China Zheshang Bank (2016) Q2 2025 earnings summary

Executive summary

• Operating income for H1 2025 was RMB33.27 billion, down 5.75% year-over-year; net profit attributable to shareholders was RMB7.67 billion, down 4.15% year-over-year.

• Total assets reached RMB3.35 trillion, up 0.63% from year-end 2024; customer deposits rose 7.47% to RMB2.07 trillion.

• Non-performing loan (NPL) ratio improved to 1.36%, and capital adequacy ratio stood at 12.31%.

• Allowance to NPLs was 169.78%; tier-one capital adequacy ratio at 9.62%, core tier-one at 8.39%.

Financial highlights

• Net interest income was RMB23.05 billion, down 2.52% year-over-year; net non-interest income was RMB10.22 billion, down 12.31%.

• Net interest margin was 1.69%, down 13 bps year-over-year.

• Cost-to-income ratio increased to 29.77%.

• Provision for expected credit losses decreased 10.90% to RMB13.3 billion.

• Basic and diluted EPS were RMB0.28, down from RMB0.29.

Outlook and guidance

• The bank will focus on high-quality development, digital transformation, and risk management in H2 2025.

• Strategic priorities include deepening development in Zhejiang, enhancing digital operations, and strengthening risk controls.

• Macroeconomic policies are expected to remain supportive, with domestic demand and new productive forces driving growth.