Financial Association News October 29th (Reporter Shi Sitong) On the evening of October 28th, Lanzhou Bank disclosed its third quarter report for 2024. Overall, since the beginning of this year, Lanzhou Bank's asset size has continued to grow, but the pressure on asset quality has gradually become more apparent. Meanwhile, dragged down by non-interest income, the bank's revenue continues to decline, but there has been some improvement compared to the first half of the year.

Data shows that as of the end of September, the total assets of Lanzhou Bank were 480.979 billion yuan, an increase of 6.08% from the end of the previous year; total liabilities were 446.276 billion yuan, an increase of 6.22% from the end of the previous year. At the same time, the bank issued loans and advances of 247.825 billion yuan, attracted deposits of 360.225 billion yuan, representing growth of 4.10% and 6.78% respectively compared to the end of the previous year.

In terms of operations, in the first three quarters of this year, Lanzhou Bank achieved operating income of 6.053 billion yuan, a year-on-year decrease of 3.02%; net income attributable to parent company shareholders was 1.495 billion yuan, an increase of 0.95% compared to the same period last year. In comparison, the bank's revenue and net income in the first half of the year decreased by 3.61% and 1.53% respectively.

From the perspective of income composition, Lanzhou Bank's net interest income slightly increased compared to the same period last year, while fee and commission income showed a significant decline, thereby dragging down its revenue performance. In the first three quarters, the bank's net interest income was 4.544 billion yuan, a slight increase of 0.13% year-on-year; fee and commission net income was 0.226 billion yuan, a decrease of 8.54% compared to the same period last year, while investment income also decreased by 6.06% to 1.056 billion yuan.

Regarding the growth in interest income, Lanzhou Bank believes that it is mainly due to its strengthened asset-liability management and efforts to maintain a balance between liabilities and prices. It is reported that in the first three quarters of this year, the bank's overall deposit interest rate decreased by 39 basis points compared to the beginning of the year.

However, despite this, Lanzhou Bank's net interest margin, which was on the rise in the first half of this year, further declined in the third quarter. By the end of September this year, the bank's net interest margin was 1.45%, a decrease of 1 basis point from the end of last year's 1.46%, and a decrease of 14 basis points from the 1.59% at the end of June this year.

On the business side, Financial Association reporters have noticed that with the continuous adjustment of the asset-liability structure, Lanzhou Bank's transformation to focus on retail banking is also making progress. Data shows that as of the end of September, the bank's total assets under management (AUM) for individual clients increased by 9.731 billion yuan to reach 288.734 billion yuan, a 3.49% increase from the beginning of the year.

However, at the same time, the asset quality pressure of Lanzhou Bank has gradually become more prominent. As of the end of September, the total amount of non-performing loans of Lanzhou Bank was 4.676 billion yuan, an increase of 0.442 billion yuan from the end of the previous year; the non-performing loan ratio was 1.83%, an increase of 0.1 percentage point from the end of the previous year. Relatively speaking, its provision coverage ratio has improved, increasing by 7.96 percentage points to 205.47% from the end of the previous year.

In addition, in terms of capital adequacy levels, Lanzhou Bank has seen a decrease in various related indicators. Among them, the bank's capital adequacy ratio was 11.86%, an increase of 0.74 percentage points from the end of the previous year; while the Tier 1 capital adequacy ratio decreased by 0.2 percentage points to 9.72% from the end of the previous year, and the core Tier 1 capital adequacy ratio also decreased by 0.13 percentage points to 8.28%.