Bank of Hangzhou Co. (600926) Q2 2025 earnings summary

Executive summary

• Achieved revenue of RMB 20.09 billion in H1 2025, up 3.90% year-over-year; net profit attributable to shareholders reached RMB 11.66 billion, up 16.66% year-over-year.

• Achieved steady growth in business scale and profitability in the first half of 2025, with a focus on transformation and strict management.

• Laid a solid foundation for meeting annual targets and concluding the strategic plan.

• Business transformation and digitalization initiatives advanced, with strong growth in green and technology finance.

Financial highlights

• Net interest income rose 9.38% year-over-year to RMB 13.09 billion; net interest margin declined to 1.35%.

• Non-interest income was RMB 7.00 billion, down 5.00% year-over-year, mainly due to lower fair value gains.

• Cost-to-income ratio improved to 24.08%.

• Basic EPS was RMB 1.75, up 6.71% year-over-year; ROE (annualized) at 9.50%.

• Operating cash flow increased 225.22% year-over-year to RMB 29.26 billion.

Key financial ratios and metrics

• NPL ratio: 0.76%; provision coverage: 520.89%.

• Capital adequacy ratio: 14.64%; Core Tier 1: 9.74%.

• Weighted average ROE was 9.50%, down 0.24 percentage points year-over-year.

• Loan-to-deposit ratio: 73.53%.

• Liquidity coverage ratio: 241.91%.