Agricultural Bank Of Chin

Hello, everybody. The meeting is about to start very soon. Ladies and gentlemen, good afternoon. I am Hanguotang, Secretary of the Board of Directors of the Institute of Bank of China. Welcome all the friends to attend the 2021 annual Results Conference of the Agricultural Bank of China. According to the latest requirements of epidemic prevention and control in Beijing, this conference is going to be held by telephone access and the webcast. Here, I would like to express my sincere gratitude to all the sectors of society for your long-term concern and support for our bank. Thank you. Next, I would like to introduce the management representatives who attended today's meeting. They are Mr. Zhang Qingsong, Vice Chairman, Executive Director and President of Agricultural Bank of China, Mr. Zhang Xuguang, Executive Director and Vice President, Mr. Lin Li, Executive Director and Vice President, Mr. Cui Yong, Vice President, Mr. Xu Han, Vice President, and Mr. Zhang Yi, Vice President. In addition, we also have with us Mr. Wang Xingsong, Independent Director, to attend today's conference by telephone. Hello, Mr. Wang. Hello, Mr. Han. Hello, everybody. Thank you, Mr. Wang. In 2021, faced with the complicated and ever-changing economic and financial situation at home and abroad, Agricultural Bank of China consciously implemented the decision-making management of the CPC Central Committee and the State Council. Unswervingly took the road of high-quality development and effectively served the agricultural rural area and pharma development and provided excellent and strong financial services for people's livelihoods, accelerated the pace of reform and digital transformation in key areas, continuously strengthened the risk control and prevention, and achieved ideal results in business operation and delivered a brilliant answer sheet to all the investors. First of all, now let's have with us Mr. Zhang Xingsong, President of Bank of China Agricultural, to introduce our operating results in 2021. After that, we will have with us the Q&A session. Thank you so much. Now let's have with us Mr. Zhang. Thank you, Mr. Han. Ladies and gentlemen, good afternoon. Welcome you to join this 2021 Annual Results Conference of Agricultural Bank of China here. On behalf of our bank, I would like to express my sincere gratitude to all the journalists, investors, and analysts who have given us care and support for a long time. Thank you so much. 2021, the Agricultural Bank of China conscientiously implemented decision-making of the CPC Central Committee and State Council, focused on strengthening agricultural rural areas and farmers' development and financial services of the real economy, conscientiously deepened the reforming system and mechanisms, calmly responded to various risks and challenges, and stepped up its business operations to a new level. Number one, to realize high quality development, simultaneously improve the scale, quality, and efficiency. Until the end of 2021, the total assets were 29.1 trillion yuan, and the loan is 17.2 trillion yuan with .2% of growth. And with the 2 trillion RMB increase, it has reached a record high. Customer deposits reached 21.9 trillion RMB and up with 1.5 trillion RMB. And among this, we have exceeded more than 1 trillion RMB deposits. So the net revenue is 7,199 trillion RMB. So the net profit is 241.9 billion RMB. So the weighted average return, ROAE, increased by 22 base points. And the non-performing loan is only .34% dropped by 14 BP compared with last year. The second one is we make every effort to make the leading bank of rural revitalization. And the business benefits of agriculture, rural areas, and farmers are further highlighted. Until the end of 2021, we have newly added 913 billion RMB. It takes about 36% of the loan of this deposit and balance account. And we all have reached the new highs in the past decade. So loans in key areas of the rural revitalization have a good momentum. With the growth rates of food security, rural industry, and rural construction loans are reaching 17%, 20.6%, and .8% respectively. So the results have been achieved in consolidating the achievements in poverty alleviation. So 832 poverty-stricken counties and 160 national key rural revitalization counties were .2% and 15% growth, and which were all higher than the average loan growth rate of the whole bank. The digital financial services in rural areas have achieved remarkable results. The online farmer loan, the preferential E loan, has a balance of the growth rate of 54%, serving 3.68 million households of farmers. The third is we continuously improve the accuracy and adaptability of financial services and efficiency. So focusing on the national and regional major strategies, key projects of the 14th five-year plan and strengthening the comprehensive financial services. In 2021, we increased loans for major projects by more than 600 million RMB. And for the major local projects, increased also significantly, continuous promote the increment and expansion of inclusive loans and the balance of inclusive small and micro enterprise loans increased by 38.8%. And for the speed of growth has already exceeded 30% for a consecutive three years. We also have 1.9 million of manufacturing power increasing the support of manufacturing industry. The balance of manufacturing loans increased also by 18.5%. So for mid and long-term loans and high-tech loans are with 39% and 26% growth rates, respectively. We also improved the financial services for science and technology innovation. The service coverage of little giants enterprises specializing specialties reached 60% and the loan balance of strategic emerging industries will exceed 850 billion yuan. Actively practice the concept of green development and vigorously implement the strategy of green finance with the balance of green credit reaching 1.98 trillion yuan, up by 30%. So the fourth is we adhere to customer first and constantly strengthen people's livelihoods financial services. Continue to extend the service tentacles to counties and remote areas. In 2021, the relocation outlets of 65% have been distributed to urban rural fringe and the counties and towns. Stretching the supply of people's livelihood financial services such as housing, education, medical care, healthcare and old age care. We will promote the aging and the barrier free transformation of financial services. In 2021, we have altogether visited the special groups with our home visits. It's about 0.23 million times and provide customers with inclusive, fast and more sensitive financial services. Strengthen the protection of customer rights and interest. Set up the customer right and interest protection department and optimize the complaint response mechanism of various channels. Further unblock customer complaints and respond to customer demand. Strengthen the empowerment of science and technology and achieve landmark application results through digital transformation. Mostly mobile banking customer exceeds as the number one in this industry, up by .4% and with the registered user over 1 million. At the end of 2021, the online loan agricultural bank of China E-Loan has increased by 63.2%. So for this online finance has already exceeded 100 billion yuan. Smart marketing, smart risk control, data center and other projects have steadily advanced. It's consolidated the basis of digital transformation. So digital transformation, digital risk control, data, middle office projects have all been steadily advanced. Consolidated the basic support of digital transformation of the agricultural bank of China. Accelerate the transformation and innovation and further consolidates the foundation of long-term steady development. Continue to promote expanding household and improving quality with a total number of 878 million households for a safety leading business company has also up by 7.6%. We also accelerate the management of wealth system constantly enrich the supply of products and services such as found insurance, wealth management, family trust, the number of private banking customer up by .6% compared with the end of last year. The balance of assets is 1.85 trillion RMB and the asset of wealth management product reached a record high reaching 2.07 trillion yuan. Deepen the integration of local currency and foreign currency, group integrated operation, improve the linkage marketing service mechanism for corporate customers and continuous enhanced international and integrated service capabilities. Seven, actively respond to risk challenges and keep the risk bottom line. So the new adverse trend is improving and the incident of adverse events is .69% drop by .2% compared with down by .27% compared with the end of last year. So the indicators have improved significantly. Those overdue loans and concerned loans have all achieved reduction. Directly identify non-performing loans and the ratio of overdue loans to non-performing loans is 75% which is lower by .2% compared with the end of last year. So the risk offsetting ability continues to be improved and the provision coverage ratio and the loan to found ratio continue to rank first in comparable competitors in the industry. Promote the integrated management and the control of risk to penetrate the management of 10 trillion RMB market business assets to ensure the market risk can be clearly seen and managed completely. Comprehensively deepen the construction of compliance system and strengthen anti-money laundering and sanction risk management. Continuously optimize the IT technology agriculture. Strengthen the construction of disaster recovery system and upgrade the network of security and data security defense system. Eight is to strengthen capital conservation, capital refining management and the lean management have all achieved remarkable results. Vigorously reduce the high capital consumption business. Clean up inefficient and ineffective capital occupancy through multiple channels and increase up by .44% compared with last year. So the year 2022 we will implement the socialist modern country in a well around the way led by President Xi Jinping and we will also comprehensively implement the study progress accurately and comprehensively implement the new development concept. Strive for development, promote performance, transfer management and risk control to right with our full effort a new chapter to high quality development. Promote construction of world class commercial bank groups to achieve new breakthroughs and create a greater value for the country, society and shareholders. Thank you so much for Mr. Zhang. Just now President Zhang gave a comprehensive introduction of the bank's performance in 2021 from the aspects of serving rural revitalization, serving the real economy, promoting the fast development of green finance, strengthening science and technology empowerment and strengthen customer first and empowering because of science and technology and the industrial restructuring and he has given a very comprehensive introduction of all the performances and also look forward to the next step. So with very concise introduction and complete conclusion I believe you definitely have been impressed by his introduction. Thank you Mr. Zhang one more time. So now we will come to the QA session. In order to take care of all the friends attending the as much as possible please only ask one question and when you ask questions please first share with us who you are with and the organization and your name. So now let's have with us the first question. So hello if you want to raise a question so you first press number one and stop so now we have with us CICC Zhang Shuai Shuai. Hello thank you so much management team for giving me this opportunity. I am analyst from CICC. First of all I would like to congratulate the bank on this great performance especially after shouldering a lot of strategic tasks of China. So 12% of the profitability increase is actually definitely the best of the past few years because for the financial data has just been released so we really want to know the detailed information and can you help us to share with the more how do you view this 2021 profitability and if for the breakdown of profitability what are the driving forces of that and I also believe for the capital markets there are also a lot of investors really are interested in this reduction of taxation and giving the preferential profitability allocation so and also please give me a looking forward and predictability of this profitability in 2022. Thank you so much for Mr. Zhang from CICC for the first question. I would like to have with us Mr. Zhang Qingsong to answer the question. So thank you so much for the question Mr. Zhang. So for this question I would like to talk about the aspects of the answer. First is our overall profitability. For 2021 Agricultural Bank of China we have achieved the steady growth and the steady growth of asset quality comprehensively speaking it is quite exceptional financial performance. Year-round the total profitability has exceeded 719.9 billion profitability for the net profit. So it's up by .8% for the net profit reaching 214.19 million RMB. So for the CAGR growth is 6.6%. It's also the record high in the past few years. So this is the overall profitability. The second aspect I would like to answer the motivation and driving force of this. So there are three. First we continue to strengthen our support of real economy development. For 2021 Agricultural Bank of China we have this 27.2 trillion RMB every day. It's up by a significant percentage. So based on this total scale we also have achieved we have 57.8 million interest growth. And the second thing is about this middle key business has seen steady growth. So we have seen this commission income 8.3 million RMB up by .8% YOY. So for Agricultural Bank of China we have this online finance consumption finance have seen great growth. So the third driving force is other income. Because of this decline of the market interest rates we also have achieved quite high growth. So for this non-interest revenue up by .7% it's .5% higher compared with last year. So this is a lot of like evaluation assets because of this preferential external overseas interest influence. So for this non-interest revenue has seen quite high growth. So this is the second part of my answer. The third I would like to say that it's about reduction of taxation. What is the influence of that policy? My direct answer is for this reduction of taxation so combined with the overall development of Agricultural Bank of China is actually with a complicated one. So finance and real economy are having the complementary relationship. Now we are under this great pressure of the macro economy for part of the company especially small and medium sized companies, individualized companies, they have suffered some difficulties. We are an SOE. We have the responsibility and we also have the capability to give them offer and help. So looking back into the relationship of previous and the future this is the must take decision to reach the neutral development. In the past few years we always have taken this down to earth practice to reduce the taxation and then for the efficiency and quality of our operation have also been improved. Before 2021 the previous years are required by the central government to also realize the commercial development of us. The last is about the prediction of profitability in 2022. In 2022 Agricultural Bank of China will comprehensively implement the high quality development, continue the transformation and strengthen this scale and the quality development and also lower cost, control risk and improve efficiency. So comprehensively improve this financial performance indicator to step up a new high. Thank you so much President and Mr. Zhang. So now let's have with us the next question. Next question is from Xinhua News Agency, Li Yanxia. Thank you. This is journalist from Xinhua News Agency. My question is about this loan. So since the fourth quarter so many banks have already stated your attitude about optimizing the structure and can you talk about this the 2022 the key loan issuance direction and in the past few months what are the loan performances and what is the overall annual growth target of loan? Thank you so much for Madame Li from Xinhua News Agency for this question. We will have with us Mr. Zhang Xuguang Vice President. Thank you so much for your question. In 2021 at the end of last year the overall loan scale is 11.2 trillion up by 2 trillion RMB and 13.2 percent compared with that of last year. I would say that it's reaching a record high. So there are six different characteristics. First is the focusing on this the main business of agricultural bank strengthen this loan support of rural revitalization. Until the end of last year we have 6.2 trillion. It's more than 900 million RMB increase compared with the average level by 4 percent higher compared with the industry average. So I would say that for this balance of the rural revitalization loan so for this scale and the equity have all reached the record high up by 36 percent. So for the key project and for the increase of the business we also have reached steady loan support and therefore carbon peak and carbon neutrality targets we have vigorously improved this green economy. So compared with last year it's up by 42.9 million RMB and therefore this science and technological innovation loan manufacturing loan is the 1.7 trillion RMB and up by 27 million increase compared with the early days of 2021 up by 13 18 percent and for small mediums by the micro business so compared with the end of last year so it's up by 32,700 households compared with the end of 2022 or 2020. So for this non-inclusive loan compared with last year it's already up by 39 million RMB up by 38.8 percent compared with last year. So growth rate is as high as 14 percent so 2022 we will still cautiously implement this decision making of CPC and all the regulatory requirements of security regulation and for green management green economy small and medium sized developments and rural revitalization we will support more for those weak aspects until the end of February all the loans have already achieved steady growth compared with first days of 2022 it's up by 69 million RMB so for the entire year of 2022 we will actually seek to steady growth and then with steady growth as the basis we will strengthen this loan issuance to facilitate this micro economy development so we think the increment of the loan will be higher than last year and the growth rate will be higher than 10 percent thank you thank you so much for Mr. Xu Guang. So now let's have with us the next investor so the next one is from Hong Kong Wenhui so Madame Luo Hongxiao hello I'm journalist from Hong Kong Wenhui newspaper so I have noticed that for last year for non-performing loans have already dropped by 14 BP and we also have seen this quite good trend I want to know that for 2021 what are this regions and the industries having this non-performing loss and how do you look forward to this year's trend so what are the regions and industries that you want to pay attention to what are the measures that you could improve this overall beneficial and advantages trend of that so thank you so much for this question so here we will have with us Mr. Zhang Qingfeng to answer this so for asset quality this is a very big issue and concern of agricultural bank of agriculture so it's already 17.2 trillion RMB for the loan scale for the end of last year so for the speed and the scale have already been accelerated and broadened so generally speaking we could have more and more actually big base and then more and more think of China's the non-performing loan and our management and the process I would like to do the report first of all we have always paid a lot of attention to risk management and we have already got this risk management in advance and we have also seen this very good improvement of the quality so first of all for this non-performing loan at the end of 2021 it's 1.43 percent of this non-performing and it has already dropped a big percentage with a total of 24.8 million RMB so compared to speaking yoy it is lower by 18.1 billion RMB and the newly increased non-performing loan is a 0.9 percent yoy decline is 0.7 percent so for this overdue and the concerned loans have all reached the reduction this is what I say it's like a prerequisite indicator until the end of 2021 so the overdue loan so it's 184.9 billion so the percentage of this overdue is 1.08 percent drop by 0.21 percent compared with early days of 2021 concerned alone for the balance so it's 283.1 billion RMB dropped by 51.3 billion so for the rate is 1.48 percent dropped by 0.53 percent compared with early days of 2021 for asset quality has been significantly reflected so until the end of 2021 so the overdue and concerned one is 74.24 percent drop by 7.18 percent compared with early days of 2021 so for risk management and predictability I think our capability has been further strengthened and for multi-time coverage it's 299.73 percent up by 33 percent compared with early days of 2021 so for multi-time loan is 4.3 percent up by 0.13 percent compared with early days of 2021 so this is the multi-dimension that I have prescribed this the overall quality of our asset so I have already reported that we have already over 700 billion for our revenue and the next one is about the multiple loans that is balance is also over 700 billion so from what I have said it's about it's 245.8 and combined with this concerned one is less than 500 billion RMB and for our multi-time balance it's over 700 billion so this is how we could offset any possible risk and this is the resources of that so now I would like to talk about some overseas asset quality prospects generally speaking when faced with very comprehensive environments so for agricultural bank of china's asset process we still are very confident first of all for the overall stability of Chinese macro economy we are very confident second of all we are also very confident about our own risk offsetting the risk management we are very confident so here I would like to give a very comprehensive report so about the stability of that we believe China is still in this significant strategy opportunity so the basic strategy of economic development has not been changed although amidst the economic development we will have transient challenges and difficulties however with the central government's overall tone of stability and stable growth we believe the Chinese macro economic portfolio would still have this very stable development so for this overall development there are several aspects that I would like to report first of all we would like to implement the strategic direction given by the central government and also having this detailed and differentiated and we find the lane management of all these so from this credit issuance and risk offsetting risk alleviation and all these assets for the whole process so this is for the basis of our credit management second of all we are constantly strengthening this credit risk so 2021 we have promoted this main creditor's responsibility system we also have promoted this revolution of the evaluation system and the structure of all that we have further consolidated all the different local banks and the loan management for the specific responsibility and credibility so third aspect agricultural bank of China has deepened the digital management transformation so for this forward and in advance risk management and implementation of that to establish this recorded management platform to realize this online and offline integrative management so the fourth aspect is we have focused on this key aspect focusing on this scanning risk and the prejudgment of the risk for real estate companies micro and online loan and the local government risk prevention for the possible risk management we have this name based management and accelerate the alleviation of them to make sure that we will have this early discovery and early treatment the fifth aspect we continuously promote the utilization optimization of loan structure for different regions so different regions significant strategies the provinces and the cities the increment of loans takes 91.03 percent of the overall loan so for too high and one new industry percentage chopped by 0.93 percent compared with early days of 2021 so for the speed of loan issuance is lower than the average increase is by 7.65 percent for customer structure for internal evaluamnt of a plus customer loan taken up as high as 80 percent of this increment loan for the existing ones is exist for the existing ones is approaching 75 percent this is what we call about legal person loans for agricultural bank of china has always paid a lot of attention to individual loans including the farmers loan and the expansion of farmer household loans so for this individual farmer loan and the farmer household loans have also seen steady growth so for the existing five aspects i have already talked about the overall positive condition i am very confident to say that so from these five different aspects i have given the due responsibility and explanation so this is what i am doing the report and this is also my commitment thank you thank you so much for this very comprehensive explanation so now let's have with us the next one is from financial times hello for the management this is journalist from financial times my question is about personal mortgage so for 2021 how is this mortgage profile in the first two months have you issued of the mortgage so what is the strategy change of the mortgage and what's the key direction of this mortgage issuance so thank you so much so here we would like to have with us mr min yu vice president so thank you so much for this uh paying a lot of attention to individual mortgages already for nine consecutive quarters we have already achieved a very good one so for 2021 we have 1.1508 trillion rmb for real estate personal housing mortgage so it's already up by 50.2 billion rmb so for this newly issued mortgage rate is 5.46 so for the risk rate is about 0.36 percent lower by two bp compared last year for the first three months of 2022 for the accumulated issuance and the newly added one it's still maintained a quite stable growth for 2022 we will continue implement this real estate macro control regulations and to do a cautious work of the issuance of housing mortgages there are two key aspects first is accurately control this cautious management and the guidance demand to implement differentiated mortgage strategies to focus on those improvements and the rigid demand demands so to make sure that when we are totally compliant with the regulations and the rules to realize this monthly quarterly and systematic stable issuance and this is the basis of our business we have already designated this housing mortgage for farmers as exclusive products so for those farmers and users having the ability of acquiring real estate and also being compatible with this housing purchase regulations we will actively serve them and improve their livelihood with our financial services thank you so much for Mr. Ying Li so the next question the next is from UBS hello I am from UBS analyst Wang Bang Yan thank you so much for management for giving me this opportunity my question is about inclusive finance I want to know that for 2021 for inclusive finance what is this increment of that and whether the profit can cover the cost and what is the quality of inclusive finance how do you deal with all the difficulties and challenges and this year's target of the development thank you so much madam Wang from UBS so for this question we will have with us Vice President Cui Yong to answer this thank you so much for the host so for this question I think there are many points I would like to talk from different five aspects to do this introduction so first of all I think for 2021 we have given full play to this multi-votes and with this comprehensive online and offline development I think we have comprehensively realized this central government and our board of directors the yearly targets have reached the high quality development of inclusive finance there are several data that I like to share with you until the end of last year so for the quality scale it's already 1.32 trillion RMB with the increased rate of 39 percent with the total amount of 370 million RMB for the consecutive three years we have reached over 30 percent of the increase so from customer aspect it's already 1.91 million households up by 0.35 million households with the service coverage being extended to a further extent so the second dimension is for last year for this inclusive finance for small and medium sized one is the 4.1 percent of the low rate interest rate is being stable and being reduced so from the cost which we all pay a lot of attention to actually we have already been encouraged to have this small size loan and for the preferential inclusive finance we have also reduced the interest rate so for tech businesses they have also adjusted our taxation and fees to lower the fees so all these have already effectively supported the sustainable and comprehensive development of this inclusive finance we also have actively improved this digital transformation for this operation cost and the risk cost of inclusive loan has all been reduced so with this policy support agricultural bank of china is confident to realize this expansion and lower the cost and to improve the quality third aspect from the asset quality at the end of last year for this the non-performing rate is only 0.73 percent it's dropped by 0.22 percent compared with last year so with our internal evaluation i think the overall risk is manageable so for the fourth dimension is for the preferential micro one is with a small scale and low capability of anti-risk i would like to say that from the overall demand so for this overall finance there's still big space for that there are some data that i would like to share with you from the end of last year 2021 for the overall market i would like to say that we have 150 million households for individual business owners it's about 100 million households so for small and medium-sized legal persons is actually 90 percent are all small medium size the ones so for this 150 million households at the main market for the entire banking industry we have given them financial support with those demands and also having our financial services it's about 33 million households it takes about 20 percent of the entire market so a major this 20 percent for our bank of china we are serving a big amount of customers however we only serve 1.92 million so you can see that the demand of the customers and for the scale of our service there's definitely huge space for such development and for the so many years our agricultural bank of china has still stuck to this small size one i would say that we only have about roughly 0.6 million per household on average so for all these aspects based on this internal arrangement and the management team policy design and we are also accelerating this digital transformation with digital methods we could realize this inclusive finance to improve the quality expand to the coverage and lower the cost and the government is also boosting the overall financing platform so agricultural bank of china will actively improve the support and strengthen the data analysis to comprehensively improve the capability and the risk control competence so the fifth aspect is for the next one we will still speak to this being stable while controlling the risk management and we also will have this precise positioning and discovery of all the customers and the precisely control the risk at the first class inclusive finance and comprehensively realize this government work report about this increase of inclusive finance of small medium-sized and macro businesses and have this sustainable high quality development and thank you so much for your concern and i would like to welcome all your concern for all this social wide inclusive finance thank you so much for mr joe and now let's have with us the next question now let's have with us shu yan from morgan stanley thank you so much for this opportunity so we have talked a lot about different things and i definitely have already heard this a very big individual customers from agricultural bank of china i want to know that for mobile bank what is the construction of that so for this overall scale and the mau and what is the status quo for the active users and any other approaches to further improve the service of mobile bank and the product and the dimensions of that thank you so much okay thank you so much for mr shu from morgan stanley so here we would like to have with us mr shu fax as the vice president so i would like to answer for 2021 for this mobile bank construction until the end of 2021 for our personal mobile bank is already 411 million up by 55 million we have this individual mobile bank reaching over 100 million as i said this is definitely ranking the top of this entire industry compared with last year 2020 it's up by 49.46 million households so it's up by 13.58 percent so reaching 86.27 trillion this is definitely very worthwhile to mention so in order to realize this result we have done three aspects first is we strive to have a more excellent working process last year we have this version 7.0 of our mobile bank we have done 10 times of the major upgrading and for this speed and the basic structure have been significantly improved we have got this cloud assistance and all kinds of natural verbal answers and we also would identify their demands with this verbal interaction having this deposit checking statement checking and for this time and efficiency to have realized this ecological system of a micro mini program and the applications of mobile bank so we have focused on rural area of services we have this rural revitalization wealth management and inclusive preferential rural loans and preferential spots just exclusively owned for the rural so we have already over six million users for the rural version of the mobile bank so for this industry we have a first to launch this one button connected to person customer service assistant so for this transfer transferring of money and to solve this language barrier of different minor ethnicity users then third is to improve the value of creation to have this digital characterized once and then to have this analysis of expenditure and income and also have this insurance product and also have this wealth diagnosis and asset diagnosis in 2022 we will carry out the continuous improvement and optimization of that first is optimizing this customer scenario expansion to enrich this scenario and also to comb through all those working and scenario living scenario to improve this smoothness and convenience of that to be based on this high quality and easy to use convenient to use quality and improve the overall loyalty and protection of the users and have the differentiated diversified customers and services faced with the rural area and the farmer and the rural region to also face with the silver hair people and for all those remote areas minor ethnicity users and also have the Tibetan language in the Mongolian language multiple language services faced with the rural and the urban to have this individual exclusive interface of different cities to have this online offline integrated service platform to strengthen this business sites and inclusively owned services and then to have this overall improvement of the coordination and the collaboration of different sites thank you so much that's all for my question and now let's have with us the next question now let's have with with the Bank of America Mario Lynch Winnie Wu thank you so much for this question I would like to ask something about the capital management so I'm very happy to see for our core management it has this significant improvement of the fourth quarter I would like to ask for 2021 for this wealth value increase increase rate being fast what is the reason for that and what is the arrangement and the plan of that and therefore this is a key light requirement so do you have this asset increment policy and the plan thank you so much for madam Wu from Bank of America Mario Lynch now let's have with us Mr. Johnson thank you with thank you so much for your question so from four aspects I would like to do the answer first of all so agricultural bank of China seeks to this asset management competence and optimize this long-term mechanism of asset and to improve the level of asset liquidity and until the end of last year is 17.13 percent of the whole rate up by 0.54 percent compared to the end of 2020 so for 13.46 percent up by 0.54 percent compared last year so for this core operative asset liquidity is 11.44 percent compared with the end of 2022 is up by 0.44 percent so for this asset abundance increase is mainly attributed to this overall inborn strength of asset attraction and this asset conservation strategies implementation and this outbound so it's about this innate growth of asset has been improved continuously in 2021 we have continuously expanded this strength of serving this real economy so for this long business with quite high profitability is up by 3.3 percent compared last year thanks to this overall financial bank has already achieved a 247.2 million rmb up by 2.53 million is up by 11.7 percent so with this similar dividend issuance the overall profit is higher than 11 million rmb it's a yy growth of 1.96 million rmb for the abundance is actually higher by 12 bt so for this capital conservation strategies have been effectively implemented the continuous optimization of asset structure until the end of 2021 so low asset individual loan percentage compared to the end of 2020 is up by 0.5 percent for national bound security bound and financial company bound compared with the early days of 2021 is up by 1.7 percent you know for national bound it's zero weight and it's also very low weight of this security and the financial bound at the same time we also have strengthened for this low efficiency or non-efficiency asset we cleared all these percentages and all this implementation of the policies of expenditure conservation so it has increased this 28 bt of this overall core business asset so the third thing is we have realized this internal individual development for 2021 agricultural bank of china for this is 5.1 percent so i would say that for now financial asset increase rate is 5.1 percent for this weighted one so it's 1.8 percent less than the speed of the asset growth so for this overall percentage taken by that for this overall one is 61.4 percent compared with early days of 2021 is down by 1.5 percent so this is for outbound asset has been come so we also have issued this perpetual down because of the market situation so this is the first point of my report second one we have stipulated this 2022 to 2024 asset plan so for our asset plan compared with last session of the it's up by 0.5 percent that is to say for this new session for the core operation asset for tier one assets will be no lower than 10 11 and 13 respectively the last one is about assets abundance and liquidity so the third aspect is about for this next step of the target we have concerned that we will continue

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optimization of asset management and consolidate this up to standard standard and the second one is about this having this replenishment of out size support and that focus on the market sees the market opportunities to rationally stipulate policies and implementation of that lastly about financial replenishment i would like to do the following conclusion so that agricultural bank of china will be based on ourselves comprehensively improve the asset management confidence and to have this demand and supply balance this innate cycle and for other kinds of assets based on the market situation to have appropriate and moderate support replenishment thank you thank you so much so now we will have with us the next question the next is from city john doja thank you so much for this question i'm john doja from tt i would like to ask about this interest margin and forget so can you talk about the 2021 this net interest gap and then for this liability cost and then for this lpi so we all have this a slight reduce so how do you talk about this new gap of that because we are in this decline of interest trend so now that's with us the vice president the johnny to answer this thank you so much for your question it's about this net interest gap so for the last year we have reduced this net interest gap so this is in line with the overall industry trend so in the past few years we are seeing this channel of interest being lowered so for the expansion of that is the comprehensive and the overall trend last year is a 2.12 percent down by 8 bp so from revenue and profitability so for liability and it's all down by 5 bp and 3 bp for the asset profitability in the downward trend is actually the main reason so from the asset decline we will analyze the reasons on the one hand it's about this interest rate is down by 9 bp so one is about agricultural bank of china comprehensively strengthen our reduction of fee and lowering this newly issued loan reduction and the second one is about the 2020 for lpr decline is this release of the accumulated effect you know that in 2020 for lpr being lowered it's down by 30 bp for five-year lpr is down by 15 bp especially first quarter of last year it's this uh fixed pricing of housing markets these have all reduced our profitability it's actually down by 15 bp so this is about this interest one is down by 9 bp so the next one is about the overall structure optimization it's up by 4 bp so we have already mentioned that for the overall structure optimization and the conservation of the asset it's also improving the interest so we have having this increasing loan percentage and for this high interest rate loans have all been increased in its overall coverage so i would like to report it's mainly about the asset influence second of all i would like to report for this 2020 prediction of the interest gap we expect our bank's gap will still go down however for the overall trend is obviously going stable because since december last year for one year lpr and five-year lpr have all been down by 15 bp and it would lower the profitability of our asset aspect however since june last year for the revolution of deposit incentive it has significantly stabilized this liability so from asset and liability it will lower the comprehensive financing cost of the companies we have given it a bigger space so from asset aspect we will expect this slight decline of that we will continue to give profit to the real economy we expect this newly issued loan and this newly issued investors loan the interest rate will be lowered so this is making the decline of loan and investment however with the optimization of investment and the overall loan will be still further improved but to a certain extent it will lower the pressure of this declined interest rate and it would also stabilize the cost so for the overall revolution of this deposit incentive would have seen accumulated ones so when we reprice this deposit so we will alleviate this rise of the pressure after this two-year and three-year deposit you already seen that the market-based interest rate is going down as a continuous trend so we also have this reduction of the overall cost it would make us alleviation of this liability pressure to make it very stable so this year we will further strengthen this net interest gap to alleviate the pressure so from two aspects on the one hand it's strengthened with the two-way combination and with this optimization of the structure to include this overall retaining bank strategy to improve the overall proportion and the optimization of that and also strengthen and accelerate the digitalized operation and to have this low term and the short-term loans and to have this interest risk management and to alleviate the pressure of the decline interest rate thank you so much Mr. Zhang Ying and now we have with us the next one the next is from First Finance Xu Yanyan so I am the journalist from First Finance my question is for 2021 for green finance what are the key selling points and what are the approaches for what is the 2022 target and the specific approaches thank you so much for Madame Xu from First Finance so for this question we will have with us Mr. Zhang Xuguang to answer this thank you so much so we pay a lot of attention to that and we constantly promote that and to have this comprehensive optimization and revolution of a green finance until the end of last year for the balance is already reaching 1.98 trillion RMB up by 30.6 percent first is the speaking to the strategy leadership so for board of directors we have already issued the committee of the development and the green development so we are the first one to have this working committee of carbon management and the green development and we have put this a green finance as one of the three key strategies the second is to speak to innovation driven we have successively promoted wind power solar power different loan and credit policies of this aforementioned new energies and for green husbandry green rural industry development and for this beautiful rural loan and rural revitalization loan and the low carbon loan etc. we also have a lot of green sound investment businesses and third is speak to this risk management strengthen this social coverage of risk management and this whole process risk and control so for this now green environment once and for this high energy consumption to have this limited one and to this the pre warning of that the fourth is to promote this green finance and this connecting to this internet so for 2020 we will carry on this low carbon sustainable one so it will include this carbon peak and carbon neutrality to promote the healthy and sustainable development of green finance and to comprehensively implement this strategic allocation of carbon peaking and carbon neutrality and to first focus on this health development to lower the carbon emission and guarantee the food security energy security to lower the space and pace of this reduction of cost and the carbon to facilitate the restructuring of green finance and then continuing the restructuring and optimization of the scale and the financial support to be expanded to guarantee that the speed of a green finance loan will be higher than any other of the other products and to have the specified carbon emission and the energy reduction we have already implemented several products in next one is actively promote this green financial product revolution and to cover green finance green bound green security and green foundation this diversified financial portfolio and to strengthen this global and nationwide carbon market lastly to rigidly implement this carbon emission and energy implementation to improve this whole system energy reduction and to construct this green bank thank you thank you so much for mr shugong now let's have with us the next question next is the 21st century business report business harroid li-ye so this is from 21st century this is the harroid i would like to ask for this real estate loan issuance for 2021 and for this the asset quality has it been influenced by this asset market and how do you look forward to this risk of that and any changes of this loan issuance policies thank you so much for mr lee from 21st century so here i would like to ask the journalist and i read your paper every day so i think it's a quite a challenging question but i would like to try to answer this for 2021 we still seek to this not focusing on this investment aspect of this real estate market and then to manage this credit market to strengthen this livelihood guarantee and a shared ownership loan guidance and try to satisfy this reasonable residential demand for this balance of a real estate once and for the two concentrated indicators have all been lower than this upper limit and this is the only one the real estate concentration level for the two indicators have all met the standard so until the end of 2021 we have this legal person balance is 430.3 million it's up by 17.7 percent so now for performing one is not too high so with this the downward development and this risk exposure of certain real estate companies for the non-performing loans have been seen arise however the overall risk is controllable so here i have some data to share with you and for this overall bank non-performing rate is only 0.64 percent for individual loans is better than this legal person development law why do i say it's comprehensively controllable because for our bank we have strengthened this entry management of real estate markets constantly strengthen the source management of loan and credit risks and also strengthen the mortgage vouchering and the asset things and to risk have the risk management sticking to this different threshold and the time point and also go with this a different local departments to guarantee the delivery of the houses and delivery of the guarantee of livelihoods and have this alleviation of the pressures and offsetting the risk so for the overall risk aspect i would like to say for the overall real estate industries market is still concentrated on a limited amount of large scale real estate development developers especially those with overseas wealth management and overseas trusts with this a non-bank source big percentage of their financing system so since fourth quarter of last year the regulatory departments have already taken multiple measures to lead the different commercial banks to satisfy this reasonable financing demands however i think the expectation of the whole industry is still being remedied so for the speed of investment has not been reversed so for certain risk exposed developers and with the tension of their cash flow have not been alleviated as you expect that they will still suffer from certain risks to be exposed so for the loans of all those different larger scale developers we mostly have collateral and the risk of loans are still controllable so the third aspect is looking into 2022 for agricultural bank of china will rigorously implement this central government adjustment of the market is still sticking to this stabilizing of this price of real estate unit price and to control the risk prevention and control so first of all we will center this livelihood guarantee feature of real estate market to rigorously support the construction of lease and purchase and mainly focus on those rigid support and this basic livelihood support projects to guarantee the reasonable development of that so for the real estate concentration we will make it be compatible with that next one is about going back to the this post-loan issuance ones and then manage this whole process management and then based on this merger and acquisition to actively promote the alleviation of the risk to have this comprehensive management and health management thank you so much that's all that i can talk about from these aforementioned dimensions now let's have with us the next question so now let's have with us Hong Kong business daily so thank you so much for management team for giving me this question and I would like to talk about the rural revitalization results in 2021 and for this I hope that the management team could also look forward to this how can we based on this number one document to carry on the implementation of rural revitalization work thank you so much for madame zeng from hong kong business daily so here we will have with us mr. Zhang Qingsong to answer that so thank you so much for the answer I think for the focus of our main business for agricultural banks of China a very important thing is about so you can see that we hope that we could for the early days of our press release I would like to talk about several data and the business I wouldn't talk too much about this because I've already talked a lot about the rural revitalization and here I would like to talk about several aspects so you can see that first of all we could focus on this rural revitalization chi financial services last year we have issued about this rural industry food security designated work plan to have this code chain logistics and agricultural food designated policies until the end of 2020 but there's a key aspect the balance is 113.78 million rmb and up by 17.5 percent and 20.6 percent of increase of rural revitalization for construction the balance is 1.28 trillion rmb up by 14.8 percent the next one is the construction of the consolidation of poverty lifting so agricultural bank of china has established 11 different policies 158 different financial support policies so we also have guaranteed this poverty lifted areas credit increase until the end of 2021 for the counties of a party lift one is 1.74 trillion rmb it's one percent higher than the average growth rate of the whole bank for the key support counties it's 21.66 million rmb so it's 1.8 higher than the average of the bank wide loans so third is we have to be constantly revolutionized this loan issuance to have this quite complete financial service system for 2021 for this headquarter and the different regional banks have already got 55 different featured three rural associated products until now we have 10 100 billion level products and this is the restructuring and the breakthrough of this three rural products so just now we have talked from different aspects to have shown that the digitalization of rural issuance and about this revitalization of that so here i would like to give you one example so i would like to say that so for the end of 2021 it's already over 40 percent of the growth serving 3.3 million households of farmers you can calculate on average so per household it's actually about 0.15 million rmb and i would like to say it's a very inclusive and preferential one so how can we do that we haven't included that and we still have so many different branches and we have so many different small value loans and they are very scattered so we use this combination of online and offline to use our mobile bank and with our digital risk control to do that so i would like to say that we have effectively do this farmers loan and then this is also a significant increase of first quarter so without digital transformation agricultural bank of china hopes to do this rural revitalization bank is very hard so we would actually be designated and devoted to this focused and professional rural revitalization support bank we need to have the digitalization so we need to improve efficiency and quality until the end of 2021 for this county level loan has up by 12.2 percent higher by 3.7 percent so it's also higher by 0.1 percent bank wide so for non-performing is 1.42 percent dropped by 0.1 percent reaching this five-year low record low so it also has increased our risk alleviation capability so i would like to say that for county level business this is a very good responsibility taken by us to implement a national strategy it's also the strategy and competitive edge of agricultural bank so you can see that it has given full play to this financial services to have this leading bank of serving this rural one so first is strengthen the support and consolidate this poverty alleviation results second is comprehensively focused on this rural revitalization for the security of the rural city industry development and the rural construction third the adherence of innovation-driven service of revitalization of rural areas and the fourth is strengthening technological empowering sixth is to strengthen the mechanism support so we will give this a preferential arrangement of county level loans and to have this financial resources and company resources we will strengthen this different channel of county one so for this allocation and dispersing of the sites will be focused more on rural areas we will strengthen this rural area talents and lead more cadres and staff resources to go to rural revitalization first-line work and to have this enterprise starting so to serve all those the different ones is already the overall grasp of that so for the national resources have all been supported to that the rural areas one and for this traditional ones including this online and offline combination and to have this three different rural related ones the digital transformation one and also has this a certain scale effect it is implementing this mission given by the central government it has also been this differentiated strategy and it's also this different selling point so thank you so much for this exclusive and differentiated selling and operating one so because of limited time so we will just answer two last questions i think i would like to give this opportunity to that so we would like to choose this top two questions but they have not been covered so i would like so the first question is about wealth management and we have already noticed that in 2021 for this total risk management of rural wealth management and what are the influences so what is the development strategy so whether agricultural bank of china would set this so for all these we will ask mr ling li to answer that so thank you so much and thank you so much for this rural wealth management i would like to talk some four different aspects first it's about 2021 for our farmer wealth management the overall plan all in all we have three different ones the first is we have already seen this uh operative it's the overall scale is 2.2 rmb until the end of 2022 so it's already over 1.8 trillion so compared with the early days of 2021 is over 80 million and it's up by 90 so it all has been cleared for this so for all those indicators have all ranked the top and second is about this core wealth management competence so for investment one so it has already faced with quite comprehensive and completed complicated ones so it's a very good one so for all those indicators it's about the core it has this a fixed interest rate on the basis of this it has got this very cautious and public founded securities and the whole security ones so from practice we think for this strategy it's still correct so for the whole year farmers wealth management has already reached over 60 billion one so it's about 3.9 percent of interest rate over 80 percent of the products have already higher than the comparables in the industry so for the product issuance we have constantly in which the six plus n products one it has already got this the wealth management and the fixed profit and the enhanced fixed profit have all these balanced layout and have also promoted some preferential rural products and the scale have all been improved so for risk management we have strengthened this rigorous and stable operation so it has seen a quite stable performance and it has all never experienced this lost one so for the newly issued product and for our in-house securities have all seen no non-performing one and it has not seen any default so third serving the real economy and it has already got this top level one so for this overall policy support with this designated issuance and increment to support this policy development so for the overall policies there are three aspects first to serve this the national regional key strategy and the rural revitalization so for beijing tianjin and kubei for the overall investment scale is already exceeding 600 billion so we have invested and supported the first ever bank and financial sectors project implemented this provincial level foundation with the overall scale reaching five billion rmb and then we are actively supporting this county level so county level service is already a very good tradition of agricultural of china so they have already purchased over 900 billion with the overall over 43 so it has supported the real economy and it has already got this weighted profit rate is only .3.61 percent compared with 2019 it has down by 60 bp so for these are overall profit is already 5.1 percent compared with 2019 and down by 35 bp this is the first part of my answer second part is it's about this recent influence i will say it's very important so with it's the financial management transition period being ended it has already implemented this new net value evaluation measuring system the characteristics have been shown that it's about this net value management and in the whole working process we have also seen that for this restructuring of this net profit has been shown in three aspects so the first aspect is about the wealth management difficulty is being improved so for this wealth management you have to stick to this standard of this evaluation of the price and second to stick to this price change has been rapidly influenced on this net value of this asset management has already made it more sensitive especially about stock market and the bond market fluctuation for those products you could actually have a bigger fluctuation and then recently we have seen this safety liquidity and profitability have been enhanced it requires us to speak to this customer first so . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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