Shanghai Rural Commercial Bank (601825) Q3 2024 earnings summary

Executive summary

• Achieved operating income of RMB 20.48 billion for Jan–Sep 2024, up 0.34% year-over-year; net profit attributable to shareholders reached RMB 10.49 billion, up 0.81% year-over-year.

• Total assets grew 6.07% from year-end 2023 to RMB 1.48 trillion; loans and advances increased 4.47%, deposits up 4.62%.

• Asset quality remained stable with NPL ratio at 0.97%; provision coverage ratio at 364.98%.

• Core tier-1 capital adequacy ratio improved to 14.51%, total capital adequacy ratio at 16.95%.

• Completed mid-year cash dividend of RMB 2.39 per 10 shares, totaling RMB 2.305 billion.

Financial highlights

• Net interest income for Jan–Sep 2024 was RMB 15.23 billion, down 3.08% year-over-year; non-interest net income rose 11.76%.

• Basic and diluted EPS for Jan–Sep 2024 were RMB 1.09.

• Operating cash flow for Jan–Sep 2024 was RMB 30.92 billion, up 28.63% year-over-year.

• Cost-to-income ratio increased slightly to 28.66%.

Outlook and guidance

• Plans to deepen comprehensive financial services, increase support for private and manufacturing sectors, and optimize asset structure.

• Expects continued narrowing of net interest margin due to LPR and deposit rate cuts; aims to outperform industry average through proactive management.

• Will focus on high-quality growth in non-interest income and maintain stable asset quality.