Shanghai Rural Commercial Bank (601825) Q2 2025 earnings summary

Executive summary

• Achieved net profit of RMB 7.17 billion for H1 2025, up 0.41% year-over-year; revenue was RMB 13.44 billion, down 3.40% year-over-year.

• Total assets reached RMB 1.55 trillion, up 4.14% from year-end 2024; loans and advances grew 2.51% to RMB 774.16 billion.

• Asset quality remained stable with NPL ratio at 0.97%; provision coverage at 336.55%.

• Capital adequacy ratio at 16.90%, well above regulatory minimums.

• Board approved interim cash dividend of RMB 2.41 per 10 shares, payout ratio 33.14%.

Financial highlights

• Net profit attributable to shareholders: RMB 7.01 billion, up 0.60% year-over-year.

• Operating income: RMB 13.44 billion, down 3.40% year-over-year.

• Net interest margin: 1.39%, down 17bps year-over-year.

• Non-interest income ratio: 28.41%, up 1.56 percentage points year-over-year.

• Cost-to-income ratio: 27.87%, improved by 1.24 percentage points year-over-year.

Outlook and guidance

• Management expects net interest margin to stabilize in H2 2025 as policy support and credit demand recover.

• Plans to increase lending, optimize asset structure, and further reduce funding costs.

• Focus on retail, technology, green, and inclusive finance for growth.