On March 27, at the 2025 performance briefing held by Bank of Communications, Vice President Gu Bin reported that the bank's non-performing loan ratio stood at 1.28% at the end of 2025, a decrease of 0.03 percentage points from the end of the previous year. The special-mention loan ratio reached 1.6%, up by 0.08 percentage points year-on-year, while the overdue loan ratio was 1.46%, also increasing by 0.08 percentage points compared to the end of the prior year. The annual new NPL ratio remained largely unchanged from the previous year and has stayed below 1% for three consecutive years, maintaining a relatively low level.
Discussing asset quality trends for the current year, Gu Bin indicated that managing asset quality will continue to pose challenges. He projected ongoing pressure on the quality of retail credit and small business credit assets. Additionally, he noted that the real estate market is currently in a phase of bottoming out and stabilizing, and the bank will continue to monitor risks associated with real estate. He also pointed out that homogenized competition in certain industries has led to narrowed profit margins for enterprises and intensified operational divergence. As a result, the bank will keep a close watch on the operational conditions and subsequent risk developments of companies within these sectors.
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