Bank Of Guiyang Co.,Ltd. has not distributed interim dividends since its listing.
On the evening of August 25, Bank Of Guiyang Co.,Ltd. (601997.SH) released its 2024 semi-annual report.
In the first half of this year, Bank Of Guiyang Co.,Ltd. achieved operating revenue of 6.501 billion yuan, down 12.22% year-on-year; net profit attributable to shareholders was 2.474 billion yuan, down 7.20% year-on-year. Basic earnings per share reached 0.68 yuan.
Regarding the main reasons for the decline in operating revenue and net profit, Bank Of Guiyang Co.,Ltd. stated that firstly, the bank continued to make concessions to the real economy, coupled with the LPR rate decline driving down interest rates on newly issued credit assets, as well as factors such as the reduction of existing asset rates and asset structure adjustments, resulting in decreased interest income year-on-year; secondly, affected by bond market volatility, gains from fair value changes in trading financial assets decreased compared to the same period last year.
As of the end of June this year, the bank's total assets reached 741.536 billion yuan, an increase of 35.867 billion yuan from the beginning of the year, growing by 5.08%; however, this was a slight decline from 745.007 billion yuan at the end of March this year.
**Significant Decline in Fair Value Change Gains**
Specifically, in the first half of this year, Bank Of Guiyang Co.,Ltd.'s net interest income was 4.92 billion yuan, a decrease of 886 million yuan year-on-year. Among this, scale factors led to a decrease in net interest income of 160 million yuan, while interest rate factors caused a decrease of 726 million yuan.
Bank Of Guiyang Co.,Ltd. stated in its semi-annual report that the decline was mainly due to the continuous downward trend of LPR rates and the active implementation of the national debt resolution package, resulting in lower rates on newly issued loans and rate reductions on existing assets. At the same time, the bank prudently cooperated with local financing platform debt reduction, leading to slower growth in loans and advances, continued decline in trust and asset management plan scales, with the decrease in interest income exceeding the reduction in interest expenses.
Additionally, in the first half of the year, the bank achieved non-interest income of 1.58 billion yuan, a decrease of 19 million yuan compared to the same period last year, down 1.22% year-on-year. Among this, affected by bond market volatility, fair value change gains declined significantly, reaching -511 million yuan in the first half of the year, compared to 343 million yuan in the same period last year, a decrease of 249.11%. However, investment income increased by 719 million yuan compared to the same period last year, due to the timely disposal of some financial assets.
Regarding asset quality, as of the end of June this year, Bank Of Guiyang Co.,Ltd.'s non-performing loan ratio was 1.70%, up 0.12 percentage points from the beginning of the year; the provision coverage ratio was 238.64%, down 18.43 percentage points from the beginning of the year.
Bank Of Guiyang Co.,Ltd. explained that this was mainly affected by risk exposure of some enterprises, and the bank classified them as non-performing according to prudent classification principles. The bank will continue to monitor risks in key areas and industries, strengthen the collection and disposal of existing non-performing assets, promote risk prevention and resolution, and maintain overall stable asset quality.
Furthermore, as of the end of June this year, the bank's capital adequacy ratio was 14.97%, tier-1 capital adequacy ratio was 13.77%, and core tier-1 capital adequacy ratio was 12.73%, down 0.23 percentage points, 0.23 percentage points, and 0.21 percentage points respectively from the beginning of the year.
Since its listing in August 2016, Bank Of Guiyang Co.,Ltd. has never distributed interim dividends, and this year's interim report also made no mention of dividend matters. Last year, Bank Of Guiyang Co.,Ltd. distributed 2.9 yuan per 10 shares (including tax), totaling 1.06 billion yuan in dividends, with the total dividend amount remaining flat compared to 2023, representing a dividend payout ratio of 20.53%.
Currently, among the 6 A-share banks that have released interim reports, banks planning interim dividends include Changshu Bank and Ping An Bank; while Jiangyin Bank, Bank Of Guiyang Co.,Ltd., Bank of Chongqing, and Bank of Jiangsu have no interim dividend plans.
**Average Employee Compensation of 200,000 Yuan in First Half**
In July this year, Bank Of Guiyang Co.,Ltd. experienced personnel changes. The bank announced that Liang Cheng resigned from his proposed positions as company director and member of the Board's Development Strategy Committee due to work reasons, with the resignation taking effect upon delivery of the resignation letter to the board of directors. After resignation, he no longer holds any positions in the company or its subsidiaries.
Previous announcements showed that Bank Of Guiyang Co.,Ltd. agreed to elect Liang Cheng as a company director at the first extraordinary shareholders' meeting in 2024. However, his qualification has not yet been approved by regulatory authorities, and he has not officially taken office.
Liang Cheng, born in April 1988, currently serves as the legal representative and executive director of Guiyang State-owned Asset Investment Management Company, the largest shareholder of Bank Of Guiyang Co.,Ltd.
Besides Liang Cheng, Bank Of Guiyang Co.,Ltd. has had two other senior executives resign this year. In January, director and chief risk officer Deng Yong retired upon reaching retirement age, and in May, chief auditor Yan Hongwu retired upon reaching retirement age.
Additionally, the bank approved the "Proposal on Appointing Mr. Li Hongqing as Vice President of Bank Of Guiyang Co.,Ltd." in early June, with his qualification still pending regulatory approval.
Li Hongqing, born in the 1980s, previously served in strategic planning management at China Guangfa Bank's headquarters strategic management department. After joining Bank Of Guiyang Co.,Ltd., he has served in various positions including strategic management, supervisor, assistant director, deputy director (presiding over work), and director in the board office, securities affairs representative, and currently serves as board secretary of Bank Of Guiyang Co.,Ltd., while also serving as party secretary and chairman of Guiyang Guiyin Financial Leasing Company (a subsidiary of Bank Of Guiyang Co.,Ltd.).
With the addition of Li Hongqing as vice president, Bank Of Guiyang Co.,Ltd. will form a leadership structure led by Chairman Zhang Zhenghai, with a "one president and four vice presidents" configuration, including President Sheng Jun, and Vice Presidents Li Songyun, He Kaiqiang, Li Ningbo, and Li Hongqing.
According to the bank's semi-annual report, in the first half of this year, Bank Of Guiyang Co.,Ltd.'s business and management expenses were 1.754 billion yuan, a decrease of 83 million yuan compared to the same period last year, down 4.53% year-on-year. Among this, employee wages and benefits decreased to 1.17 billion yuan, down 2.68% year-on-year. The bank stated this was to continuously strengthen refined cost management, improve the efficiency of financial resource utilization, and further reduce operating costs.
As of the end of June, Bank Of Guiyang Co.,Ltd. had 5,829 employees (excluding dispatched workers) (including branches and sub-branches). Based on this calculation, the bank's average employee compensation in the first half of 2024 was 200,600 yuan.
This interim report did not disclose executive compensation data. However, last year's annual report showed that executive compensation generally increased. Taking Chairman Zhang Zhenghai as an example, his pre-tax compensation in 2024 was 946,000 yuan, an increase of 285,000 yuan compared to the previous year, up 43.1%, including 313,000 yuan in tenure incentive income from 2021 to 2023.
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