Bank of Communications (3328) H2 2025 earnings summary

Executive summary

• Net profit attributable to shareholders rose 2.18% year-over-year to RMB 95.62 billion, with net operating income up 2.05% to RMB 265.60 billion.

• Total assets increased 4.35% to RMB 15.55 trillion, loans and advances to customers grew 6.64% to RMB 9.12 trillion, and deposits from customers rose 5.77% to RMB 9.31 trillion.

• Non-performing loan (NPL) ratio improved to 1.28%, and provision coverage ratio increased to 208.38%.

Financial highlights

• Net interest income grew 1.91% year-over-year to RMB 173.08 billion, while net fee and commission income increased 3.44% to RMB 38.18 billion.

• Net interest margin declined by 7 basis points to 1.20% due to lower asset yields amid LPR cuts and market competition.

• Credit impairment losses rose 3.77% to RMB 54.55 billion, while business cost remained stable at RMB 77.66 billion.

• Earnings per share (EPS) was RMB 1.08, down from RMB 1.16 in the prior year.

• Return on average assets was 0.63%, and return on weighted-average equity was 8.38%.

Outlook and guidance

• The bank will focus on the "five priorities": technology finance, green finance, inclusive finance, ageing finance, and digital finance.

• Plans to deepen digital transformation, enhance risk management, and support Shanghai's development as a financial center.

• Intends to maintain prudent growth, optimize capital allocation, and reinforce risk controls amid a complex external environment.