Respected investors, analyst friends, and friends from the media, ladies and gentlemen, good afternoon. You are very welcome to the China Construction Bank Corporation 2020 annual results announcement. We are truly thankful for your support and help with the bank. Because of the COVID-19, we are using the phone and internet to have our meeting. We have our President, Wang Jiang, Lyu Jiajin, Wang Hao, Zhang Min, our CRO, Jin Yanmin, and I am Hu Changmiao, the Board Secretary. The 2020 results announcement results had been disclosed last Friday evening, and the PowerPoints have been disclosed online ahead of time for your references. Prior to entering into question and answer, I would like to invite Mr. Wang to walk us through about our performance last year. Mr. Wang, please.
Fellow investors, analysts, friends from the media, good afternoon. You are very welcome to the 2020 China Construction Bank result announcement conference call. We thank you for the support and the care for us all along. 2020 is a very stringent and difficult time for us, especially after the COVID-19 pandemic effect. We follow strictly the instructions of the central government and to play the role of a major bank to support and to assist with the COVID-19 pandemic efforts, and to assist the economy in developing and also to assist in our risks. Our market competitiveness has been enhanced. Our asset and liabilities achieved rapid growth. In 2020, we have CNY 20 trillion of total assets. That is a 10.6% increase. We have a net profit, a 1.6% increase over last year at CNY 273.6 billion. ROA is 1.02%, ROE at 12.12%.
Facing the COVID-19, in such challenging times, we hold ourselves together as a team, to assist with the pandemic prevention. While guaranteeing the safety of our employees, we have built several pandemic prevention and control measures. We have assisted more than 1,000 organizations in this effort. We have, in Hubei province, several platforms in this function, and also smart platform, and also donation that would be the first of its kind. We have located 160 million pieces of pandemic support items. We have also reduced our fees and shared our profits and to relieve loans to help with the prevention of the pandemic. We have a 17.7% and 19.6% and 27.6% in our various loan performance. We have 11.4% and 39.6% in our loans. We are also reducing fees to help our clients during such difficult times.
We also take efforts to release our capabilities. We have caused to form very excellent sales and leasing models. We have over 29% credit and presence with our real estate presence at various locations. We have 1.2 million slots on lease, and we have 230 different estates. Also, with reinstatement of cities and revitalization of facilities, we work with Hangzhou and various cities. We signed strategic agreements with them. With the inclusive economy, we have a new loan portfolio of CNY 43 billion and to serve the SMEs. The corporate organizations that we work with exceeds four million with very large usage of our online platform. With inclusive finance, we continue to build our penetration to the villages, and our such services already exceeds. The networks already exist, 540,000.
We are accumulating training over three million times, to deliver financial information and knowledge to various corners of the country. Our investment in technology has been increasing significantly. We have over three million of such high caliber technical people. We are building a new retail network, a new corporate strategy to build new strategies. Given the stress of the COVID-19, we are building smart platforms with various governments in the country. Registered users exceeded 100 million. For technical export, we are working with 318 banks, working on risk management measures. Our digital reformation has been proceeding also, with an open, inclusive, and sharing mechanism, so that we use a platform ecology and rely on technology to serve people as well as economy and social development. We insist on market-driven and with a new finance powerhouse of new finance and key support of it.
We also build our capabilities with digital capabilities. We also have a cloud working environment, remote working, in order to ensure our services and products continue to fit the needs of our customers. Also, we have risk management capabilities to enhance that we move forward in a prudent manner. We analyze the risk challenges that we face with COVID-19 and strengthen our risk management, to categorize in more detail our different categorizations of loans. in 2022, we have a 1.56% of NPL ratio. Our provision coverage is 23%, and our risk capabilities continue to be strong.
We step on enhancing a fully comprehensive risk management mechanism to optimize our capability to foresee and to tackle various types of risk challenges, including joint partnership with different departments and partners in systemic risk management, also to incorporate this into our comprehensive risk management scheme, and also to optimize our various business processes in this area. We strictly adhere to the anti-money laundering restrictions. We also play our role as a big bank, to support healthy and over 1,700 poor villages, also work with Ankang, as well as the poverty support team, to work towards this goal. We also enrich our green finances and push for our green and low carbon transition. We have CNY 1.34 trillion of such loans. Especially during the pandemic, we balance the privacy as well as the Nationwide, we have 14,000 points, in order to achieve this goal.
At the moment, we are the leading bank among all the systematically important banks and the major banks. If we look back on 2020, this is a very unusual and special year. We have achieved very good results, which is very hard to achieve. We would like to thank all our staff at CCB, and thank you for your hard work. We would also like to thank our customers for their trust and understanding. We would also like to thank all our shareholders, friends from the media regulators, and people from all aspects of community, and thank you for your love and support to our company.
For 2021, this is only the beginning of the 14th Five-Year Plan. This is also the beginning year of how we are going to build a new society and the dual circulation. Where the pandemic has pushed forward the transformation of technology transformation and with the climate change, the ecological system changes has pushed forward the prosperous growth of new business. In the meantime, with the negative interest rate, geopolitics, and the continuous of QE has also brought a lot of uncertainties to the market. We have opportunities and challenges at the same time. Next step, we are going to be working in our stable fashion. We will also combine this with the guidance of the party and to continue to realize the driving of our development with data and technology, and to solidify our new development goals, and to push forward our strategies to realize faster transformation, technology transformation.
We will be working hard towards the improvement of people's livelihood, in the meantime, to improve the transformation of finance and to further focus on risk control, to care for our staff, to create an incentive mechanism, which is to encourage everyone to play and discover all their personal best and potential. We will be working hard to welcome and using this as a great gift for the 100 years anniversary for the Communist Party.
Great, and thank you. We will now go into the Q&A session. Because of time constraint, we advise everyone to only go by one question each. We welcome the first question, please.
Ladies and gentlemen, we move into the Q&A session. Please press one and the asterisk and then name yourself, please. The first question comes from Morgan Stanley. Mr. Shih Yen, you can go ahead and ask the question now.
Yes. Thank you very much for the first opportunity to raise a question. I am from Morgan Stanley. My name is Shih Yen. I would like to ask about in 2020, all of the loan portfolio has been growing very quickly, and the scope is also very wide. Where mainly would these be in these loans and the 2021 prospect? What do you see being the prospect and the distribution of such loans? Thank you.
Thank you for your question. In the last couple of years, the social financing and loan portfolio of China has been growing very quickly. This has to do with the progress and development of the society. CCB loan portfolio has also been growing greatly. 2020 is a special year. This is the final year of the 13th Five-Year Plan, and it is also a critical year for our society to move in the middle class. It is also a year of the pandemic. With the pandemic impact, we strictly adhere to the State Council about comprehensively fighting the pandemic and also the social and economic development. We committed in helping with the poverty and the actual industry.
Therefore, our loan portfolio has increased. Just now, Mr. Wang has said that we have CNY 1.76 trillion of new loans, and the balance is CNY 16.79 trillion. Whether it is new or balance, both of these numbers are historically high. This mainly is because our domestic corporate loans have been growing. The new loans were CNY 1.4 trillion, and private loans are CNY 756 billion. On the one hand, this is one of our efforts to support the post-pandemic recovery. We are helping with 10,000 organizations in this area. Also, with financing online, we are helping the upper and lower stream suppliers and corporators of several thousands of companies of the industries to help them to return or restate their business.
The pandemic fighting is one of the key areas of our deployment this year, and we are also serving traditional industries, to strengthen infrastructure advantage. This is where we focus on too, so that our leadership in this area can continue to be strong. We are also extending our loans, especially the new loans that we extend, are mostly in the infrastructure area. The third area is to support the upgrading of the economy, especially in the manufacturing sectors. CNY 220 billion has been invested in this area. This is to support the upgrading of the economy. Fourthly, with our strategic zones and industries, we are stepping up on our investment and deployment in here. The weak part in the real industries, especially the SMEs and the inclusive
Loans. We continue to keep a quickly growing phenomenon, and we have CNY 624 billion in this area, and CNY 700 billions odd in the inclusive finance. The increase rate is above 50%. We also serve the citizens so that they can seek a better living. This is where we are traditionally strong, and we have CNY 520 billion of increase in property and CNY 70 billion in new consumption, as well as some big increases in credit cards loans. Apart from these areas, we also in local government debts, the underwriting and selling of it, we also play an important role as well as the sovereign bonds. We also work with insurance and other companies to serve these purposes. 2020, I would say the loan portfolio grew so quickly, is driven by both internal and external factors.
On the one hand, it is the successful epidemic fighting in China. Also we have a stable currency and policy, and our overall economy is going to the right good direction, and market demand is good. This has a very good potential for our loan portfolio. Another area, it also is, I have to thank our very good customer base. Of our three strategies this year, through the many years of experience and the first movers benefits had already formed, we have very strong customer base. Also with digital operation, we already are enjoying from a lot of synergies from our overall team. in 2020, the loan portfolio, despite that it is at historic high, we have not let loose our risk management.
We remain very confident that with our quality of our customers and our loans continue to be good, and we can ensure that our loans are profitable and effective. In 2021, we would very diligently meet the demands of the Five-Year Plan and policy requirements. We continue to keep a reasonable development in our loan portfolio, especially optimizing the structure of it. We have to support the upgrading and the opening of our economy so that the country would continue to grow in a high-quality way. Also with green finance, low carbon development, these are the new areas that we will focus in. We continue to enhance or build on our strength in traditional infrastructure loans. Thirdly, we continue to support inclusive financing with SMEs and the private enterprise.
Also, we also would work on enhancing our property leasing business so that the property industry can develop in a very healthy way. We also have to capture opportunities in credit card and personal finance and consumption economy. Because we are a full-service bank, we continue to leverage on this characteristics of CCB, so that we can contribute to the modernization development of the country and to meet the goals of the next Five-Year Plan. This would be my answer. Thank you.
Thank you. We are going to the next question, please. Next question, [uncertain] from China News Agency.
Good afternoon, everyone. My name is [uncertain]. I am coming from the China News Agency. We know that this year we have heard the targets of the inclusive loans, and for CCB as the largest inclusive loans provider, what is your target? The second, in terms of SMEs and the current plan, and the loans scheme is extended to end of the year, and what is the size of your SME loans at the moment, and what is your management going forward?
We will have Mr. Wang answer this question.
Thank you for your question. In the two meetings that have just concluded, we have heard from Premier Li that the major banks inclusive finance will be grown by 30%. This is a great support and guidance of our business, and we will continue to provide quality service to SMEs. In recent years, we have been pushing forward for the inclusive finance and using AI technologies to help us to find the right way to serve the SMEs and to fast develop our business in the inclusive financing area. We have also established standards for the industry. Last year, we have a service model, which is 5+ 3. For the five, it would refer to fast customer acquisition, precise providing, automatic approval, intelligent risk control, and comprehensive services.
We also have various loans, for example, Quick Loan for SMEs, Quick Loan for Transactions, and Quick Loan for Personal Business. At the moment, we already have 440 customers or enterprises. Going forward, we already have a loan size of CNY 4.5 trillion, and the new customers exceed 70,000. Going forward, we have also introduced data coming from external aspects, such as custom office, et cetera. This will help us with our studying of the background of the customers and help us with the NPL. For SMEs, NPL is below 1%, especially during the pandemic. CCB has also supported the SME business. We have established dedicated channels with dedicated services, et cetera, and we have eight dedicated type of services.
To help with the customer base, we have been affected by the pandemic, and to provide them with the cloud easy to borrow loans, and to help with the SMEs of recovering their business, and to continue to provide benefits to them. For the customers coming from Hubei province, the interest rate is decreased by 1%. For the same year, the commission fees, et cetera, if we are able to reduce them, we will try our best to reduce and to really help with SME businesses. In the meantime, with the diverse demand of the inclusive financing customers, we have also established loans for our customers who are coming from remote areas, and they are generally the farmers. So we provide services for them to collect their salary, and we provide services to connect with different industries and help them with an efficient management of their finance.
Overall speaking, we have small enterprises, but they are doing big businesses, and so we're helping them. In the meantime, for the SME business, we will continue to focus on the help that we can provide to them to exert our advantages and influence, and to enrich our product for SMEs, and to have more products available to them in our channels, and to really push forward the growth of inclusive finance and to include high-quality development speed. With respect to your second question, we have Mr. Tian to answer this.
Well, thank you. Please allow me to add, during the pandemic, we have fully implemented the national policy for those who meet the standard, especially the small medium sized enterprises, if they meet the benchmark or the requirement, we would extend the loan maturity date. At the moment, for last year, for such arrangement, we have about CNY 375 billion , and most of them, over 10,000, and most of them are micro and small businesses. With the extension of the loan's deadline, the business was able to continue. Again, you can see that the policy is taking its effect. During the process, of course, we are managing the risks, and we are following up and to make a judgment on the risks, especially considering about the pandemic impact and the capability of the management team, et cetera.
We have carried out our provisions in a scientific fashion. At the moment, in terms of the risk, it is well under controlled, and with the economy's recovery, these enterprises, we can see that their production is also recovering well. At the moment, even if the government has given us the policy of continuing to extend to end of the year, however, through our monitoring, looking at our customers, we have fewer and fewer customers who are applying for extension of deadlines. Most people are able to repay their loans on time. So that means that the overall situation is actually quite good.
In terms of the policy at the moment, the State Council has already made it very clear about the extension of the loans, and we will, of course, follow the policy closely, and we will continue to provide support to our SMEs and to extend their loans, and this is what I have to add to ensure their healthy development.
Next question is from Zhongxin, [uncertain] . Please raise your question now.
Yes. Thank you. Thank you for the opportunity. I am from Zhongxin. My name is [uncertain] . We see that the policy to nurture the long lease market, three years ago, CCB has already launched this part of the business. So I would like to ask the management, what are the progress right now? Also, can you walk us through the specific rental business model, leasing business model? What are the updates and the revisions as far as the policy is concerned? This is CCB being the largest mortgage provider in China. What is the requirement of the regulator of you?
Thank you for your question. Please, Mr. Lyu, can you take this question, please?
As you all know, CCB was built and thrived because of a need. Now, regarding this property leasing, this is something that the media and the analysts and investors, they all take to heart. I take this opportunity to report to you the entire development in the property leasing business of CCB, and also some of our strategies. As of end of 2020, our bank, our balance in this area is CNY 441 billion, and NPL ratio is 0.7%. For house mortgage, CNY 5.8 trillion, and the NPL is quite low. Our balance is actually small, and the ratio is also low. As far as NPL ratio is concerned, our asset quality overall, regardless whether it is corporate loans or personal mortgage loans, the NPL ratios are very low, and asset quality is very good.
This year, the regulators have been paying much attention to the risk in property market and have launched various policies, including the Three Red Lines. End of last year, the real estate focused integrated management scheme had been promulgated. For Chinese property industry, the market as well as financial services, this would become a big influencing factor. CCB, in order to live up to this policy for open real estate loans, we focus on the good quality customers in the first and second tier cities. We would also develop a vetting mechanism to strictly monitor the use of such loans and the vetting process of such loans. We prioritize to serve these stable demand for residents and for upgrading of the citizens in their living conditions, so that we can assist with the healthy development of the industry.
Especially one point that I'd like to mention, CCB, under the big umbrella of being compliant, we also put in various measures to assist with the stable and healthy development of this industry and to healthily enhance the loan portfolio, and especially those that are within our own business. These new regulations has a relatively small impact on our business. For those that exceeded the limitations, we will tackle and dispose of them. With the CCB, property leasing in this aspect, while we continue to build the traditional business, we continue to follow the different policy requirements and to follow the target that had been set by the end of 2017 and take property leasing as a very important strategic development of the bank. After three years of efforts, we have formed a preliminary market-based property leasing mechanism, has some success in eight areas.
One is we have a service management mechanism that serves the various local government, corporations, and individuals to provide a transparent platform or transparent access of information. As of today, we have already set a presence in over 300 cities in the country to promote this. We have an accumulated 25 million sets of apartments that are made available here. Also, we have set up a service company, which under the CCB umbrella. This property service company now take on property business, property leasing platform business as well, and also to manage the community environment. Thirdly, we are renovating or being creative. In this manner, we make use of idle spaces and apartments and properties, resources on personal or corporate hands, and make them available to the market and to tackle the supply and demand conflicts.
We already have over 1.2 million slots that were sourced in this way. Fourthly, we have formed a federation of property leasing companies so that we can coordinate the various affiliating supply chain and service providers, such as innovators and renovators and material suppliers, onto the platform. On this platform, they would offer their services or products, such as furniture and household appliances, at 10%-15% discount versus market rate. Number fifth is we had built certain communities, on a national basis. We have built about 230 property leasing communities that would support the blue collar, the white collar, and youth creative centers. These are the communities that we serve with differentiated leasing services. Number six is that we had launched a basket full of new products and services.
We face the market, provide long-term residential leasing options so that the demands for having new upgrading and buying and swapping of properties and the financing needs therefrom. Number seven is the pilot program of property leasing so that we can better handle some of the risks engaged. We also target some REITs, R-E-I-T, REITs products so that we can expand the financing channels. Number eight is to pronounce the data regarding this market. We select from 100 cities, a series of data from the property markets in order to form a price index. This is a full coverage of the 70 important cities under the country's policy and to provide the market with a price reference. These are the eight areas that China Construction Bank had been working on in the property and property leasing aspect.
These are systemic work that we have done based on the commercial modeling. Especially with the 19th CCP meeting, the property leasing has been named as an important policy and strategic policy. Currently, our business here is going well, and the data system had been launched appropriately, and our brand had been well-received, and our network has been grown. We are also focusing on upgrading, remodeling old ones into new living spaces. We are providing a comprehensive property leasing resources, and that includes residential as well as industrial and corporate resources. Overall, the CCB strategy in this business, after we have launched it, we are helping the citizens to pursue their home dream, the dream for a perfect home. We are also making businesses and opportunities more feasible in this industry. In the retail, this is also helpful with our retail banking.
We hope that this particular strength of ours can help us build a long-term driver, because people always say, "To buy a home, we need to go to CCB." I hope that going forward, this would expand to when you wanted to lease an apartment, you go to CCB. When you wanted to have a new living area, you go to CCB. Thank you.
Thank you. Next question please, comes from Qui Zhaoyan from Chinese Insurance Newspaper.
Thank you. I come from the China Banking and Insurance News, and we have heard that at the moment there are a lot of banks who are focusing on the development of retail banking. What is your advantage in this regard?
We will have Mr. Lyu Jiajin to answer this question.
Okay, great. Thank you. First of all, in terms of retail business, this is a definite trend of the commercial banks going forward. With the accumulation of social wealth, individual clients, especially those who have mid-level income or above, in terms of wealth management and in terms of their financial needs continue to grow. Therefore, for retail business and its role as a core pillar among commercial banks, we can see that it is becoming more and more obvious. For CCB, in terms of our corporate business, whilst solidifying our corporate business, in the meantime, we are also developing our retail business with great speed. Especially since listing, we have always paid attention to the transformation of retail business, especially in recent years.
In our headquarters and under the guidance of our headquarter and leaders, with the new finance principle in mind, we have always adhered to the principle of new retail business priority, and we focus on business such as rental, leasing business, as well as other retail businesses and wealth management, et cetera. With the online and offline development, we can see that retail business has actually developed prosperously. In the main indicators among our peers, we are ahead in our industry. Recently, in some of the rating agencies, in their ratings and for retail business, the rating agencies have given us a lot of awards and honors. Specifically speaking, the situation of last year in terms of provision and for the contribution coming from retail business has created a new high.
In 2020, it has realized a business of CNY 600 billion and a growth of 38.6%, and personal business has increased by 61.2%. In addition, we continue to solidify our foundation of the bank and domestic loan. The balance is CNY 7.23 trillion, compared with the previous year, has up by CNY 760 billion. In the meantime, for personal savings, it has also seen good growth. For personal loan, it has exceeded CNY 10 trillion. The new supplemental is newly incremental part of the savings is CNY 1.8 trillion. In terms of the domestic savings, it also accounts for 51.2%.
Number four, in terms of our foundation of the retail business, it continues to be solidified, and our total number of customers exceeded 700 million. For last year, in terms of AUM, we have also seen a growth of CNY 1.57 trillion. In terms of debit card, it has exceeded 1.2 billion debit cards. For credit card customers, it has also exceeded 100 million and to 102 million at the moment. For the past year, for CCB, we have grasped the opportunity in the market of retail business, and we have actively built the new principle and new ideas of retail businesses and focusing on three priorities throughout the bank. We focus on digitalization, and we have realized the high quality growth of retail business.
For what you have asked with respect to the development strategy or our competitive advantage, I believe that it can be summarized as the following three points. The first one is to focus on the new finance guidance and to realize digitalization through the empowerment of technology and building of scenarios. For the existing customers, for the customers, and the newly added customers, for them in different scenarios and in different areas, we will have the new operations. Second, we focus on the customers at the core and to improve the customer experience through the rebuilding of the process and the creation of our innovative products and to improve the synergy between the channels and to deeply root in terms of our online and offline business. So we have been able to provide very convenient services to our customers.
Again, we try our best to maintain at the forefront of the market. Number three, in terms of the work, we try our best to work hard to perfect from the board and all the way to our branches, and we pay great attention to the eight protection of rights of the customers. The protection of our customers is now at a principal level of our business, and we provide a high efficient, convenient, and safer financial services to our customers. Thank you.
Thank you. Next question, please.
Next question is from [uncertain] from UBS.
Thank you. Thank you for the opportunity. I am [uncertain] , analyst from UBS. I would like to ask a question regarding NIM spread. We see that in 2020 versus 2019, the NIM spread has come down. In the fourth quarter, it is slightly better than or in an equal basis as the third quarter. So we would like to ask, what is the prospect for the coming year for the NIM spread? From liabilities and assets perspective, with assets growth and the liability is stable, so the NIM spread would be better this year. Would that be the case? Thank you.
Now, very thankful for your care about the management and operation of CCB. This remains a very important area of our management. On the one hand, the global economy at this point, we see in three areas: low investment, low growth, and low interest rate. So, from this perspective, the narrowing of the NIM spread would be a general phenomenon for commercial banks. In 2020, also exposed us to the sudden COVID-19 and the deep shrinking of the economy. We follow strictly with the instructions from the central government, to support the SMEs to reduce fees and share profits, and different measures to help them. Also, the lowering trend of the interest rate in the capital market, as well as a series of adjustments and quantitative easing. All this would cause the lowering of the NIM spread.
This, I think, would be a general phenomenon of the industry. We were at 2.19%. That is 3 basis points lower than same period last year. For our bank, this is in line with the overall banking phenomenon, mainly three areas. One is the yield of our asset. This has caused a decline of 15 basis points. In this area, first of all, loans. Based on this decline as well as our share profits and reduced fees, we saw that last year, our overall loan pricing and also the overall non-discounted loans, we were at 4.38%, and it was 7.1% for corporate loans. This is a lot lower than last year and several basis points impact to our overall NIM spread revenue. The interbank rate also came down. This caused a 5 basis points decline in our NIM spread.
Overall, we have a 15 basis points of decline. This is due to the cost of our capital, and overall, it had helped improve the NIM for 4 basis points. Because of competition and the regular basis of the deposit. This had caused a 2 basis points of decline in our NIM spread. However, we discovered that the loans were able to help us with a 6 basis points. Overall, keeping the net balance, this is a 4 basis points of increase. Also, we have enhanced our loan basis. We had stepped up on our attraction to savings and also through alternative markets and interbank business, this has caused the NIM spread to lower by 2 basis points. Overall, it's a 13 basis points decline.
Of course, the MOF last year had changed the system for reviewing our credit card revenue, and that also caused an enhancement of our NIM spread. Because last year, the change would impact the business of the previous year, so the installment for credit cards impact had caused an overall 13% decline of NIM spread. As to the other policy, I believe that we remain in the stable and nimble area, and the overall financial market remains stable. Just like the investors saying yesterday, in the fourth quarter, our NIM spread will, as said, already started to appear stable. So 2021, we remain nimble and stable and watching closely as to some of the policy changes.
Because policy changes continues to happen, and some policies would return to where it was before, meaning the marketization of interest rate scheme would continue to grow, to be built. So we anticipate that loan interest rates would keep stable or may come down slightly. As far as saving interest rate is concerned, impacted by the regularity as well as the solid demand, we begin to see some signs of improving in this area. With the redundant market or the supplemental market, 2021, we believe that management of NIM spread is difficult, and we do face pressure. But all in all, I think we can keep it stable, and you won't see big drops and big rises.
So as a next step, based on the changes in the interest rate environment, we will enhance our dynamic observation and anticipation, and also to be prudent in order to maintain our spread. With the asset side, we have to grasp the opportunity, continue to enhance our risk management, and differentiated risk pricing in order to enhance our overall capabilities. With the liabilities, we have to maintain an appropriate cost and price, and continue to enhance our interest rate risk management capability, and to keep our NIM spread at a reasonable industrial level. We believe that with the continuing betterment of Chinese economy and the stable development of that, the CCB NIM spread will continue to remain within a reasonable spread in order to ensure the sustainable development of the liabilities and asset of the company. Thank you.
Next question from [uncertain] from Hong Kong Commercial Daily. Please go ahead.
Management team, good afternoon. From 2019, this is our third year that we're having the cloud meeting, and we hope that the pandemic could be finished very soon so that we can have a face-to-face meeting. My question is also related to the pandemic. I'd like to ask, with the impact of the pandemic and with the policy from the national government, which is to reducing the interest and to give away some benefits to your customers. This has some impact on your business, but we can also, again, see your commission fee is still growing. Can you please let us know more about this impact on the new policy and on the commission fee, et cetera?
Thank you for your attention, and with the transformation of commercial banks of CCB. At the moment, this is a very key period, and this year is also a year whereby our headquarter and our management team pay great attention to this. First of all, in terms of the government policy of reducing the fee and giving away some profits, this is for the banks, especially national state-owned banks, and to realize its responsibility towards the society and to regulate our business. This has a great meaning, especially faced with the pandemic, which is unexpected. As a commercial bank, with our customers, our hands and hearts are connected, and we will cross over the difficulties together. As Premier Li has assessed that, we are saving the mountains for the great future.
During this process, CCB adheres and implement fully of the policies from the Central Communist Party, and we continue to expand the degree of our commission reduction and profitability giving away activities. In 2020, based on our rough estimate for our total amount that we have been sharing with others, amounts for RMB 110 billion . This reflects our responsibility as a major state-owned bank. We also want to help with the easier and faster resumption of work and construction, et cetera. In the meantime, for our fee business and commissions, we face some pressure. The analysts have said for last year, for our net fee income is CNY 116 billion and it has grown by 3.3%, even if we have realized some growth.
You can see that the growth speed has slowed down very obviously. During this process, to realize a positive growth, with this fee reduction and profitability sharing policy in place. This is again, thanks to that, we have met some of the new policies and especially in terms of some digitalization explorations that we have done and some new implementations of measures and to speed up and enhance the development of online business development. To give you some examples, last year we have about CNY 29 billion, and it has grown by 13%, and this is mainly coming from fast payment and from non-touching payment. Basically, we work hard to expand the scenarios. In the meantime, we also work with some leading payment companies, to bring more of the online payment businesses and to drive that forward.
Therefore, for CCB, for our business, in terms of ensuring the continuity of our business, we have seen some very obvious results. Second, for our business and our trust business is CNY 15 billion, grown by 9.9%. For our wealth management products, grown by 3.9%. Therefore, for some of our traditional fees, because of some of the policies in place, as well as some of the capping of the fees, it has been affected. However, for some of the new models, especially, for example, for fee collections from online, we have seen some very good results. This is why for 2020, we are seeing a positive growth and actually for our new business and for our digital operation.
This is a great result that we are seeing. In the meantime, we are very deeply realizing that for the 2020, the pandemic, we are speeding up the transformation of digitalization whilst building a new business scenario, for the real economy demand, and it is also changing in the meantime. In terms of the financial supply side, in terms of the credit financing, it is changing into a new form of financing for commercial banks, in terms of from managing the bank's asset into managing the customer's asset. These changes, for the healthy development of the bank, especially for our intermediary business and for the fee growth. It has brought immense opportunities going forward.
Our next step is that we will be looking for these opportunities in the market and continue to create value in the market, to create, and to solidify the foundation that we have with our customers, to promote the intermediary businesses. This year, we will be focusing on three areas of priority of work, the first one is digitalization transformation. To speed up the building of wealth management bank, this is our target. We all know that with the growth of citizens' wealth, how do we speed up and promote our business to meet the tailored demand of the individual customers? This is one of the keys of our commercial bank's business. This is also in our traditional business in terms of savings and loans. We want to build a third pillar of wealth management, and this is a necessary requirement.
So next step, we will be looking at our speeding up our business development in this regard. In addition, we will also be looking at non-financial products and start enhancing our collaboration with internet companies, to actively build scenarios, to realize the acquisition of customers whilst creating value and creating wealth for our customers. We will want to improve our capabilities. Second, we are going to be deeply rooted in traditional businesses, to further exert our advantages, to work for the national policies, to look for the areas such as green finance, et cetera, to find the diverse opportunities and to grasp these opportunities to continue to improve our operation efficiency and operation services that we are here to provide.
We will surround our business around traditional business and to improve traditional business. Number three, we will meet the differentiated demand of our customers, of their financial needs, with the empowerment of technology, to exert the influence and the capabilities of our bank, to try our best to provide tailored services, to help enterprises to resolve their issues. Through our innovation, we would be able to build new growth points for the intermediary businesses. I believe that with our digital operations continued improvement, with the implementation of three strategies during this process, with our technology empowerment and innovation of products, and the intermediary business and fee income, I believe that we will see better development going forward. Thank you.
Next question, please. Thank you, Mr. Wang.
Next question is from [uncertain] . You can ask your question now.
Thank you, management. I'm from [uncertain] . My name is [uncertain] . My question has to do with deposits. We noticed that the 2020 deposit is at 12.24%. This has to do with overall economy circumstances, and CCB is also very strong amongst its peers. So please walk us through, what is the deposit strength for CCB? Can you also give us an outlook regarding this year's deposit? You have also launched the Deposit Quality Management Scheme, and the Asset and Liability Management Scheme. So, what kind of impact would that have on you? Thank you.
Mr. Lyu, please.
With deposit, this is the basis of development for commercial banks. It is a battleground for everyone. CCB pays a lot of attention to this, especially the development of general deposits. By year-end this year, we reached CNY 20.6 trillion of deposits, and the growth rate is 12.24%. With loans, liabilities, it also has increased by 0.9% versus last year. It is higher than general average. It is a further addition based on our high basis. The personal deposit had broken through the CNY 10 trillion breakpoint. Last year, we were talking about CNY 9 trillion, and by quarter four, the breakthrough of CNY 10 trillion was reached. Corporate deposits also grew very quickly. Last year, by year-end, the corporate savings increased and reached CNY 9.7 trillion. Just now, you were asking about the reason for our growth and what kind of strength do we have.
Actually, last year, overall with the monetary policy as well as the market circumstances, were actually quite good for development. One is the overall supply of money in the market had grown very quickly. The M2 supply over the year was at 10.1% for the year. It is 1.4% more than the same period last year. This had actually brought forth a lot more capital for the deposit business. Secondly, CCB, every time, talked about this. We insist on a new concept, take initiative in digital management. We work around this. We build scenarios according to this ecosystem, and to insist in connecting the enterprises with the governments and empowering both ends.
This is a GBC, government, business, and consumers connection to build this ecosystem and to build the society, the high flow circumstances or scenarios in order to enhance corporate and personal deposit, our strength in such deposit classes. Thirdly, it has to do with our traditional strength, because our basic work has always been done quite well. From client base perspective, the group has About six million corporate customers. Personal customers, we have about 600 million of them. As far as the product is concerned, we were highly innovative regarding our products, especially as it relates to product scenario. We keep enriching our financial products, and to effectively enhance the value creation process of our customer. As far as channel is concerned, our emphasis has been put on the integration of online and offline.
Previously, we talked about O2O, now we talk about OMO. We want to leverage our 14,000 of offline network points together with our online business, especially our mobile banking. The number of users is close to 400 million. The mobile banking has become a main channel for enhancing customer quantity and customer value for the company. This year, we saw the development in this product and this market, especially when we are talking about us helping SMEs and help erasing poverty. This has become very useful. We have already built 540,000 channel points in the area of poverty. This is quite a good coverage. That would be the third area. The fourth area, I feel that it is only a characteristic of ours, and that is our persistence in stable and prudent management.
Our core risk performance always take the lead of our peers, and we attach a lot of importance in the protection of our consumer rights. Especially when customers open up their account, they would choose CCB as their first option, as an option of choice. This is our deposit business. You asked about the outlook. We will continue to rely on this concept and strategy of ours, to better implement our three important strategies. Meaning to build ecosystems, eco scenarios, in order to enhance our deposit business. We also face, in this new year, some changes in policy and in scenarios. Our preliminary judgment is that in 2021, our deposit will continue to enjoy quite a good growth, but the rate of the growth might slow down a little bit.
With deposit rates, we consider that competition is building up, with the deepening of marketization of interest rate and deposit becoming more regular. Deposit interest rate would continue to experience upward or increased pressure. As to your second question about the commercial bank Asset and Liability Management policy. This is the latest management or administration policy of the CBIRC, which is beneficial to the pricing, to build rational pricing behavior in the market. It is also beneficial to the healthy development of this market. We think very highly of it. For large banks, deposit business development and control, we believe that it would actually build a nice or better market environment. For us, 80% of our liabilities, goes to customers' deposits.
Because of our scale, our interbank liabilities are quite low, and therefore, the quality of our asset is high. Our standard is way higher than that minimum required by regulation. We feel that this is highly beneficial for us. So the Asset and Liability Management of commercial banks, these measures would be helpful to us because CCB, we strictly adhere to the PBC regulations regarding interest rates all along, and we have not used a third party or internet to absorb deposit business. Therefore, looking at it from this perspective, the liabilities and asset, new administration, as well as the requirement for stability, we are actually quite aligned with them. As a next step, we will continue to observe and study and implement the policy requirements, and to enhance the management of asset and liability, and to contribute what we can to the stability of the finance market.
Can we extend it a little bit? Our time.
Next question from [uncertain] from UBS. Please welcome.
Thank you. Thank you management team for giving me this opportunity. I would also like to see that. Also thank you for your good return to the investors since the recovery of the business since last June. My question is that we know that the operation and management of the company has always been very stable. With the pandemic and the recovery of the economy, there are some uncertainties. We would like to ask, what are the measures in place? Last year, we have also heard that the regulators have also talked about that the disposal of non-performing loans needs to be enhanced. I'd like to ask, what progress have you made in this regard? Thank you.
We will have Mr. Jin to answer this question.
Thank you. Thank you for your question, especially for the recognition of the operation style of CCB for 2020. Yes, indeed, for me personally, in my professional life, it has been a very special year, very challenging. For 2020, with the unprecedented, complicated situation, we have enhanced our basic foundational management, and to have been able to really control on the risks and to help us to realize our stable growth and to keep the direction. We have been able to see the result of the stable assets. In terms of our key indicators, there are five features. The first one is that our NPL is relatively stable and compared with earlier in the year, it is slightly increased. Last year, we have fed up our disposal process, and NPL is stable.
Second, in terms of our expectation, it is at about 1.09%, and it is reducing steadily. Thirdly, in terms of cost ratio, it is very stable. Number four, in terms of our provision is above 200%, and for our coverage ratio, it is stable and improving. In the meantime, we continue to maintain the scissor difference between our expectation and our actual result. We believe that with such results, it is thanks to our stable growth and our stable culture. We have always been very prudent because we have adhered to our development and to control our risks, and this is our principle. We continue to perfect our technologies and our management, especially that we continue to improve our internal risk control. We have always worked hard on this regard, especially in terms of credit risk and market risk, et cetera.
So in these risk areas, we have taken a lot of measures, and we have seen very good results, and it has been very effective in terms of credit risk. For our credit risk business, it is already accounting for 59%. For credit cost, again, it is our biggest cost still. In this regard, whether it is the board or the management team, we pay great attention to it. On one hand, we have made judgment on the situation, and we are very prudent, and we have taken measures in advance to ensure the quality of our asset. For example, for the board, we have always been very targeted in terms of risk management. Here it would include, for example, the reverse stress test and extreme situation test.
We have also improved our quantity of the risks, and we have also communicated with our peers in terms of risk and stress test. In terms of the stress test that we are carrying out, we believe that we are the one that do the most, and we have the most diverse scenarios. I believe that this, for us to have an outlook on the situation, it has helped us with our outlook on the situation. For the management team, we have also been looking at the situation closely and to have given very targeted measures, we have put in a lot of effort into this. Secondly, we continue to improve our quality of the credit whilst we are working hard, we are also improving the momentum of our business.
We continue to deepen our industry structures and to enhance our management of mortgages. In addition, we also strengthened on the selection of customers, and who we would be allowing to let in, and to improve our management of the resource allocation. In addition, we improve our models, especially in terms of the capital taking up, it continues to decrease. Number five, in terms of our value creation, we have strengthened our value creation. Last year, we have completed the disposal of loans, CNY 190 billion, it is growing by 20%, and this is something that's unprecedented. Last year, for the Q1, because of the pandemic impact and without any disposal, in the next three quarters, we have been able to realize this.
For this year, we will continue. We already have plenty of financial resources, and we'll again use these financial resources to continue to dispose such loans and continue to keep it at this level. Number six, we continue to focus on our off-balance sheet risks and the risk management thereof. In terms of credit risk management, in terms of the measures, we are basically taking these measures upfront in advance, and we have seen very good results. In terms of market risk, we also know that last year for the market, there are a lot of volatilities, and we have been faced with a lot of challenges. We have established an emergency response system across different departments. Every week or every day, we will be looking at those and making very strict judgments.
In terms of guiding the operation of the business, it has played a role. In addition, for our investment platform and smart platforms, a lot of our platforms have realized replacement and changing of generations and upgrading of generations. Number three, we continue to push forward our wealth management product. With the wealth management product system being upgraded, in the meantime, we also have a penetrating style of management, and to separate those products into different categories. In terms of our assets and bringing them back onto the balance sheet, we have done plenty of preparation. In the meantime, we also have a whole process of pre-event, in-event, and after-event management.
For our group, we have already realized a unified management, including the sub-branches. In addition, we focus on the research of the market. In this regard, we are actively responding to the changes in the market, and we have seen good progress being made in terms of operational risks. Last year, I believe that the biggest gains that we have made is that we have taken the opportunity of the pandemic in terms of our continuous management system. We have done overhaul changes and from both domestic to overseas, and everything has been systemized. In terms of the efficiency, it has also been tested in real practice.
In the meantime, in terms of the staff behavioral management, we have done a lot of work. We have established offline network management and online smart management system. In the meantime, in terms of anti-money laundering, we continue to implement the requirement from the regulator, and we have received good results, and we can see that our credit rating continues to improve. In terms of anti-fraud system management, we have done a lot of work, including financial asset management, et cetera, and we have seen very good results. For CCB, in terms of our internal risk management, overall speaking, we adhere to the mapping out of our blueprint and especially for our system, especially for our refined management, it is very well reflected.
In terms of 2021, in terms of the quality, again, this is still a very special year for the pandemic's impact on our business. There is still quite a lot of impact. Overall for the macro business at the moment, the business is recovering, and especially with the dual circulation growth, it is being built. For technology innovation and in terms of our industrial chain, et cetera, with these major policies, they are already coming out, and we are also implementing them. All of these have provided very good opportunities and space for growth for our business. Therefore, we will continue and adhere to and optimize the structures of our business and to ensure the stability of our asset quality. Of course, in this, there are still challenges.
For example, looking at last year, from retail business, it is very stable, including credit card business. For inclusive finance, the quality is very stable. In terms of our infrastructure, this is also one of our major part of business, and the NPL has increased slightly. For our overseas business and for our total asset squeezing, because of this, we can see that the NPL is going up. For infrastructure, there are mainly two areas of factors. The first one is for the non-standard asset, there is some impact. This mainly comes from government platforms and for these customers, and we have made plenty of provision, that is not a problem. The second is for the loans and debt from the local government for certain areas, the debt level is quite high, relatively high.
So in terms of their continuous financing capability will be affected, and this might create some of the disclosure of risks. So there are some pressures in this regard, but overall speaking, it is all under control. And we expect that for 2021, our asset quality would still be well-maintained and for various indicators that could be balanced out. Thank you. So please rest assured.
Thank you. Next question, please.
Next question is from [uncertain] from Goldman Sachs. Please raise your question now.
Thank you for the opportunity to raise a question. I'd like to ask about the top internet companies moving into the finance market. Now, we also see that various banks are moving towards this area too. My question is, how does CCB build their advantage in this area?
Mr. Zhang Min, please take the question.
Thank you for your question. Actually, this year, overall commercial bank in fintech, including digital transformation, had made big moves and enhanced the efficiency and inclusiveness of our business. Since 2020, the overall COVID-19 had caused the social working and all aspects of daily life moving to online. Commercial banks, as far as enhancing our technology, that had also been a big driver. Now, our technology capabilities enhancement, it also dictates the speed at which we develop our development. Since 2018, we have been pushing our capability in this area and to build our technology measures. We use our data and our technology to enhance our services. You were asking about how CCB leverage on our own strength. Mainly three areas. One is to optimize our technology investment and technology edge.
We have formed a small working group as well as subsidiaries to build fintech companies in the three places. We have invested CNY 22 billion, which is 3% of our digital revenue. We have 13,000 people working on this, and we continue to growing. We continue to build our digital mechanism. We have built a new retail scheme that is focused on comprehensive demands of the end user and the customer. We also were building new ecosystem to incorporate corporate customers' demands and to build the fintech platform. We already have 5G plus innovative scenarios, and we focus on scenario service types. Our active users are already leading the industry, and we have a smart risk management system, which is applicable to over 90% of our business. Our AI functionalities are already being used to conduct risk management.
There's a lot of scenario application that is applicable to a supply chain and cross-border training, et cetera. We also would be building our smart ecosystem to serve the economy and the society. 2020, the entire bank had, in the modernization of the society, we have helped local government to build internet and smart platform, serving over 100 million people. It had already reached those B and C end. In 2020, we have been enabling SMEs and other customers. We exported our risk management tools to drive a new risk-controlled ecosystem. In 2020, we supported the recovery after the COVID-19. We have assisted the government in the use of the medical platform in Hubei province, and also to serve the society as well as the economic development using our comprehensive online services.
Now, with this new concept and using the open and sharing internet concept, we are continuing to learn and develop, including those top internet companies. We work with them to innovate and to test our products and services in labs. Through this flow, we would like to enhance our capturing and getting of customers, and also to define our technology development path, and to expand our capacity in order to satisfy the demand and needs of our customers. So this is my answer.
Now, based on the regulators' requirement, there has been a collection of those questions that investors pay attention to, and most of that is similar to those questions that have been raised by investors' friends in here. There are some that have not been touched on. There is one that is about the capital management. It says, including CCB, various banks, the asset capital rate has been on the rise. What do you see being the outlook of this?
Okay, I will answer this question. I would like to thank the investors for your attention. In terms of CAR ratio, CAR ratio is a very important indicator in terms of assessing the stability and the health of a commercial bank. It is an indicator that is well being paid attention to. As what you have seen from your attention and a lot of focus for this indicator, because of the pandemic, for various banks, in terms of their CAR ratio, we have all seen some phenomena of it decreasing. There are two reasons behind this. The first one is that in terms of the support of the real economy and the need of fighting against the pandemic for commercial banks, generally speaking, they have improved its degree of loans that it gives out.
Just now we have heard for last year, our loan growth has grown by about CNY 1.8 trillion, CNY 1.7 trillion, and we also have new loans about CNY 800 billion. For these two combined together, of course, this will improve and speed up the fast growth of risky assets, and this will dilute the asset. The second factor is that last year, because of the impact of the pandemic, our clients, especially the SMEs, they face a lot of difficulties in their operations. Whilst enhancing our support and for our existing assets, in order to solidify the foundation, we have improved the provisions made to them. In terms of the NPL and its disposal, as we have heard for last year, NPL disposal last year has reached a record high, about CNY 190 billion.
In the meantime, last year, for NPL, the negative scissor difference is CNY 7.8 billion, beyond our expectation. We have had a larger exposure to NPL and disposal. This is for building a foundation for the future, and this will affect the current period's interest rate. On one hand, it is diluting our asset with more investment being put in. On the other hand, increasing the disposal of NPLs for our current period profit, this will help us to further accumulate capital for the future to a certain extent, and that capability will be weakened. For last year, our CAR ratio, roughly speaking, among our peers, we were ahead of our peers. However, we have also seen certain slight decline. Last year, our CAR ratio is 17.6%. It is down by 0.46%.
You can say that we have still obtained at the leading position among our peers, and we have also met the regulators' requirement well above. However, this is something that can be reflected. This year, we can see that with the continuous support for the real economy going forward, including CCB, as well as other domestic systematic important banks in terms of the CAR ratios, they will all face some pressure, especially for CBIRC in their soliciting opinions. They have said that going forward, in terms of the TLAC and on the capital side, there will be some pressure and the gap of capital, this is a reality that we need to face. Therefore, for the CCB board, we pay great attention to this issue.
For the next three years, we have talked about that we will focus on the supplement of capital. This is one of our key priorities. On one hand, we need to focus on the accumulation internally. We need to improve our profitability to ensure our capital supplement mechanism internally. On the other hand, we will also enhance the supplement of capital from the external source. From March 2021, we will issue second-tier capital tools of not less than CNY 30 billion. Number three, very important, is strengthen the capital management. We need to gradually change the high capital usage model. As I said, that we need to have a very targeted asset management, and very detailed and very refined. Last year, in this regard, we can see that we have made great progress.
On one hand, internally, through adjusting and optimizing our risk models and tools, and through the optimization of our existing assets, we were able to save about CNY 430 billion in terms of the asset that is being used. Next step, we are going to continue to go on the route of refined management. Through technology, the help of technology, we will be better meeting for the capabilities that is required for a systematically important bank, and to realize a long-term and balanced and sustainable development. This is what I have. Thank you.
We have online access for this conference, and there are a lot of questions from online. Because of time constraint, we would just share one more, which is on dividend payout. The question is, the bigger banks have pressure in here in dividend payment, and what is the policy for CCB?
Last year, we have received quite a bit of inquiries about the dividend payout from investors, to see whether CCB could continue to keep appropriate ratio, and also some questions whether the amount could be kept stable. For CCB, this is a question that we attach a lot of importance, and we would try very hard to balance the need for medium and long-run development, as well as returning properly to our investors. in 2020, we kept the dividend payout ratio at 30%, so we have been pushing for the development of our business.
There have been a lot of good results. Our various businesses were able to develop cohesively. Therefore, in the last couple of years, our dividend payout had been stable rising. Last year, facing difficulties. However, through our efforts, as described, we continue to have a positive growth. The board of director, after vetting the demand of our investors and our needs, we decided to maintain a 30% dividend payout ratio. So that comes to about, per share, CNY 0.326. This will have to be passed in the June shareholders meeting. So this is stable, maybe even slightly better than last time. Going forward, we will continue to pay attention to your needs and to capture new capital and new management and business opportunities so that we can grow in a quality way, and also to continue to create larger return and value to our investors.
Today because of a time constraint, we will have to stop our result announcement conference call here. So we have some very excellent exchange with our management about some of the important matters, so that you will understand us better and be able to grasp our outlook and continue to be confident with CCB. So very thankful for your participation. There may be some questions that we have not been able to answer. You are more than welcome to contact our investor relations department, as well as our Board of Directors Secretary, regarding your questions. So we will end here, and very thankful to all of you. I wish you health and happiness. Thank you.