Shanghai Rural Commercial Bank (601825) investor relations material

Executive summary

• Achieved steady growth in revenue and net profit for H1 2026, with net profit up 0.71% year-over-year to RMB 7.22 billion and revenue up 1.82% to RMB 13.69 billion.

• Total assets reached RMB 1.65 trillion, up 3.79% from year-end 2025; loans and advances grew 3.48% to RMB 799.87 billion.

• Asset quality remained strong with NPL ratio at 0.94%, down 0.02 percentage points from year-end 2025.

• Capital adequacy ratio at 15.92%, well above regulatory requirements, though down 0.89 percentage points from year-end 2025.

• Board approved a mid-year cash dividend of RMB 2.499 per 10 shares, totaling RMB 2.41 billion, payout ratio 34.07%.

Financial highlights

• Net profit attributable to shareholders: RMB 7.07 billion, up 0.87% year-over-year.

• Operating income: RMB 13.69 billion, up 1.82% year-over-year.

• Basic and diluted EPS: RMB 0.73.

• Total assets: RMB 1.65 trillion, up 3.79% from year-end 2025.

• Customer deposits: RMB 1.18 trillion, up 3.93% from year-end 2025.

Outlook and guidance

• Management expects net interest margin to stabilize and potentially improve in H2 2026 as asset structure is optimized and funding costs are further reduced.

• Non-interest income is expected to benefit from diversified product offerings and active wealth management business.

• Continued focus on risk management, digital transformation, and support for strategic sectors such as green finance, technology, and inclusive finance.

• Mid-year dividend payout ratio set at 34.07%, reflecting confidence in ongoing profitability.