济宁银行股份有限公司 Bankofjiningco.,Ltd
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济宁银行股份有限公司 BANK OF JINING CO., LTD. Annual Report 2014 Bank of Jining Co., Ltd. Annual Report 2014 I. Important Statement (I) The Board of Directors of Bank of Jining Co., Ltd. hereby assures that all information included in this report does not contain any false information, misleading statement or material omission, and undertakes the responsibility that the contents of the report are true, accurate and integrate. (II) Shandong Tian Heng Xin Certified Public Accountants Co., Ltd. audited the Bank’s Annual Financial Statements in accordance with the Independent Auditing Standard for Chinese Certified Public Accountants and issued a standard unqualified auditor’s report. (III) The Chairman, Li Min, the President, Li Yinxi and the General Manager of the Accounting and Finance Department, Wang Baoxia, hereby assure that the financial reporting of the annual report is true and integrate. II. General Introduction (I) Registered Corporate Name in Chinese: 济宁银行股份有限公司 (Shortened Form: 济宁银行); Registered Corporate Name in English: Bank of Jining Co., Ltd. (Shortened Form: Bank of Jining). (II) Legal Representative: Li Min (III) Secretary of the Board of Directors: Jiao Chunhua Address: NO.6 Jinyu Road, Jining City, Shandong Province Tel: 0537-2885876 Fax: 0537-2885876 Email: [email protected] Page1 of 36 Bank of Jining Co., Ltd. Annual Report 2014 (IV)Registered Address: NO.6 Jinyu Road, Jining City, Shandong Province Business Address: NO.6 Jinyu Road, Jining City, Shandong Province Postcode: 272000 (V)Website for Information Disclosure: the website of the Bank Website: http://www.jn-bank.com Copies of the annual report are available at: the Board of Directors’ Office of the Bank (VI) Other Relevant Information Initial Registration Date: 26 August, 2006 Initial Registration Address: Jining Municipal Industrial and Commercial Administration Bureau Business Entity Registration Number: 370800018013188 Tax Registration Number: Lu Shui Ji Zi 370802723876735 Auditors: Shandong Tian Heng Xin Certified Public Accountants Co., Ltd. III. Financial Highlights (I) Main Profit Indicators for the Reporting Period Items Amount Gross profit 61,580 Net profit 46,509 Operating profit 59,682 Investment income 7,626 Net non-operating income 1,898 Net cash flows from operating activities 76,111 Net cash flows from operating activities per share(RMB/ share) 0.76 Page2 of 36 Bank of Jining Co., Ltd. Annual Report 2014 (II) Main Financial Data of 3 Years as at the End of the Reporting Period Unit: RMB Ten Thousand, % Items 2012 2013 2014 Main operating revenue 298,921 290,161 266,823 Total assets 2,463,282 3,033,613 3,419,808 Balance of deposits 2,016,612 2,616,439 2,852,921 Balance of loans 1,493,306 1,835,838 2,121,448 Shareholders’ equity 254,412 285,965 335,345 Cost-income ratio 23.68 30.24 27.81 Note: Main operating revenue includes interest revenue, inter-transfer interest revenue among financial institutions, commissions, other business income and investment gain. (III) Capital Structure and its Change for the Reporting Period 1. Measurement range and method of capital adequacy ratio Measurement range. The bank's capital adequacy ratio is calculated, including the core capital, capital and tier two capital. Risk weighted assets include credit risk, market risk, operational risk. Measurement method. The bank's measurement of credit risk by using the weight method, the measurement of market risk Using standard method, the basic index method is used to measure the operational risk. 2. END of the reporting period, the capital adequacy ratio index Unit: % Standard As at the Key Indicators value (%) End of 2014 Tier 1 capital - 13.46 Capital adequacy ratio ≥10.5 14.57 3. Capital Structure and its Change for the Reporting Period Unit: RMB Ten Thousand Items End of 2013 End of 2014 Increase in this Page3 of 36 Bank of Jining Co., Ltd. Annual Report 2014 period Paid-in Capital 86,358 7,250 13,818 capital reserves 88,460 88,388 -72 Other Comprehensive 0 3,822 3,822 Income General Risk 46,094 53,594 7,500 Preparation Surplus reserve 29,170 42,152 12,982 Undistributed profits 32,750 40,411 7,661 Net Tier 1 capital 285,475 333,767 48,292 Net capital 309,650 361,511 51,861 IV. Risk Management (I) Supplementary Financial Data as at the End of the Reporting Period Unit: RMB Ten Thousand,% Key Indicators Criteria(%) End of 2014 Bad Loan Ratio ≤5 1.93 Loan-deposit Ratio ≤75 73.48 Liquidity ratio ≥25 53.22 Interest collection rate ≥95 98.39 Ratio of single largest customer’s loan against net capital ≤10 5.52 Ratio of single largest group customer’s loanagainst net capital ≤15 11.23 (II) Distribution of Loans by Main Industry Unit: RMB Ten Thousand, % Category of Industry Balance Percentage (%) Retail and Wholesale 748,019 36.13 Manufacturing 570,015 27.35 Mining 107,451 5.19 Building and Construction 91,597 4.42 Page4 of 36 Bank of Jining Co., Ltd. Annual Report 2014 (III) Loans Granted to Top 10 Borrowers Unit: RMB Ten Thousand, % As a Percentage As a Outstanding of Total Percentage of No. Name of Borrower Loan Outstanding Net Capital Loan (%) (%) 1 Customer 1 20,000 0.94 5.52 2 Customer 2 19,900 0.94 5.49 3 Customer 3 18,900 0.89 5.21 4 Customer 4 17,913.59 0.84 4.94 5 Customer 5 15,000 0.71 4.14 6 Customer 6 15,000 0.71 4.14 7 Customer 7 12,999.88 0.61 3.59 8 Customer 8 12,300 0.58 3.39 9 Customer 9 12,000 0.57 3.31 10 Customer 10 12,000 0.57 3.31 (IV) The Classification Method of Loan Risks and the Structure of Various Non-performing Loans (NPLs) 1. Classification Method of Loan Risks The Bank has formulated the 5-tier classification method of credit assets based on the China Banking Regulatory Commission’s ‘Guide to Classification of Loan Risks’ in order to measure and manage loan risks. It divides credit assets into 5 classes: Normal, Special-mention, Substandard, Doubtful and Loss and the last three classes are considered as non-performing credit assets. 2. Five-tier Classification of Loans Unit: RMB Ten Thousand, % Page5 of 36 Bank of Jining Co., Ltd. Annual Report 2014 Increase or Increase or As a As a Decrease Decrease Percentage Percentage Current Opening for the Items for the of the of the Balance Balance Current Current Current Opening Period Period Balance Balance (%) Total Loans 2,121,447.56 1,835,837.04 285,610.52 - - - Among: Normal loans 2,028,088.47 1,812,260.46 215,828.01 95.60 98.72 -3.12 Special- mention loans 52,455.85 8,877.18 43,578.67 2.47 0.48 1.99 Substandard loans 15,342.10 11,635.90 3,706.20 0.73 0.63 0.10 Doubtful loans 24,642.65 3,058.32 21,584.33 1.16 0.17 0.99 Loss loans 918.49 5.18 913.31 0.04 0.00 0.04 Total NPLs 40,903.24 14,699.40 26,203.84 1.93 0.8 1.13 (V) Change of Provision for Loans Unit: RMB Ten Thousand Opening Current Current Current Current Closing Item Balance Provision Turn out Collection Write-off Balance Total Loan 123,553 39,588 - 1021 66,327 97,835 Provision (VI) Provision for Impairment of Investment, Foreclosed Assets and Other Assets Unit: RMB Ten Thousand Item Opening Balance Closing Balance Foreclosed Assets Depreciation Reserve 0 0 (VII) Foreclosed Assets Page6 of 36 Bank of Jining Co., Ltd. Annual Report 2014 Unit: RMB Ten Thousand, % Percentage Classification Balance (%) company's debt equity 1193.26 81% company's debt equity 278.12 19% Total 1471.38 100% (VIII) Main Investments 1. Outbound investment Unit: RMB Ten Thousand, % Closing Investment Main Investments Shareholding (%) Amount Shandong City Commercial Banks 3,000 6.74 Cooperation Alliance Co., Ltd Total 3,000 6.74 2. Subsidiary Unit: RMB Ten Thousand, % Proportion Registered Registered Actual Shareholding Consolidated minority Name Type of voting address capital investment ratio statement equity rights Jining Confucius direct Rencheng Commercial Rural 10,000 4,784 47.84 47.84 yes 6,802 control District Bank (IX) Risk Management of Credits Granted to Group Clients As at the end of the reported period, among the Bank’s group clients, After deducting the margin, the line of credit granted to Customer 1 was CNY 407,000 thousand, which accounted for 11.23% of the net capital of the Bank. After deducting the margin, the line of credit granted to Customer 2 was CNY 346,335.90 thousand, which occupied 9.56% of the net capital of the Bank; After deducting the margin, the line of credit granted to Customer 3 was CNY 289,438.70 thousand, which accounted for 7.99% of the net capital of the Bank. After deducting the margin, the line of credit Page7 of 36 Bank of Jining Co., Ltd. Annual Report 2014 granted to Customer 4 was CNY 254,805.00 thousand, which took up 7.03% of the net capital of the Bank; After deducting the margin, the line of credit granted to Customer 5 was CNY 250,000 thousand, which took up 6.90% of the net capital of the Bank. (X) Main Policies, Measures and Effects of Non-performing Assets Management At the end of the report period, a total recovery and disposal of bad assets of CNY 709.69 million, increased of 596.26 million last year. Of which: cash recovered CNY33.79 million, to write off bad assets of CNY 663.27 milllion, Repossessed assets by goods CNY126.30 million.