Leshan Commercial Bank, a prominent regional city commercial bank, has released its 2025 annual report and first-quarter operational data for 2026. How does it fare amidst the intense competition among Sichuan's city commercial banks? In terms of performance, the bank achieved operating revenue of 5.657 billion yuan in 2025, an increase of nearly 1.3 billion yuan year-on-year, representing growth of 29.78%. Net interest income rose by 30.76% to nearly 5 billion yuan, contributing 88.3% of total operating revenue. Additionally, net fee and commission income reached approximately 222 million yuan, up 51.47% year-on-year, while investment income doubled to about 526 million yuan. However, losses from fair value changes amounted to 66.7 million yuan, shifting from a profit to a loss and exerting some drag. Overall, the bank saw significant growth in its traditional net interest margin core business, intermediary business income, and investment income last year. In 2025, business and administrative expenses increased by 223 million yuan to 1.469 billion yuan, up 17.9% year-on-year. Credit impairment losses rose by 543 million yuan to 2.236 billion yuan, a significant increase of 32.06%, indicating a notably stronger provision effort compared to the previous year. The bank's operating profit for the period was 1.839 billion yuan, an increase of 575 million yuan or 45.53% year-on-year. Net profit reached 1.258 billion yuan, surging by approximately 551 million yuan or 69% year-on-year. Thus, despite an 18% rise in operating costs and a more than 30% increase in credit impairment losses, driven by rapid growth in diversified business revenue, net profit grew by nearly 70%, delivering a notably impressive performance. For the first quarter of 2026, Leshan Commercial Bank reported operating revenue of 1.52 billion yuan, an increase of 160 million yuan year-on-year. Net interest income slightly decreased to 1.344 billion yuan, while net fee and commission income, investment income, and gains/losses from fair value changes all posted positive growth. Operating profit was 486 million yuan, up 90 million yuan year-on-year, and net profit reached 361 million yuan, an increase of 71 million yuan. As of the end of 2025, the bank's total assets stood at 221.526 billion yuan, a net increase of 15.1 billion yuan from the end of the previous year, up approximately 7.32%. Total customer deposits reached 172 billion yuan, an increase of 26.9 billion yuan or 18.57% from the end of the prior year. Time savings deposits grew by about 15.3 billion yuan to 88.264 billion yuan, with their share of total deposits rising from 50.3% to 51.3%. Total loans and advances amounted to 135.5 billion yuan. Corporate loans and advances increased by 20 billion yuan to 117.7 billion yuan, up 20.47%, while personal loans decreased by 1.7 billion yuan to 11.8 billion yuan. By industry sector, loans to the wholesale and retail trade reached 71.447 billion yuan by the end of last year, accounting for 52.93% of the total loan portfolio. This represents an increase of 25.709 billion yuan and 14.5 percentage points from 45.738 billion yuan and 38.43% at the end of the previous year, indicating exceptionally rapid growth. Notably, the bank's corporate loans to manufacturing, construction, real estate, and agriculture, forestry, animal husbandry, and fishery sectors all declined significantly compared to the end of the prior year. Loans to manufacturing, construction, and real estate each decreased by 2 billion yuan or more, while agriculture, forestry, animal husbandry, and fishery loans fell by 1.8 billion yuan. Loans to government-related sectors, such as leasing and business services, increased by 300 million yuan. The non-performing loan ratio was 1.5% at the period-end, down 0.03 percentage points from the end of the previous year. The consolidated core tier 1 capital adequacy ratio was 9.92%, the tier 1 capital adequacy ratio was 11%, and the total capital adequacy ratio was 13.87%. As of the end of March this year, total assets were 227.626 billion yuan, with all capital adequacy ratios slightly lower than at the end of 2025. For 2026, Leshan Commercial Bank has outlined a strategy for its corporate business focused on "strengthening core operations and achieving excellence through breakthroughs." This involves deeply penetrating high-quality regional industrial chains, implementing a hierarchical customer marketing system targeting "head, mid-tier, and base" clients, continuously strengthening core head client groups, prioritizing the development of specialized products such as cultural and tourism industry loans and green factory loans, steadily optimizing the development model for real estate business, and systematically expanding business within core clients' industrial chains, supply chains, and ecosystems.
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