Haitong Bank has delivered on its targets with a solid set of results amidst many uncertainties that affected our business in 2022: the extended lockdowns in China hindered the progress of our Chinese related business and the ramifications of the war brought new headwinds to our activities in Europe and Latin America.
That scenario called for swift responses in adjusting the risk appetite and shield the Bank from potential disruptions. That explained the relatively slower first half of the year, which was followed by a strong second half. The Net Profit reached EUR 11.1 million in 2022, well above the EUR 3.6 million, in 2021.
The Bank also expanded the asset base, with Total Assets standing at EUR 3.4 billion, 24.4% above the previous year. The asset growth of EUR 670 million in 2022 was mostly related to the loan and securities portfolios. The Bank has been able to grow assets, keeping asset quality indicators at record levels with a NPL ratio of 1.2% and the NPE ratio at 0.5%. The Bank did not register any new defaults during the past year and credit impairment was immaterial.
From a Capital perspective, the Bank maintains a solid position with a CET1 Ratio of 17.4% and Total Capital of 21.8%.
Alongside growing the balance-sheet, the Bank has also taken further steps to diversify its funding sources, increase the maturity and reducing costs. In 2022, Haitong Bank launched inaugural bond issues both in the EUR and the USD markets, benefitting from an investment grade rating through a Shareholder guarantee. We will continue on this trend to improve the funding structure through innovation and transformation.
The resilience of the Bank shows that the business model is working. Our current position is the result of a continuous commitment from the Shareholder. It also results from the contribution of the Board of Directors that this year will reach the end of its 3-year mandate. During this mandate, the Bank has consolidated its profitability, reinforced its sustainability and took strategic steps with the opening of the Macau Branch and the Paris office. It also emerged from the pandemic in a healthy condition, creating shareholder value and strategic optionality.
As Haitong Bank celebrates 30 years in 2023, it is well positioned to take advantage of growth opportunities and move into the next step of its development in full strategic alignment with the Shareholder and Group.
Lin Yong | Chairman
Wu Min | CEO
