2020 Annual Report * Bank of Tianjin Co., Ltd
Total Page:16
File Type:pdf, Size:1020Kb
(A joint stock company incorporated in the People's Republic of China with limited liability) (Stock code: 1578) 2020 Annual Report * Bank of Tianjin Co., Ltd. is not an authorised institution within the meaning of the Banking Ordinance (Chapter 155 of Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorised to carry on banking and/or deposit-taking business in Hong Kong. BANK OF TIANJIN CO., LTD. 1 ANNUAL REPORT 2020 Contents Definitions 2 Company Profile 4 Summary of Accounting Data and Financial Indicators 6 Chairman’s Statement 12 President’s Statement 14 Management Discussion and Analysis 18 Changes in Share Capital and Information on Shareholders 74 Directors, Supervisors, Senior Management and Employees 80 Corporate Governance Report 106 Report of the Board of Directors 131 Report of the Board of Supervisors 145 Important Events 150 Risk Management and Internal Control 152 Independent Auditor’s Report 155 Financial Statements 161 Unaudited Supplementary Financial Information 308 List of Branches 313 2 BANK OF TIANJIN CO., LTD. ANNUAL REPORT 2020 Definitions In this annual report, unless the context otherwise requires, the following items shall have the meanings set out below: “Articles of Association” the articles of association of the Bank as may be amended, supplemented or otherwise modified from time to time “Bank”, “our Bank”, “we” or “us” Bank of Tianjin Co., Ltd. (天津銀行股份有限公司), a joint stock company incorporated on 6 November 1996 in Tianjin, China with limited liability in accordance with the PRC laws, and, if the context requires, includes its predecessors, subsidiaries, branches and sub-branches “Board” or “Board of Directors” the board of Directors of the Bank “Board of Supervisors” the board of Supervisors of the Bank “CBIRC” the China Banking and Insurance Regulatory Commission “CBIRC Tianjin Office” Tianjin Regulatory Bureau of the China Banking and Insurance Regulatory Commission “China” or “PRC” the People’s Republic of China, excluding Hong Kong, Taiwan and Macau for the purposes of this annual report “Director(s)” the director(s) of the Bank “Domestic Shares” ordinary shares issued by our Bank, with a nominal value of RMB1.00 each, which are subscribed for or credited as paid up in Renminbi “Foreign Shares” ordinary shares issued by our Bank, with a nominal value of RMB1.00 each, which are subscribed for in a currency other than Renminbi, or the consideration for which is the injection of assets and are held by persons other than PRC nationals or PRC corporate entities, and are not listed on any stock exchange “H Shares” ordinary shares issued by our Bank, with a nominal value of RMB1.00 each, which are listed on the Hong Kong Stock Exchange “HK$” or “HKD” Hong Kong dollars, the lawful currency of Hong Kong “Hong Kong” the Hong Kong Special Administrative Region of the PRC BANK OF TIANJIN CO., LTD. 3 ANNUAL REPORT 2020 Definitions “Hong Kong Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “PBoC” or “Central Bank” The People’s Bank of China (中國人民銀行) “Reporting Period” For the year ended 31 December 2020 “RMB” or “Renminbi” Renminbi, the lawful currency of the PRC “Selling Shareholder(s)” the state-owned shareholders, collectively, who are required to reduce their shareholding pursuant to the relevant PRC regulations relating to reduction of state-owned shares “SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “Shareholder(s)” the shareholder(s) of the Bank “Supervisor(s)” the supervisor(s) of the Bank 4 BANK OF TIANJIN CO., LTD. ANNUAL REPORT 2020 Company Profile Legal Chinese Name 天津銀行股份有限公司 Abbreviation in Chinese 天津銀行 Legal English Name Bank of Tianjin Co., Ltd. Abbreviation in English Bank of Tianjin Legal Representative SUN Liguo Authorised Representatives SUN Liguo, NGAI Wai Fung Board Secretary DONG Xiaodong Joint Company Secretaries DONG Xiaodong, NGAI Wai Fung Registered Address and Headquarters Address No. 15 Youyi Road, Hexi District, Tianjin, China Principal Place of Business in Hong Kong 40/F, Dah Sing Financial Centre, No. 248 Queen’s Road East, Wanchai, Hong Kong Customer Service Telephone 956056 Telephone 86-22-2840 5262 Facsimile 86-22-2840 5518 Email [email protected] Website www.bankoftianjin.com Website of Hong Kong Stock Exchange for www.hkexnews.hk Publishing H Share Annual Report Date of Initial Registration 6 November 1996 Business License No. of Corporation 120000000007636 Uniform Social Credit Code 911200001030702984 BANK OF TIANJIN CO., LTD. 5 ANNUAL REPORT 2020 Company Profile Finance Permit Institution Number B0108H212000001 Listing Place of Stock The Stock Exchange of Hong Kong Limited Stock Name Bank of Tianjin Stock Code 1578 H Share Registrar Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17th Floor Hopewell Centre 183 Queen’s Road East Wanchai, Hong Kong Legal Advisor as to PRC Laws GRANDALL LAW FIRM (TIANJIN) Legal Advisor as to Hong Kong Laws Paul Hastings 21-22/F, Bank of China Tower 1 Garden Road Hong Kong Auditors Domestic Auditor: Deloitte Touche Tohmatsu Certified Public Accountants LLP 30/F, Bund Center No.222 East Yanan Road Shanghai, PRC International Auditor: Deloitte Touche Tohmatsu 35/F One Pacific Place 88 Queensway Hong Kong 6 BANK OF TIANJIN CO., LTD. ANNUAL REPORT 2020 Summary of Accounting Data and Financial Indicators For the year ended 31 December Year-on-year Change between 2020 and 2020 2019 2019 2018 2017 2016 (Amounts in thousands of Renminbi, unless otherwise stated) Rate of change (%) OPERATING RESULTS Interest income 30,553,932 32,268,052 (5.3) 27,487,524 27,894,735 25,202,576 Interest expense (16,907,490) (19,045,250) (11.2) (20,781,987) (19,493,523) (14,843,351) NET INTEREST INCOME 13,646,442 13,222,802 3.2 6,705,537 8,401,212 10,359,225 Investment income 1,738,108 1,429,901 21.6 3,793,253 – – Fee and commission income 2,447,096 2,308,570 6.0 1,881,805 2,112,839 1,442,473 Fee and commission expense (136,561) (42,284) 223.0 (344,211) (79,374) (40,421) NET FEE AND COMMISSION INCOME 2,310,535 2,266,286 2.0 1,537,594 2,033,465 1,402,052 Net trading losses (1,204,497) (210,873) 471.2 (145,176) (157,018) (56,748) Net gain arising from derecognition of financial assets measured at amortised cost 25,832 115,163 (77.6) 132,526 – – Other income, gains or losses 680,284 230,441 195.2 114,480 (134,343) 110,207 OPERATING INCOME 17,196,704 17,053,720 0.8 12,138,214 10,143,316 11,814,736 Operating expenses (3,952,952) (3,988,677) (0.9) (3,447,071) (3,102,593) (3,767,642) Impairment losses under expected credit loss (ECL) model, net of reversals (8,230,793) (7,430,105) 10.8 (3,481,867) (2,131,853) (2,352,964) Share of results of associates 22,125 (1,693) (1,406.9) 8,233 (25,932) 16,244 BANK OF TIANJIN CO., LTD. 7 ANNUAL REPORT 2020 Summary of Accounting Data and Financial Indicators For the year ended 31 December Year-on-year Change between 2020 and 2020 2019 2019 2018 2017 2016 (Amounts in thousands of Renminbi, unless otherwise stated) Rate of change (%) PROFIT BEFORE TAX 5,035,084 5,633,245 (10.6) 5,217,509 4,882,938 5,710,374 Income tax expense (691,671) (1,024,584) (32.5) (987,422) (939,874) (1,192,470) PROFIT FOR THE YEAR 4,343,413 4,608,661 (5.8) 4,230,087 3,943,064 4,517,904 Profit for the year attributable to Equity holders of the Bank 4,307,585 4,547,971 (5.3) 4,181,248 3,916,386 4,522,053 Non-controlling interests 35,828 60,690 (41.0) 48,839 26,678 (4,149) Earnings per share attributable to equity holders of the Bank (Expressed in RMB Yuan per share) – Basic 0.71 0.75 (5.3) 0.69 0.65 0.77 8 BANK OF TIANJIN CO., LTD. ANNUAL REPORT 2020 Summary of Accounting Data and Financial Indicators For the year ended 31 December Year-on-year Change between 2020 and 2020 2019 2019 2018 2017 2016 (Amounts in thousands of Renminbi, unless otherwise stated) Rate of change (%) MAJOR INDICATORS OF ASSETS/LIABILITIES Total assets 687,760,199 669,401,117 2.7 659,339,903 701,913,589 657,310,107 Of which: loans and advances to customers 295,752,349 281,229,242 5.2 276,943,278 241,637,249 207,854,530 Total liabilities 633,812,209 618,224,334 2.5 611,619,166 657,157,727 615,555,327 Of which: due to customers 355,981,854 350,996,365 1.4 342,877,165 357,857,635 365,470,957 Share capital 6,070,552 6,070,552 – 6,070,552 6,070,552 6,070,552 Equity attributable to equity holders of the Bank 53,130,224 50,394,845 5.4 46,999,489 44,083,453 41,709,929 Total Equity 53,947,990 51,176,783 5.4 47,720,737 44,755,862 41,754,780 BANK OF TIANJIN CO., LTD. 9 ANNUAL REPORT 2020 Summary of Accounting Data and Financial Indicators For the year ended 31 December Year-on-year Change between 2020 and 2020 2019 2019 2018 2017 2016 PROFITABILITY INDICATORS (%) Return on average total assets(1) 0.64 0.69 (0.05) 0.62 0.58 0.74 Return on average equity(2) 8.26 9.32 (1.06) 9.15 9.12 12.05 Net interest spread(3) 1.98 1.88 0.10 1.23 0.81 1.43 Net interest margin(4) 2.26 2.21 0.05 1.59 1.25 1.76 Net fee and commission income to operating income 13.44 13.29 0.15 12.67 20.05 11.87 Cost-to-income ratio(5) 21.80 22.20 (0.40) 27.18 29.42 27.52 ASSET QUALITY INDICATORS (%) Non-performing loan ratio(6) 2.16 1.98 0.18 1.65 1.50 1.48 Allowance coverage ratio(7) 183.45 220.58 (37.13) 250.37 193.81 193.56 Allowance to gross loan ratio(8) 3.96 4.36 (0.40) 4.13 2.91 2.87 10 BANK OF TIANJIN CO., LTD.