Net profit attributable to parent increases by over 20%, Qingdao Bank rapidly expands its balance sheet and achieves ROE recovery.

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At a time when the banking industry is generally facing multiple pressures such as narrowing interest margins, asset shortages, and increased risk exposure, Bank of Qingdao has released a rather "aggressive" report card:

In 2025, it achieved operating income of 14.573 billion yuan, a year-on-year increase of 7.97%, and net profit attributable to shareholders reached 5.188 billion yuan, an increase of 21.66%.

Profit growth is nearly three times the revenue growth, and this significant "scissors difference" is rarely seen in recent financial reports of listed banks.

Generally speaking, when net profit growth far exceeds revenue growth, it is often due to extreme compression of operating costs or savings on credit costs—that is, releasing profits by reducing provision accruals.

However, the situation at Bank of Qingdao seems more complex and robust. Coupled with a significant increase in its provision coverage ratio, this shows that the bank's real profit flexibility may be stronger than the revenue figures on paper suggest.

The cornerstone supporting this strong performance is Bank of Qingdao's counter-cyclical expansion on its balance sheet.

By the end of 2025, Bank of Qingdao’s total assets broke the 800 billion yuan mark, reaching 814.96 billion yuan, a year-on-year increase of 18.12%;

Among these, total customer loans increased by 16.53% to 397.008 billion yuan, and total customer deposits increased by 16.41% to 502.9 billion yuan.

Credit growth exceeding 16% is far above the industry average, showing the bank’s strong momentum in asset acquisition. This means that while many peers chose to "shrink" or "slowly expand" their balance sheets to avoid risk, Bank of Qingdao opted for an aggressive scale expansion strategy.

Is such aggressive loan issuance at the expense of asset quality?

The performance report answers: Amid sharp expansion of loan scale, Bank of Qingdao's non-performing loan ratio not only did not rise, but fell to 0.97%, down 0.17 percentage points from the previous year-end.

This was achieved on the basis of a decline in the absolute value of non-performing loans. Over the same period, the bank's balance of non-performing loans decreased by 32 million yuan. The denominator (total loans) increased and the numerator (non-performing balance) decreased, both pushing the NPL ratio lower.

At the same time, Bank of Qingdao has also greatly thickened its safety cushion;

Its provision coverage ratio soared to 292.30%, a year-on-year increase of 50.98 percentage points. A coverage ratio approaching 300% is at a relatively high level among city commercial banks.

This "high growth + high defense" financial performance directly led to a recovery in shareholder returns.

In 2025, Bank of Qingdao's weighted average return on equity (ROE) rebounded to 12.68%, up 1.17 percentage points year-on-year; basic earnings per share reached 0.85 yuan, a year-on-year increase of 23.19%.

Although the flash report data is eye-catching, it is still necessary to pay attention to the sustainability of the bank's "supplement volume for price" strategy.

With asset scale up by 18%, but revenue up less than 8%, this suggests that the yield on interest-earning assets may still be under significant downward pressure.

This aggressive flash report from Bank of Qingdao establishes its fundamentals of simultaneous growth in scale and profit, but before the official annual report is disclosed, the specific loan allocation structure and the net interest margin trend remain key risk factors to track.

After all, following a surge in scale, ensuring continuous endogenous growth is the key to navigating cycles.

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