"Does the company have plans to expand into other business areas this year?"
This direct question was raised by an investor during Bank of Changsha Co., Ltd.'s online earnings briefing held on September 30th.
In response, Chairman Zhao Xiaozhong of Bank of Changsha Co., Ltd. stated that the bank will anchor its high-quality development strategy and steadily advance various business operations. On one hand, through five key initiatives - "strengthen Changsha, expand prefecture-level cities, consolidate counties, optimize Guangzhou, and enhance subsidiaries" - the bank aims to achieve balanced development across regions and segments.
On the other hand, the bank will focus on eight priority areas: county finance, new government services, wealth management, inclusive finance, industrial finance, technology finance, carbon-neutral finance, and financial investment, accelerating business transformation.
As Hunan Province's first listed bank and the largest local corporate financial institution in Hunan, Bank of Changsha Co., Ltd.'s ranking continues to rise. In the "2025 China Banking Industry Top 100 List" recently released by the China Banking Association, Bank of Changsha Co., Ltd. ranked 34th, up two positions from the previous year.
From first-half performance, Bank of Changsha Co., Ltd. achieved operating revenue of 132.49 billion yuan, up 1.59% year-on-year, and net profit attributable to shareholders of 43.29 billion yuan, up 5.05% year-on-year, showing growth in both revenue and net profit.
However, upon closer examination, Bank of Changsha Co., Ltd.'s profit growth was primarily driven by investment income.
In the first half, the bank achieved net interest income of 96.59 billion yuan, down 1.74% year-on-year, accounting for 72.90% of operating revenue. During this period, the bank's net interest margin was 1.87%, down 0.25 percentage points year-on-year.
Meanwhile, the bank achieved non-interest net income of 35.9 billion yuan, up 11.78% year-on-year. Among this, investment income reached 31.84 billion yuan, up 118.82% year-on-year.
On the other hand, Bank of Changsha Co., Ltd.'s operating costs continued to grow. The bank's operating costs in the first half reached 81.16 billion yuan, up 1.98% year-on-year.
Among these, business and management expenses were 35.65 billion yuan, up 1.37% year-on-year, while employee compensation was 22.52 billion yuan, up 4.82% year-on-year.
It was noted that while Bank of Changsha Co., Ltd. maintained its performance growth trend, key management personnel shareholding decreased. As of the end of June 2025, key management personnel held 245,000 shares, down 69,000 shares from 314,000 shares at the beginning of the year.
Bank of Changsha Co., Ltd. still has areas requiring improvement.
As of the end of the first half of 2025, Bank of Changsha Co., Ltd.'s total assets reached 1,247.385 billion yuan, up 8.78% from year-end; total principal amount of loans and advances was 602.692 billion yuan, up 10.56% from year-end; total principal amount of deposits absorbed was 759.184 billion yuan, up 5.01% from year-end.
Regarding loans, corporate loans amounted to 404.924 billion yuan, up 16.87%, accounting for 67.19%; personal loans amounted to 192.036 billion yuan, up 1.33%, accounting for 31.86%, showing a decline from year-end.
Among personal loans, credit card advances, personal business loans, and residential mortgage loans all decreased compared to year-end.
Additionally, Bank of Changsha Co., Ltd.'s non-performing personal loan ratio was 2.2%, up 0.33 percentage points from year-end.
Bank of Changsha Co., Ltd. needs to continue improving asset quality. As of the end of the first half of 2025, the bank's non-performing loan ratio was 1.17%, unchanged from year-end, with a provision coverage ratio of 309.71%, down 3.09 percentage points from year-end, and a loan loss provision ratio of 3.62%, down 0.04 percentage points from year-end.
Regarding overdue loans, as of the end of the first half of 2025, the bank had 134.05 billion yuan in overdue loans, representing 2.22% of total loans. By overdue period, loans overdue for 1 to 90 days (inclusive) had a balance of 66.97 billion yuan.
In terms of cash flow, Bank of Changsha Co., Ltd. recorded a net cash outflow of 463.98 billion yuan from operating activities.
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