Chongqing Rural Commercial Bank (3618) H2 2025 earnings summary

Executive summary

• Total assets reached RMB1.67 trillion, up 9.95% year-over-year, with asset growth at a four-year high.

• Net profit rose 5.35% to RMB12.42 billion, and operating income increased 1.38% to RMB28.62 billion compared to 2024.

• Non-performing loan (NPL) ratio declined to 1.08%, and provision coverage improved to 367.26%.

• All major targets of the 14th Five-Year Plan were achieved, maintaining top market position in Chongqing and among rural commercial banks nationwide.

Financial highlights

• Net interest income grew 7.85% to RMB24.26 billion, while net non-interest income fell 24.01% to RMB4.36 billion year-over-year.

• Cost-to-income ratio improved to 31.25%, down 0.65 percentage points from 2024.

• Capital adequacy ratio stood at 14.46%, down 1.66 percentage points, reflecting faster asset growth than capital replenishment.

• Return on net assets was 9.15%, slightly lower than 2024.

• Final cash dividend proposed at RMB1.1755 per 10 shares, with total 2025 dividend at RMB3.2091 per 10 shares.

Outlook and guidance

• 2026 marks the start of the 15th Five-Year Plan, with focus on building “three new momentums”: digitally-driven, industrial-chain-driven, and scenario-driven growth.

• Continued emphasis on supporting the real economy, rural revitalization, and digital transformation.

• Net interest margin expected to remain under pressure due to a low interest rate environment; management will optimize asset-liability structure and pricing.

• Asset quality expected to remain stable, with ongoing improvements in risk management and digital risk control.