On August 29, the Bank of Xi'an released its 2024 semi-annual report. By the end of the reporting period, the Bank of Xi'an had achieved operating income of 3.622 billion yuan, an increase of 5.77%, and net profit to mother of 1.337 billion yuan, an increase of 0.31%.

Furthermore, as of the end of the reporting period, Bank of Xi'an had total assets of 445.262 billion yuan, an increase of 3.02%, and total deposit principal of 311.128 billion yuan, an increase of 5.90%, and total loan principal of 214.786 billion yuan, an increase of 5.85%; the non-performing loan ratio and provision coverage ratio were 1.72% and 170.06%, respectively, and the core tier 1 capital adequacy ratio and capital adequacy ratio were 10.20% and 12.39%, respectively.

In the first half of 2024, global economic growth momentum was weak, and the domestic economy showed operating characteristics of “stronger supply than demand, stronger external demand than domestic demand”. In this context, compared with the same period last year, the year-on-year growth rate of total assets and loan size in the banking sector in the first half of 2024 showed a slowing trend. Net interest spreads continued to narrow, profitability was under pressure, and overall asset quality remained stable. Banks mainly focus on “five major articles” to continuously optimize resource allocation, continuously improve the quality and efficiency of financial services, and help the real economy develop with high quality. Looking at urban commercial banks, various urban commercial banks are also exploring the path of differentiated and characteristic management around writing “five major articles”, and are actively supplementing capital through various methods to insist on preventing and mitigating financial risks.

The Bank of Xi'an actively implements the requirements of national economic and financial policies and supervision, continuously deepens the “digital, characteristic and comprehensive” strategic transformation, adheres to its original mission, bravely assumes social responsibility, adheres to the national and regional strategy, serves the real economy, small and medium-sized enterprises and the general public, strictly abides by the risk bottom line, ensures that all financial services continue to maintain a steady development trend, and implement the political and popular nature of financial work through practical actions.

Regional development nurtures new opportunities

Guided by expanding opening-up, Shaanxi is deeply integrated into the “Belt and Road” pattern, accelerated the construction of trains between China and Europe, and injected new vitality into the high-quality development of the local economy.

Relying on its location advantages, the Bank of Xi'an actively integrates into regional development plans, firmly grasps Xi'an's “North Cross” strategy, the construction of a “comprehensive national science center and science and technology innovation center”, and the construction of Qin Chuangyuan's innovation-driven platform, focusing on areas such as manufacturing development, key industrial chains and modern industrial system construction, increasing credit support to achieve co-prosperity, coexistence and coordinated development with the regional economy.

During the reporting period, the Bank of Xi'an closely followed the pace of local economic transformation, aimed at national and regional strategic layout, guided by customer needs, and took product services as a starting point, consolidated the company's comprehensive financial service capabilities, and continuously improved the quality and efficiency of serving the real economy.

The first is to actively connect with important provincial and municipal work arrangements, closely follow Shaanxi Province's “three years” activities and Xi'an's “eight new breakthroughs” and “ten focuses”, implement the work requirements of the municipal party committee and municipal government, establish a “six one” special working mechanism for government and financial cooperation, and connect with key areas such as policy concerns, industrial system planning, key capital, key projects, and investment promotion. In the first half of the year, a total of 6.15 billion yuan of loans were issued to provincial and municipal key enterprises and projects;

The second is to fully serve the development of local characteristic industries, focus on advantageous industries such as cultural tourism, science and innovation in Xi'an, increase service mechanism reform and product innovation, carry out strategic cooperation and resource sharing with leading private equity institutions in Shaanxi, and initially establish a product system that serves the entire life cycle of technology enterprises, mainly hard technology investment loans, technology research and development loans, stock options, etc., to promote the incremental efficiency of technology finance. By the end of the reporting period, loans to technology-based enterprises had increased by 37.72% compared to the beginning of the year;

The third is to vigorously promote the characteristic operation of branches. Through “one bank, one policy” and “one class, one policy”, each branch is guided to carry out characteristic operations in combination with territorial resource endowments to serve local economic development. The Tongchuan branch landed its first fresh food supply chain business, and the high-tech branch was awarded the “2023 Xi'an Technology Finance Service Demonstration Bank”;

Fourth, continue to improve the company's comprehensive financial service capabilities, rely on the advantages of technology finance, steadily promote treasury management platform projects and cash management platform services, optimize and improve bill products and system functions, continue to carry out business such as bond investment, syndicated loans, merger and acquisition loans, trade finance ABS, etc., and continuously enhance the overall benefits of the company's financial sector.

By the end of the reporting period, Bank of Xi'an had deposits of 128.777 billion yuan, up 2.79% from the beginning of the year; the company's loans were 144.124 billion yuan, up 15.42% from the beginning of the year.

Digital transformation is progressing steadily

The Bank of Xi'an takes the direction of “digital intelligence” of fintech to accelerate the digital transformation of its business.

On the one hand, we will continue to strengthen the construction of digital infrastructure, continuously improve the automated, visual and intelligent operation guarantee system, improve the ability to respond to the front, middle, and back office, and provide support and guarantee for the digital transformation of the business. On the other hand, we will continue to improve the efficiency of digital business transformation, be guided by regional economic construction and customer needs, deeply cultivate online channel and scenario construction, accelerate the online development process of smart city market scene services, digital government services, digital yuan business and products, continue to broaden and deepen the service radius, and provide customers with a more convenient digital financial service experience.

During the reporting period, the Bank of Xi'an actively embraced the digital wave, made continuous breakthroughs at various levels such as enabling business, data application, scenario finance construction, and technological capabilities, and continued to comprehensively promote digital transformation. The first is to promote the integration of industry technology and upgrade functions such as mobile banking sales, investment management, treasury management, payroll and risk ratings to make financial services smarter; the second is to strengthen data asset management, consolidate the data technology base, promote manual reporting pressure reduction work and big data technology platform upgrades, and continuously improve the quality of EAST submission; the third is to build a smart ecosystem integrating “finance+technology+ecology”. The fourth is to innovatively launch a one-stop ticketing and leasing platform “West Bank Tour Rental” to provide full-process online ticketing and leasing services for many well-known local scenic spots; Technological infrastructure capacity building, optimization Upgrade the IT architecture, promote distributed and microservice transformation of systems such as West Bank Special Deals and WeChat Bank, and launch the Hongmeng System customer application adaptation project.

Furthermore, based on the five key technologies of real-time streaming computing, device fingerprinting, machine learning, knowledge mapping, and RPA, the Bank of Xi'an has deep excavated and integrated data, features, rules, strategies, and models, upgraded the intelligent business security hub platform, and built an intelligent, proactive, and real-time full-process anti-fraud system. While users enjoy convenient financial services, it can achieve 7*24 hours comprehensive risk monitoring of all channels and businesses to help customers protect their money bags. The platform won the third prize of the People's Bank of China Fintech Development Award.

Implementing inclusive finance business

In the 2023 Central Finance Work Conference, inclusive finance was once again emphasized as one of the five major articles, showing the importance of promoting the development of inclusive finance in promoting the fair distribution of financial resources and promoting the goal of building a strong financial nation.

During the reporting period, the Bank of Xi'an actively carried out the original mission of finance for the people, vigorously developed inclusive finance, strengthened product innovation and research and development efforts, optimized the development structure of small and micro finance businesses, reduced the cost of comprehensive financing for inclusive small and micro businesses, improved risk prevention and control capabilities, and steadily achieved the goal of “stable price, volume and excellent structure” of inclusive finance.

The first is to accelerate innovation in inclusive small and micro products. On the basis of launching various products such as science and enterprise e-loans and supermarket loans, we will continue to develop and launch innovative products such as talent management loans, optimize the risk control model for iterative products, deepen the systematization of inclusive small and micro finance products, and continuously improve the coverage and adaptability of inclusive small and micro credit; the second is to give full play to the driving role of core enterprises in inclusive business and actively connect with high-quality core enterprises in the jurisdiction, making full use of the linkage mechanism between the company and inclusive business, focusing on key projects such as science and innovation, manufacturing, modern agriculture, pension facilities, cultural tourism, etc. Businesses, increase The capital supply for small and micro enterprises on the chain to effectively meet the financing needs of enterprises in key industrial chains; the third is to optimize the financial service system, continuously build an inclusive small and micro financial service team, clear a green channel for approval, strengthen general, branch and branch information communication and coordination, and implement a “time-limited settlement system” for small and micro enterprise loan businesses in key areas and weak links such as small and micro enterprises, scientific and technological innovation, agricultural inclusion, etc.; 4 is to strengthen inclusive risk management, closely monitor the flow and use of post-loan capital flows and the authenticity of online series products., continuously enhancing risk identification agility.

For example, a technology technology company in Shaanxi, whose business address is located in Shangluo City, is a private enterprise specializing in the purchase, sale, and deep processing of agricultural products such as walnuts. The company peels, crushes, and deep-processes the purchased walnuts to produce finished products such as amber walnuts and walnut oil and sell them to the Jiangsu and Zhejiang regions. In the first half of the year, according to the actual situation of the enterprise, the Bank of Xi'an matched the “Bank of Xi'an e-Loan” loan product for customers. The company's legal representative applied for 5 “West Bank e-Loans” with a total amount of 1.2 million yuan, which solved the business turnover and capital requirements for purchasing raw materials. Financing support injected vitality into the enterprise. Currently, the company is developing well, and the number of employees has increased to more than 400, which has led to employment problems in surrounding villages and towns to a certain extent.

By the end of the reporting period, Bank of Xi'an had loans of 31.814 billion yuan for small and micro enterprises, including 7.713 billion yuan for inclusive small and micro enterprises, an increase of 6.33% over the beginning of the year.

Accelerating the development of technology finance

Based on actual regional economic development, the Bank of Xi'an has done a solid “Five Major Articles” and is focusing on creating business characteristics in the field of technology finance.

During the reporting period, the Bank of Xi'an provided multi-channel, multi-level, full-chain and full-cycle financial services to technology enterprises through measures such as setting up special work leading groups, formulating special work plans, increasing product innovation efforts, establishing green approval channels, and strengthening business authorization and assessment incentives, etc., to meet the diversified needs of technology enterprises in all aspects. In addition, establish a due diligence exemption mechanism to reduce the exhibition burden on frontline business personnel, increase the enthusiasm of business personnel to “dare to borrow” and “be willing to lend”, and promote business development.

For example, on August 25, the Bank of Xi'an participated in the Technology Property (Technology Exchange) Asset Securitization Project - Qin Chuangyuan - Huaxin - Xi'an High-tech Zone Technology Property (Technology Trading) Phase 1 Asset Support Project, listed on the Shenzhen Stock Exchange. The project was organized and distributed by Xi'an Hi-Tech Financial Holding Group. It uses a reserve declaration and installment distribution model, and has a credit rating of AAA. The first issue of 0.1 billion yuan uses 31 core technology patents and 14 technology transaction contracts held by 12 technology-based small and medium-sized enterprises in Xi'an as underlying assets. The fields involved include strategic emerging industries supported by the country, such as next-generation information technology, intelligent manufacturing, and new energy. The ABS products listed this time are supported by government policies at all levels to promote the deep integration and development of technical elements and capital factors under the premise of effectively preventing and controlling financial risks in Xi'an. As the first city of Xi'an to be selected as the 2023 National Comprehensive Innovation and Reform Pilot Project, it has a great innovation demonstration effect.

The Bank of Xi'an was shortlisted for 12 technology-based SMEs through the first marketing phase. Currently, 4 companies have successively carried out credit and settlement business with the Bank of Xi'an. By continuously strengthening financial services in the field of scientific and technological innovation and promoting the transformation of scientific and technological achievements, we have effectively activated the value of technological factors and pioneered new financing practices for technology enterprises.

In the next step, the Bank of Xi'an will continue to optimize financial service mechanisms and enhance new momentum to support the development of technology finance. At the same time, it will increase communication and interface with government departments, increase research and judgment on the development of the technology industry, actively innovate business models, continuously enrich business varieties, continue to raise the level of support for the development of technology finance, and contribute financial strength to the development of scientific and technological innovation.