China Zheshang Bank (2016) Q1 2025 earnings summary

Executive summary

• Total assets reached RMB3,443.1 billion, up 3.54% from December 31, 2024, with customer deposits rising 4.37% and loans up 1.81% over the same period.

• Operating income for Q1 2025 was RMB17.1 billion, down 6.95% year-over-year, while net profit attributable to shareholders increased slightly by 0.61% to RMB5.95 billion.

• Asset quality remained stable with a non-performing loan ratio of 1.38% and allowance to non-performing loans at 171.21%.

Financial highlights

• Net interest income rose 1.38% year-over-year to RMB11.98 billion, but net non-interest income fell 21.86% to RMB5.15 billion.

• Net interest margin was 1.76%, down 0.08 percentage points year-over-year.

• Cost-to-income ratio improved to 27.06%, a decrease of 1.17 percentage points year-over-year.

• Net cash used in operating activities improved significantly to RMB-2.2 billion from RMB-90.1 billion in Q1 2024, mainly due to increased cash inflow from customer deposits.

Outlook and guidance

• The business scale is expected to continue stable growth, with a focus on maintaining asset quality and capital adequacy.