April 9, 2021Ningbo Bank (002142)The annual report for 2020 was released.

After the test of COVID-19 epidemic in 2020, the performance of Ningbo Bank is still bright. For the whole year, the operating income was 41.111 billion yuan, an increase of 17.19% over the same period last year.Net profit15.05 billion yuan, an increase of 9.73% over the same period last year.

Chairman Lu Huayu said in his speech: the company insists"measure the earth with your feet and create value with your profession."President Luo Mengbo reiterated in his speech"Big banks can't do it well, small banks can't do it."Business strategy.

Throughout the annual report, the concept of Ningbo Bank in the actual operation, has become a kind of intensive cultivation, do not forget the original ideal and ambition attitude. This statement is not new, but it works. Ningbo Bank has built a framework to support the long-term development of the enterprise with pragmatism and professionalism.

Focus on small and micro enterprises

Excellent ability to expand customers

During the COVID-19 epidemic in 2020, the tight capital chain became a dilemma difficult for many enterprises to solve. The chairmen of Xibei Group and fellow-villager Chicken spoke out one after another, saying that the company's cash could only support for a few months.

Large enterprises are still difficult, and the financial pressure faced by small and medium-sized enterprises has almost become a disaster.

In the face of the impact of COVID-19 's epidemic situation, Ningbo Bank adheres to the development belief of "in the same boat with the real economy". We will vigorously support the development of private enterprises, small and micro enterprises and manufacturing enterprises, and strengthen the support of stable enterprises through the issuance of interest-free loans, anti-epidemic re-loans, non-repayment of principal and renewal of loans and other measures to boost the development of the real economy.

Ningbo Bank actively fulfilled its social responsibility and reduced the financing cost of the real economy. In 2020, the average interest rate of the company's public loans was 5.09%, down 21 basis points from the same period last year.The average interest rate of loans for inclusive small and micro enterprises is 5.55%.，Down 50 basis points from the same period last year. The average interest rate on personal loans fell 21 basis points from a year earlier.

The deep participation in the real economy and the support for small and micro enterprises are the practical practice of Ningbo Bank to measure the land with its feet.

Since 2012, Ningbo Bank's client strategy began to focus on the development of retail business lines; in 2015, it began to focus on retail company lines, mainly for small and micro enterprises. Ningbo Bank's positioning of small and micro enterprises is between corporate business and retail business, which can not only be used to support the development of retail business, but also lay the foundation for further expansion of public relations and the provision of comprehensive financial services.

In 2012, the number of customers of Ningbo Bank Retail Company reached 65700. According to the 2020 annual report, during the reporting period, the company continued to promote the "211" project and the "123" customer coverage plan to promote full coverage visits and effective access to customers of small and micro enterprises in the operating region. Report at the end of the periodThe total number of corporate customers of the company is 460000, an increase of 77000 over the end of last year, of which more than 90% are small and private enterprises.. In 2020, the number of retail customers was 358000, an increase of 64000 over the end of last year.

The focus on small and micro enterprises has also contributed to the performance of Ningbo Bank.

According to the 2020 annual report, the total assets of Ningbo Bank reached 1.63 trillion yuan in 2020, an increase of 23.45 percent over the same period last year; the balance of deposits was 925.174 billion yuan, up 19.92 percent over the same period last year; and the balance of loans was 687.715 billion yuan, an increase of 29.98 percent over the same period last year.

Among them, the deposit balance of retail companies exceeded 100 billion yuan, reaching 116.8 billion yuan, an increase of 25% over the same period last year. In addition, demand deposits reached 61.6 billion yuan, an increase of 32 percent over the end of last year, accounting for 53 percent of the total deposits, realizing the coordinated development of scale and quality, and laying a good foundation for the sustainable development of retail companies' business.

In terms of loans, the loan balance of retail companies reached 108.5 billion yuan, an increase of 36 percent over the same period last year, and the number of credit customers reached 117000. Ningbo Bank's big retail strategy has also contributed to a surge in personal loans. In 2020, Ningbo Bank's new loans reached a record high, with an investment of more than 150 billion yuan. Among them, personal loans grew by 45.6% for the whole year, accounting for 51.7% of new loans.

Another noteworthy data is that Ningbo Bank's assets and liabilities in the fourth quarter, on the basis of the high base in the first three quarters, still achieved high growth.

In the fourth quarter of 2020, Ningbo Bank's total loans increased by 5% month-on-month, reflecting the company's excellent customer expansion ability. Corporate loans increased by 1.8% month-on-month, indicating that the company's project expansion ability is superior. The amount of individual loans increased by 12.7% month-on-month, indicating that the company has a strong ability to develop retail customers.

Continue to build a business moat

Promote sustainable development

In addition to continuously expanding the size of the company and maintaining the growth of performance, Ningbo Bank adheres to the prudent business philosophy and always regards risk management as the bottom line and lifeline for the sustainable development of the bank.

By the end of 2020, the non-performing loan ratio of Ningbo Bank was 0.79%, and the non-performing loan ratio has remained below 0.8% since 2019.

By the end of 2020, the balance of non-performing loans of Ningbo Bank is 5.456 billion yuan, and the balance of overdue loans over 90 days is 4.514 billion yuan. There is no scissors difference between non-performing loans and overdue loans over 90 days.

The proportion of concern loans and loans overdue for more than 90 days were 0.50% and 0.66% respectively, down 0.24 and 0.06 percentage points respectively from the beginning of the year.The loan allocation ratio is 4.01%, and the provision coverage rate is 505.59%.。

In terms of capital replenishment, Ningbo Bank will carry out capital replenishment by means of private placement and secondary capital debt in 2020. By the end of 2020, the company's core tier one capital adequacy ratio, tier one capital adequacy ratio and capital adequacy ratio were 9.52%, 10.88% and 14.84%, respectively.

In the future, Ningbo Bank plans to further strengthen capital replenishment through rights issue (no more than 12 billion yuan) and secondary capital debt (no more than 15 billion yuan). Will also strengthen the Yangtze River Delta as the center, the Pearl River Delta and the Bohai Rim as the two wings of the institutional layout, are quite economically dynamic areas, the demand for credit is more exuberant.

Good asset quality, solid risk resistance and steady capital replenishment plan will provide the basis for Ningbo Bank to build and develop a moat and provide a guarantee for the company to further implement the strategy of "creating value with expertise".

Lu Huayu, chairman of Ningbo Bank, pointed out, "in an era when industry differentiation intensifies, the stronger the stronger, and the winner takes all, only by speeding up the construction of a moat for bank development can we stand out in the fierce industry competition." At present, the company has 15 profit centers, the bank has 12 profit centers and 3 subsidiaries, which have a good profit structure and development foundation, especially the development of financial science and technology, which provides a rare historical opportunity for commercial banks to promote the change of business model and realize great-leap-forward development. "

Financial technology is an important part of the empowerment of Ningbo Bank.

In the face of the tide of science and technology, Ningbo Bank has launched the Wisdom Bank, established a "ten centers" financial science and technology organization structure and a "trinity" R & D center system, and implemented a systematic, digital and intelligent financial science and technology development strategy. In 2020, the company completed the construction plan of 13 sets of financial science and technology system group; Jiangbei data center has been put into use, and the dual-center and double-live operation of the application system has been fully realized.

With the accurate empowerment of financial technology, Ningbo Bank continues to promote the "shift upgrade" of its business model in the process of serving the real economy, building a moat for the bank's sustainable development and promoting profit growth to remain robust. By perfecting the data capitalization management system, constantly excavating the value and effectiveness of data assets, promoting the systematization of marketing business opportunities through customer data standardization, labeling, granulation and big data analysis, and continuously improving the efficiency of customer management. By building a data center, building a platform-based data capacity, effectively assisting business decision-making, optimizing the allocation of capital, expenses and other resources, accelerating the pace of transformation in various fields of the company, and improving the quality and efficiency of the construction of light banks, capital adequacy and return on capital continue to maintain a good level in the industry.

In addition, in 2020, Ningbo Bank also accelerated the upgrading of APP, to enhance the stickiness of mobile channels; at the same time, it improved the consumer credit management system, created a mutually beneficial and win-win credit card ecosystem, and achieved efficient and coordinated development of business online and offline.

Ningbo Bank's good fundamentals and development potential have also been recognized by brokerages. Since the release of the annual report, more than 10 brokerages have given buy or increase their holdings.

It is true that in the post-epidemic era, there are still many challenges to face, but in the continuous self-improvement, Ningbo Bank is ready.

END