Chongqing Rural Commercial Bank (3618) H1 2025 earnings summary

Executive summary

• Achieved steady growth in scale and profitability, with total assets up 7.60% to RMB1.63 trillion and net profit up 3.79% year-over-year to RMB7.85 billion for the first half of 2025.

• Maintained leading market position in western China, with A-share included in CSI 300 Index, H-share in MSCI Index, and strong performance in rural and county areas.

• Enhanced digital transformation, risk management, and product innovation, supporting high-quality development and local economic initiatives.

• Focused on “three new momentums” (digitally-driven, industrial-chain-driven, scenario-driven) and “five major areas” of finance, supporting rural revitalization, green finance, technology, inclusive and pension finance.

Financial highlights

• Operating income rose 0.64% year-over-year to RMB14.74 billion; net interest income increased 5.98% to RMB11.74 billion.

• Net non-interest income declined 15.99% to RMB2.99 billion, mainly due to lower trading gains and fee income.

• Cost-to-income ratio increased to 26.59%; operating expenses up 3.90% to RMB4.08 billion.

• Impairment losses on credit dropped 27.46% to RMB1.78 billion, reflecting improved asset quality.

• Basic and diluted EPS were RMB0.67, up from RMB0.64 in the prior year.

• Total assets reached RMB1.63 trillion, loans to customers RMB765.25 billion (+7.14%), deposits RMB1.03 trillion (+8.84%).

Outlook and guidance

• Expects continued pressure on net interest margin due to downward interest rate trends, but aims to maintain margin at a reasonable level through asset-liability management and optimization.

• Targets steady profit growth by expanding scale, stabilizing prices, controlling risks, and improving efficiency.

• Anticipates stable asset quality with positive momentum, supported by digital risk control and proactive risk management.

• Will deepen reform, digital transformation, and focus on high-quality development in key financial areas.