On the evening of August 27, Bank Of Lanzhou Co.,Ltd. (001227.SZ) released its 2025 interim report, showing that as of the end of June 2025, the bank's total assets successfully crossed the 500 billion yuan threshold, reaching 509.742 billion yuan, representing a 4.82% increase from the beginning of the year, officially entering the medium-sized bank category.
As the only A-share listed city commercial bank in Gansu Province, Bank Of Lanzhou Co.,Ltd. leveraged its long-accumulated local resource advantages and deep cultivation of radiation areas and sinking markets to maintain steady operations in the first half of 2025. The bank achieved operating revenue of 3.921 billion yuan and net profit attributable to shareholders of 952 million yuan, up 0.87% year-on-year. During the reporting period, the bank added nearly 10,000 corporate clients and saw a net increase of 300,300 individual customers compared to the beginning of the year.
During the reporting period, Bank Of Lanzhou Co.,Ltd. maintained a stable market share in Gansu Province. Its deposit market share in the province reached 12.02%, with total deposits of 373.312 billion yuan, a net increase of 17.144 billion yuan from the beginning of the year, representing a 4.81% growth rate and ranking first in the province. The bank's loan market share in the province reached 10.17%, with loans and advances totaling 257.382 billion yuan, a net increase of 12.013 billion yuan from the beginning of the year, representing a 4.90% growth rate and maintaining second place in the province.
Based on continuous penetration of the local market, Bank Of Lanzhou Co.,Ltd. has steadily advanced in scale expansion, significantly improved profitability quality, and continuously strengthened core competitive advantages.
**Implementing the "Five Articles" Strategy to Drive Asset Scale Expansion**
At the macro level, the central bank implemented moderately accommodative monetary policy in the first half, strengthening counter-cyclical adjustments to provide a favorable monetary policy environment for sustained economic recovery. Meanwhile, the banking industry's net interest margin narrowing trend continued, revenue growth momentum weakened, some industries and enterprises faced significant operational pressure, regional economic growth slowed, and credit risks remained under pressure. Financial institutions accelerated innovation and reform processes while maintaining steady growth in asset and liability scales.
To align with industry development trends and enhance resilience across cycles, Bank Of Lanzhou Co.,Ltd. has actively promoted balanced development of "quality, efficiency, and scale" in recent years, further optimizing asset-liability structure while continuously increasing credit support for key areas such as small and micro enterprises, green development, and technological innovation. Inclusive small and micro loans, green loans, and loans to technology-oriented small and medium enterprises all achieved steady growth.
Focusing on the comprehensive "inclusive finance" initiative, Bank Of Lanzhou Co.,Ltd. supported the healthy development of small and micro business entities and effectively implemented rural revitalization strategies through continuous credit growth, steady project advancement, and accelerated innovative product deployment. As of the end of the reporting period, the bank had 10,759 inclusive small and micro loan accounts with a loan balance of 15.475 billion yuan, a net increase of 1.681 billion yuan from the beginning of the year, representing a 12.19% growth rate, higher than the growth rate of all loans.
The bank actively sought supportive policies such as agriculture and small business re-lending, adopted differentiated pricing strategies, focused on expanding new inclusive customers and returning customers, provided preferential interest rate pricing, and continuously reduced credit funding costs. In the first half, the bank applied for 4.292 billion yuan in agriculture and small business re-lending funds, with the balance reaching 7.758 billion yuan at the end of the reporting period.
The bank continued to promote cooperation with policy banks on small and micro enterprise on-lending business, accumulating 600 million yuan in on-lending funds in the first half, with small and micro enterprise on-lending balance reaching 2 billion yuan at the end of the reporting period.
For key agricultural and rural areas, Bank Of Lanzhou Co.,Ltd. increased agricultural credit funding. As of the end of the reporting period, the bank's agriculture-related loan balance was 21.964 billion yuan, a net increase of 1.869 billion yuan from the beginning of the year, representing a 9.30% growth rate. Inclusive agriculture-related loan balance was 3.684 billion yuan (under the new 2025 criteria), a net increase of 659 million yuan from the beginning of the year, representing a 21.79% growth rate, higher than the growth rate of all loans.
On the product side, Bank Of Lanzhou Co.,Ltd. designed and launched online credit products such as Small Micro Quick Loan, Business e-Loan, Business Quick Loan, and Merchant Loan based on different stages of financing needs and characteristics of small and medium enterprises, improving financing convenience for small enterprises. The bank also increased support for first-time and renewal loans, enriched credit loan and medium-to-long-term loan product offerings, and continuously promoted supply chain financing business, expanding applications of innovative products such as Lanyin Chain Credit online factoring financing, Medical Insurance Loan, Government Procurement e-Loan, and Longshang e-Loan to solve financing difficulties for small enterprises in the chain.
As of the end of the reporting period, Bank Of Lanzhou Co.,Ltd.'s small and micro enterprise loan balance (excluding rediscounting) was 90.945 billion yuan, an increase of 3.658 billion yuan from the beginning of the year, representing a 4.19% growth rate.
In serving high-quality real economy development, Bank Of Lanzhou Co.,Ltd. implemented "one-on-one" targeted services based on major project lists from Gansu Province and Lanzhou City. During the reporting period, new investments in provincial and municipal major projects totaled 7.05 billion yuan. The bank assisted manufacturing development toward high-end, intelligent, and green transformation, with manufacturing loan balance of 23.623 billion yuan, a net increase of 2.458 billion yuan from the beginning of the year, representing an 11.61% growth rate. Through policy support, product innovation, and precise services, the bank helped private enterprises overcome financing difficulties. As of the end of June, private enterprise loan balance was 74.517 billion yuan, a net increase of 3.503 billion yuan from the beginning of the year, representing a 4.93% growth rate.
Additionally, as "greening" represents one of Bank Of Lanzhou Co.,Ltd.'s three major strategies, the bank continuously innovated green financial services during the reporting period, implementing Gansu Province's first "water rights pledge loan." Green loan balance reached 16.559 billion yuan, a net increase of 2.107 billion yuan from the beginning of the year (under the new 2025 criteria), representing a 14.58% growth rate.
In technology finance, Bank Of Lanzhou Co.,Ltd. vigorously promoted credit enhancement funds and intellectual property pledge financing business models, taking multiple measures to strengthen financial support for technology enterprises. Technology enterprise loan balance was 16.31 billion yuan, a net increase of 4.131 billion yuan from the beginning of the year, representing a 33.92% growth rate.
**Anchoring "Three-Pronged" Strategy to Build New Engine for Optimizing Profitability Quality**
Beyond expanding asset and business scale, Bank Of Lanzhou Co.,Ltd.'s asset quality in the first half showed characteristics of "marginal improvement in risk indicators and continuous strengthening of resilience capacity."
During the reporting period, Bank Of Lanzhou Co.,Ltd. successfully offset downward pressure on asset returns by optimizing liability structure and reducing interest costs. Two-year and shorter-term deposits accounted for 23%, up 0.8 percentage points, while five-year deposits accounted for 14%, down 2.6 percentage points. Deposit interest rates decreased 25 basis points from the beginning of the year, with corporate deposit rates at 1.41%, personal deposit rates at 2.55%, and interbank liability average rates at 1.95%. The cost-to-income ratio fell to 29.93%, down 1.37 percentage points from the beginning of the year.
In the first half, Bank Of Lanzhou Co.,Ltd.'s non-performing loan ratio remained stable at 1.81%, down 0.02 percentage points from the beginning of the year, with positive results in risk disposal. The provision coverage ratio rose to 207.89%, up 6.29 percentage points from the beginning of the year, further strengthening risk resistance capacity.
Currently, the banking industry is transitioning from a "scale competition" phase to a "quality competition" phase. Local banks are actively optimizing business structures and enhancing funding cost advantages and new customer stickiness while focusing on extracting value from existing markets and building regional resource barriers.
In recent years, Bank Of Lanzhou Co.,Ltd. has continuously advanced its "lightweighting, digitalization, and greening" strategy, highly aligned with current banking industry transformation trends.
In lightweighting, Bank Of Lanzhou Co.,Ltd. focused on wealth management business, reducing dependence on traditional credit and increasing non-interest income proportion through continuous optimization of product systems and customer services. On one hand, the insurance agency business structure continued to optimize through dynamic marketing strategy adjustments and specialized empowerment training, achieving orderly conversion from single-premium to regular-premium payments and improving branch management levels and marketing skills. On the other hand, the bank continuously enriched its wealth management product agency line, first introducing R1 low-risk closed-end products and R3 medium-high risk return enhancement products, screening "Target Win" series products with profit-taking characteristics, with 190 wealth management products approved for agency during the reporting period.
Notably, according to recent data released by Bank Of Lanzhou Co.,Ltd., since officially launching wealth management agency business in August 2024, the bank's wealth management agency scale has exceeded 10 billion yuan, marking Bank Of Lanzhou Co.,Ltd.'s wealth management business entering a new stage of rapid development.
During the reporting period, Bank Of Lanzhou Co.,Ltd. actively seized phased allocation opportunities, proactively sought change and advanced asset deployment, stabilized overall return levels of investment portfolios, and maintained steady growth in the asset foundation. The bank strengthened macroeconomic and market interest rate analysis, deepened multi-variety trading strategy execution for bonds and bills, and highlighted trading income contributions.
During this period, fintech played a positive role in Bank Of Lanzhou Co.,Ltd.'s optimization of customer acquisition, risk control, and operational management across all processes. For example, the bank completed phase one functionality deployment of the Treasury e-Management Platform 5.0 project, providing users with more comprehensive and professional fund management services, and completed local deployment of the DeepSeek Intelligence Core System, implementing applications in seven model scenarios including business knowledge base, code assistance, contract quality inspection, and intelligent customer service assistance.
Leveraging the construction achievements of data platforms such as the "Navigator" unified data portal and "Business Eagle Eye," the bank accelerated the application of external data in marketing risk control and operational management, gradually releasing the value of data elements. In the first half, through technology empowerment and data-driven approaches, Bank Of Lanzhou Co.,Ltd. gained more solid decision-making support in business expansion, customer service, and project management.
Meanwhile, greening responds to the national "dual carbon" strategy, focusing on green credit deployment as the core, strengthening financial support for green infrastructure upgrades, energy green low-carbon transformation, energy conservation and carbon reduction, and other green industries.
In the first half, Bank Of Lanzhou Co.,Ltd. fully utilized carbon reduction support tools, implementing a 670 million yuan project loan for the Lanzhou East City District Smart Heat Source Project. This project recovers waste heat from Yuzhong Steel Plant and transmits it to Lanzhou's Chengguan District, effectively addressing heat source shortages in some areas. After completion, the project can save 123,000 tons of standard coal equivalent annually, reduce carbon dioxide emissions by 322,000 tons, and simultaneously reduce sulfur dioxide, nitrogen oxide, and dust emissions, providing significant environmental benefits.
As an important force in regional finance, Bank Of Lanzhou Co.,Ltd. will continue to deepen its dual positioning as a "regional leader + specialty bank," precisely serving the local real economy and supporting industrial transformation and upgrading while maintaining dynamic balance between business innovation and risk prevention, continuously supporting high-quality regional economic development and potentially further expanding asset scale and optimizing operational quality.
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