YIBINBANK：ANNUALREPORT2024.pdf

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1、ContentsCompany Profile2Chairmans Statement4Definition8Company Information13Financial Highlights15Management Discussion and Analysis18Report of the Board of Directors77Report of the Board of Supervisors89Changes in Share Capital and Particulars of Shareholders91Directors,Supervisors,Senior Managemen

2、t,Employees and Organizations96Corporate Governance Report118Independent Auditors Report157Financial Report164Unaudited Supplementary Financial Information 285YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 20242Company ProfileBASIC INFORMATION OF THE COMPANYEstablished on December 27,2006 and head

3、quartered in Yibin City,Sichuan Province,PRC,Yibin City Commercial Bank is a local corporate financial institution restructured from the former Yibin City Credit Cooperatives under the approval of the former CBRC Sichuan Office.With registered address in No.1 Nuxue Street,Cuiping District,Yibin,Sich

4、uan,PRC and principal office address in No.9,Jinshajiang Avenue,Xuzhou District,Yibin,Sichuan,PRC.The Group has a total of 66 outlets,of which 42 are located in the districts and counties in Yibin City and 24 in Neijiang City.As at the end of the Reporting Period,the Bank had registered capital of R

5、MB3.9 billion and total assets of RMB109.2 billion(calculated at the Group calibre),making it the largest Bank in Yibin in terms of total assets.The net loans and advances to customers amounted to RMB58.4 billion and total deposits were RMB84.5 billion.STRATEGIC POSITIONINGThe Bank is positioned to“

6、contribute to local economy,support small and medium enterprises and serve urban residents”,and actively integrates into the booming regional economy and industrial clusters in Yibin and even Chengdu-Chongqing area.Based on a deep understanding of the local market,the Bank provides financial service

7、s to meet the needs of local businesses and residents,positioning itself as a strategic cooperative Bank to facilitate the development of industrial clusters,a characteristic Bank to serve the liquor industry chain,a trusted partner Bank to support small and micro enterprises,and a technology-enable

8、d retail Bank.The Bank firmly captured the local high-quality development opportunities.Leveraging on Yibins strategic position in Sichuan Province and Chengdu-Chongqing Dual-city Economic Circle,the Bank made full use of regional resource advantages to deeply integrate into the local economy and de

9、eply embed in the worlds first-class liquor industry,the worlds leading power battery industry,the national crystalline silicon photovoltaic industry and the national leading digital economy industry.Relying on deep integration with the local economy and industry,the Bank has achieved solid and sust

10、ainable growth.Furthermore,the Bank focuses on building digital systems,enhancing fintech capabilities,and continuously meeting the diversified and differentiated financial needs of customers through the innovation of the specialized digital services such as the“1+N”supply chain financial service mo

11、del,mobile payment,fund custody,and online retail lending.CORPORATE CULTURE“Yibin City Commercial Bank precisely supports small and micro enterprises and promotes national,provincial and municipal development”,which is the Banks corporate financial culture.“Yibin City Commercial Bank precisely suppo

12、rts small and micro enterprises”,aiming at constantly meeting the growing needs of people for a better life.Adhering to“precisely supporting small and micro enterprises”,the Bank provides detailed,precise,and refined services for each customer,fulfilling the responsibility of local corporate financi

13、al state-owned enterprises.With the theme of precise prevention and control of risks for financial work,the Bank services the real economy and precisely supports the specific practice of small and medium-sized enterprises.“Promoting national,provincial and municipal development”means that the Bank h

14、as always been thinking of the“national development”,concerning about the“provincial plan”,and implementing the“municipal events”.The Bank constantly launches diversified businesses,products,and services for citizens to facilitate mutual growth with the city,promote the development of the Bank and t

15、he region,and boost high-quality economic and social development of Yibin.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD3Company ProfileAWARDSAwards and honors received by the Bank in 2024 mainly include:No.Name of AwardAwarding Party1National Model Home for StaffChinese Federation of Labour2

16、Top 100 Sichuan Service Industry in 2024(2024年四川服務業100強)Sichuan Enterprise Confederation,Sichuan Entrepreneur Association32024 Fourth-star Outlets of the Sichuans Banking Industry for Civilised and Standardised ServiceSichuan Banking Association4Sichuan Banking Industry 2024 Brand Communication“Exce

17、llent Case”(四川省銀行業2024年品牌傳播“優秀案例”)Sichuan Banking Association5Iron Horse Award for the Most Socially Responsible Small and Medium-sized Bank2024(12th)Summit for the Development of Small and Medium-sized Banks6Typical Case of City Commercial Banks Strengthening Agriculture 2024China Rural Credit Coop

18、erative Newspaper7Digital Finance Excellent CaseCity Commercial Banks Clearing Co.,Ltd.8Outstanding Contribution Award for Mobile Payment in 2024China UnionPay Sichuan Branch9Third Prize for Scientific Research Achievements in 2024Finance and Accounting Committee of Sichuan Association of Finance10R

19、anked first in the comprehensive evaluation of“supporting local economic development and controlling local financial risks by banking financial institutions in Yibin in 2023”Yibin Municipal Financial Work Bureau,Yibin Municipal Finance Bureau,Yibin Municipal Government SASAC,the PBOC Yibin Branch an

20、d National Financial Regulatory Administration Yibin Regulatory Authority11Advanced Unit in the 2023 Party Building Work Target Assessment of State-Owned Enterprises(2023年度國有企業黨建工作目標考核先進單位)Yibin City SASAC Party Committee12First Class Unit in the 2023 Discipline Inspection Commission Work Assessment

21、 of Municipal and Higher-level State-Owned Enterprise(2023年度市屬及以上國有企業紀委工作考核一等次單位)CPC Yibin City Commission for Discipline Inspection13First Place in the 2024 Yibin Citys Financial Statistics Knowledge Contest(2024年宜賓市金融統計知識競賽第一名)the PBOC Yibin Branch14Second Prize for Outstanding Collective in the 2

22、023 Yibin City Financial Institutions Anti-Money Laundering Labor Competition(2023年宜賓市金融機構反洗錢勞動競賽優勝集體二等獎)the PBOC Yibin Branch15Credit Investigation Services Demonstration Outlet(徵信服務示範網點)the PBOC Yibin Branch16Yibin City Social Security Card Premium Service Outlets(宜賓市社會保障卡優質服務網)Yibin Human Resourc

23、es and Social Security Bureau172023 Yibin City Internal Audit Work Outstanding Units(2023年度宜賓市內部審計工作表現突出單位)Yibin City Auditing AssociationYIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 20244Chairmans Statement2024 is a year of great milestone significance in the development of Yibin City Commercia

24、l Bank.During this year,we injected momentum into local development by providing financial services,aware that this also serves as our purpose in the times.On January 13,2025,we went public on the main board of the Hong Kong Stock Exchange(stock code:2596.HK),which marks that the Bank has entered a

25、new era of high-quality development.On behalf of Yibin City Commercial Bank,I hereby extend our sincerest gratitude and deepest reverence to the Shareholders,customers,business partners,and all our staff on such occasion for their longstanding care of and support to the Banks development.UNDER THE G

26、UIDANCE OF PARTY BUILDING,WE LAID A FIRM FOUNDATION FOR OUR DEVELOPMENT AS A LISTED BANKBased in Yibin City known as the starting point of the Yangtze River,we as a main force of local finance have integrated the guidance of the Communist Party of China(the“Party”)into our corporate governance with

27、Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our companion throughout our development.We develop a modern governance system,which features an orientation decided by the Party Committee,decision-making by ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD5Chairmans

28、 Statementthe Board of Directors,accountabilities determined by the Board of Supervisors,and a code of conduct stipulated by the senior management,to propel the robust development of our business operations driven by Party building.We have made achievements under the guidance of Party building.For f

29、our consecutive years,we have topped the list of the banking players in Yibin City in the comprehensive evaluation in terms of serving local economic development while preventing and controlling local financial risks.With assets exceeding RMB100 billion,our non-performing loans ratio was reduced to

30、1.68%,which has been lower than the average non-performing loans ratio of the domestic urban commercial banks in China for four years.Such solid operating performance has established a strong base for the Listing.WITH FURTHER INVESTMENT IN THE REAL ECONOMY,WE AIDED IN ENHANCING THE QUALITY OF THE RE

31、GIONAL ECONOMYRemaining aligned with Yibin Citys“4+4+4”modern industrial system,our financial efforts were guided to liven up the real economy by the“1163”Strategy.To fully support the establishment and operations of the leading enterprises of the new energy industry,we provide tailored financing so

32、lutions for projects of leading industries developing digital economy and new energy such as power battery and crystalline silicon PV.At the end of 2024,the balance of loans to the power battery and crystalline silicon PV areas achieved a year-on-year increase of 536.1%,giving Yibin City a leg up in

33、 building itself into Chinas Capital of Power Battery and developing a National PV Industrial Cluster.We innovated the“Industrial Chain Finance+Digital Technology”service model,developed featured products including loans for digital transformation,which helped traditional industries such as the baij

34、iu industry and the textile industry in their intelligent upgrading and digital transformation,and facilitated 375 pilot enterprises to finish assessing their digital transformation,thus cultivating new quality productive forces.To prop up the major strategies of Yibin City with full-chain financial

35、 services,we have been deeply involved in the infrastructure projects related to building Yibin into a smart city,rural revitalization,and industrial parks.In 2024,our loans to industrial upgrading and civil engineering amounted to RMB27 billion cumulatively.This investment drove the advanced manufa

36、cturing industries in Yibin City to accelerate their upgrading,resulted in an emerging combined effect of the industrial cluster with a gross regional domestic product reaching RMB100 billion,and demonstrated our devotion to the integration of industrial development into urban development as we beli

37、eve that a city cannot rise without thriving industries.EMPOWERING THE GREEN INDUSTRY,WE HAVE FOSTERED A NEW IMPETUS BY ACTIVATING LOW-CARBON TRANSFORMATIONContributing to attaining the objective of carbon peaking and carbon neutrality,we have factored Green Finance into our core development strateg

38、y,founded the first specialized Green Finance sub-branch in Yibin City,and developed a tripartite Green Finance system characterized by“licensed organization+featured products+special services”.Among the innovative featured products are“Lv Piao Tong(綠票通)”,“Lv Cai Dai(綠採貸)”,and“Biological Diversity P

39、reservation(生物多樣性保護)”,which deeply base financial support on the scenarios of enterprises reduction of carbon footprint,green consumption,and biological diversity preservation,ushering in incentive mechanisms for Green Finance.We also launched specialty products including“Yi Shang Lv Cai Dai(宜商綠採貸)”

40、to bolster the purchase and sale of new energy vehicles and the reform of charging and battery swapping technologies.At the end of 2024,the balance of our green credit increased by 51.72%compared with that at the beginning of the year,with an average increase rate of 166.97%for the recent four years

41、,YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 20246Chairmans Statementranking the sixth in Sichuan Provinces Green Finance evaluation and the first among the legal person financial institutions in Yibin City.In 2024,the Bank joined the Sichuan Green Finance Committee as a member unit,adding a to

42、uch of Green Finance to Yibin Citys green transition.WITH INCLUSIVE FINANCE IN MIND,WE SAFEGUARDED THE HUMAN TOUCH IN PEOPLES FINANCIAL SERVICESWe always stay true to the original aspiration of“Finance for the People”.We expand the reach of our services to every corner of the city and touch on every

43、 aspect of peoples livelihoods.We have supported over 5,300 micro,small,and medium enterprises(MSMEs)and individual business operators,directly creating nearly 200,000 local jobs while providing nearly RMB200 million in cumulative fee reductions and financial concessions,delivering tangible relief t

44、o ease corporate financing pressures.Leveraging our proprietary digital finance system,we have developed fully online products including“Easy Loan Qianhuahua Loan”and“Easy Loan Housing Provident Fund Loan”,pioneering a convenient“one-click financing”model.By the end of 2024,cumulative approved loans

45、 exceeded 4,100 accounts with credit limits surpassing RMB600 million.Our merchant acquisition product“Qianhuahua”served 28,700 merchants,achieving annual transaction volume of RMB14.6 billion.Meanwhile,we have upgraded our offline service platforms.Four of our outlets have been rated as“Four-star O

46、utlets for Civilized and Standardized Services in Sichuans Banking Industry”.Relying on the first-ever financial education demonstration base in Yibin City,we have carried out over 200 anti-fraud publicity and financial knowledge popularization activities throughout the year.Our endeavors have been

47、honored as an“Excellent Case”in brand communication within Sichuans banking industry.This achievement ensures that our financial services are not only efficient but also delivered with a human touch.In the field of digital financial services for public convenience,we focus on addressing the needs of

48、 urban residents and small businesses.By deeply embedding financial solutions into daily life scenarios,including auto consumption and agricultural logistics.We have launched tailored products such as“Auto Purchase Loan”and“Lucky Loan”.Concurrently,we have optimized digital platforms like Super Inte

49、rnet Banking and WeChat Banking to deliver“financial services at your fingertips”.In addition,we actively fulfill our social responsibilities.We have donated over RMB1.6 million in total to the Fund for Caring for the Next Generation and the Pillar Program.Meanwhile,we have been consistently running

50、 the Loving Bookstore Campaign.Through these practical actions,we showcase the human-touch side of finance and contribute to enhancing the citizens sense of well-being.THROUGH A HONG KONG LISTING,WE USHERED IN A NEW CHAPTER OF DEVELOPMENT WITH A GLOBAL VISIONFrom the headwaters of the Yangtze River

51、to the shores of Victoria Harbour,we have successfully conquered the“Three Critical Missions”of equity optimization,risk mitigation,and qualification enhancement,making us one of the first newly listed banks in China in the recent three years.We reached our ambitious target of“being a listed company

52、 with assets exceeding RMB100 billion”under the 14th Five-Year Plan a year ahead of schedule.Our successful Listing not only recognizes our past efforts,but more importantly,ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD7Chairmans Statementmarks the beginning of an exciting new journey.We wil

53、l embrace international capital market standards to reshape corporate governance,establish a“market-driven,professional,and globally-oriented”system of incentives and restrictions,and pioneer breakthroughs in enabling green development,serving the real economy,and mitigating financial risks.Moving f

54、orward,beyond serving solely as“a Bank for Yibin”,we aspire to become an open financial gateway that“connects the Chengdu-Chongqing Economic Circle and expands our reach along the“Belt and Road Initiative”,leveraging our capital strength to help integrate regional economy into the global value chain

55、.At this pivotal moment,as we conclude the 14th Five-Year Plan and embark on our listing journey,we remain steadfastly committed to our strategic vision of“digital transformation,specialized operations,and modern practices”:Governance excellence:By benchmarking against leading international banks,we

56、 will refine our market-based operational mechanisms,enhance the quality and efficiency of our financial services,and generate sustainable value for our Shareholders;Industrial advancement:We will cultivate an ecosystem featuring“technology finance+inclusive finance”,providing increased support for

57、specialized and sophisticated enterprises that produce new and unique products,green energy initiatives,and the digital economy,thereby empowering Yibin City to build a world-class industrial cluster;Customer-centric focus:We will deepen our engagement through an integrated“finance+scenario”ecosyste

58、m,optimizing both online and offline service experiences to deliver more convenient and considerate financial services,with the goal of becoming the preferred Bank for the citizens in Yibin City.On the confluence of three rivers,a multitude of ventures compete;with tailwinds at our back,this is the

59、opportune moment to forge ahead.As a Bank deeply rooted in the Tianfu region,we have always grown in harmony with the citys pulse.From fostering the growth of green industry clusters and protecting the“emerald green”ecosystem of the Yangtze River,to enabling the transformation of businesses and brig

60、htening the“warm glow”of countless homes,each endeavor reflects our unwavering commitment to our original aspirations,and every action is our response to the needs of the era.Looking ahead,we will continue to use our financial expertise to inscribe a brilliant chapter for Yibin City Commercial Bank

61、on the grand canvas of Chinese-style modernization!Yibin City Commercial Bank Co.,LtdXUE FengChairmanYIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 20248DefinitionIn this annual report,unless the context otherwise requires,the following terms shall have the following meanings:“Articles of Associat

62、ion”or “Articles of Association of the Bank”the Banks articles of association,as amended,supplemented or otherwise modified from time to time“associate(s)”has the meaning ascribed to it under the Listing Rules“Audit Committee”the audit committee of the Board of Directors of the Bank“Bank”or“Yibin Ci

63、ty Commercial Bank”Yibin City Commercial Bank Co.,Ltd*(宜賓市商業銀行股份有限公司*),a joint stock company established on December 27,2006 in the PRC with limited liability pursuant to the relevant PRC laws and regulations,its H Shares are listed on the Main Board of the Hong Kong Stock Exchange(stock code:2596)o

64、n January 13,2025,and,if the context requires,includes its predecessors,branch and sub-branches,excluding subsidiaries“Board”or“Board of Directors”the board of directors of the Bank“Board of Supervisors”the board of supervisors of the Bank“CBIRC”China Banking and Insurance Regulatory Commission(中國銀行

65、保險監督管理委員會),a former regulatory authority formed via the merger of the CBRC and CIRC according to the Notice of the State Council regarding the Establishment of Organizations(國務院關於機構設置的通知)(Guo Fa 2018 No.6)issued by the State Council on March 24,2018 and replaced by the NFRA according to the Notice o

66、f the State Council regarding the Establishment of Organizations(國務院關於機構設置的通知)(Guo Fa 2023 No.5)issued by the State Council on March 16,2023,and,if the context requires,includes its predecessors,namely the CBRC and CIRC“CBRC”China Banking Regulatory Commission(中國銀行業監督管理委員會),which was merged with the

67、 CIRC and formed the CBIRC according to the Notice of the State Council regarding the Establishment of Organizations(國務院關於機構設置的通知)(Guo Fa 2018 No.6)issued by the State Council on March 24,2018 ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD9Definition“China”or“PRC”the Peoples Republic of China

68、,but for the purpose of this annual report only,excluding Hong Kong,Macau Special Administrative Region and Taiwan of the PRC“Company Law”the Company Law of the Peoples Republic of China(中華人民共和國公司法),as amended,supplemented or otherwise modified from time to time“connected person(s)”has the meaning a

69、scribed to it under the Listing Rules“connected transaction(s)”has the meaning ascribed to it under the Listing Rules“Corporate Governance Code”the Corporate Governance Code contained in Appendix C1 to the Listing Rules,as amended,supplemented or otherwise modified from time to time“CSRC”China Secur

70、ities Regulatory Commission(中國證券監督管理委員會)“Director(s)”the director(s)of the Bank“Domestic Share(s)”ordinary Shares issued by the Bank,with a nominal value of RMB1.00 each,which are subscribed for or credited as paid up in RMB“Domestic Shareholder(s)”the holder(s)of Domestic Shares“Global Offering”has

71、 the meaning ascribed to it under the Prospectus“Green Finance”financial products and/or services offered by the Bank which are to support the improvement of environment,cope with the change in climate,and finance or support energy saving business activities,which would cover the financing for vario

72、us projects relating to green infrastructure upgrades,the ecological and environmental industry,and the energy-saving and environmental protection industry“Group,”“we”or“us”the Bank together with our subsidiaries,and,if the context requires,includes our predecessors,branch and sub-branchesYIBIN CITY

73、 COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202410Definition“H Share(s)”overseas listed foreign Shares with a nominal value of RMB1.00 each in the share capital of the Bank,which are listed on the Main Board of the Hong Kong Stock Exchange on January 13,2025 and subscribed for and traded in Hong Kong Dol

74、lars“H Shareholder(s)”the holder(s)of H Shares“HK$”or“HKD”or “Hong Kong Dollars”Hong Kong Dollars,the lawful currency of Hong Kong“Hong Kong”the Hong Kong Special Administrative Region of the PRC“Hong Kong Stock Exchange”The Stock Exchange of Hong Kong Limited“IFRS”International Financial Reporting

75、Standards and International Accounting Standards,which include the related standards,amendments and interpretations issued by the International Accounting Standards Board“Latest Practicable Date”April 24,2025,being the latest practicable date for the purpose of ascertaining certain information conta

76、ined in this annual report prior to its printing“Listing”the listing of the H Shares on the Hong Kong Stock Exchange“Listing Date”January 13,2025,being the date of listing of the H Shares on the Main Board of the Hong Kong Stock Exchange“Listing Rules”or“Hong Kong Listing Rules”the Rules Governing t

77、he Listing of Securities on The Stock Exchange of Hong Kong Limited,as amended,supplemented or otherwise modified from time to time“Model Code”the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules,as amended,supplemented or otherwise mo

78、dified from time to time“MOF”the Ministry of Finance of the PRC(中華人民共和國財政部)ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD11Definition“NFRA”National Financial Regulatory Administration(國家金融監督管理總局),which was officially established on the basis of the CBIRC with incorporation of certain function

79、s of PBOC and the CSRC according to the Notice of the State Council regarding the Establishment of Organizations(國務院關於機構設置的通知)(Guo Fa 2023 No.5)issued by the State Council on March 16,2023,and,if the context requires,includes its predecessor,namely the CBIRC“Neijiang Xinglong Rural Bank”Neijiang Xin

80、glong Rural Bank Co.,Ltd.(內江興隆村鎮銀行股份有限公司),a company established on December 24,2010 in the PRC with limited liability and a non-wholly owned subsidiary of the Bank“PBOC”the Peoples Bank of China(中國人民銀行),the central bank of the PRC“Reporting Period”for the twelve months ended December 31,2024“RMB”or“

81、Renminbi”Renminbi,the lawful currency of the PRC“Prospectus”the Prospectus of the Bank dated December 30,2024“SFC”the Securities and Futures Commission of Hong Kong“SFO”the Securities and Futures Ordinance(Chapter 571 of the Laws of Hong Kong),as amended,supplemented or otherwise modified from time

82、to time“Share(s)”ordinary share(s)in the share capital of the Bank with a nominal value of RMB1.00 each“Shareholder(s)”the holder(s)of the Shares“subsidiary(ies)”has the meaning ascribed to it under the Listing Rules“Supervisor(s)”the Supervisor(s)of the Bank“treasury share(s)”has the meaning ascrib

83、ed to it under the Listing RulesYIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202412Definition“systematically important bank(s)”pursuant to the Guiding Opinions on Improving Regulation of Systematically Important Financial Institutions issued by the PBOC,CBIRC and CSRC(中國人民銀行、中國銀行保險監督管理委員會、中國證券監督

84、管理委員會關於完善系統重要性金融機構監管的指導意見),this refers to bank(s)that will cause significant adverse impact on the financial system and real economy and may even cause systemic risks if a major risk event occurs to them.These banks usually provide key services in the financial system and are difficult to replace an

85、d at the same time their business scale,structure and business operation are highly complex and have strong relevance to other financial institutions“Yibin Xingyi Rural Bank”Yibin Xingyi Rural Bank Co.,Ltd.(宜賓興宜村鎮銀行有限責任公司),a company established on December 24,2010 in the PRC with limited liability a

86、nd a non-wholly owned subsidiary of the Bank“%”percentageCertain amounts and percentage figures included in this annual report have been subject to rounding adjustments.Accordingly,figures shown as totals in certain tables may not be an aggregation of the figures preceding them.ANNUAL REPORT 2024 YI

87、BIN CITY COMMERCIAL BANK CO.,LTD13Company InformationRegistered Name in Chinese:宜賓市商業銀行股份有限公司(abbreviated as“宜賓銀行”)Registered Name in English:YIBIN CITY COMMERCIAL BANK CO.,LTD*(abbreviated as“YiBin City Commercial Bank”)Legal Representative:XUE FengAuthorized Representatives:XUE Feng,NGAI Wai FungS

88、ecretary to the Board of Directors:TANG LinJoint Company Secretaries:TANG Lin,NGAI Wai FungRegistered Address of the Bank:No.1 Nuxue Street,Cuiping District,Yibin,Sichuan Province,the PRCPrincipal Office Address of the Bank:No.9 Jinshajiang Avenue,Xuzhou District,Yibin,Sichuan Province,the PRCCustom

89、er Service Hotline:+86(0831)96578Telephone:+86(0831)5103546Website of the Bank:Principal Place of Business in Hong Kong:40/F,Dah Sing Financial Centre,248 Queens Road East,Wanchai,Hong KongWebsites for H Share Disclosure:HKEXnews website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk)We

90、bsite of the Bank()Listing Place:The Stock Exchange of Hong Kong LimitedStock Abbreviation:Yibin BankStock Code:2596YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202414Company InformationH Share Registrar:Computershare Hong Kong Investor Services Limited Shops 1712-1716,17th Floor,Hopewell Centre

91、,183 Queens Road East,Wanchai,Hong KongHong Kong Legal Advisor:Clifford Chance 27th Floor,Jardine House,One Connaught Place,Central,Hong KongAuditor:Domestically:Pan-China Certified Public Accountants LLP No.1366,Qianjiang Road,Hangzhou,Zhejiang ProvinceOverseas:Confucius International CPA Limited R

92、ooms 1501-08,Tai Yau Building,181 Johnston Road,Wanchai,Hong KongCompliance Advisor:Maxa Capital LimitedUnit 2602,26/F,Golden Centre,188 Des Voeux Road Central,Sheung Wan ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD15Financial HighlightsA summary of the results and the assets and liabilitie

93、s of the Group for the historical five financial years is set out below:FINANCIAL DATA FROM 2020 TO 2024(Expressed in RMB million,unless otherwise stated)20242023202220212020Interest income3,691.33,563.43,201.62,545.72,068.8Interest expense(2,113.6)(1,777.8)(1,449.3)(1,163.5)(861.0)Net interest inco

94、me1,577.71,785.61,752.31,382.21,207.8Fee and commission income101.175.365.853.285.3Fee and commission expense(36.0)(31.4)(26.5)(20.5)(17.0)Net fee and commission income65.143.939.432.768.3Net gains/(losses)on trading activities201.0291.8(35.0)171.277.9Net gains on financial investments315.110.686.51

95、1.07.2Other operating income21.537.923.823.712.6Operating income2,180.42,169.81,867.01,620.81,373.7Operating expenses(725.2)(698.2)(655.4)(606.8)(544.8)Expected credit losses(888.7)(928.6)(728.3)(644.7)(422.5)Impairment losses(0.4)(5.8)(0.5)(0.3)Profit before tax566.5542.6477.5369.0406.1Income tax e

96、xpense(88.7)(65.2)(45.0)(40.7)(90.8)Net profit477.8477.4432.5328.3315.3Net profit attribute to:Equity attributable to Shareholders of the Bank513.4468.5437.7352.5328.6Non-controlling interests(35.6)8.9(5.2)(24.2)(13.3)Basic and diluted earnings per Share(expressed in RMB per Share)0.130.120.110.120.

97、20 YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202416Financial Highlights(Expressed in RMB million,unless otherwise stated)20242023202220212020Major indicators of assets/liabilitiesTotal assets109,205.493,444.080,413.368,490.456,887.8Of which:loans and advances to customers,net58,443.849,374.94

98、2,310.933,965.826,241.8Total liabilities99,233.184,157.571,745.360,306.651,156.8Of which:customer deposits84,517.971,439.159,393.848,342.742,355.3Total equity9,972.39,286.58,668.08,183.75,731.0Of which:total equity attributable to Shareholders of the Bank9,697.68,976.28,366.67,877.25,460.3 Profitabi

99、lity indicators(%)Asset profit ratio(1)0.470.550.580.520.62Capital profit ratio(2)4.965.325.134.727.51Net interest spread(3)1.572.082.452.462.77Net interest margin(4)1.712.182.592.562.85Cost-to-income ratio(5)32.0631.1733.9936.2738.55 Capital adequacy indicators(%)Core tier-one capital adequacy rati

100、o(6)12.6112.2212.8615.2613.00Tier-one capital adequacy ratio(7)12.6412.2612.8915.3013.06Capital adequacy ratio(8)13.8613.4114.0816.4714.15 Assets quality indicators(%)Non-performing loan ratio(9)1.681.761.772.272.65Provision coverage ratio(10)256.64262.02213.40198.35171.21Provision to total loan rat

101、io(11)4.324.613.784.504.53 Other indicators(%)Loan to deposit ratio(12)73.9373.6475.0274.7165.81 ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD17Financial HighlightsNotes:(1)Calculated by dividing the net profit for a year by the average balance of total assets at the beginning and the end of

102、 that year.(2)Calculated by dividing the net profit for a year by the average balance of total equity at the beginning and the end of that year.(3)Represents the difference between the average yield on total interest-earning assets and the average cost on total interest-bearing liabilities.(4)Calcul

103、ated by dividing net interest income by the average balance of interest-earning assets(based on the daily average of the interest-earning assets).(5)Calculated by dividing total operating expenses(net of tax and surcharges)by operating income.(6)Core tier-one capital adequacy ratio=(core tier-one ca

104、pital corresponding capital deductions)/risk-weighted assets*100%.(7)Tier-one capital adequacy ratio=(tier-one capital corresponding capital deductions)/risk-weighted assets*100%.(8)Capital adequacy ratio=(total capital corresponding capital deductions)/risk-weighted assets*100%.(9)Non-performing lo

105、an ratio=total non-performing loans/total loans and advances to customers*100%.(10)Provision coverage ratio=total provision for impairment losses on loans and advances to customers/total non-performing loans*100%.(11)Provision to total loan ratio=total provision for impairment losses on loans and ad

106、vances to customers/total loans and advances to customers*100%.(12)Loan to deposit ratio=total loans and advances to customers/total deposits*100%.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202418Management Discussion and AnalysisENVIRONMENT AND PROSPECTIn 2024,the global economy continued to

107、undergo cyclical adjustments,with rising waves of protectionism and persistent geopolitical risks,leading to a sustained decline in international market demand.With the successive introduction of a pack of domestic policies,social confidence has been effectively boosted,and the economy has shown sig

108、nificant recovery.Emerging industries in China are gradually accumulating new momentum for development,while traditional enterprises are continuously upgrading and transforming.The economic and social development has made new and solid progress,and new results have been achieved in high-quality deve

109、lopment.Nevertheless,issues such as insufficient domestic effective demand,growing pains in the transition between old and new driving forces,and the production and operational difficulties faced by certain enterprises remain prominent.Looking ahead to 2025,the industry development dividends coexist

110、 with emerging risks and challenges.With accelerated innovation of technologies such as a new round of technological revolution and industrial transformation and increasing integration of such technologies into the entire process of economic and social development in all fields,Chinas economic power

111、,technological strength,and comprehensive national power will be further enhanced.Meanwhile,the fundamental trend of long-term good prospects in Chinese economy remains unchanged,bolstered by a series of policy on economic system reform and a series of policies promoting domestic consumption,new urb

112、anization construction,and coordinated regional development.In particular,a series of important reform measures proposed at the third plenary session of the 20th Central Committee of the Communist Party of China have clarified the path and direction for developing and improving the system of sociali

113、sm with Chinese characteristics,further deepening reforms comprehensively and advancing Chinese modernization.Centered on the development strategy of“synchronous modernization,urban-rural integration,and common prosperity of five zones”of the Peoples Government of Sichuan Province,Yibin City closely

114、 adheres to the development positioning of a pilot area for ecological priority and green and low-carbon development,a regional economic sub-center in southern Sichuan,and a gateway hub for southern Sichuans openness,and is fully committed to promoting economic growth and construction and unwavering

115、ly advancing high-quality development.With strong support from local governments and relevant departments,the city commercial banks are steadfastly positioned to“serve the local economy,serve small and medium enterprises,and serve urban residents”,focuses on“five priorities”,and actively explores di

116、fferentiated and characteristic development paths,gradually increasing support for the real economy and contributing to the high-quality development of the local economy.The Group will implement the spirit of the 20th National Congress of the Communist Party of China,as well as the second and the th

117、ird plenary sessions of the 20th Central Committee of the Communist Party of China,comprehensively implement various economic and financial policies,drive high-quality development through reform and innovation,deeply push forward with its business and digital transformation,enhance its risk manageme

118、nt and internal control capabilities,continuously improve its modern operational management level,strengthen the quality and effectiveness of services to the real economy,and promote continued excellence across all business segments.The Group will continue to enhance its brand value and become a lea

119、ding benchmark bank with regional influence in Western China,achieving new brilliance from this new starting point.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD19Management Discussion and AnalysisDEVELOPMENT STRATEGIESThe strategic vision of the Group is to enhance our brand value and become

120、 a leading benchmark bank with regional influence in western China.The Group intends to achieve this vision through the following strategic initiatives:(1)Consolidate regional advantages to continuously advance the reform and transformation of corporate banking,retail banking and business channels.(

121、2)Drive the online and intelligent transformation of marketing,transactions,risk control and operations through the introduction of advanced technology and continuous innovation,innovating technology-driven financial services and effectively advancing digital transformation.(3)Optimize the governanc

122、e structure,establish an effective risk management framework for the entire process,and leverage modern scientific technological advancements to improve risk identification and assessment capabilities,and enhance our risk management and internal control capabilities.(4)Strengthen talent leadership,c

123、ontinuously refine the top-level designs of our talent system,actively promote differentiated assessment and refined performance evaluation system,and improve the incentive mechanism.OVERALL BUSINESS REVIEWIn 2024,the Group recorded a total operating income of RMB2,180.4 million,representing an incr

124、ease of 0.5%compared to RMB2,169.8 million in 2023.The Groups net profit increased by 0.1%from RMB477.4 million in 2023 to RMB477.8 million in 2024.As of December 31,2024,the Groups total assets amounted to RMB109,205.4 million,representing a year-on-year increase of 16.9%;the net loans and advances

125、 to customers amounted to RMB58,443.8 million,representing a year-on-year increase of 18.4%;the non-performing loan(NPL)ratio was 1.68%,representing a year-on-year decrease of 0.08 percentage point;the total amount of customer deposits was RMB84,517.9 million,representing a year-on-year increase of

126、18.3%.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202420Management Discussion and Analysis(a)Analysis of the consolidated statements of profit or lossYear ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Increase or decreasePercentage change(%)Interest income3,691.33,

127、563.4127.93.6Interest expense(2,113.6)(1,777.8)(335.8)18.9Net interest income1,577.71,785.6(207.9)(11.6)Fee and commission income101.175.325.834.3Fee and commission expenses(36.0)(31.4)(4.6)14.6Net fee and commission income65.143.921.248.3Net gains arising from trading activities201.0291.8(90.8)(31.

128、1)Net gains arising from financial investment315.110.6304.52,872.6Other operating income21.537.9(16.4)(43.3)Operating income2,180.42,169.810.60.5Operating expenses(725.2)(698.2)(27.0)3.9Expected credit loss(888.7)(928.6)39.9(4.3)Impairment losses(0.4)0.4(100.0)Profit before tax566.5542.623.94.4Incom

129、e tax expense(88.7)(65.2)(23.5)36.0Net profit477.8477.40.40.1Net profit attribute to:Equity attributable to Shareholders of the Bank513.4468.544.99.6Non-controlling interests(35.6)8.9(44.5)(500.0)Basic and diluted earnings per Share (expressed in RMB per Share)0.130.12 ANNUAL REPORT 2024 YIBIN CITY

130、COMMERCIAL BANK CO.,LTD21Management Discussion and AnalysisIn 2024,the Groups profit before income tax amounted to RMB566.5 million,representing a year-on-year increase of 4.4%;net profit amounted to RMB477.8 million,representing a year-on-year increase of 0.1%,mainly due to the year-on-year decline

131、 in the loan prime rate(LPR)and the Groups increased marketing to high-quality customers,leading to a decline in the average yield on loans and advances to some customers,as well as an increase in deposit interest payment costs due to the impact of changes in the deposit term structure,resulting in

132、the decrease in the net interest income.At the same time,as the interest rates in bond market declined,the Group seized the opportunity to gain bond yields,leading to a year-on-year increase in net financial investment income;and the growing tax impact of non-deductible expenses resulted in an incre

133、ase of income tax expense,according to the tax system.(i)Net interest incomeNet interest income was the largest component of the Groups operating income,representing 72.4%and 82.3%of operating income in 2024 and 2023,respectively.The following table sets forth the interest income,interest expense an

134、d net interest income for the periods indicated.Year ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Increase ordecreaseChange in percentage(%)Interest income3,691.33,563.4127.93.6Interest expense(2,113.6)(1,777.8)(335.8)18.9Net interest income1,577.71,785.6(207.9)(11.6)T

135、he following table sets forth the average balances of the Groups interest-earning assets and interest-bearing liabilities,the related interest income or expense,and the average yield or average cost for the periods indicated.The average balance of interest-earning assets and interest-bearing liabili

136、ties is the average of the daily balances.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202422Management Discussion and AnalysisYear ended December 31,2024Year ended December 31,2023(Expressed in RMB million,unless otherwise stated)Average balanceInterest incomeAverage yield(%)Average balanceInte

137、rest incomeAverage yield(%)Interest-earning assetDeposits with central bank(1)5,440.668.91.274,758.358.21.22Financial assets held under resale agreements,due from other banks and other financial institutions5,145.398.21.917,864.6123.91.58Loans and advances to customers53,935.62,777.25.1546,593.92,70

138、1.45.80Financial investments(2)27,779.1747.02.6922,867.7679.92.97Total interest-earning assets92,300.63,691.34.0082,084.53,563.44.34Year ended December 31,2024Year ended December 31,2023(Expressed in RMB million,unless otherwise stated)Average balanceInterest expenseAverage cost(%)Average balanceInt

139、erest expenseAverage cost(%)Interest-bearing liabilitiesBorrowings from central bank2,048.0(34.8)1.701,981.3(40.1)2.03Financial assets sold under repurchase agreement,due to other banks and other financial institutions6,613.4(148.5)2.259,136.1(152.5)1.67Customer deposits76,902.6(1,888.8)2.4663,652.5

140、(1,471.2)2.31Bonds issued(3)1,576.0(41.5)2.633,838.7(112.7)2.94Lease liabilities28.2(1.3)4.61Total interest-bearing liabilities87,140.0(2,113.6)2.4378,636.8(1,777.8)2.26Net interest income1,577.71,785.6Net interest spread1.572.08Net interest margin1.712.18Notes:(1)Deposits with central bank primaril

141、y include statutory deposit reserves,surplus deposit reserves and fiscal deposit reserves.(2)Financial investments include financial assets at fair value through other comprehensive income and financial assets measured at amortized cost.(3)Bonds issued are interbank certificates of deposit.ANNUAL RE

142、PORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD23Management Discussion and AnalysisThe table below sets forth the changes in the Groups interest income and interest expense attributable to changes in volume and interest rate for the periods indicated.Changes in volume are measured by changes in the ave

143、rage balance,and changes in interest rate are measured by changes in the average interest rates.2024 vs 2023(Expressed in RMB million,unless otherwise stated)Volume(1)Interest rate(2)Net increase/(decrease)(3)Interest-earning assetsDeposits with central bank8.32.410.7Financial assets held under resa

144、le agreements,due from other banks and other financial institutions(51.7)26.0(25.7)Loans and advances to customers378.7(302.9)75.8Financial investments131.1(64.0)67.1Changes in interest income466.4(338.5)127.9Interest-bearing liabilitiesBorrowings from central bank1.2(6.5)(5.3)Financial assets sold

145、under repurchase agreement,due to other banks and other financial institutions(57.0)53.0(4.0)Customer deposits322.195.5417.6Bonds issued(59.3)(11.9)(71.2)Lease liabilities0.0(1.3)(1.3)Changes in interest expense207.0128.8335.8Changes in net interest income259.4(467.3)(207.9)Notes:(1)Volume represent

146、s the average balance for the year minus the average balance for the previous year,multiplied by the average yield/cost for the year.(2)Interest rate represents the average yield/cost for the year minus the average yield/cost for the previous year,multiplied by the average balance for the previous y

147、ear.(3)Net increase/(decrease)represents interest income/expense for the year minus interest income/expense for the previous year.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202424Management Discussion and Analysis(ii)Interest incomeThe following table sets forth the principal components of int

148、erest income for the periods indicated.Year ended December 31,20242023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)Loans and advances to customers2,777.275.22,701.475.8Financial investments747.020.2679.919.1Financial assets held under resale agreements,due fr

149、om other banks and other financial institutions98.22.7123.93.5Deposits with central bank68.91.958.21.6Total3,691.3100.03,563.4100.0The Groups interest income increased by 3.6%from RMB3,563.4 million in 2023 to RMB3,691.3 million in 2024,primarily due to an increase in the average balance of interest

150、-earning assets from RMB82,084.5 million in 2023 to RMB92,300.6 million in 2024,which was partially offset by a decrease in the average yield on interest-earning assets from 4.34%in 2023 to 4.00%in 2024.The increase in the average balance of interest-earning assets was mainly due to an increase in t

151、he average balance of loans and advances and financial investments,which was partially offset by a decrease in the average balance of financial assets held under resale agreements,due from other banks and other financial institutions.The decrease in the average yield on interest-earning assets was p

152、rimarily attributed to a decrease in the average yield on loans and advances,as well as financial investments.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD25Management Discussion and Analysis(A)Interest income from loans and advances to customersInterest income from loans and advances to cus

153、tomers represented 75.2%and 75.8%of total interest income in 2024 and 2023,respectively.The following table sets forth the average balance,interest income and average yield of loans and advances to customers by product for the periods indicated.Years ended December 31,20242023(Expressed in RMB milli

154、on,unless otherwise stated)Average balanceInterest incomeAverage yield(%)Average balanceInterest incomeAverage yield(%)Corporate loans41,473.32,452.45.9136,257.52,369.36.53Retail loans4,817.5230.84.794,809.8248.85.17Discounted and rediscounted bills7,644.894.01.235,526.683.31.51Total53,935.62,777.25

155、.1546,593.92,701.45.80The interest income from loans and advances to customers is the largest component of the Groups interest income,increasing by 2.8%from RMB2,701.4 million in 2023 to RMB2,777.2 million in 2024.The increase was primarily due to an increase of 15.8%in the average balance of loans

156、and advances to customers from RMB46,593.9 million in 2023 to RMB53,935.6 million in 2024,which was partially offset by a decrease in the average yield on these assets from 5.80%in 2023 to 5.15%in 2024.The increase in the average balance of such assets was mainly attributable to the Groups firm adhe

157、rence to its primary responsibility and core business and the orderly increase in financial supply through measures such as deepening cultivation of the regional market,supporting industrial cluster development,promoting retail transformation,serving rural revitalization.The decrease in the average

158、yield on these assets was mainly due to the year-on-year decline in the Loan Prime Rate(LPR),as well as the Groups greater effort of marketing to high-quality customers,leading to the decrease in the average yield on loans and advances to customers.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 20

159、2426Management Discussion and Analysis(B)Interest income from financial investmentsThe interest income from financial investments increased by 9.9%from RMB679.9 million in 2023 to RMB747.0 million in 2024,primarily due to the increase of 21.5%in the average balance of financial investments from RMB2

160、2,867.7 million in 2023 to RMB27,779.1 million in 2024,while partially offset by a decrease in the average yield on these assets from 2.97%in 2023 to 2.69%in 2024.The increase in the average balance of these assets was mainly due to the Groups reasonable increase in government bond investment based

161、on business operation needs.The decrease in the average yield on these assets was primarily attributed to changes in market interest rates.(C)Interest income from financial assets held under resale agreements,due from other banks and other financial institutionsThe interest income from financial ass

162、ets held under resale agreements,and due from other banks and other financial institutions decreased by 20.7%from RMB123.9 million in 2023 to RMB98.2 million in 2024,primarily due to the decrease of 34.6%in the average balance of financial assets held under resale agreements,and due from other banks

163、 and other financial institutions from RMB7,864.6 million in 2023 to RMB5,145.3 million in 2024.The decrease in the average balance of these assets was mainly due to the Groups reduction in the scale of relevant asset allocation based on business operation needs.(D)Interest income from deposits with

164、 central bankThe interest income from deposits with central bank increased by 18.4%from RMB58.2 million in 2023 to RMB68.9 million in 2024,primarily due to the increase of 14.3%in the average balance of deposits with central bank from RMB4,758.3 million in 2023 to RMB5,440.6 million in 2024.The incr

165、ease in the average balance of these assets was mainly attributed to the growth in customer deposits scale.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD27Management Discussion and Analysis(iii)Interest expenseThe following table sets forth the principal components of interest expense of the

166、Group for the periods indicated.Years ended December 31,20242023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)Customer deposits1,888.889.41,471.282.7Bonds issued41.52.0112.76.3Financial assets sold under repurchase agreements,due to other banks and other finan

167、cial institutions148.57.0152.58.6Borrowings from central bank34.81.640.12.3Lease liabilities1.30.1Total2,113.6100.01,777.8100.0(A)Interest expenses on customer depositsThe following table sets forth the average balance,interest expense and average cost for the components of customer deposits for the

168、 periods indicated.Years ended December 31,20242023(Expressed in RMB million,unless otherwise stated)Average balanceInterest expenseAverage cost(%)Average balanceInterest expenseAverage cost(%)Corporate deposits38,539.9770.52.0034,751.9607.81.75Personal deposits38,362.71,118.32.9228,900.6863.52.99To

169、tal76,902.61,888.82.4663,652.51,471.22.31YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202428Management Discussion and AnalysisThe interest expenses on customer deposits increased by 28.4%from RMB1,471.2 million in 2023 to RMB1,888.8 million in 2024,primarily due to the increase of 20.8%in the av

170、erage balance of customer deposits from RMB63,652.5 million in 2023 to RMB76,902.6 million in 2024,as well as an increase in the average cost on these liabilities from 2.31%in 2023 to 2.46%in 2024.The increase in the average balance of these liabilities was mainly due to the stable increase in the t

171、otal deposits resulting from the Groups focus on serving key customer segments and industries,precise marketing strategies,efforts to leverage its resource integration and product portfolio advantages and accelerate the transformation and upgrading of business outlets and digital construction to enh

172、ance customer acquisition capabilities and realize a steady growth in total deposits.The increase in the average cost on these liabilities was primarily due to changes in the term structure.(B)Interest expense on financial assets sold under repurchase agreements,due to other banks and other financia

173、l institutionsThe interest expense on financial assets sold under repurchase agreements,due to other banks and other financial institutions decreased by 2.6%from RMB152.5 million in 2023 to RMB148.5 million in 2024,mainly due to the decrease of 27.6%in the average balance of financial assets sold un

174、der repurchase agreements from RMB9,136.1 million in 2023 to RMB6,613.4 million in 2024,and an increase in the average cost on these liabilities from 1.67%in 2023 to 2.25%in 2024.The decrease in the average balance of these liabilities was primarily due to the Groups timely adjustment of the liabili

175、ty structure and proactive efforts to reduce the scale of these liabilities based on changes in market interest rates.The increase in the average cost on these liabilities was primarily attributable to changes in the term structure.(C)Interest expense on bonds issuedThe interest expense on bonds iss

176、ued decreased by 63.2%from RMB112.7 million in 2023 to RMB41.5 million in 2024,mainly due to the decrease of 58.9%in the average balance of bonds issued from RMB3,838.7 million in 2023 to RMB1,576.0 million in 2024,as well as a decrease in the average cost on these liabilities from 2.94%in 2023 to 2

177、.63%in 2024.The decrease in the average balance of these liabilities was primarily due to a decrease in the scale of interbank certificates of deposit issued.The decrease in the average cost on these liabilities was mainly as a result of a decrease in market interest rates.(iv)Net interest spread an

178、d net interest marginThe net interest spread decreased from 2.08%in 2023 to 1.57%in 2024,and the net interest margin decreased from 2.18%in 2023 to 1.71%in 2024,primarily due to a decrease of 0.34 percentage point in the average yield on interest-earning assets compared to the same period last year,

179、as well as an increase of 0.17 percentage point in the average cost on interest-bearing liabilities compared to the same period last year.The decrease in the average yield on interest-bearing assets was primarily due to the year-on-year decline in the Loan Prime Rate(LPR)and the Groups increased eff

180、orts in marketing to high-quality clients,which led to a reduction in the average yield on loans and advances.The increase in the average cost on interest-bearing liabilities was mainly attributable to changes in the deposit term structure,resulting in higher interest costs on deposits.ANNUAL REPORT

181、 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD29Management Discussion and Analysis(v)Non-interest income(A)Net fee and commission incomeYears ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Increase ordecreaseChange in percentage(%)Fee and commission incomeCommission income fro

182、m settlement and agency services23.111.611.599.1Commission income from bank card services1.11.2(0.1)(8.3)Commission income from wealth management agency service47.735.112.635.9Other commission income(1)29.227.41.86.6Subtotal101.175.325.834.3Fee and commission expenseCommission expense from settlemen

183、t and agency services(32.2)(28.5)(3.7)13.0Other commission expense(3.8)(2.8)(1.0)35.7Subtotal(36.0)(31.4)(4.6)14.6Net fee and commission income65.143.921.248.3Note:(1)Other commission income primarily consists of commission income from guarantees,commitments and syndicated business.The net fee and c

184、ommission income increased by 48.3%from RMB43.9 million in 2023 to RMB65.1 million in 2024,mainly due to the increase in the entrusted loan service fees,commission income from wealth management agency services and syndicated loan service fees.The commission income from settlement and agency services

185、 increased by 99.1%from RMB11.6 million in 2023 to RMB23.1 million in 2024,primarily due to an increase in the Groups issuance of Bank acceptance bills and the scale of entrusted loan business.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202430Management Discussion and AnalysisThe commission inc

186、ome from wealth management agency service increased by 35.9%from RMB35.1 million in 2023 to RMB47.7 million in 2024,mainly due to an increase in income resulting from the declining trend in bond interest rates in 2024.The other commission income increased by 6.6%from RMB27.4 million in 2023 to RMB29

187、.2 million in 2024,mainly due to an increase in income from syndicated loans.The fee and commission expense increased by 14.6%from RMB31.4 million in 2023 to RMB36.0 million in 2024,mainly attributable to the Groups ongoing optimization of mobile payment platform Qianhuahua and the expansion of asso

188、ciated mobile payment scenarios.(B)Net gains from financial investmentNet gains on financial investments include the net gains from the sale of financial assets,as well as gains from reclassification of other comprehensive income to profit or loss due to asset sales.Net gains on financial investment

189、s increased from RMB10.6 million in 2023 to RMB315.1 million in 2024,primarily due to the Groups strategic sale of bonds based on its portfolio investment strategy to generate income.(C)Net gains on trading activitiesNet gains on trading activities decreased by 31.1%from RMB291.8 million in 2023 to

190、RMB201.0 million in 2024,primarily due to a decrease in interest income from financial assets held for trading caused by changes in scale and interest rates.(D)Other operating incomeOther operating income mainly includes incidental income such as government subsidies and deducts incidental expenses

191、such as charitable donations.Other operating income decreased by 43.3%from RMB37.9 million in 2023 to RMB21.5 million in 2024,primarily due to a decrease in net gains from property sales by the Group.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD31Management Discussion and Analysis(vi)Operati

192、ng expensesThe operating expenses increased by 3.9%from RMB698.2 million in 2023 to RMB725.2 million in 2024,primarily due to an increase in general and administrative expenses and professional fees,which was partially offset by a decrease in depreciation and expenses,as well as technology service f

193、ees.The following table sets forth the principal components of operating expenses for the periods indicated.Years ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Increase ordecreaseChange in percentage(%)Staff costs404.1396.37.82.0General and administrative expenses197.01

194、81.415.68.6Depreciation and expenses57.870.3(12.5)(17.8)Professional fees11.65.06.6132.0Listing expenses0.91.2(0.3)(25.0)Tax and surcharges26.221.84.420.2Auditors remuneration Audit service0.90.70.228.6 Non-audit service0.10.1(0.0)(0.0)Technical service fees26.621.45.224.3Total725.2698.227.03.9YIBIN

195、 CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202432Management Discussion and Analysis(A)Staff costsThe following table sets forth the components of staff costs for the periods indicated.Years ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Increase ordecreaseChange in perc

196、entage(%)Wages and salaries,bonus,allowance and subsidies270.6278.1(7.5)(2.7)Social security contributions51.949.02.95.9Defined contribution benefits47.145.02.14.7Staff welfare14.314.4(0.1)(0.7)Labour union funds and employee education funds7.56.90.68.7Supplementary retirement benefits12.72.99.8337.

197、9Total staff costs404.1396.37.82.0The staff costs increased by 2.0%from RMB396.3 million in 2023 to RMB404.1 million in 2024,primarily due to the increase in social security contributions,defined contribution benefits,and other adjustments in accordance with relevant policy provisions.(B)Depreciatio

198、n and expensesThe depreciation and expenses decreased by 17.8%from RMB70.3 million in 2023 to RMB57.8 million in 2024,mainly due to the fact that some of the Groups fixed assets and intangible assets have fully realized their depreciation,resulting in reduced depreciation and amortization costs.(C)G

199、eneral and administrative expensesGeneral and administrative expenses mainly include advertising and business promotion costs,cash transportation fees,and repair costs.The general and administrative expenses increased by 8.6%from RMB181.4 million in 2023 to RMB197.0 million in 2024,primarily due to

200、the increase in business promotion expenses and advertising costs to attract customers and promote the Groups services.(D)Professional feesThe professional fees increased by 132.0%from RMB5.0 million in 2023 to RMB11.6 million in 2024,primarily attributed to a rapid increase in consultancy fees and

201、intermediary fees as a result of the promotion of the Listing of our H Shares.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD33Management Discussion and Analysis(vii)Expected credit impairment lossesThe following table sets forth the major components of our expected credit impairment losses fo

202、r the periods indicated:Years ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Increase ordecreasePercentage of change(%)Loans and advances to customers at amortized cost770.8900.5(129.7)(14.4)Loans and advances to customers fair value through other comprehensive income(2.

203、8)2.5(5.3)(212.0)Off-balance-sheet items61.4(32.6)94.0Financial assets held under resale agreements,due from other banks and other financial institutions(2.8)0.1(2.9)(2,900.0)Financial investments amortized cost9.20.09.222,900.0Financial investments FVOCI20.256.2(36.0)(64.1)Other financial assets32.

204、71.930.81,621.1Total888.7928.6(39.9)(4.3)The expected credit impairment losses decreased by 4.3%from RMB928.6 million in 2023 to RMB888.7 million in 2024.The decrease in expected credit impairment losses was mainly due to the Groups efforts to enhance the refinement of risk management assessment acc

205、ording to changes in the external market environment,resulting in a decrease in the expected credit impairment losses on loans and advances,financial investments at fair value through other comprehensive income,financial assets held under resale agreements,due from other banks and other financial in

206、stitutions.(viii)Income tax expenseIncome tax expense increased by 36.0%from RMB65.2 million in 2023 to RMB88.7 million in 2024.The increase in income tax expenses was mainly due to the fact that the amount of the taxation effect of non-deductible expenses increased as required by tax system.YIBIN C

207、ITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202434Management Discussion and Analysis(b)Analysis of consolidated statements of financial position(i)AssetsAs of December 31,2024 and 2023,the Groups total assets amounted to RMB109,205.4 million and RMB93,444.0 million,respectively.The main components of

208、total assets are(i)net loans and advances to customers;and(ii)net financial investments.The following table sets forth the components of total assets as of the dates indicated:As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of to

209、tal(%)AssetsGross loans and advances to customers60,766.455.651,391.555.0Accrued interest303.60.3351.70.4Expected credit losses allowance(2,626.2)(2.4)(2,368.3)(2.5)Net loans and advances to customers58,443.853.549,374.952.9Financial investments(1)36,480.433.429,998.332.1 Fair value through other co

210、mprehensive income22,482.520.615,945.917.1 Fair value through profit or loss6,239.85.76,268.86.7 Amortized cost7,758.17.17,783.68.3Financial assets held under resale agreements,due from other banks and other financial institutions4,988.54.65,600.66.0Cash and balances with central bank7,318.56.76,577

211、.07.0Deferred tax assets1,237.41.11,114.61.2Property,plant and equipment284.90.3335.20.4Right-of-use assets31.40.032.20.0Other assets(2)420.50.4411.20.4Total assets109,205.4100.093,444.0100.0Notes:(1)Financial investments consist of financial assets measured at amortized cost,financial assets at fai

212、r value through profit or loss,and financial assets at fair value through other comprehensive income.(2)Other assets primarily consist of other receivables and prepayments,interest receivable,and foreclosed assets.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD35Management Discussion and Analy

213、sis(A)Loans and advances to customersAs of December 31,2024,the gross loans and advances to customers issued by the Group amounted to RMB60,766.4 million,representing an increase of 18.2%compared to December 31,2023.The net loans and advances to customers accounted for 53.5%of the Groups total asset

214、s,representing an increase of 0.6 percentage point from December 31,2023.The table below sets forth loans and advances to customers by product as of the dates indicated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)C

215、orporate loans48,558.479.939,162.276.2Retail loans4,882.08.04,917.19.6Discounted bills948.81.6482.20.9Rediscounted bills6,377.210.56,830.013.3Total loans and advances to customers60,766.4100.051,391.5100.0The loans and advances to customers constitute the largest component of the Groups total assets

216、.The Group offers a variety of loan products,all of which are denominated in RMB.The Groups corporate loans increased by 24.0%from RMB39,162.2 million as of December 31,2023,to RMB48,558.4 million as of December 31,2024.This growth was primarily driven by the Groups alignment with national policy di

217、rectives,its focus on regional development,and its ongoing efforts to expand service areas while effectively managing risks.These initiatives strengthened support for the real economy,met the effective credit demands of corporate loan customers,and resulted in an increase in credit disbursement.The

218、Groups retail loans primarily include personal business loans,personal consumption loans,and residential mortgage loans.Retail loans of the Group decreased by 0.7%from RMB4,917.1 million as of December 31,2023 to RMB4,882.0 million as of December 31,2024.This decline was mainly due to reduced effect

219、ive credit demand from residential mortgage customers and the early repayment of some customers,leading to a contraction in the scale of residential mortgage loans.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202436Management Discussion and AnalysisLoans and advances by collateralThe table below

220、 presents the breakdown of loans and advances to customers by collateral type as of the dates indicated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)Collateralized loans19,989.537.418,338.541.6Pledged loans10,723.62

221、0.18,218.018.6Guaranteed loans21,166.239.616,300.437.0Unsecured loans1,561.12.91,222.42.8Gross corporate and retail loans53,440.4100.044,079.3100.0Guaranteed loans constitute the largest component of the Groups loans and advances to customers,accounting for 39.6%and 37.0%of the gross corporate and r

222、etail loans as of December 31,2024 and December 31,2023,respectively.The Group applies strict credit assessment standards when issuing guaranteed loans.The Bank accept guarantees from guarantors based on comprehensive considerations such as scale,creditworthiness,and risk resilience.The Group provid

223、es unsecured loans to customers with relatively higher credit ratings.As of December 31,2024 and 2023,unsecured loans accounted for 2.9%and 2.8%,respectively,of the gross corporate and retail loans.Movements of expected credit losses allowance on loans and advances to customers(Expressed in RMB mill

224、ion,unless otherwise stated)20242023 At the beginning of the year2,368.31,648.6Charge for the year770.8883.3Amounts written off and transferred(688.1)(211.4)Recovery of loans and advances written-off175.247.8Movements due to other reasonsAs of December 312,626.22,368.3The expected credit losses allo

225、wance on loans and advances increased by 10.9%from RMB2,368.3 million as of December 31,2023 to RMB2,626.2 million as of December 31,2024,primarily due to the Groups increase of the provision for loan impairment according to the changes in the scale of loans and advances to customers.ANNUAL REPORT 2

226、024 YIBIN CITY COMMERCIAL BANK CO.,LTD37Management Discussion and Analysis(B)Financial investmentsOur financial investments consist primarily of bonds investment and SPV investment.Our SPV investment mainly comprises our investment through asset management plans,funds,wealth management products and

227、trust plans.The following table sets forth the components of the Groups financial investments as of the dates indicated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)Bonds investment34,707.395.128,961.196.6SPV invest

228、ment Asset management plans133.10.4221.10.7 Funds1,541.34.2480.61.6 Wealth management products300.11.0 Trust plans63.30.2Other financial investments35.40.135.40.1Net financial investments36,480.4100.029,998.3100.0The net amount of financial investments increased by 21.6%from RMB29,998.3 million as o

229、f December 31,2023 to RMB36,480.4 million as of December 31,2024,primarily due to the Groups timely adjustment of its investment strategies and increase in investment in bonds,funds and trust plans according to liquidity adequacy and market changes as well as actual operational conditions.However,th

230、e increase was partially offset by a decrease in investments in asset management plans and wealth management products.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202438Management Discussion and Analysis(ii)LiabilitiesAs of December 31,2024 and 2023,the total liabilities amounted to RMB99,233.1

231、million and RMB84,157.5 million,respectively.The following table sets forth the components of our total liabilities as of the dates indicated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)LiabilitiesCustomer deposits

232、84,517.985.271,439.184.9Financial assets sold under repurchase agreements,due to other banks and other financial institutions9,340.79.46,263.17.4Borrowings from central bank2,266.22.32,198.02.6Bond issued2,028.12.03,279.03.9Taxes payable257.10.3237.60.3Lease liabilities28.80.026.50.0Other liabilitie

233、s(1)794.30.8714.20.9Total liabilities99,233.1100.084,157.5100.0Note:(1)Other liabilities consist primarily of accrued staff costs,tax payable,accrued liabilities.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD39Management Discussion and Analysis(A)Customer depositsThe Group provides demand and

234、 time deposit products to corporate and retail customers.The table below sets forth the total customer deposits(excluding accrued interest)by product and customer type as of the dates indicated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of to

235、tal(%)Amount%of total(%)Corporate deposits Demand17,777.421.617,803.225.5 Time22,811.427.819,946.828.6Subtotal40,588.849.437,750.054.1Personal deposits Demand5,430.36.64,929.97.1 Time36,171.844.027,111.838.8Subtotal41,602.150.632,041.745.9Total customer deposits (excluding accrued interest)82,190.91

236、00.069,791.7100.0Total customer deposits(excluding accrued interest)increased by 17.8%from RMB69,791.7 million as of December 31,2023,to RMB82,190.9 million as of December 31,2024.This growth was primarily driven by the Groups focus on serving key customer segments and industries,precise marketing s

237、trategies,leveraging the advantages of resource integration and product portfolio,accelerating the transformation and upgrading of branch networks,and advancing digital infrastructure,all of which enhanced customer acquisition capabilities and realized a steady growth in total deposits.YIBIN CITY CO

238、MMERCIAL BANK CO.,LTD ANNUAL REPORT 202440Management Discussion and Analysis(B)Bonds issuedFrom January 1,2023 to December 31,2023,the Bank issued 23 tranches of zero-coupon interbank certificates of deposit with a total face value of RMB3,550.0 million.The terms of the interbank certificates of dep

239、osit ranged from 3 months to 1 year,with actual interest rates ranging from 2.68%to 3.11%.From January 1,2024 to December 31,2024,the Bank issued 9 tranches of zero-coupon interbank certificates of deposit with a total face value of RMB2,050.0 million.The terms of the interbank certificates of depos

240、it ranged from 3 months to 1 year,with actual interest rates ranging from 1.85%to 2.15%.(iii)Shareholders equityThe table below sets forth the changes in Shareholders equity as of the dates indicated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount

241、%of total(%)Amount%of total(%)Share capital3,900.039.13,900.042.0Capital reserve3,512.835.23,462.837.3Other comprehensive income397.44.0161.51.7Surplus reserve180.11.8125.91.4General reserve1,239.412.41,010.610.9Retained earnings467.94.7315.43.4Non-controlling interests274.72.8310.33.3Total equity9,

242、972.3100.09,286.5100.0 ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD41Management Discussion and Analysis(c)Asset quality analysis(i)Breakdown of loans under five-level classification systemThe Groups NPLs are classified as substandard,doubtful and loss.As of December 31,2024,the Groups NPLs

243、amounted to RMB1,023.3 million.The following table sets forth the issued loans and advances under the loan classification system as of the dates indicated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)Normal59,240.49

244、7.4950,086.297.46Special mention502.70.83401.40.78Substandard587.40.97806.51.57Doubtful371.10.6097.40.19Loss64.80.11Total loans and advances to customers60,766.4100.051,391.5100.0NPL ratio1.681.76The Groups NPL ratio decreased from 1.76%as of December 31,2023 to 1.68%as of December 31,2024,primarily

245、 due to the Groups enhanced credit risk management that improved the quality of our assets.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202442Management Discussion and Analysis(ii)Concentration of loans(A)Concentration by Industry and Distribution of non-performing loansAs of December 31,2024As

246、of December 31,2023(Expressed in RMB million,unless otherwise stated)Loan amount%of total(%)Non-performing loan amountNon-performing loan ratio(%)Loan amount%of total(%)Non-performing loan amountNon-performing loan ratio(%)Corporate loansWholesale and retail trade12,881.524.1256.31.999,328.721.2130.

247、11.39Renting and business activities5,951.111.121.40.363,456.47.810.30.30Construction8,435.715.812.90.158,564.619.344.20.52Manufacturing5,050.09.5191.43.794,203.19.535.10.84Agriculture,forestry,animal husbandry and fishery3,086.15.81.70.062,698.46.117.00.63Real estate2,375.44.41.00.042,008.24.615.40

248、.77Scientific research,technology services,and geological prospecting223.30.4205.70.55.02.43Transportation,warehousing and express service947.31.815.21.60657.91.55.00.76Information transmission,computer service and software423.30.810.52.48297.10.7Water,environment and public facilities management2,6

249、30.44.92,625.36.02.80.11Accommodation and catering450.20.817.63.91563.11.3124.122.04Education2,894.95.4117.04.042,574.65.8118.24.59Electricity,gas and water production and supply1,982.13.7824.51.9Health,social security and social welfare285.80.5355.20.80.40.11Residential services,repairs and other s

250、ervices90.70.27.48.1665.70.15.68.53Culture,sport and entertainment349.20.7231.70.5Mining279.80.51.00.36290.40.75.71.96Financing221.60.4182.682.40211.60.5182.686.29Retail loans4,882.09.2187.33.844,917.111.2202.44.12Total53,440.4100.01,023.31.9144,079.3100.0903.92.05Note:Non-performing loan ratio of a

251、n industry is calculated by dividing the balance of non-performing loans of the industry by the balance of loans granted to the industry.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD43Management Discussion and AnalysisLoans to borrowers in the wholesale and retail trade,renting and business

252、activities,construction,and manufacturing industries constitute the largest component of the Groups corporate loan portfolio.As of December 31,2024 and 2023,loans to these industries accounted for 66.6%and 65.2%of the total corporate loans,respectively.As of December 31,2024,the Groups NPLs of corpo

253、rate loans were primarily concentrated in the wholesale and retail trade and manufacturing industries,with NPL ratios of 1.99%and 3.79%,respectively.(B)Borrower concentrationLoans to the top ten individual borrowersThe following table sets forth the balances of loans to the top ten individual borrow

254、ers(excluding group borrowers)as of December 31,2024,prepared on a consolidated or combined basis,all of which are normal loans.(Expressed in RMB million,unless otherwise stated)As of December 31,2024CustomersIndustries involvedAmountPercentage of total loans(%)Borrower AWholesale and retail trade80

255、9.91.5Borrower BRenting and business activities759.71.4Borrower CConstruction754.11.4Borrower DRenting and business activities746.01.4Borrower EManufacturing725.01.4Borrower FConstruction655.01.2Borrower GConstruction653.01.2Borrower HWholesale and retail trade610.31.1Borrower IWholesale and retail

256、trade586.01.1Borrower JWholesale and retail trade560.01.1Total6,859.012.8YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202444Management Discussion and Analysis(C)Non-performing loans by product typeThe table below sets forth the loans and non-performing loans by product type as of the dates indic

257、ated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Loan amountNon-performing loan amountNon-performing loan ratio(%)Loan amountNon-performing loan amountNon-performing loan ratio(%)Corporate loansWorking capital loans27,878.2674.12.4222,111.5432.21.95F

258、ixed asset loans18,131.1157.00.8716,976.6269.31.59Others2,549.14.90.1974.1Subtotal48,558.4836.01.7239,162.2701.51.79Retail loansPersonal business loans1,966.6109.95.592,121.4131.86.21Residential mortgage loans1,763.968.13.861,944.154.12.78Personal consumption loans1,151.59.30.81851.616.51.94Subtotal

259、4,882.0187.33.844,917.1202.44.12Total53,440.41,023.31.9144,079.3903.92.05The NPL ratio of the corporate loans decreased from 1.79%as of December 31,2023 to 1.72%as of December 31,2024,mainly due to Groups strengthened efforts for credit risk management,which improved the Groups asset quality.The NPL

260、 ratio of retail loans decreased from 4.12%as of December 31,2023 to 3.84%as of December 31,2024,primarily due to the Groups ongoing efforts in recovering personal NPLs.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD45Management Discussion and Analysis(D)Loan aging scheduleThe following table

261、sets forth our loan aging schedule for loans and advances to customers as of the dates indicated.As of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)Current loans59,351.097.750,507.498.3Loans past due for Up to 90 days416.

262、10.7222.40.4 Over 90 days up to 1 year629.71.0263.50.5 Over 1 year up to 3 years314.80.5191.40.4 Over 3 years54.80.1206.80.4Gross loans and advances to customers60,766.4100.051,391.5100.0YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202446Management Discussion and Analysis(d)Segment information(i

263、)Summary of geographical segment informationWhen presenting data by geographical segments,operating income is allocated based on the place of registration of the institutions generating the income.The operating income of the Group is in Sichuan Province,China.(ii)Summary of business segmentsThe Grou

264、ps principal operations:corporate banking business,retail banking and financial market business.The table below presents the operating income of each major business segment of the Group for the periods presented.For the year ended December 31,2024For the year ended December 31,2023(Expressed in RMB

265、million,unless otherwise stated)Amount%of total(%)Amount%of total(%)Corporate banking1,584.772.71,604.574.0Retail banking488.722.4458.421.1Financial market business106.64.9106.14.9Others0.40.8Total2,180.4100.02,169.8100.0 ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD47Management Discussion a

266、nd Analysis(e)Off-balance sheet commitmentsOff-balance sheet commitments primarily consist of bank acceptances,letters of guarantee and capital expenditure commitments.The table below sets forth our contractual amounts of off-balance sheet commitments as of the dates indicated.(Expressed in RMB mill

267、ion,unless otherwise stated)As of December 31,2024As of December 31,2023 Financial guarantees and credit related commitments Bank acceptances(1)9,315.96,510.7 Letters of guarantees(2)67.850.3Subtotal9,383.76,561.0Capital expenditure commitments(3)403.463.3Total9,787.16,624.3Notes:(1)Bank acceptances

268、 refer to the Groups undertakings to pay bank bills drawn on our customers.(2)The Group guarantees to third parties to guarantee the performance of its customers contractual obligations.(3)On June 6,2024,the Bank entered into an acquisition agreement to purchase commercial properties as offices to a

269、ccommodate business expansion at an aggregate consideration of RMB362.9 million,and not prepaid any consideration as at December 31,2024.Off-balance sheet commitments increased by 47.7%from RMB6,624.3 million as of December 31,2023 to RMB9,787.1 million as of December 31,2024.The increase in off-bal

270、ance sheet commitments was mainly due to the Groups increase in off-balance sheet business based on operational needs,meeting customer financing and settlement needs.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202448Management Discussion and AnalysisBUSINESS REVIEW(a)Corporate bankingThe Group

271、offers corporate customers a broad range of financial products and services,including loans,discounted bills,deposits and fee and commission-based products and services.As of December 31,2024,the Group had issued corporate loans of RMB48,558.4 million to 2,313 corporate customers.For 2024 and 2023,t

272、he operating income from the Groups corporate banking business amounted to RMB1,584.7 million and RMB1,604.5 million,respectively,accounting for 72.7%and 74.0%of total operating income,respectively.Year ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Change in percentage(

273、%)Net interest income/(expenses)from external customers1,692.91,870.7(9.5)Inter-segment net interest(expenses)/income(146.9)(310.0)(52.6)Net interest income1,546.01,560.7(0.9)Net fee and commission income25.420.424.5Net gains on trading activitiesNet gains on financial investmentsOther operating inc

274、ome13.323.4(43.2)Operating income1,584.71,604.5(1.2)Operating expense(448.2)(431.8)3.8Expected credit losses(734.5)(793.3)(7.4)Impairment losses0.0(0.3)Profit before income tax402.0379.16.0 ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD49Management Discussion and Analysis(i)Corporate loansThe

275、 Group provides loans to corporate customers to meet the capital needs of borrowers for the business cycle and the construction,purchase,and renovation of fixed assets.As of December 31,2024,the Groups total corporate loans amounted to RMB48,558.4 million,accounting for 79.9%of the Groups gross loan

276、s and advances to customers.(ii)Discounted billsThe Group purchases bank and commercial acceptance bills at the agreed prices from corporate customers to fund their working capital needs.These discounted bills generally have a remaining maturity of less than six months.The Group may rediscount these

277、 bills to PBOC or other financial institutions.As of December 31,2024,the Group had a balance of RMB7,326.0 million of discounted bills.(iii)Corporate depositsThe Group accepts time and current deposits from corporate customers in Renminbi.The terms of corporate time deposits generally range from th

278、ree months to five years.As of December 31,2024,the Groups total corporate deposits amounted to RMB40,588.8 million,accounting for 49.4%of total customer deposits(excluding accrued interest).(iv)Inclusive finance businessDuring the Reporting Period,the Bank thoroughly implemented the spirit of the C

279、entral Financial Work Conference and the Central Economic Work Conference,fully complied with the regulatory requirements,established a dedicated working mechanism,strengthened resource protection,innovated financial products and optimized service processes to effectively improve the quality and eff

280、iciency of financial services for small and micro enterprises,and made solid progress in promoting inclusive finance.Meanwhile,to better meet the financing needs of micro and small enterprises,a total of 18 branches of the Bank have set up micro and small financial service teams,all of which are cap

281、able of handling micro and small loan business.As of December 31,2024,the balance of the Banks loans to small and micro enterprises amounted to RMB37,029.04 million,the number of micro and small enterprises customers was 4,780,and the balance of inclusive loans to small and micro enterprises amounte

282、d to RMB9,090.33 million with 4,539 accounts,representing an increase of 25.38%as compared to the end of the previous year,and the weighted average interest rate of the accumulated inclusive loans disbursed to small and micro enterprises in the year was 4.9%.(v)Fee and commission-based products and

283、servicesThe Group offers corporate customers a wide range of fee and commission-based products and services,primarily including bank acceptance,entrusted loans,letters of guarantee,settlement and clearing services,mobile payment services,agency services and wealth management services.(A)Bank accepta

284、nceThe Group provides bank acceptance services to corporate clients.The bank acceptance service refers to the issuance of a bill by a drawer with the approval of a bank,according to which,the bank guarantees to pay a pre-determined amount to the payee or the holder of the bill unconditionally on a s

285、pecified date.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202450Management Discussion and Analysis(B)Entrusted loansThe Group,on behalf of corporate clients,issues entrusted loans to designated borrowers in accordance with the loan purpose,principal amount and interest rate determined by the cl

286、ients.It also monitors the use of the loans and assists in loan recovery.The default risk of the loans is borne by the Groups corporate clients.(C)Letters of guaranteeThe Group provides letters of guarantee to corporate clients for non-financing purposes,including bidding and performance.(D)Settleme

287、nt and clearing servicesThe Group provides settlement services to corporate clients,including fund remittance and transfer,drafts,cheques and other negotiable instruments.(E)Mobile payment servicesUtilizing the mobile payment platform,Qianhuahua,the Group convenient payment collection services to co

288、rporate clients,including universities and enterprises,under campus payment and smart parking scenarios.(F)Agency servicesThe Group provides agency fee-collection services to corporate clients(including enterprises and public institutions),including collection agency business and sales agency busine

289、ss.The Group agency services are conducive to maintaining close relationships with clients and enhancing brand awareness.Collection agency business:The Group assists in the collection of gas bills,water bills,social insurance premiums and bus IC card recharge fees on behalf of gas companies,water su

290、pply companies and local government institutions,respectively.The Groups collection agency services secure stable corporate deposit intake and strengthen linkage with the retail business.Sales agency business:The Group sells insurance products to its customers as an agent through its collaboration w

291、ith leading insurance companies to provide customers with diversified financial product needs.(G)Wealth management servicesIn accordance with relevant PRC laws and regulations,the Group offers wealth management products with flexible terms according to clients needs and risk tolerance.As of December

292、 31,2024,we have served a cumulative total of 111 corporate wealth management clients.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD51Management Discussion and Analysis(b)Retail banking businessThe Group provides a variety of products and services to retail customers,including loans,deposits,

293、bank cards,and fee and commission-based products and services.As of December 31,2024,the Group extended retail loans totaling RMB4,882.0 million to 25,841 retail loan customers.The following table sets forth the financial performance of the Groups retail banking business for the periods indicated.Ye

294、ar ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Change in percentage(%)Net interest income/(expenses)from external customers(887.5)(584.0)52.0Inter-segment net interest(expenses)/income1,323.11,030.128.4Net interest income435.6446.1(2.4)Net fee and commission46.30.411,

295、475.0Net gains on trading activitiesNet gains on financial investmentsOther operating income6.811.9(42.9)Operating income488.7458.46.6Operating expense(223.6)(213.8)4.6Expected credit losses(127.6)(91.8)39.0Impairment losses0.0(0.1)(100.0)Profit before income tax137.5152.7(10.0)(i)Retail loansRetail

296、 loans consist primarily of personal business loans,personal consumption loans and residential mortgage loans.As of December 31,2024 and 2023,the Groups total retail loans amounted to RMB4,882.0 million and RMB4,917.1 million,respectively,accounting for 8.0%and 9.6%of total loans and advances to cus

297、tomers,respectively.YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202452Management Discussion and Analysis(ii)Personal depositsThe Group offers a variety of time deposits and current deposits denominated in RMB time deposits and to retail banking customers.The term of the Groups time deposits doe

298、s not exceed six years.As of December 31,2024 and 2023,the total amount of the Groups personal deposits was RMB41,602.1 million and RMB32,041.7 million,respectively,accounting for 50.6%and 45.9%of the total customer deposits(excluding accrued interest),respectively.To better attract and retain the G

299、roups high-end non-institutional customers and capitalize on the market demand brought about by the liberalization of interest rates in China,the Group offers large-denomination certificates of deposit to,among others,individual customers with savings deposits exceeding RMB200,000.(iii)Bank card ser

300、vicesThe Group issues RMB debit cards to retail banking customers who have opened deposit accounts with the Bank.The services provided include deposit and withdrawal,consumption,transfer and remittance,and wealth management.As a member of China UnionPay,the Groups debit cards are accepted via the Ch

301、ina UnionPay network both in China and around the world.To expand the service scope and enhance brand awareness,the Group issued debit cards with the function of a bus IC card,providing a convenient travel solution for residents in Yibin City;at the same time,in cooperation with local government age

302、ncies,Yibin City launched the“Ruyi Social Security IC Card”,a two-in-one card in Yibin City.In addition to the general functions of a debit card,it also provides cardholders with social security services such as social security information inquiry,medical insurance settlement,and social security con

303、tribution.As of December 31,2024,the Group had issued 1,080,658 debit cards in total.(iv)Fee and commission-based products and servicesThe Group offers a variety of fee and commission-based products and services to retail customers,mainly including wealth management services,agency services,transfer

304、 and remittance services,etc.Regarding fee and commission-based products and services,the Group generally determines the prices of such products and services according to the government-guided prices.The Group also adjusts the Groups prices by referring to the current market conditions and service c

305、osts.(A)Wealth management servicesThe Group has launched non-principal-guaranteed wealth management products,mainly providing wealth management products and services to retail banking customers.The Group estimates that,given the economic growth in Sichuan Province and the increase in residents dispo

306、sable income,in addition to traditional banking products and services,the demand of retail banking customers for comprehensive and personalized wealth management services will increase.As of December 31,2024,the Group had served a cumulative total of 33,618 individual wealth management customers.(B)

307、Other fee and commission-based products and servicesThe Group also provides other fee and commission-based products and services to retail customers,such as transfer and remittance,collection services,and bank drafts.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD53Management Discussion and An

308、alysis(c)Financial market businessThe Groups financial market business mainly includes monetary market transactions,investments in securities and other financial assets.The Group actively adapted to the complex and ever-changing economic and financial landscape,aiming to optimize the asset-liability

309、 structure and boost returns,it seized investment opportunities,timely adjusted investment strategies,and conducted various financial market businesses in a compliant and prudent way.In 2024 and 2023,the operating income from the Groups financial market business was RMB106.6 million and RMB106.1 mil

310、lion,respectively,accounting for 4.9%and 4.9%of the total operating income respectively.The following table shows the financial performance of the Groups financial market business during the periods presented.Year ended December 31,(Expressed in RMB million,unless otherwise stated)20242023Change in

311、percentage(%)Net interest income/(expenses)from external customers772.3498.854.8Inter-segment net interest(expenses)/income(1,176.2)(720.0)63.4Net interest income(403.9)(221.2)82.6Net fee and commission(6.6)23.1(128.6)Net gains on trading activities201.0291.8(31.1)Net gains on financial investments3

312、15.110.62,872.6Other operating income1.01.8(44.4)Operating income106.6106.10.5Operating expense(40.2)(37.9)6.1Expected credit losses(26.7)(43.5)(38.6)Impairment losses0.00.0Profit before income tax39.724.760.7YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202454Management Discussion and Analysis(i

313、)Monetary market transactionsMonetary market transactions are important means of managing liquidity.The Group also earns interest income through monetary market transactions.Monetary market transactions mainly include(i)interbank deposits with other domestic banks and non-bank financial institutions

314、;(ii)interbank lending;and(iii)interbank repo and reverse repo transactions.(A)Interbank depositsThe Group accepts deposits from banks and other financial institutions and deposits funds in other financial institutions to adjust its asset and liability structure.As of December 31,2024 and 2023,the G

315、roups deposits from banks and other financial institutions totalled RMB1,016.0 million and RMB883.1 million,respectively,and the Groups deposits with banks and other financial institutions totalled RMB1,853.7 million and RMB2,459.8 million,respectively.(B)Interbank placementsAs of December 31,2024 a

316、nd 2023,the Groups placements with banks and other financial institutions totalled RMB2,276.7 million and RMB1,526.7 million,respectively,and the Groups placements from banks and other financial institutions totalled RMB2,594.0 million and RMB2,840.0 million,respectively.(C)Interbank repo and revers

317、e repo transactionsThe securities involved in the Groups repo and reverse repo transactions are mainly RMB-denominated bonds.As of December 31,2024 and 2023,the total amount of the Groups financial assets held under resale agreements was RMB1,112.9 million and RMB1,869.5 million,respectively,and the

318、 total amount of the Groups financial assets sold under repurchase agreements was RMB5,719.0 million and RMB2,527.1 million,respectively.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD55Management Discussion and Analysis(ii)Investments in securities and other financial assets(A)Securities inve

319、stment by business model and characteristics of cash flow of assets of the GroupAs of December 31,2024As of December 31,2023(Expressed in RMB million,unless otherwise stated)Amount%of total(%)Amount%of total(%)Financial assets at fair value through profit or loss6,239.817.16,268.820.9Financial asset

320、s at fair value through other comprehensive income22,482.561.615,945.953.2Financial assets at amortised cost7,758.121.37,783.625.9Total36,480.4100.029,998.3100.0(B)Holding of government bondsAs of December 31,2024,the balance of face value of government bonds held by the Group amounted to RMB12,948.

321、8 million.The table below sets forth the top 10 government bonds with the highest face value held by the Group as of December 31,2024.Name of the bondCarrying amount(RMB in millions)Annual interest rate(%)Maturity date 24 Xinjiang bond 29620.02.35July 26,203424 Fujian bond 46500.02.20December 6,2039

322、24 Hunan bond 56400.02.23November 27,203422 Interest-bearing treasury bond 06400.02.80March 24,202924 Jilin bond 52390.02.23December 11,204422 Henan bond 26340.03.29April 28,203724 Chongqing bond 50300.02.28December 9,204424 Yunnan bond 40300.02.22December 10,203921 Hebei bond 01300.03.34March 19,20

323、2624 Shaanxi bond 20290.02.31July 30,2034Total3,840.0YIBIN CITY COMMERCIAL BANK CO.,LTD ANNUAL REPORT 202456Management Discussion and Analysis(C)Holding of financial bondsAs of December 31,2024,the balance of face value of the financial bonds(mainly the financial bonds issued by policy-oriented bank

324、s,banks and other financial institutions in China)held by the Group amounted to RMB10,193.1 million.The table below sets out the 10 financial bonds with the highest face value held by the Group as of December 31,2024.Name of the bondCarrying amount(RMB in millions)Annual interest rate(%)Maturity dat

325、e 24 ADBC bond 201,080.02.30July 4,203422 EIBC bond 11930.02.90August 19,203222 ADBC bond 05880.03.06June 6,203224 CDB 15400.02.26July 19,203424 Huijin MTN004360.02.08June 25,202721 CDB 10270.13.41June 7,203120 CDB 10270.03.09June 18,203024 EIBC bond 10250.02.44April 12,203419 CDB 15210.03.45Septemb

326、er 20,202924 China Everbright Bank Small and Micro Bonds200.02.15April 25,2027Total4,850.1(d)Distribution network(i)Physical outletsAs of December 31,2024,the Group had a total of 66 business outlets.Among them,39 business outlets were operated by the Bank itself,and the remaining outlets were opera

327、ted by the Groups subsidiaries in their own names.The Group has steadily advanced the optimization of business outlets and the upgrading of channels,continuously enhancing the competitiveness of its outlets.On the one hand,focusing on cost reduction and efficiency improvement,the Group has continuou

328、sly optimized the layout of its outlets to cut operating costs.Meanwhile,it has quickened the pace of transformation and upgrading,actively explored a characteristic development path for the outlets,and promoted differentiated operation.On the other hand,seizing opportunities for technological empow

329、erment,the Group has widely equipped its outlets with intelligent counters.It has continuously enhanced the functionality of mobile banking,online banking,and WeChat banking,strengthened online service support,developed digital application scenarios,and promoted the in-depth integration of consumpti

330、on and finance.ANNUAL REPORT 2024 YIBIN CITY COMMERCIAL BANK CO.,LTD57Management Discussion and Analysis(ii)E-banking services(A)Self-service bankingThe Group offers customers convenient self-service banking services via self-service equipment at relatively low operating costs.The self-service equip

331、ment is placed in business outlets,self-service areas,and public places like hospitals and schools.The Groups self-service equipment includes ATMs(Automated Teller Machines)and CRSs(Cash Recycling Systems).They offer customers 7*24 self-service financial services,such as account inquiries,cash depos

332、it and withdrawal,transfer and remittance,and utility bill payments,effectively reducing the Groups operating costs.As of December 31,2024,the Group had 14 ATMs and 133 CRSs.In addition,the Group has installed intelligent devices in its business outlets.These intelligent devices have greatly improve

333、d the efficiency of business processing at the outlets and provided customers with convenient and efficient financial services.As of December 31,2024,the Group had 133 non-cash intelligent devices and 47 cash intelligent devices.(B)Online bankingThe Group provides customers with 24-hour online banking services through its official website.The Groups corporate online banking products and services m