Chongqing Rural Commercial Bank (3618) H2 2024 earnings summary

Executive summary

• Achieved robust growth in 2024 with total assets up 5.12% to RMB1.52 trillion and net profit rising 5.97% year-over-year to RMB11.79 billion.

• Maintained leading market position in Chongqing for assets, deposits, and loans, and ranked 14th nationwide in banking competitiveness.

• Focused on five major areas: technology, green, inclusive, pension, and digital finance, with significant loan growth in each.

Financial highlights

• Operating income increased 0.98% year-over-year to RMB28.23 billion; net profit attributable to shareholders rose 5.60% to RMB11.51 billion.

• Net interest income declined 4.25% to RMB22.49 billion, while net non-interest income surged 28.51% to RMB5.74 billion.

• Cost-to-income ratio improved by 2.04 percentage points to 31.90%.

• Non-performing loan (NPL) ratio decreased slightly to 1.18%; provision coverage ratio at 363.44%.

• Capital adequacy ratio increased to 16.12%; core tier 1 capital adequacy ratio at 14.24%.

• Dividend payout for 2024 proposed at RMB3.046 per 10 shares (tax inclusive).

Outlook and guidance

• Expects continued stable growth in 2025, focusing on high-quality development, cost optimization, and risk control.

• Anticipates further narrowing of net interest margin due to market trends but aims to maintain profitability through asset allocation and cost management.

• Will continue to expand in technology, green, inclusive, pension, and digital finance, and deepen rural revitalization efforts.