WeBank, one of China's leading digital banks, has released its annual financial report for 2024. The numbers show a decline in revenues but an increase in profits. Additionally, Tencent, the tech giant that helped found WeBank, has reduced its stake.
Revenues Down, But Profits Up
- Total revenue: 38.13 billion yuan, down 3.1 percent from last year.
- Net interest income: 30.20 billion yuan, up slightly by 0.12 percent.
- Net commissions: 6.59 billion yuan, down 17.96 percent.
- Net Profit: 10.9 billion yuan, up 0.8 percent.
Financial Situation
- Impaired loans (NPLs): 1.44 percent, with a coverage ratio of 4.36 percent.
- CET1 ratio: 11.93%, indicates a sound financial position.
Growth in Retail and Corporate Segments
- Active Retail Customers: 424 million, up 25 million.
- Net loans: 436 billion yuan, up 5 percent.
- Loans to SME: 18% growth.
- Total assets: 651.78 billion yuan, up 21.7 percent.
- Customer deposits: 508.37 billion yuan, up 35.37 percent.
Tencent Reduces Stake
Tencent has reduced its stake in WeBank from 32.73% to 30%, selling 84.54 million shares to four shareholders. Despite the decline in revenues, WeBank has shown strong cost management and operational efficiency, leading to increased profits. The reduction in Tencent's stake may signal a restructuring, but WeBank remains one of the most innovative and solid digital banks in the industry.
