Ladies and gentlemen, welcome to the meeting. Now let's give the floor to the moderator.
Distinguished investors, analysts, and friends from the media, ladies and gentlemen, good afternoon. Welcome to CCB's Q3 press performance release. Thank you for your attention and support and interest in CCB. Today we have with us Chief Finance Officer Mr. Sheng Liurong, Board Office, Asset and Liability Management Department, Finance and Accounting Department, Credit Risk Management Department, Corporate Finance Department, Financial Inclusion Department, Personal Finance Department, Housing Finance Department, Credit Card Center, Financial Market Department, Group Asset Management Department, Fintech Department, Corporate Culture and Corporate Culture Development. I'm Li Jianjiang, Vice President of CCB. Just now we've announced our Q3 results. I'd like to briefly report to you the performance.
CCB has been insisting on President Xi Jinping's philosophy and to implement the requirements and arrangements of the central government and further fulfill our responsibility as a large state-owned bank. We also aim at developing high-quality development and also fully serve the real economy and to seek high-quality development. By the end of the third quarter of 2024, the total assets stood at CNY 40.9 trillion, up by 6.87% from the end of 2023. The loans and advances are around CNY 25.7 trillion. In terms of liability, the total liability stood at CNY 37.6 trillion, up by 6.9% from that of the end of last year. The total deposits are around CNY 22.85 trillion. For the first three quarters, our net profit stood at CNY 257.1 billion, up by 0.7% year on year.
The average ROA is around 0.87%, ROE 11.03%, NPL ratio stood at 1.35%, slightly down, that is 0.02 points compared with the year end of last year. The PCR stood at 237.03%, PTL or Provision to Loan ratio 3.2%. Since this year, we have also been making progress in serving the real economy and to better serve the people. We've strengthened our investment to further promote the high-quality development of the economy. By the end of the third quarter, the corporate loan stood at CNY 14.6 trillion, personal loan CNY 8.4 trillion.
We will focus on the financial services for priority areas to support, to modernize the infrastructure development, and also in transportation inventory, etc., and also including manufacturing, the mid to long-term support for the manufacturing industry, and also to support the priority strategies of the central government and to focus on the main areas like the Greater Bay Area, etc., to support the development. This year, we have been also trying to do a better job in the five priorities of the financial sector. We built the financial service system to develop a lot of integrated financial solutions to support financial and innovative enterprises, especially offering them differentiated solutions. By the end of the third quarter, for strategic new emerging industries, the loans extended is CNY 2.4 trillion. These have actually achieved rapid growth.
In terms of green finance, we further deepened green finance development to promote economic and social development, especially in a green manner. By the end of the third quarter, the green finance loan is around RMB 4.5 trillion, up by 17.95%. For our own proprietary bond investment, especially to green finance, it has also made great achievements. For ESG rating, our rating is much higher than the market peers. For financial inclusion, we focus on migrant small enterprises and to better serve the agro-related customers, focusing their needs and demands to better serve those clients. By the end of the third quarter, financial inclusive loans is around RMB 3.9 trillion. Agro-related is RMB 3.35 trillion. In terms of pension finance, we strengthen our support for the pension industry, offer differentiated solutions such as to implement the national strategies on this part.
We guide our credit resources to the pension-related industries and to better promote the pension finance and also the pension services to create the pension-related ecology. In terms of digital finance, we continuously promote the mobile phone-related development, the digitalized development of our services. For example, we have the Dual Star App, and we've also tried to support the digital economy. For Q3, the total loans stood at over CNY 750 billion, up by 15.98%. Since this year, we've continuously strengthened the granular management at the group level. We stick to the commercialized and sustainable development of the bank to continuously improve the digital transformation of the bank and to enhance the granular management of the group. We've also strengthened the asset liability management, and we established the enterprise-level fund and to offer integrated financial services.
In terms of the business management, in terms of the net interest income, it has also increased. It's better than our peers. In terms of fee structure, we've also optimized the fee structure. We've increased the cost-to-income ratio. Cost-to-income ratio stood at 25.25%. We've also strengthened the intensive capital management to continuously improve the capital efficiency and to guide capital or resources to the asset-light and high-return industries. The current ratio stood at 19.35% to provide a very solid foundation to serve the real economy. We continuously strengthened the fintech development to actually allocate our fintech resources to satisfy the customer's needs and also strengthen the risk prevention, etc., and also to strengthen the digital asset management, optimize the service solutions to our customers to improve the efficiency and the customer experience.
Since this year, we've also been trying to enhance the comprehensive risk management and stick to the concept of risk prevention as the priority and uphold the principle of stability, prudence, and comprehensive risk management, and to establish a comprehensive, proactive, and intelligent modern risk management system and to strengthen the active management of asset quality. We have resolved the risk in key areas and to strengthen the IT risk management and ESG-related risk as well as other new emerging risks. By the end of the third quarter, the NPL ratio is around 1.35%, maintaining stable asset quality. Currently, the global economy momentum is a little bit weak, with major economies exhibiting different or divergent performances. For example, like U.S. and developed economies, their interest rate policy is in a downward cycle, and to guard against risk in key areas, we have made achievements in this aspect.
And also, we have promoted high-quality development such as to provide very good conditions for the sound development of the banking sector. Going forward, CCB will continue to promote high-quality development to continuously strengthen the risk awareness, comprehensive awareness, customer-centered awareness, etc. And we will also try to stick to innovation to focus on our main businesses, and we'll shoulder our responsibility of the financial sector and to improve people's well-being. And we'll take real actions to continuously bring returns to our stakeholders and also the shareholders. Thank you.
Now we're entering into the Q&A session. In order to enable more investors, analysts to have opportunities to ask questions, I suggest you limit yourself to one question and identify yourself before asking questions. Thank you. Ladies and gentlemen, we're now into the Q&A session.
If you want to raise a question, please press the asterisk plus one and wait for us to queue you. The first question from JP Morgan. Thank you. Can you hear me? Yes, we can. Thank you. Thank you for this opportunity to raise the question. He's the first one to raise the question. I would like to know the profitability of the first three quarters, any changes to the first half of the year. So how can we view the performance for the first three quarters? For this question, I would like to invite Mr. Sheng to answer the question.
Thank you. Thank you for your question. And also, I'd like to welcome all the analysts and investors for joining us at the meeting because it's actually not the working hours right now. So thank you for your time. And thank you for Madam Li's question.
Since this year, since 2024, in accordance with the central government work arrangements, we focus on high-quality development as our first priority, especially with focus on our main businesses and to serve the high-quality development of the real economy, and during the process, we've also realized the benign development of ourselves, so we have maintained stable operation. The net profit has increased by 0.65%. The key financial indicators have also been quite good for ROA 0.87%, ROE 11.03%. According to our knowledge, we are in a leading position among our peers, so generally speaking, in terms of operating performance, there are several features. Let's look at the revenue and the cost. There are four features. The first one is the net interest income maintained stable. The NIM has been narrowed down, so firstly, we have been strengthening serving the real economy and unleash resources in multiple channels.
For the first three quarters, the interest earning interest rates have been up by 0.81%. You can also see that actually for the total asset, it's grew by around 6.8%. The interest earning assets actually grew by 8.1%. That's higher than the total asset growth rate. And for loans and bonds, all these assets, they have actually accounted for a large share. So for the first three quarters, the loans and bonds investment, the percentage has been up by 0.92 percentage points. So we've also tried to expand the value loans and control the cost of our capital. And thirdly, we've tried to enhance the refined management of the loan pricing. For the first three quarters, the NIM was 1.52%. We're still ranking among the top among our peers. So compared with that of last year, NIM has been narrowing down, has been decreasing.
We can also see that for a lot of the loans, we can see there has been a lot of decreasing in terms of the interest of the loans. And then in terms of serving the comprehensive services of the customers, the non-interest income has also been decreasing. We can see that for the total banking sector, the fees and commissions of the banking sector have been dropping. And also, we can see this is true for the whole industry and for the fee shrinkage. The shrinkage market is now down, and we have been deeply rooted in building the scenarios. And for example, for credit cards, a very important source of income, credit cards and key products have kept a steady growth. And for non-interest income, had year-on-year increase of CNY 19 billion. That is because RMB Forex has been adjusted back.
Forex gains and losses have been affected. We have also enhanced securities investments. At the same time, for our subsidiaries, there are some equity assets. Mainly, the market fluctuations have affected the fluctuations of assets, so income increased. Third characteristic is cost management has been quite effective. Cost-to-income ratio is leading among our peers. Versus our peers, we have a comprehensive cost management to increase the input-to-output ratio, output-to-input ratio, and we have also kept very good refined management of cost. More financial resources are allocated to strategic push of customer accounts expansion. For the first three quarters, cost-to-income ratio is 25.25% according to international accounting standards. This has been kept at a leading level versus our peers. Fourthly, in terms of the risk and cost control, risk control has been quite effective and down to earth. We have guarded very well the bottom line of risks.
VP Jiang Jiang has mentioned NPL ratio is 1.35%, a decline of 0.02 percentage points compared with the end of last year. PCR has kept a very high percentage, and asset liability ratio has kept a very good sustainability. They also asked about the outlook for the whole year. We can say that China's economy is faring well and turning for the better with more and more favorable factors. You have paid attention. I'm sure that since September the 24th, to promote high-quality economic development, macroeconomic policy regulation has been enhanced. Different departments of the government have released a series of measures, including for monetary policies, RRR and interest rates were cut. For fiscal policy, debt limits have been raised and special bonds have been issued. Support was given to key areas to help local governments to alleviate their debt level.
For the real estate sector, there have also been favorable policies. There are also favorable policies for the stock market, unprecedented favorable policies. Therefore, if you look at the October situation, since the launch of this series of measures, as you know, capital market began to rally. We can see for real estate sector, the transaction volume began to rally too, including some agency business, for example, agency insurance, agency fund transaction volume has begun to rally and pick up. Taken as a whole, market expectations are turning for the better, and the operating environment is also gradually turning for the better. Going forward, we'll center around high-quality development, lay a solid foundation for long-term sustainable development, and seize opportunities to have better results for the key priority areas. It is estimated the whole year profit level can be kept at a stable level.
Thank you for your question.
Next, Xinhua News Agency, China Economic Information Daily, Xu Rui, please.
Thank you. I have a question on loan disbursement and pricing. As we all know, currently, the loan growth rate has been slowing down. So my question is, for 2024 credit plan of CCB, how is the progress of implementation disbursed to which areas and pricing level of Q3? What is the level, and what is your outlook for Q4 and also the credit demand of 2025? Thank you. Thank you for the question from the journalist of Xinhua News Agency. I will respond to this question. At present, domestic economic new and old growth drivers are switching, and the structural adjustment is going deeper, and loan growth rate has been slowing down for the whole society. CCB has kept its support for the real economy.
We are the main force for serving the real economy and the balance to maintain financial stability. For the first three quarters, we disbursed loans and advances increased by CNY 1.9 trillion compared with the beginning of the year, higher than the average level of the whole industry, and we are also consolidating the leading position in the retail sector. Volume and price are balanced. For personal loans and inclusive finance loans, balance reached respectively CNY 8.77 trillion and CNY 3.29 trillion. Both kept a leading position compared with peers. For the first three quarters, personal housing loans and inclusive finance loans, disbursement has been leading in the industry. Personal consumer loans, incremental part also leading in the industry, and the profit level is also kept at a quite good level compared with peers. For corporate loans, corporate loans have been growing rapidly.
For key areas share, the percentage is increasing. First, we supported the economic aggregation transformation, green manufacturing center, and the high-tech innovation sectors. Share of loans have been increasing. We have been supporting the green and low-carbon transformation of society. Green finance, green credit balance is CNY 4.58 trillion, an increase of 17.95%. This is to support. And for aggregation transformation and manufacturing center, more than 300, more than CNY 3 trillion. And this has effectively improved the high-tech innovation enterprises, CNY 2.74 trillion for high-tech enterprises loans. And for tech enterprises, balance is CNY 1.94 trillion. And second, we have also been consolidating traditional growth drivers, credit for infrastructure-related industries, electricity and heating sectors, loans growth rate more than two double digits. And for other sectors of infrastructure, growth margin is kept flat compared with last year.
We are also ensuring the delivery of housing for people, and we are working on the three major projects in the real estate sector and for real estate loans, incremental part, basic capital flat compared with last year. Going forward, our country is pushing forward economic aggregation and transformation with a lot of favorable policies which are playing out with good effect, and Mr. Sheng has talked about that. So the series of new policies with a blockbuster effect means the national economy will continue to turn for the better. This means loan demand will continue to rally. CCB will fully tap the effective credit demand and convert reserve projects to real growth. That credit will have balanced growth and orderly disbursed.
We also promote retail credit projects and consolidate traditional advantages of real estate and keep the steady growth of personal consumer loans and tap the potentials of self-employed individuals, MSE, merchants, and farmers. We also strengthen the financial support for vulnerable sectors of the real economy and continue to work hard on the five major initiatives and strengthen the support for strategic and emerging industries, tech finance, green finance, inclusive finance, pension finance, and digital finance. You mentioned the Q3 newly disbursed loans pricing. At present, since LPR is lowered and personal housing loans lower limit is eliminated and competition is fierce in the market, so for weighted interest rate of corporate and personal loans still at historical low, at the lower level, this is true in the whole sector, whole industry.
While supporting the real economy in order to increase the income level and keep the order of the market, we will adjust the credit structure and enhance our capability to have differentiated pricing with quite good results. In Q3 2024, CCB newly disbursed corporate loans, inclusive finance loans, personal consumer loans, and corporate business loans. Interest rates of these loans have kept at the leading level versus peers. We have been keeping the pricing advantages. That's all for my response to your question. Thank you for your question again.
Next question, Citibank, Zhang Zhuojia, please. Thank you.
Thank you, Senior Management, for this opportunity to raise a question. I'm an analyst, Zhang Zhuojia from Citibank. Senior Management Team, I have a question. On September the 24th, at the State Council Information Office news conference, Central Bank said it will cut RRR and interest rates, and this is having a neutral impact on interest rate spread. What is CCB's estimate of the overall trend of next year?
I would like to ask Assets Liabilities Department to answer the question.
Thank you for your question. In terms of the policy impact, LPR is lowered, and also cut of interest rate for housing mortgage loans and cut of interest rate of the interest-bearing assets of the bank. The RRR cut can release low-cost available stable funds, and the deposit rate synchronous cut can also help banks to offset assets' lowering of income. About the overestimated number, the impact at this moment is neutral, but in terms of the repricing of loans and deposits, the cycles are different.
So in the short term, for the liabilities products, the impact is limited, and NIM of banking sector will continue to be under pressure. About the NIM trend, for the first three quarters of this year, CCB's NIM is 1.52%. CCB continued to keep a leading position compared with peers. Since LPR was lowered and the loans are being repriced, and the effect is to be played out, and the existing housing interest rate is also lowered down. Therefore, deposits will be more term deposits, long-term deposits, and switch to wealth management products. Therefore, in 2025, NIM will still be under pressure. In light of such complex operating environment, in light of the market interest rate changes, we'll make adjustments and optimization of asset liability structure, product structure, regional structure, and term structure and customer structure.
In the first three quarters of this year, CCB's loans, securities, interest-bearing assets' percentage is further increased, for high-cost liabilities are kept at a reasonable level, and NIM's indicator of this year will enjoy a very solid foundation for good faring, and going forward, we will work hard from the following four perspectives to improve NIM so that 2025 NIM can continue to be kept at a leading level compared with peers. First, we'll optimize assets allocation to promote assets' ROI to further increase. While increasing high-yield assets in light of the market environment and our strategic goals, we'll appropriately reduce low-marginal-yield assets' allocation to increase the profitability of the overall assets' portfolio. Second, we'll also enhance our liabilities management capability so that the liabilities cost can be driven down steadily.
Digitalized, differentiated, refined deposit management structure can be realized so that we can increase customer risk capacity so that settlement funds can be increased. At the same time, we will guide and control high-cost deposits' percentage so that deposit term deposits and long-term deposits' impact will be reduced. And third, we'll also have segmented management of peers' customers through optimizing the assets' and liabilities' structure so that inter-peer deposits, financial securities can be used. So that while ensuring stability of the peers' loans, we can also more proactively manage the liabilities and have a more diversified liability structure. Fourthly, we'll also continue to optimize the pricing strategy by establishing disciplinary mechanisms so that while the interest rate is kept at a good level compared with peers, we can maintain the assets' overall return level and stability of the asset return. Thank you.
Next, from CITIC Securities. Thank you.
Thank you. Thank you for the opportunity. I'd like to ask the Senior Management, have you observed that in the policies responding to the insurance market, our agency insurance and agency-bound business have actually experienced some growth, and I would like to know what's your future plan for wealth management business.
Personnel Finance Department, please. Thank you.
Thank you for your question, so for the bank insurance business, we have this new regulatory policy for consistency between submission and implementation. We can see that actually the total volume has been driven down, but actually for the long term, it's good for the high-quality development of our insurance industry. Recently, due to the unleashing of a raft of policies, like monetary and fiscal policies, the risk preference of customers has been increasing. The capital market is turning for the better.
Since the quarter of 2024, the agency business of CCB, the decline has been improved. The growth rate year on year has been narrowed down in terms of the slowdown. In terms of agency business and insurance business, our market share as compared with Q2 has been improved. Going forward, we'll continue to strengthen or stick to the philosophy of strengthening wealth management business and leverage our specialized team for wealth management to better serve the customer and use better asset allocation strategies to serve the customer. We will strengthen to improve the asset allocation for customers and to improve customer experience and create value for them and promote the asset value to be increased and preserved. In terms of agency and insurance business, we've been actively adapting to the new environment of assumed interest rate to enter into the 2.5% environment.
We further promote insurance products to transition from the fixed interest rate plus floating interest rate products, and we will make insurance products for customers to resist financial risks and to better satisfy customers' needs for pension and old-age care. In terms of agency funding, fund business, we'll try to expand the AUM of the fund business and to grasp the market opportunities and optimize the strategies and stick to the equity plus fixed income products and to better supply more products and to enrich our product shelf, and also we'll focus on fixed income products, monetary [vol], and technology-related products, and to actually establish a CCB brand to improve our professionalism in serving the customer. Thank you.
If you want to raise questions, please press the asterisk plus one and wait for it to be queued. Now, Huatai Securities, Shen Juan, please.
Thank you. Thank you for this opportunity. I would like to ask about the question concerning deposit because we can see that there has been rally on the Asian market. So I would like to know if you have noticed that actually the customer for this business have increasing and what are the impact for our deposit business. And also, is it that the interest rate for the deposit is also dropping? So this question goes to the Asset Liability Management Department.
Thank you for your question. Generally speaking, the deposits have grown steadily. By the end of September, the total deposits is around CNY 28.7 trillion. So we can see the personal loans have grown fast compared with that of last year, and it has been increasing by CNY 1.28 trillion. That is 8.5% growth. And in terms of the total percentage, it's about 57.6%.
For time deposit, term deposit, we can see by the end of September, it has increased RMB 959 billion. The percentage has increased by six percentage points. It's also in line with the market trend. Also, for the time deposits to move to a mid and long term, this has been eased. For the above three years' time deposits, compared with that of last year, it has dropped. For the stock market, whether the active stock market will actually kind of divert some of the funds from our deposits, I think generally speaking, it's limited impact. But customer mentality has changed. We can see that there has been decreasing customer deposits, personal deposits, and increasing non-bank deposits. So the active capital markets have a limited impact on our general deposit. By the end of September, there are a series of policies from the government.
Our general deposit from September 23 to October 11th has increased by around RMB 190 billion, and so it has slightly higher than that of last year. For CTS, this customer is around RMB 922 million, so with the improvement in the A-share market, a lot of the customers, we can see that there has been net inflow in terms of between the bank and the securities, so we can see that it has reached a peak to around RMB 244 million, so with the A-share dropping from its peak, we can see that the net inflow has been dropped to the normal level, and the non-bank deposits have grown very drastically from September 23 to October 16. It has increased around RMB 600 billion, so looking at the interest rate changes, the effects have been unleashed. We can see that the interest rate of deposits has also been dropping.
And also, we've been trying to develop the system and to expand our customer to better introduce the capital with low cost. And also, we have tried to better manage the long-maturity loans in order to maintain a very good mix of customer loans to resist the dropping interest rate. So for RMB personal loan, the interest rate is around 1.61%, a little bit dropped from that of last year. Since 2019, that's the lowest since 2019. Thank you.
Next, China News Service, Wanguo An, please.
So I'd like to ask a question that concerns the market. Since the end of September, we will adjust the mortgage rates. So have you accomplished or completed the rate adjustment? And how much do you think it will be downward adjusted? And what is the impact, especially with so many housing policies having rolled out? Thank you.
Housing Finance Department, please.
Thank you for your question. For reducing the mortgage rates of existing housing loans, this is a very important measure. We will implement PBOC's announcement and respond to the market-based pricing and to promote the downward adjustment for personal mortgages, and in October, we've issued the relevant announcement on adjusting downward the mortgage rates. After calculation, eligible loans is around CNY 120 billion, and after the adjustment, it will ease the customer's difficulties in repaying the loans. Since September 24 to the 30th, we can see that there has been a lot of repayment of customer loans, so going forward, we still need to wait and see. Since the September 24 announcement, there has been a lot of policies, and in September, the fourth week, the daily processed loans have actually increased, and after the National Day holiday, the daily processed loan has also been increased.
We'll continue to implement relevant policies to improve customer service to repay the mortgage loans and to better improve their needs for housing. Thank you. Next, Merrill Lynch, Wu Yu, please. Thank you. I would like to ask a question about the investment yield. We know that there's a lot of adjustment to the bond market in response to the policy changes. I would like to know the yield, the returns on our bond investment, and also our future asset allocation strategy. Financial Market Department, please. Thank you for your question. For bond investment business, it's a very important tool and also a focus area of our asset allocation with active participation in the financial market, supporting the fiscal policy and to satisfy our own needs. This year, the yields have been dropping, generally speaking.
After the policies of the central bank, we can see that the yields have been rising. 10-year government bond has actually recovered from 2.4% - 2.6%. So in terms of bond investment, we maintain the philosophy of stability and soundness, and we mainly rely on interest income, and we will adjust to the tax-free effects in bond investment. Under the current interest rate environment, we would like to invest in stable instruments with high return. We will also grasp the whole investment amount and will start to ensure the performance. So the total financial investment has increased by 14% going forward.
We'll continue to follow closely the financial market development, improve our asset allocation to make it more granular and more proactive through qualitative and quantitative strategies to leverage the maturity, the product types, and even the yield curves, etc., to optimize the investment structure and to promote bound investment business to maintain a stable and sound manner. Thank you. So if you want to raise a question, please press the asterisk plus one and waiting to be queued. Thank you.
Now, let's welcome Financial Times' Yu Jiaxing, please.
Thank you. I'm from Financial Times. I would like to know the small and medium-sized enterprises, especially the renewal policies of such loans, because we know we have been optimization required by the renewal policies of the SMEs. So I would like to know going forward, how can we actually better balance the renewal of these companies?
Financial Inclusion Department, please.
Thank you for your question. On September 24, the NFRA has issued the renewal requirement for SME loans to improve their operation. Against such a background, it's better for SMEs and private-owned enterprises and also the agriculture households to improve the situation. So it also applies to medium-sized enterprises for a period of three years. So after we get the regulatory requirement, we have been improving credit extension work to increase and optimize the services for SMEs. First of all, we have optimized the model in light of their characteristics, risk levels, affordabilities. We are optimizing our loan service model for SMEs. We are appropriately setting the terms of the loans so that the repayment models of settlement can be diversified.
And second, we have enhanced the loan renewal efforts to constantly improve the loan renewal products and functions so that SMEs can avoid the scenario of bridge loans due to inability to repay the loans. So for qualified customers, if the loan should be renewed, then we will renew the loan. And thirdly, we have also improved the due diligence exemption mechanism. NPL tolerance and performance evaluation, and due diligence accountability waiver have been combined so that when the liability should be waived, it is waived so that the supply is ensured, the price structure is appropriate for the SMEs. We will proceed from serving high-quality development of the economy to deepen the supply-side structural reform and optimize resource allocation so that we can better serve the real economy with an inclusive credit system.
Next question, GF Securities. Yu Jin, please raise your question now.
Thank you, Management Team, for the opportunity to raise your question. I'm Yu Jin, banking analyst of GF Securities. CCB assets are kept very well. So exposure pressure for real estate sector loans have been alleviated. What will be the future areas that we should pay attention to? Thank you for the question from the banking analyst of GF Securities.
I will respond to this question. CCB has been implementing the decisions and deployments by central government and CPC Central Committee on real estate sector. We are now fully aware of the current situation and got the bottom line of risks very well to ensure robust asset quality to support high-quality development. At the end of Q3, the asset quality of CCB has been kept stable. For key areas, risks are controllable. As was mentioned, NPL ratio of the whole group declined by 2 basis points.
If you look at the current situation, we have effective mechanisms and measures to cope with the risks. One thing is we stick to serve high-quality development of the national economy. We deem it as a systematic project to take effective measures to serve the real economy for key areas, key strategies, and the vulnerabilities of key areas. We provide quality financial services so that we can address the problems while developing. For the loans for inclusive finance, green finance, and fintech industries have been stabilizing and increasing. We are also forming synergy for risk control. In light of the new challenges in terms of risks, we will have synergized efforts for different customers and different business lines. They have different characteristics and risk profiles. We have accumulated a series of effective control measures and means. Risk mitigation and NPL resolution quality is also increasing.
Overall, asset quality is stable, and key areas of risks are within control. Risk compensation capability is also strong. For corporate business, including real estate sector loans, NPL ratio has followed the trend of declining of Q2, so stabilizing and declining. For personal loans, NPL ratio has also been kept at a good level. Although at present, the economy's faring is still facing some problems and challenges, but China's economy is resilient. I'm sure with the playing out of a series of favorable policies, the economy will be rallying, and for the risks of key areas, they will be managed better. We'll continue to keep calm in our management and do a good job in risk determination and adjudication. So therefore, the new situation and new challenges will do a good job in risk mitigation to ensure robustness of asset quality and ensure the risks are within control.
Thank you for your question. Next question, CICC, Lin Yingqi, please.
Thank you for the opportunity to raise a question. I'm Lin Yingqi from CICC. The government is planning to increase the core tier one capital of large commercial banks with the plan of CCB. And what is your plan for the uses of the capital? And when asset quality is kept stable, will you increase the percentage?
Assets Liabilities Department, please answer the question.
Thank you for the question. For the capital replacement measures, it fully reflects the central government and the CPC Central Committee's firm support for state-owned banks. This can boost market confidence and maintain a stable operation of the financial system. CCB is actually actively following up about these strategic specific arrangements of the Minister of Finance for capital replacement, and everything is going orderly.
Although for the new capital rules, phase-by-phase, it has increased the CAR of our bank, but for the capital measurement rules adjustment, the favorable policy is mainly reflected in Q1, and while we keep doing a good job for serving the real economy and have reasonable concessional profits, our profitability in terms of the accumulation of endogenous capital, it has been slowing down, and the support for macroeconomic policy will result in the stable growth of core assets, and endogenous capital accumulation will not be adequate to support the capital consumption. For core tier one capital, it is still showing a downward tendency. Since CCB is adjusted at the beginning of 2028, we need to meet the requirement of TLAC phase two requirement, no less than 22%, so capital replacement needs to be put on our agenda. CCB will continue to anchor on high-quality development theme.
We will resolutely promote high-quality and efficient management and transform the model structure and improve the quality to work hard on the five major initiatives and support the development of new quality productive forces. While the economy is transforming, we'll provide strong financial support for that. CCB will continue to stick to the combination of endogenous accumulation of capital and capital replacement from outside so that we can have more high-quality and efficient management of the capital. Especially, we should make full use of the low utilization level capital so that we can create better value and serve the real economy with higher quality and provide capital guarantee so that capital increase will have a good return. Currently, CAR and RAROE among the major state-owned banks, we are having a leading position. We have very high shareholder return. We'll continue to work hard in this round of capital replacement.
We'll strive to have more support. After capital is replenished, our capital position will be further consolidated and enhanced. Our ability to resist risks and to grow and make profits. The situation will turn for the better. We'll continue to monitor the wishes of the shareholders and keep doing a good job at dividend payout ratio to pay back to the trust of shareholders with very good performance and dividend payout.
If you want to raise a question, please press asterisk key and number one and wait. Now, the floor is given to 21st Century Business Herald, Yangxi, please.
Thank you, Senior Management Team, for the opportunity to raise the question. My question is for the favorable policy. You know, it plays old ones with new ones. It's also very favorable, and total retail sales of September growth rate is more than 3% for credit card consumer loans and other consumer loans. Have you realized the rapid growth? NPL ratio has been slightly higher compared to the first half, and how about the second half of the year?
Now, I would like to invite Credit Card Center to respond to the question.
Thank you for the question. We have noticed since the beginning of the year, the government has released policies on consumer goods, replacement of old ones with new ones, and from January to September, personal consumer loans newly disbursed more than CNY 28.7 billion. And monthly disbursement of loans have been stabilizing and turning for the better. That means consumer confidence is increasing in terms of credit card business.
In light of this period of the Central Economic Work Conference, we are promoting this business to benefit the people and drive consumption growth so that we can also drive green finance. We have enhanced credit circulation and interest-bearing credit extension. By the end of Q3, CCB's credit card loan balance reached CNY 1.27 trillion. We are the first bank whose credit card loan balance exceeding CNY 1 trillion. Since Q3, credit card loan increase has been on the right track for this quarter compared with the last. For the first half, it has been increasing, and market share is also steadily increasing going forward.
We'll continue to focus on key customer groups, key scenarios, and key areas so that online payment deployment and consumer scenarios can be further deployed so that we can work on consumer finance and inclusive finance so that daily consumption auto loans and housing loans can receive support, including efforts to drive the development of the new energy vehicles so that new energy vehicle sector can be a new highlight of consumer loans. We also continue to expand the scale of credit card loan balance. Thank you.
In terms of the loan asset quality, I would like to add the following points. For personal consumer loans, NPL ratio is kept at a very stable level, although slightly higher than the year beginning, but still at a good level. Credit card NPL ratio is also better compared with peers.
We will stick to high-quality development and see the policy opportunities so that we can expand domestic demand and expand consumption and keep disbursing loans with higher quality. And we also proactively adapt to new challenges and new situations so that asset quality will remain robust. Thank you.
Next question, Securities Times. He Xieyuan from Securities Times.
Thank you. Dear Management Team, I'm He Xie yuan from Securities Times. We can see banks are conducting bills issuance business. What's CCB's situation? How do you ensure earmarked funds are used for the earmarked purposes?
Thank you for the question. Up to now, CCB has formulated and released stock repurchase loans for listed companies and the major shareholders of listed companies. We have seen their demand. The uses cover stock repurchase and increase.
In order to ensure the implementation of the business, we have organized business outreach session and training session to expand the policy background, product characteristics, and working requirements. Principle is market-based and law-based. We need to monitor the situation, and we are working on it steadily. By the end of October 30th, state-owned enterprises and private enterprises, some of them we have reached agreement with them. Once the procedure is completed, we'll work hard and do a good job at the loan disbursement. In terms of the funding uses in the management measures on stock repurchase, we specified the procedures and operation requirements. The listed company, which is the applicant, and the major shareholders should have separate accounts to be dedicated to the use of repurchase of shares and increasing the holding of shares.
We also strengthen monitoring and management of the loans so that the loans are used for the earmarked purposes and it's a closed-loop operations. Thank you.
Next question, CITIC Construction Investment. Mr. Li, please. Ms. Li, please.
Thank you for the opportunity to raise a question. I'm from CITIC Construction Investment. I have a question about other non-interest income. CCB performance is very good for the first three quarters. The growth rate is expanding compared with the previous year. What are the main drivers behind this?
Finance and Accounting Department, please.
Thank you. Thank you for your question. Just as you mentioned, for the first three quarters, the non-interest income has been performing quite well. Just now, Mr. Sheng, when talking about profitability, has also mentioned about this. Our non-interest income has actually constituted CCB's. The negative growth of profitability is a very important driver.
For the first three quarters, the total non-interest income is around RMB 26 billion, up by RMB 19.1 billion. The increase was 226%, and that's 63 percentage points higher as compared with that of last year. Our analysis is as follows. There are four reasons. The first one is because the PBoC's forex stability and also forex structure. For the first three quarters, our forex business of CCB has increased by RMB 7.2 billion. The second reason is because of the decreasing bond yields and also our increasing investment in unrealized profit-related bond investment. That is actually to say our debt investment and purchase have increased by RMB 130 million.
And thirdly, because of the capital market easing and also a lot of policies ever since the third quarter, we can see that the stock market rally and equity investment, equity tools, especially our subsidiaries like asset management subsidiaries, their equity investment tools, including fund investment, the gains from these investments have increased by CNY 2.8 billion. And fourthly, it's because that with our business operation, we've actively compressed these structured loans ratio. The interest payment for such loans have actually decreased by CNY 1.8 billion. So that is basically the reasons behind the performance of our non-interest income. So mainly, it's because of our business opportunities. Because if you look at this whole year for CCB, in terms of non-interest income, I think it will maintain such a sound momentum. If you look at the figure at the third quarter, the economy is also making progress amid stability.
And for CCB, we'll follow closely the market development and grasp the market opportunities and strengthen market research. So in this way, we should reasonably arrange the equity and bond instruments allocation. And we'll also try to enhance the management for the fluctuations of the fair values of those instruments that maintain such a good momentum. In the meantime, we will also enhance the stability of our operational stability. Thank you.
Thank you. Thank you, all the investors, analysts, and media friends. Due to time constraints. So our last question, please. The last question from QDS, Yangxi, please.
Thank you. Thank you for this opportunity. I would like to ask a question. We know that in the latest press release, the regulator said they will use a lot of policy tool measures to actually revitalize the urban villages and etc., and also to further improve the housing finance-related policies.
So I would like to know, in terms of supporting the housing market, what are the measures we'll take? Thank you.
Corporate Finance Department, please.
Thank you for your question. On September 26th, the CPC Political Bureau has actually launched a series of policies like enhancing the support for the whitelist company and etc. So recently, the regulator has also issued several supporting policies. So I think that these policies will provide very solid support for the recovery of the housing market. CCB will take the following measures. Firstly, we will implement the work arrangement of the central government and the State Council. We will follow and comply with the requirements and promote the coordination of finance for the housing market and to strengthen the extension of loans to the whitelist companies or projects. And also, we will further balance the business development and guard against risk.
We will follow market and law-based principle to treat the housing projects in a balanced manner and equal manner. And secondly, we'll also ensure the work related to whitelist companies or projects. We will promote the coordination mechanism for housing finance. And going forward, we will also follow relevant requirements to implement the compliance of those projects. For projects that should be supported, we should extend loans to them and to optimize the loan extension methods or ways to those companies and to strengthen the asset or capital management for those projects so as to better meet the rigid housing needs and also their needs for upgrading apartments and etc. In response to the question to what you mentioned, the monetary allocation of around one million renovation projects for urban villages or shanty houses, we communicate with the regulator regularly to get to know the specific requirements in this regard.
And we will also try to study the strategies for the business. And we will also work out the specific measures within the bank. On the other hand, we'll also work with the local government to use all these policies and to ensure our policy selection and screening and also to help unleash more housing needs and also to try to promote the housing market to develop in a stable manner. Thank you.
Okay. Since time is up, so much for the Q&A session. Thank you for your time. Just now, the senior management and related department heads have actually shared with you in a very candid and in-depth manner. I hope that this will help you to better understand our strategic measures, our business operation, and performance. If you have any other questions, please contact our board office. The performance release conference is over.
Thank you and wish you a good day. Thank you.