At the 2026 interim results conference held on August 28, China Everbright Bank Company Limited President Hao Cheng detailed the bank's approach to navigating a challenging landscape. He stated that since the start of 2026, the institution has adhered to a principle of seeking progress while maintaining stability, actively addressing pressures and challenges by balancing its commitment to the real economy with its own prudent operations. The bank has implemented a multi-pronged strategy to stabilize net interest margins, expand revenue, adjust its business structure, and control risks, while also promoting cost reduction and efficiency gains to keep its overall operational framework stable.
First, the bank achieved steady growth in its business scale. Adopting a proactive and effective asset allocation strategy, China Everbright Bank Company Limited has coordinated the relationship between scale, quality, and profitability to drive steady expansion in both assets and liabilities. As of the end of June, total assets reached 7.25 trillion yuan, up 1.2% from the beginning of the year. Loans totaled 4.07 trillion yuan, a 2.21% increase, with corporate loans (excluding discounts) rising 4.88%. Total liabilities grew 1.19% to 6.64 trillion yuan, while deposits increased 2.2% to 4.19 trillion yuan.
Second, operational profitability faced interim pressure. The bank has focused on its core business, complying with anti-involution requirements and striving for quality and efficiency improvements. By reducing high-cost deposits, enhancing fund turnover efficiency, and strengthening the retention of low-cost deposits, it has optimized its deposit structure and lowered liability costs. By June's end, the proportion of demand deposits had risen by 1.95 percentage points from the start of the year, and the deposit interest rate had fallen by 26 basis points year-on-year. The net interest margin improved to 1.42%, up 2 basis points from the previous year. The bank reported operating income of 63.068 billion yuan, down 4.32% annually, though the decline narrowed by 2.4 percentage points compared to the prior year. Net profit was 18.838 billion yuan, a 23.86% decrease, influenced by factors such as risk reduction and increased provisions.
Third, asset quality has been continuously reinforced. Enhancing its sense of responsibility and urgency in preventing and mitigating financial risks, China Everbright Bank Company Limited has strengthened compliance and risk awareness. Following the principles of early identification, early warning, early exposure, and early disposal, it has closely monitored key areas, improved risk control and disposal mechanisms, proactively resolved risks, reasonably allocated provisions, and optimized approval authorizations. The bank has resolutely curbed the growth of new non-performing loans while accelerating the disposal of existing ones, thereby solidifying its asset quality foundation. As of the end of June, the non-performing loan ratio stood at 1.44%, with a provision coverage ratio of 150.02% and a loan-to-provision ratio of 2.16%.
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