China Zheshang Bank (2016) investor relations material

Executive summary

• Operating income for H1 2026 was RMB33.52 billion, up 0.75% year-over-year; net profit attributable to shareholders reached RMB7.82 billion, up 2.05% year-over-year.

• Total assets grew 6.17% from year-end 2025 to RMB3.70 trillion; total loans and advances rose 4.55% to RMB2.01 trillion; customer deposits increased 6.55% to RMB2.18 trillion.

• Non-performing loan (NPL) ratio remained stable at 1.36%; allowance to NPLs improved to 155.85%.

• Capital adequacy ratio was 11.55%, tier-one at 9.55%, and core tier-one at 8.37%, all above regulatory requirements.

Financial highlights

• Net interest income declined 3.01% year-over-year to RMB22.35 billion, while net non-interest income rose 9.25% to RMB11.16 billion.

• Net interest margin dropped to 1.56% from 1.69% a year ago; net interest spread fell to 1.41%.

• Cost-to-income ratio improved to 29.24% (down 0.53 percentage points year-over-year).

• Provision for impairment losses decreased 1.56% to RMB13.09 billion.

• Basic and diluted EPS were RMB0.28, flat year-over-year.

Outlook and guidance

• Management expects macroeconomic policies to continue supporting growth, with focus on expanding domestic demand and transitioning to new growth drivers.

• The bank will prioritize profitable revenue growth and risk control in H2 2026, aiming for high-efficiency execution of business objectives.