Chongqing Bank's total assets surged by 20%, thanks in part to urban investment loans. Retail business experienced losses.

“Chongqing Bank’s total assets surged 20% in 2025—this has a lot to do with the company’s loan growth, especially in loans related to urban investment and infrastructure construction, while the pre-tax profit of its retail business first turned to losses.”

On the evening of March 24, Chongqing Bank (SH601963) released its 2025 annual report. For the full year, it achieved operating revenue of RMB 15.11B and net profit of RMB 6.11B, up 10.48% and 10.58% year over year, respectively.

This is also the first time in 5 years that the bank’s operating revenue and net profit have both returned to double-digit growth channels at the same time.

By the end of 2025, Chongqing Bank’s total asset size reached RMB 1.03 trillion, up 20.67% compared with the end of 2024.

Notably, in the fourth quarter of 2025, Chongqing Bank’s urban investment-related loan balance continued to grow, reaching RMB 143.8 billion, accounting for more than 27% of all loans. Among corporate loans, its share was even above 35%.

Compared with the rapid progress in its corporate business, the retail business looks rather subdued. In 2025, the retail segment’s pre-tax profit first posted losses in more than a decade.

Operating revenue and net profit return to double-digit growth

In 2025, Chongqing Bank’s operating income was RMB 10.3k, up 10.48% year over year; net profit was RMB 15.11B, up 10.58% year over year.

Among them, net interest income was RMB 6.11B, up 22.44%, while net fee and commission income was RMB 598 million, down sharply by 32.66% year over year.

In 2025, the bank’s net interest margin (NIM) was 1.39%, unchanged from the first half, up 0.04 percentage points from 2024.

Rising NIM, along with expansion in the loan scale, is the main reason for the sharp increase in net interest income.

Further breaking it down, the total amount of corporate loans was RMB 12.46B, up 30.95%, while the total amount of retail loans was RMB 531.29B, down 0.94% year over year.

In 2025, Chongqing Bank’s average yield on corporate loans was 4.52%, down 0.18 percentage points from 2024. The average yield on retail loans was 4.02%, down 0.53 percentage points from 2024.

In 2025, the bank’s non-performing loan (NPL) ratio was 1.14%, down 0.11 percentage points year over year. Its allowance coverage ratio was 245.58%, essentially in line with the end of 2024 (245.08%).

In 2025, Chongqing Bank’s return on average total assets was 0.65%, and its weighted average return on net assets was 9.5%.

Relying on urban investment loans—total assets explode higher

By the end of 2025, Chongqing Bank’s total assets reached RMB 1.03 trillion, up an astounding 20.67% year over year.

The bank’s rapid growth in total assets is closely related to expansion in its loan scale.

In recent years, Chongqing Bank has focused on the Western Development strategy, increasing credit support in areas such as the Chengdu-Chongqing dual-city economic circle, the Western Land-Sea New Corridor, and the construction of a Western financial hub. It supported nearly 150 major projects for the dual-city economic circle and provided financing with a balance exceeding RMB 55 billion for the development of the Western Land-Sea New Corridor.

In 2025, Chongqing Bank’s total loan amount was RMB 409.87B, up 20.58%.

The largest share among its loans is in the leasing and business services industries related to urban investment. The loan amount reached RMB 96.7B, up 37.37%, accounting for 27.17% of all loans. Within corporate loans, its share was as high as 35.08%.

Loans in the water conservancy, environment, and public facilities management industry—closely tied to infrastructure construction—had a total of RMB 10.3k, up 27.85%, accounting for 19.05% of all loans. Within corporate loans, its share was 24.6%.

Together, these two categories make up 59.68% of total corporate loan amount—nearly 60%!

However, although non-performing rates for leasing and business services loans have been relatively low, there has been an upward trend in these years as well. In 2025, the non-performing loan amount for this category was RMB 453 million, up 184.91% from 2024; the non-performing loan ratio also rose to 0.31%, up 0.16 percentage points from 2024.

Against the backdrop of relatively rapid expansion in scale, Chongqing Bank’s capital indicators faced some pressure. As of the end of 2025, its core tier-one capital adequacy ratio, tier-one capital adequacy ratio, and capital adequacy ratio were 8.53%, 9.62%, and 12.55%, respectively—down 1.35, 1.58, and 1.91 percentage points from the end of the previous year, respectively.

Chongqing Bank stated that the main reason for changes in capital adequacy ratios during the reporting period was the normal development of various businesses, with the total risk-weighted assets both on and off the balance sheet increasing, which to a certain extent lowered capital adequacy ratios at all levels.

Retail business pre-tax profit plunges 120.95%

Compared with corporate loans, Chongqing Bank’s retail business is still relatively weak, even showing a trend of contraction.

In 2025, Chongqing Bank’s total retail loan amount was RMB 531.29B, down 0.94% year over year. Its share in all loans was 18.28%, also down nearly 4 percentage points from 2024.

In 2025, the bank’s retail loan NPL ratio was 3.23%, up 0.52 percentage points from 2024.

What’s worse is that in 2025, the retail bank business had income of RMB 143.76B. Although this was up 5.76% year over year, its pre-tax profit was a loss of RMB 92.789 million; in 2024 it still posted a profit of RMB 444 million.

If we extend the time horizon, it is even clearer to see the growth trend in Chongqing Bank’s corporate business. Before 2021, the corporate business and retail business could maintain a relatively balanced position. But after 2021, the corporate business pulled far ahead, leaving the retail business far behind.

In 2025, Chongqing Bank’s net fee and commission income was RMB 598 million, down 32.66% year over year. Among them, income from agency wealth management business was RMB 344 million, down 49.29%. In this regard, Chongqing Bank said the main reason was that over the past two years it has been in a low interest-rate market cycle, and due to the decline in returns of underlying assets, wealth management fee income fell.

Proposed dividend of nearly RMB 1.6 billion

Chongqing Bank also disclosed its 2025 profit distribution plan. Under the plan, Chongqing Bank intends to distribute cash dividends to all shareholders of RMB 0.2918 per share (including tax). In addition to the cash dividend of RMB 0.1684 per share (including tax) that was already implemented in the first three quarters, the total cash dividend for the full year will be RMB 100.82B, accounting for 30% of net profit attributable to ordinary shareholders.

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责任编辑：秦艺