How many unexpected highlights can a city commercial bank's half-year report actually deliver? For Bank Of Chongqing Co.,Ltd., the answer lies in three key areas. First, its total assets surpassed the trillion-yuan mark on two measures, exceeding market forecasts for the growth pace of western region city banks. Second, its net interest margin defied expectations by climbing 7 basis points, challenging the prevailing view that smaller banks would face significant margin pressure. Third, it achieved double-digit growth in both revenue and net profit for four consecutive quarters, redefining the perception of earnings resilience within the banking sector.
The foundation of these three surprises rests on the bank’s precise conversion of regional strategic advantages. National initiatives like the Chengdu-Chongqing Economic Circle, the New International Land-Sea Trade Corridor, and the Western Financial Center are not novel concepts, but Bank Of Chongqing translated them into concrete credit figures during the first half. The bank extended over RMB 140 billion in credit support to the Chengdu-Chongqing Economic Circle, maintained a financing balance exceeding RMB 60 billion for the New International Land-Sea Trade Corridor, provided more than RMB 41 billion in manufacturing loans, and grew its green finance scale to RMB 106.9 billion. These regional strategies are no longer merely rhetorical pledges; they have been embedded into the bank’s core credit allocation logic.
A telling detail underscores this deep integration: the bank executed the nation's first cross-provincial GEP-linked loan and led the creation of Chongqing’s "Industrial Green Efficiency Loan" operational guidelines, pushing green finance from a concept into a standardized, actionable framework. This ability to set industry standards goes well beyond the traditional playbook of most city commercial banks.
The second surprise centers on margin management. During the first half, the bank reduced its interest-bearing liability cost rate by 41 basis points, lifting its net interest margin to 1.46%. This stabilization came even as the broader industry continued to bottom out. A closer look reveals that the liability-side cost reduction wasn't achieved simply by lowering deposit rates; it resulted from a combination of measures including accumulating more settlement-based deposits, replacing high-cost liabilities, and optimizing the deposit structure. On the asset side, pricing stability was supported by an increased share of relatively higher-yielding assets in manufacturing and technology finance. This coordinated approach to volume and pricing drove net interest income up 26.04% year-on-year, making it the primary engine of revenue growth. Analyst Zheng Qingming from Shenwan Hongyuan estimates that Bank Of Chongqing's single-quarter net interest margin reached 1.51% in Q2, a sequential increase of 9 basis points, indicating a faster margin recovery trajectory than the industry average.
The third surprise involves the sustainability of its earnings resilience. The bank’s annualized weighted average return on equity reached 12.03%, up 0.51 percentage points year-on-year. Its non-performing loan ratio fell to 1.11%, and the special-mention ratio dropped to 1.81%. In a sector where high growth and low risk are often seen as trade-offs, this combination of metrics is notably scarce. Analyst Zheng Qingming noted that Bank Of Chongqing possesses a rare industry profile of "double-digit growth alongside improved asset quality and balance sheet expansion," and that Chongqing's significant regional positioning will continue to fuel the bank’s long-term development. Zheng also estimates that the annualized non-performing loan formation rate for the first half was just 0.52%, suggesting the asset quality foundation is even more solid than headline numbers indicate.
A factor that is easy to overlook also supports these results: digitalization is evolving from a simple efficiency tool into a core risk-control foundation. During the first half, the bank built a generative AI application management platform, deployed large language models, and rolled out 7 AI application scenarios. Its mobile business development platform processed 1.409 million transactions, while its big data risk-control models continue to be refined. As the bank puts it internally, "Behind every loan, data is speaking."
Signals from shareholders are also noteworthy. DBS Bank increased its H-share holdings by 30 million shares, while Chongqing Expressway, through convertible bond conversions and its concerted action parties, has approached the 5% stake disclosure threshold. The addition of patient capital often indicates a confirmation of long-term value.
Looking back from this half-year milestone, Bank Of Chongqing's surprises are not coincidental. The deep integration of regional strategy creates structural opportunities on the asset side, proactive liability management defends the margin baseline, and digital risk control reinforces the quality foundation. These three strategic threads converge at the starting point of "dual trillion," pointing toward a more certain outlook for the second half of the year.