Bank of Suzhou (002966) H2 2025 earnings summary

Executive summary

• Total assets reached ¥789.4 billion, up 13.80% year-over-year; deposits and loans grew 12.86% and 12.02% respectively.

• Operating income rose 1.08% to ¥12.36 billion; net profit attributable to shareholders increased 5.53% to ¥5.35 billion.

• Asset quality remained strong with an NPL ratio of 0.82% and provision coverage at 418.60%.

• The bank completed a convertible bond conversion, strengthening capital adequacy.

• Dividend payout ratio was 30.09% of net profit, with a total cash dividend of ¥1.5 per 10 shares.

Financial highlights

• Net interest income grew 9.55% to ¥8.66 billion, accounting for 70.09% of operating income.

• Non-interest income declined 14.43% year-over-year, mainly due to negative fair value changes.

• Cost-to-income ratio improved to 34.99% from 36.79% last year.

• Basic EPS was ¥1.14, down from ¥1.31 due to share base expansion.

• ROE was 10.66%, down 1.02 percentage points year-over-year.

Outlook and guidance

• The bank will continue to focus on high-quality growth, digital transformation, and risk management.

• Strategic priorities include expanding technology and cross-border finance, and enhancing retail and wealth management.

• Management expects stable macroeconomic support but notes external uncertainties and industry competition.