Bank of Communications Vice President Qian Bin Stresses Focus on Retail Credit Risk Management and NPL Disposal

On March 27, at the 2025 performance briefing held by Bank of Communications, Vice President and Chief Information Officer Qian Bin addressed market concerns. He noted that since 2025, influenced by the macroeconomic environment and the downturn in the real estate market, the asset quality of retail loans in the banking sector has faced significant downward pressure, with Bank of Communications' situation aligning with the broader industry trend. Although non-performing consumer loans have shown some increase, the relatively short terms of these products, combined with external market conditions, have put pressure on the asset quality of both consumer and business loans. However, overall risks remain manageable.

Qian Bin stated that in the next phase, the bank will continue to prioritize risk prevention and the disposal of non-performing loans in retail credit. Before lending, the bank will maintain strict control over new customer approvals and continuously upgrade its models using internal and external data to enhance the asset quality of new accounts from the outset. During the loan term, the bank will strengthen dynamic monitoring, accurately analyze evolving trends and risk causes, and pay close attention to risk conditions in key regions. It will also enhance loan management throughout their duration and provide timely reminders as loans approach maturity. After lending, the bank will proactively address trends in retail credit risk and advance the disposal of non-performing loans through multiple dimensions: First, it will optimize the retail risk disposal framework, strengthen professional teams, and establish a comprehensive, integrated management system to solidify the foundation for retail loan risk disposal. Second, it will tailor strategies based on the characteristics of retail business products, improve the toolkit for handling non-performing retail loans, and enhance精细化 management capabilities. Third, building on disposal experience and data, the bank will comprehensively utilize methods such as independent collection, litigation and enforcement, bulk transfers, asset securitization, and write-offs of bad debts to further accelerate the disposal of non-performing retail loans.