We are the fifth largest rural commercial bank in China in terms of total assets as of December 31, 2020, according to the “Top 100 Banks in China of 2021” released by China Banking Association in 2021. According to the British journal “The Banker” published in July 2021, we ranked the 261st among commercial banks globally, the 44th among commercial banks in the PRC and the sixth among the rural commercial banks in the PRC in terms of tier-one capital as of December 31, 2020.
We are the leading commercial bank in Dongguan. Our Bank has ranked the first among banking institutions in Dongguan each year since 2005 in terms of year-end balance of deposits and loans, according to PBoC Dongguan Center Branch. As of March 31, 2021, RMB-denominated deposits and loans of our Bank accounted for approximately 18.78% and 18.63% of the balances of RMB-denominated deposits and loans of all the banking institutions in Dongguan as of the same date, respectively, according to the same source.
We provide tailor-made financial products and services through our extensive distribution network in Dongguan. According to CBIRC Dongguan Office, we have the largest number of outlets among commercial banks in Dongguan. As of the Latest Practicable Date, 501 out of the total 505 outlets of our Bank were located in Dongguan that cover all administrative districts. Such broad network coverage extends customer reach and deepens penetration into the local market. As of the Latest Practicable Date, we also had four branches outside Dongguan, located in Guangzhou, Zhuhai, Huizhou and Qingyuan in Guangdong Province, respectively. In addition, we have jointly-established four county banks with third parties, which are located in Dongguan, Huizhou and Yunfu in Guangdong Province and Hezhou in Guangxi Zhuang Autonomous Region. We also jointly-established two rural commercial banks with third parties in Zhanjiang and Shantou in Guangdong Province.
Our Bank was initially established in rural area and has been developing together with the industrialization of Dongguan. Sannong (三農), namely agriculture, rural areas and farmers customers are the core customers of our Bank and provide strong support for our development. We closely monitor the financial needs of modern Sannong customers, modern manufacturing “three chains” (namely, industrial chain, supply chain and value chain) customers, SMEs customers and other private enterprises. Strategically we focus on strengthening our five financial brands, namely, “Retail Finance” that provides all-round financial services to retail customers, “Industrial Finance” that emphasizes serving key industries in Dongguan, “SME Finance” that provides comprehensive financial services to SMEs, “Inter-bank Finance” that integrates cross-market services and “Digital Finance” that aims to capture the digital trend to develop our online business, which we believe enable us to procure quality customers through a market-focused approach and by providing comprehensive financial services, and therefore enhance our overall competitiveness.
We are committed to business prudence and sustainable development. Supported by our comprehensive risk management system, we achieved considerable growth in asset size while maintaining our asset quality. Our total assets increased from RMB407,904.7 million as of December 31, 2018 to RMB548,402.0 million as of December 31, 2020, representing a CAGR of 16.0%. As of March 31, 2021, our total assets has further increased to RMB564,558.2 million. Our NPL ratio as of December 31, 2018, 2019 and 2020 was 1.27%, 1.00% and 0.82%, respectively, lower than the arithmetic mean of NPL ratios of PRC regional banks (including city commercial banks and rural commercial banks) that were listed in Hong Kong as of the date of this document, which was 1.86%, 2.04% and 1.90% as of the same dates, respectively, based on data extracted from the published annual reports of such PRC regional banks. Our NPL ratio further decreased to 0.79% as of March 31, 2021.
In addition, we maintained strong profitability and operational efficiency during the Track Record Period. Our operating income increased from RMB9,777.6 million for the year ended December 31, 2018 to RMB12,047.0 million for the year ended December 31, 2020, representing a CAGR of 11.0%. For the three months ended March 31, 2020 and 2021, our operating income amounted to RMB3,173.1 million and RMB3,156.0 million respectively. Our net interest margin increased from 2.05% for the year ended December 31, 2018 to approximately 2.16% for the year ended December 31, 2020, and our net interest spread increased from approximately 1.98% for the year ended December 31, 2018 to approximately 2.10% for the year ended December 31, 2020. For the three months ended March 31, 2021, our net interest margin and net interest spread was 1.98% and 1.91%, respectively. For the year ended December 31, 2020, our return on average assets was 1.00% and return on average equity was 13.64%, higher than the arithmetic mean of the returns on average assets and returns on average equity of PRC regional banks (including city commercial banks and rural commercial banks) that were listed in Hong Kong as of the date of this document, which was approximately 0.52% and 6.91% for the same year, respectively, based on data extracted from the published annual reports of such PRC regional banks. For the three months ended March 31, 2021, our return on average assets was 1.26% and return on average equity was 16.71%. Our Bank was among the first group of rural credit cooperative association unions approved by PBoC to participate in the inter-bank financing market of China. According to CCICR, our corporate credit rating has remained at AAA since October 2017, the highest credit rating of corporates in China.
Source: DRCB (09889) Prospectus (IPO Date : 2021/09/16) |