He also introduced the concept of “finance + intelligence” to provide overall financial support and convenience to the Belt and Road initiative.
The CWB has also helped promote the internationalization of the renminbi and aggressively develop cross-border RMB services. In the first half of the year, the bank completed cross-border settlement transactions worth 1.28 trillion yuan, with the UK RMB clearing bank having a cumulative settlement of 57 trillion yuan and thus maintained its status as the largest bank RMB clearing outside of Asia.
Strengthening ESG management
CCB has always adhered to the deep merger of party leadership and corporate leadership, while integrating environmental, social and governance (ESG) concepts into its operational and management procedures. It has sought to optimize its ESG management and support its clients to strengthen ESG management. It closely follows national and international regulatory requirements and integrates environmental, climate and other risks into its comprehensive risk management system.
Promote the objective of carbon neutrality
The CCB fully supports the country’s objective of achieving peak carbon emissions by 2030 and carbon neutrality by 2060. It has set up a working group to formulate and coordinate a plan for carbon emissions. ‘action to help achieve the “double carbon” goals. It has also formed an ESG promotion committee to carry out work related to ESG, and added an index of “service strategy to ecological civilization” to its performance assessment to increase the scope of the assessment. and the weight of green finance.
The bank has actively developed new green finance products, services and measures, and has applied green credits, green bonds, green leases, green trusts and other financial instruments to support and nurture the green industry. At the end of June, the balance of green loans reached 1.570 billion yuan, up 16.65% compared to the end of 2020. The ratio of loans to industries with high energy consumption and high emissions has been declining over the years. years.