Bank of Communications (3328) Q1 2025 earnings summary

Executive summary

• Total assets rose 2.61% to RMB 15,288.9 billion as of March 31, 2025, with total liabilities up 2.67% to RMB 14,112.3 billion and shareholders' equity up 1.89% to RMB 1,165.9 billion compared to December 31, 2024.

• Net operating income for Q1 2025 was RMB 66.44 billion, down 1.13% year-over-year, while net profit attributable to shareholders increased 1.54% to RMB 25.37 billion.

• The group maintained stable asset quality, with a non-performing loan ratio of 1.30% and a provision coverage ratio of 200.41%.

Financial highlights

• Net interest income grew 2.52% year-over-year to RMB 42.60 billion, accounting for 64.12% of net operating income.

• Net fee and commission income declined 2.40% to RMB 11.59 billion, mainly due to lower income from custody, fiduciary, and investment banking businesses.

• Operating expenses fell 2.88% to RMB 20.18 billion, with a cost-to-income ratio of 30.40%.

• Asset impairment losses dropped 13.47% to RMB 12.63 billion.

• Basic and diluted EPS remained at RMB 0.34.

Outlook and guidance

• The bank plans to issue A shares to specific targets, raising up to RMB 120 billion to supplement core tier-1 capital, pending regulatory approval.