Among the 42 A-share listed banks, only one has managed to sustain double-digit growth in both revenue and net profit attributable to shareholders for four consecutive quarters. This standout performer is Bank Of Chongqing Co.,Ltd., which has leveraged its strategic positioning in the Chengdu-Chongqing economic zone to build a formidable moat.
Looking at the revenue breakdown, net interest income serves as the primary engine. In 2025, the bank generated total operating revenue of RMB 15.113 billion, up 10.48% year-on-year, with net profit attributable to shareholders reaching RMB 5.654 billion, a 10.49% increase. The momentum carried into 2026, with the first quarter delivering RMB 3.996 billion in revenue (up 11.57%) and RMB 1.898 billion in net profit (up 11.22%). The interim results for the first half of 2026 showed continued strength, with revenue climbing 10.80% to RMB 8.486 billion and net profit attributable to shareholders rising 10.28% to RMB 3.518 billion.
Net interest income grew 22.44% in 2025 to RMB 12.459 billion, and the first quarter of 2026 saw a further 12.83% increase to RMB 3.548 billion. This robust performance stems from deep engagement with the Chengdu-Chongqing dual-city economic circle and the New Western Land-Sea Corridor, providing a sustainable growth foundation that competitors find difficult to replicate.
The fee and commission income segment reflects industry-wide pressures, including the implementation of the "bank-insurance alignment" policy, reduced mutual fund distribution fees, and wealth management market volatility. While several listed city commercial banks experienced roughly 30% declines in fee income, Bank Of Chongqing Co.,Ltd. demonstrated notable resilience, with the first half of 2026 showing narrowing declines and early signs of stabilization.
Transformation initiatives are gaining traction. In 2025, the bank ranked first in Chongqing for non-financial corporate bond underwriting across three key metrics, leading all western regional financial institutions. Cross-border RMB settlement volume surged over 120% year-on-year, signalling a shift from traditional channel-based business toward higher-quality service-driven revenue streams.
The net interest margin improved to 1.39% in 2025 from 1.35% in 2024, a 4-basis-point recovery. This improvement is particularly noteworthy given that asset-side loan yields declined 12 basis points while deposit costs fell 37 basis points, demonstrating superior deposit pricing management that outperformed the industry average.
Total assets crossed the trillion-yuan threshold in 2025, reaching RMB 1.0337 trillion, a 20.67% increase. By the end of March 2026, assets had grown further to RMB 1.1081 trillion (up 7.20% from the start of the year), reaching RMB 1.1089 trillion by mid-2026. This expansion reflects the effective implementation of the bank's "Five High" operational strategy: high-target guidance, high-position transformation, high-efficiency operations, high-quality services, and high-standard development.
Loan allocation aligns closely with national strategies. Corporate loans grew 30.95% in 2025, with credit resources directed toward the Chengdu-Chongqing economic circle, the New Western Land-Sea Corridor, and Chongqing's "33618" modern manufacturing cluster system. Technology enterprise loan balances surged 60%, green credit expanded 40%, and manufacturing loan growth hit a five-year high. Financing balances supporting the New Western Land-Sea Corridor exceeded RMB 55 billion, creating high-engagement scenarios that attract low-cost demand deposits.
Risk metrics show comprehensive improvement. The non-performing loan ratio fell to 1.14% by the end of 2025, an 11-basis-point improvement, with special-mention loan ratios and overdue loan ratios declining 70 and 37 basis points respectively to 1.94% and 1.36%. By the end of March 2026, the NPL ratio had improved further to 1.12%, while the provision coverage ratio rose to 246.60%. These forward-looking indicators suggest reduced pressure from potential non-performing loan formation and a strengthened safety margin.
Capital adequacy remains a focal point. The core Tier 1 capital adequacy ratio stood at 8.53% at the end of 2025, but the bank holds RMB 13 billion in convertible bonds currently in their conversion window. By March 2026, the core Tier 1 ratio had risen to 8.67%, with total capital adequacy at 12.57%. Analysts estimate that full conversion of the remaining convertible bonds would substantially replenish capital, supporting continued balance sheet expansion through the 15th Five-Year Plan period.
Market response to the annual and first-quarter reports has been positive, with analysts from CITIC Securities, China Merchants Securities, Zhongtai Securities, Guotai Haitong Securities, China Galaxy Securities, and Zheshang Securities all issuing buy, accumulate, or outperform ratings. The consensus view is that Bank Of Chongqing Co.,Ltd. has achieved meaningful progress not only in scale expansion but also in deposit cost optimization and asset quality enhancement.
The valuation picture is compelling. With the banking sector's price-to-book ratio hovering near historic lows of 0.5x to 0.8x, and institutional positioning in bank stocks at record lows, the negative impact from previous selling appears fully exhausted. As net interest margins stabilize and earnings expectations improve, quality regional city commercial banks are increasingly recognized for their allocation value. With market recognition of the valuation recovery thesis, supported by rising institutional weightings and the convergence of high dividend yields with low valuations, the bank's share price is well-positioned to move toward its fair value.
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