2024-03-28 12:46:08 ET
Agricultural Bank of China Limited (ACGBY)
Q4 2023 Earnings Conference Call
March 28, 2024, 5:00 AM ET
Company Participants
Gu Shu - Chairman, Interim President and Executive Director
Wu Gang - Chief Risk Officer
Zhang Xuguang - Executive Vice President and Executive Director
Lin Li - Executive Vice President and Executive Director
Liu Xiaopeng - Non-Executive Director
Conference Call Participants
Claire Ouyang - Goldman Sachs
Tong Wu - Citi
Katelyn Lilly - JPMorgan Chase
Presentation
Gu Shu
[Interpreted] Ladies and gentlemen, good afternoon. I would like to say welcome to all the investors, analysts and media friends to attend the 2023 Annual Results Announcement of the ABC. Well, actually, for ABC, we have left Hong Kong for eight years in terms of the convening of our announcements. So we are very happy to come back to Hong Kong to have this face-to-face meeting with all of you. And also we have a lot of friends, analysts attending this conference online or in Beijing's venue. And today we also have management representatives as well as independent directors attending this conference.
So we can start from our operating results of 2023 for the ABC. Last year, China's economy rebounded, paving a solid foundation for the development of finance industry. And our performance was also pretty good last year. So to sum it up, I think there are two points worth mentioning.
The first one is that our operating revenue is experiencing steady growth. Our net profits was RMB269.8 billion, a growth rate of 4.2%, and ROE is 10.91%. Our operating income was RMB694.8 billion, maintaining positive growth. And in the last year, we've been faced with very complex external environment. Our operating income still remains positive growth. That is not an easy task for us to do.
Second, our strength of the co-group continues to increase. Our total assets reached RMB39.9 trillion, an increase of RMB5.9 trillion. And the loans increased by RMB2.85 trillion to RMB22.6 trillion. And the NPL ratio was 1.33%, down by 0.44 percentage points to compare with the end of previous year. And our provision coverage has reached 303.87%. And the balance of the customer deposits was RMB28.5 trillion. And domestically speaking, the deposits of our customers domestically increased by RMB3.91 trillion to compare with the end of last year.
And another statistic we want to disclose is that our daily increments, the average daily increments of the deposits of our domestic customer would reach RMB3.9 trillion. So pretty similar to our deposits, the total amount of our deposits. And we replenished our capital by RMB230 billion. And our capital adequacy rate was 17.14%.
So here we have already illustrated you about our revenues, as well as our income states -- some important contents or highlights in our income statement. So looking back at our operation last year, we believe that we need to adhere to a systematic concept of management. We need to achieve three endeavors related to coordination. That is why we could achieve such results last year. And the very first reason for our rebound last year is because of the rebound of the macro economy. And for us, I think we need to do three coordinating endeavors.
And the first one is that we need to coordinate the two markets in the urban area and the rural area. And now we have 23,000 outlets of ABC and half of them are located in counties and another half are located in the urban areas. And the layout of our customer base in rural areas and urban areas are kind of balanced. This is our biggest differentiator, which also represents our competitive advantages. And based on the different features of different regions, we have made a lot of innovations or tailored made innovations for those county outlets or customers in the county areas to improve our capacity to serve the residents in the county areas. And now we have 281 products related to rural revival and we have 255 products with unique county characteristics. And in the county at the county-level, we have a total of 546 million in customers in rural or county areas, accounting for 63% of the total customers we have in ABC....
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Agricultural Bank of China Limited (ACGBY) Q4 2023 Earnings Call Transcript