In the first half of 2025, Bank Of Shanghai Co.,Ltd.'s interest income returned to positive growth, while fee-based income continued to decline. However, net investment income surged 34.37% to 10.703 billion yuan. Notably, the bank's deposit and loan growth rates remained under pressure, ranking second-to-last among 17 listed city commercial banks in the first half of the year, while its corporate real estate loan ratio remains significantly elevated.
On October 10, Bank Of Shanghai Co.,Ltd. (601229.SH) announced its interim equity distribution plan, proposing a cash dividend of 3.0 yuan per 10 shares. The record date is set for October 15, with the ex-dividend date and dividend payment date both on October 16, distributing a total of 4.263 billion yuan in cash dividends.
Simultaneously, the bank issued an announcement regarding the adjustment of its A-share convertible bond conversion price. The conversion price was adjusted from 8.87 yuan per share to 8.57 yuan per share, with the adjustment effective on October 16.
The bank's convertible bonds—Shanghai Bank Convertible Bonds (113042)—are scheduled to mature in January 2027, with more than one year remaining. As of September 30, 2025, a cumulative 22.174 million yuan of the convertible bonds had been converted to A-shares, representing 2,470,883 shares, while 19.9778 billion yuan remained unconverted, accounting for 99.8891% of the total issuance.
According to the interim report, Bank Of Shanghai Co.,Ltd. achieved operating revenue of 27.344 billion yuan in the first half of 2025, up 4.18% year-on-year. Net profit attributable to shareholders reached 13.231 billion yuan, increasing 2.02% year-on-year, with earnings per share of 0.93 yuan, up 2.2% year-on-year.
Notably, the bank's net investment income exceeded 10 billion yuan in the first half of 2025, reaching 10.703 billion yuan, a 34.37% year-on-year increase, accounting for 39.14% of total revenue. However, Bank Of Shanghai Co.,Ltd.'s corporate real estate loan ratio has consistently remained high. As of the end of the first half of 2025, corporate real estate loans accounted for 43.28% of total real estate loans, compared to less than 30% for Bank of Beijing.
Furthermore, over the past three years, Bank Of Shanghai Co.,Ltd.'s deposit and loan growth rates have been continuously declining. In 2025, the bank's deposit and loan growth rates ranked second-to-last among 17 listed city commercial banks and last among the four major city commercial banks.
As of the close on October 10, Bank Of Shanghai Co.,Ltd. traded at 9.19 yuan per share, down 24.81% from recent highs, with a market capitalization of 130.6 billion yuan.
**Net Interest Margin Under Pressure, Non-Interest Income Ratio Continues to Rise**
Bank Of Shanghai Co.,Ltd. was established on January 30, 1996, with headquarters in Shanghai, and is listed on the Shanghai Stock Exchange main board. Currently, the bank has established first-tier branches in Shanghai, Ningbo, Nanjing, Hangzhou, Tianjin, Chengdu, Shenzhen, Beijing, and Suzhou, with branch networks covering the Yangtze River Delta, Beijing-Tianjin region, Guangdong-Hong Kong-Macao Greater Bay Area, and key cities in central and western China.
From 2022 to 2024, Bank Of Shanghai Co.,Ltd. achieved operating revenues of 53.112 billion yuan, 50.564 billion yuan, and 52.986 billion yuan, with year-on-year growth rates of -5.54%, -4.80%, and 4.79% respectively. Net profit attributable to shareholders was 22.28 billion yuan, 22.545 billion yuan, and 23.56 billion yuan, with year-on-year growth rates of 1.08%, 1.19%, and 4.50% respectively.
During the same period, the bank's annualized weighted average return on equity (ROE) was 11%, 10.36%, and 10.01% respectively, with net interest margins of 1.54%, 1.34%, and 1.17%, and net interest spreads of 1.57%, 1.74%, and 1.54% respectively.
The data shows that over the past three years, Bank Of Shanghai Co.,Ltd.'s ROE, net interest margin, and net interest spread have been under continuous pressure, while revenue and net profit growth rates recovered somewhat in 2024.
From a revenue structure perspective, over the past three years, the bank's net interest income was 38 billion yuan, 35.164 billion yuan, and 32.486 billion yuan respectively, while non-interest income was 15.112 billion yuan, 15.4 billion yuan, and 20.499 billion yuan respectively.
This indicates that Bank Of Shanghai Co.,Ltd.'s interest income has been continuously declining while non-interest income has been steadily increasing. By the end of 2024, interest income accounted for 61.31% of total revenue, while non-interest income rose to 38.69%.
Regarding non-interest income, from 2022 to 2024, the bank's fee and commission income was 6.493 billion yuan, 4.915 billion yuan, and 3.959 billion yuan respectively, while net investment income was 7.457 billion yuan, 6.772 billion yuan, and 13.166 billion yuan respectively. Fee-based income declined while investment income increased.
Additionally, over the past three years, the bank's loan and deposit growth rates have been continuously declining.
Data shows that from 2022 to 2024, Bank Of Shanghai Co.,Ltd.'s total loans were 1.304593 trillion yuan, 1.377035 trillion yuan, and 1.405756 trillion yuan respectively, with year-on-year growth rates of 6.61%, 5.55%, and 2.09%. Total deposits were 1.571456 trillion yuan, 1.640078 trillion yuan, and 1.710032 trillion yuan respectively, with year-on-year growth rates of 8.34%, 4.37%, and 4.27%. Both deposit and loan growth rates remained under pressure.
**Corporate Real Estate Loans Account for 43.28%, Deposit and Loan Growth Ranks Last Among Four Major City Commercial Banks**
In the first half of 2025, Bank Of Shanghai Co.,Ltd. achieved operating revenue of 27.344 billion yuan, up 4.18% year-on-year. This included net interest income of 16.453 billion yuan, up 1.72% year-on-year (the first positive growth in three years); fee and commission income of 2.06 billion yuan, down 5.96% year-on-year; and other non-interest income of 8.831 billion yuan, up 12.05% year-on-year. Net profit attributable to shareholders reached 13.231 billion yuan, up 2.02% year-on-year.
The net interest margin was 1.15%, down 0.02 percentage points from year-end. The net interest spread was 1.15%, down 0.07 percentage points from year-end.
Within other non-interest income, net investment income was 10.703 billion yuan, up 34.37% year-on-year; fair value changes resulted in a loss of 1.599 billion yuan compared to a gain of 4.718 million yuan in the same period last year; and net foreign exchange gains and losses were -377 million yuan, down 27.44% year-on-year.
The data shows that net investment income remains the primary driver of Bank Of Shanghai Co.,Ltd.'s non-interest income growth. The bank explained in its interim report that this was mainly due to capitalizing on market interest rate fluctuations and accelerating financial asset turnover, driving year-on-year investment income growth.
Regarding asset quality, over the past three years, Bank Of Shanghai Co.,Ltd.'s non-performing loan ratio has been continuously declining, from 1.25% in 2022 to 1.18% in 2024. The NPL ratio in the first half of 2025 remained at 1.18%, unchanged from year-end. However, the provision coverage ratio has been declining, from 291.61% in 2022 to 269.81% in 2024, and further to 243.64% in the first half of 2025, down 26.17 percentage points from year-end.
Regarding real estate loans, over the past three years, Bank Of Shanghai Co.,Ltd.'s real estate loan portfolio has been continuously declining, but the proportion of corporate real estate loans remains somewhat elevated.
In the first half of 2025, the bank's total real estate loans amounted to 284.1 billion yuan, an increase of 6.051 billion yuan year-on-year. This included corporate real estate loans of 122.961 billion yuan, up 3.071 billion yuan year-on-year, and individual housing loans of 161.139 billion yuan, up 2.98 billion yuan year-on-year.
As of the end of the first half of 2025, Bank Of Shanghai Co.,Ltd.'s corporate real estate loans accounted for 43.28% of total real estate loans, while individual housing loans accounted for 56.72%. Combined, they represented 19.77% of total loans.
As of the end of the first half of 2025, Bank Of Shanghai Co.,Ltd.'s total assets were 3.293714 trillion yuan, up 2.08% from year-end. Total loans and advances were 1.436984 trillion yuan, up 2.22% from year-end, while total deposits were 1.781366 trillion yuan, up 4.17% from year-end.
Notably, in the first half of the year, Bank Of Shanghai Co.,Ltd.'s deposit and loan growth rates ranked second-to-last among 17 listed city commercial banks, ahead of only Guiyang Bank. Among the four major city commercial banks (Bank of Jiangsu, Bank of Beijing, and Bank of Ningbo), it ranked last.
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