Financial results
For the nine months ended 30 September 2020, the Group achieved a net profit of RMB165,911 million, representing a decrease of 8.7% as compared to the same period of the previous year. Annualized return on average total assets was 0.85%, representing a decrease of 0.17 percentage point as compared to the same period of the previous year; annualized return on weighted average net assets was 11.81%, representing a decrease of 2.54 percentage points as compared to the same period of the previous year. We achieved basic earnings per share of RMB0.45, representing a decrease of RMB0.06 as compared to the same period of the previous year.
For the nine months ended 30 September 2020, the Group achieved an operating income of RMB499,211 million, representing an increase of 4.79% as compared to the same period of the previous year. Net interest income amounted to RMB393,785 million, representing an increase of 9.24% as compared to the same period of the previous year. Net fee and commission income amounted to RMB73,616 million, representing an increase of 5.38% as compared to the same period of the previous year. Operating expenses amounted to RMB160,165 million, representing an increase of 3.42% as compared to the same period of the previous year. Cost-to-income ratio (under PRC GAAP) amounted to 25.95%, representing a decrease of 1.15 percentage points as compared to the same period of the previous year. Credit impairment losses amounted to RMB139,072 million, representing an increase of RMB34,909 million as compared to the same period of the previous year, of which impairment losses on loans was RMB118,950 million.
Assets quality
At 30 September 2020, the balance of non-performing loans amounted to RMB226,213 million, representing an increase of RMB39,003 million as compared to the end of the previous year. Nonperforming loan ratio was 1.52%, representing an increase of 0.12 percentage point as compared to the end of the previous year. Allowance to non-performing loans was 272.44%, representing a decrease of 16.31 percentage points as compared to the end of the previous year.
County Area Banking Business
At 30 September 2020, total loans and advances to customers of County Area Banking Business amounted to RMB5,222,055 million, representing an increase of RMB668,951 million or 14.69% as compared to the end of the previous year. Deposits from customers of County Area Banking Business amounted to RMB8,878,936 million, representing an increase of RMB918,378 million or 11.54% as compared to the end of the previous year.
Non-performing loan ratio of County Area Banking Business amounted to 1.56%, representing a decrease of 0.02 percentage point as compared to the end of the previous year. Allowance to nonperforming loans was 308.14%, representing a decrease of 7.04 percentage points as compared to the end of the previous year.
