Shanghai Pudong Development Bank (600000) H1 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 16.64% year-over-year to RMB 26.99 billion, with adjusted net profit up 31.51% year-over-year, reflecting strong core earnings growth.

• Operating income was RMB 88.25 billion, down 3.27% year-over-year, but up 1.45% excluding one-off factors; operating profit increased 13.73% year-over-year.

• Total assets reached RMB 9.25 trillion, up 2.74% from year-end 2023; loans increased 5.92% and deposits rose 0.23% over the same period.

• Cost-to-income ratio remained stable at 26.60%; average ROA was 0.30% and ROE was 4.17%.

Financial highlights

• Net profit attributable to shareholders: RMB 26.99 billion, up 16.64% year-over-year.

• Operating income: RMB 88.25 billion, down 3.27% year-over-year; adjusted for one-off, up 1.45%.

• Net interest margin: 1.48%, down 8bps year-over-year.

• Non-interest income ratio: 34.22%, up 0.46 percentage points year-over-year.

• Basic EPS: RMB 0.89, up 17.11% year-over-year; diluted EPS: RMB 0.82, up 17.14%.

Outlook and guidance

• Will continue to focus on five strategic tracks: technology finance, supply chain finance, inclusive finance, cross-border finance, and treasury finance.

• Expects further optimization of loan and deposit structure, and aims to stabilize net interest margin amid industry pressure.

• Plans to enhance risk management, maintain asset quality, and strengthen capital adequacy.

• Management emphasized continued focus on digital transformation, risk control, and supporting the real economy, aiming to sustain stable and high-quality growth.