Bank of Qingdao released its performance report: Behind the 21.66% net profit growth, what has driven the growth of local banks?

On January 28, Bank of Qingdao released its performance report for the year 2025. The data shows that the bank achieved a net profit attributable to shareholders of the parent company of CNY 5.188 billion, a year-on-year increase of 21.66%; total assets exceeded CNY 810 billion, reaching CNY 814.96 billion, a year-on-year increase of 18.12%.

This performance report stands out among several peers that have already announced their results, drawing attention to the reasons behind the growth.

Improvement in Profitability

The performance report shows that Bank of Qingdao achieved an operating income of CNY 14.573 billion in 2025, a year-on-year increase of 7.97%; operating profit was CNY 6.229 billion, a year-on-year increase of 25.01%, with profit growth outpacing revenue growth.

Notably, the bank's weighted average return on equity reached 12.68%, an increase of 1.17 percentage points from the previous year, and basic earnings per share were CNY 0.85, a year-on-year increase of 23.19%, all indicating the strong profitability of coastal local commercial banks.

Rapid Growth in Deposit and Loan Scale

Specifically, the deposit and loan business indicators of Bank of Qingdao have grown significantly faster than its peers.

The report shows that by the end of 2025, the total amount of customer loans at Bank of Qingdao was CNY 397.008 billion, an increase of CNY 56.319 billion from the end of the previous year, a growth of 16.53%; the total amount of customer deposits was CNY 502.899 billion, an increase of CNY 70.875 billion from the end of the previous year, a growth of 16.41%. Total liabilities were CNY 764.706 billion, a year-on-year increase of 18.55%.

This may reflect the good performance of economic activities and economic entities in the main areas covered by the bank.

Outstanding Asset Quality Performance

While the asset scale has grown rapidly, the asset quality of Bank of Qingdao has significantly improved.

The report shows that in 2025, the non-performing loan amount of Bank of Qingdao achieved a "double decline," with the non-performing loan ratio falling below 1% for the first time, reaching 0.97%, a decrease of 0.17 percentage points from the end of the previous year; the non-performing loan balance was CNY 3.841 billion, a decrease of CNY 0.032 billion from the end of the previous year.

The provision coverage ratio has significantly increased to 292.30%, up 50.98 percentage points from the end of the previous year, further enhancing risk resistance capabilities.

Overall, the performance report of Bank of Qingdao is quite remarkable, and the bank is also confident about the future