Bank of Beijing (601169.SH), once the leading city commercial bank, is struggling to maintain its position.
The Q3 2025 report shows that Bank of Beijing generated revenue of 51.59 billion yuan, down 1.08% year-on-year, while net profit attributable to shareholders reached 21.06 billion yuan, a marginal increase of just 0.26%.
This performance pales in comparison to its peers, particularly Bank of Jiangsu (600919), which surpassed Bank of Beijing by 15.6 billion yuan in revenue and 9.52 billion yuan in net profit for the first three quarters of 2025.
Despite steady asset expansion, investment volatility weighed on Bank of Beijing's performance. The bank reported a fair value loss of 1.19 billion yuan in Q3, down 1.41 billion yuan from the same period last year. By the end of September 2025, its financial investment assets grew 23.1% year-to-date to 1.77 trillion yuan.
In terms of asset quality, Bank of Beijing's non-performing loan ratio improved slightly to 1.29%, but its provision coverage ratio dropped 12.96 percentage points to 195.79%, remaining below the 200% threshold.
The bank's capital adequacy ratios also declined, with the core tier-1 ratio falling to 8.44% as of September 2025.
Bank of Jiangsu and Bank of Ningbo both outperformed Bank of Beijing in profitability. Bank of Jiangsu posted 67.18 billion yuan in revenue (up 7.83% YoY) and 30.58 billion yuan in net profit (up 8.32% YoY), while Bank of Ningbo achieved 54.98 billion yuan in revenue and 22.45 billion yuan in net profit, both growing over 8% year-on-year.
Regulatory challenges compounded Bank of Beijing's difficulties. In September 2025, it was fined 5.3 million yuan for seven violations including inaccurate loan classification and insufficient impairment provisions for financial investments. Earlier in May, its branches in Nanchang received penalties totaling 2.4 million yuan for poor loan management practices.
While traditional banking operations remained stable—with net interest income growing 1.8% to 39.25 billion yuan—the bank's net interest margin narrowed to 1.26%. Loans increased 7.38% to 2.37 trillion yuan, with notable growth in tech finance (up 20.16%), green finance (up 26.20%), and small business lending (up 16.91%).
Deposits rose 7.6% to 2.64 trillion yuan, while fee-based income from wealth management products grew over 10%, with the bank distributing more than 3,200 products through nearly 100 partner institutions.
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