The financial position is sound. The bank's non-performing loan balance rose to 1208 million yuan in the first half of 2016 from 814 million yuan in 2015, and the non-performing loan ratio rose 11 basis points to 0.53%. The cost-to-revenue ratio edged up 92 basis points from the first half of 2015 to 18.53 per cent. The core tier one capital adequacy ratio fell slightly by 42 basis points from a year earlier, but remained at an adequate level of 9.00 per cent.

Retail banking services grew strongly and consumer loans continued to rise. In the first half of 2016, the retail banking sector recorded the largest growth by revenue, rising 47 per cent year-on-year to 466 million yuan. Individual loans and housing mortgages accounted for the largest proportion, accounting for 53.48% (4.2 billion yuan), while consumer loans accounted for 27.85% (2.1 billion yuan). Based on the current consumption situation, management expects the proportion of consumer loans to continue to rise in the near future.

Speed up the development of channels. Shengjing Bank has made a lot of efforts to strengthen the application of online banking. In the first half of 2016, the total number of customers attracted by television advertisements reached 2.22 million, an increase of 276 per cent from the end of 2015. In addition, the total number of online banking customers increased to 425000, an increase of 60 per cent over the same period last year.

The capital business continued to grow, and the financial investment structure was optimized. The total value of assets in the mid-performance period reached 527 billion yuan, an increase of 15.6% over the same period last year. Net profit from capital business interest rose 7.9 per cent year-on-year to 1.977 billion yuan. Interest income from financial investment increased by 73% to 8.781 billion yuan, and we expect the contribution from financial investment to increase steadily in the future.

Risk factors. 1) default risk; 2) liquidity risk; 3) market risk; 4) operational risk; 5) interest rate risk; and 6) deterioration of regional economic conditions.