Bank of Communications (3328) H1 2025 earnings summary

Executive summary

• Net profit attributable to shareholders rose 1.61% year-over-year to RMB46.02 billion for H1 2025, with net operating income up 0.72% to RMB133.50 billion and net interest income up 1.20% to RMB85.25 billion.

• Total assets increased 3.59% from year-end 2024 to RMB15.44 trillion, with loans to customers up 5.18% and deposits up 4.22%.

• The bank focused on “five priorities” (sci-tech, green, inclusive, ageing, digital finance), with green loans exceeding RMB870 billion and inclusive loans to small/micro enterprises up 11.45%.

• Asset quality improved: NPL ratio decreased to 1.28%, and provision coverage ratio rose to 209.56%.

• Issued 14.1 billion new A shares, raising RMB120 billion and increasing shareholders’ equity by 13.08%.

Financial highlights

• Net profit attributable to shareholders: RMB46.02 billion, up 1.61% year-over-year.

• Net operating income: RMB133.50 billion, up 0.72% year-over-year.

• Net interest margin: 1.21%, down 8 bps year-over-year.

• Earnings per share: RMB0.59 (+5.36% year-over-year).

• Cost-to-income ratio: 29.94% (flat year-over-year).

Outlook and guidance

• Management expects stable and steady development in H2 2025, with continued focus on the “five priorities” and digital transformation.

• Plans to enhance capital utilization, expand green and inclusive finance, and strengthen Shanghai-based operations.

• Dividend policy remains stable, with interim cash dividend of RMB1.563 per 10 shares (30% payout ratio), totaling RMB13.81 billion.