泸州银行(01983) - 2025 - 中期业绩

Company Profile Luzhou Bank Co., Ltd. was established in China on September 15, 1997, with its H-shares listed on the main board of the Hong Kong Stock Exchange on December 17, 2018 Company Overview Luzhou Bank Co., Ltd. was established in China on September 15, 1997, with a registered capital of RMB 2,717,752,062 and H-shares listed on the HKEX - Legal Chinese Name: Luzhou Bank Co., Ltd., Legal English Name: LUZHOU BANK CO., LTD[5] - Registered Capital: RMB 2,717,752,062[5] - H-shares listed on the main board of the Hong Kong Stock Exchange on December 17, 2018, stock code 1983[7] Company Status As of the end of the reporting period, Luzhou Bank's total assets reached RMB 192.25 billion, with total customer loans of RMB 117.59 billion and total customer deposits of RMB 155.08 billion, demonstrating steady growth in scale As of the End of the Reporting Period, Key Scale Indicators | Indicator | Amount (RMB Billion) | | :--- | :--- | | Total Assets | 192.25 | | Total Customer Loans | 117.59 | | Total Customer Deposits | 155.08 | Financial Highlights This section provides a concise overview of Luzhou Bank's operating performance, scale, asset quality, capital adequacy, and profitability indicators Operating Performance For the six months ended June 30, 2025, Luzhou Bank's net profit increased by 11.65% year-on-year to RMB 902 million, and pre-tax profit increased by 19.78% to RMB 1.24 billion, despite a 14.57% decrease in operating income 2025 H1 Operating Performance Overview (RMB Thousand) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 1,897,023 | 1,757,680 | 7.93 | | Net Fee and Commission Income | 78,660 | 82,592 | (4.76) | | Operating Income | 2,422,775 | 2,835,908 | (14.57) | | Operating Expenses | (968,254) | (898,069) | 7.82 | | Expected Credit Losses / Other Asset Impairment Losses | (215,577) | (903,809) | (76.15) | | Pre-tax Profit | 1,239,926 | 1,035,133 | 19.78 | | Net Profit | 902,489 | 808,336 | 11.65 | | Net Profit Attributable to Bank Shareholders | 902,489 | 808,336 | 11.65 | Scale Indicators As of June 30, 2025, Luzhou Bank's total assets and net customer loans both achieved double-digit growth, increasing by 12.43% and 13.51% year-on-year, respectively, indicating continuous business expansion 2025 H1 Scale Indicators (RMB Thousand) | Item | June 30, 2025 | December 31, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 192,253,762 | 170,999,572 | 12.43 | | Of which: Net Customer Loans | 111,900,229 | 98,585,035 | 13.51 | | Total Liabilities | 179,260,751 | 158,559,168 | 13.06 | | Of which: Customer Deposits | 155,081,860 | 135,314,340 | 14.61 | | Equity Attributable to Bank Shareholders | 12,993,011 | 12,440,404 | 4.44 | Asset Quality Indicators As of June 30, 2025, Luzhou Bank's non-performing loan ratio slightly decreased by 0.01 percentage points to 1.18%, while its provision coverage ratio and loan loss provision ratio both declined 2025 H1 Asset Quality Indicators (%) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-performing Loan Ratio | 1.18 | 1.19 | (0.01) | | Provision Coverage Ratio | 411.53 | 435.19 | (23.66) | | Loan Loss Provision Ratio | 4.88 | 5.18 | (0.30) | Capital Adequacy Ratios As of June 30, 2025, Luzhou Bank's Common Equity Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio, and capital adequacy ratio all decreased but remained above regulatory requirements 2025 H1 Capital Adequacy Ratios (%) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 Capital Adequacy Ratio | 8.01 | 8.27 | (0.26) | | Tier 1 Capital Adequacy Ratio | 9.82 | 10.15 | (0.33) | | Capital Adequacy Ratio | 12.66 | 13.12 | (0.46) | Other Indicators As of June 30, 2025, Luzhou Bank's liquidity ratio was 76.30%, a decrease of 7.80 percentage points from the end of the previous year 2025 H1 Liquidity Ratio (%) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Liquidity Ratio | 76.30 | 84.10 | (7.80) | Profitability Indicators For the six months ended June 30, 2025, Luzhou Bank's average return on equity increased by 0.55 percentage points to 14.62%, but average return on total assets, net interest margin, and net interest spread all decreased, and the cost-to-income ratio significantly rose by 7.97 percentage points to 37.94% 2025 H1 Profitability Indicators (%) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Average Return on Total Assets | 0.99 | 1.00 | (0.01) | | Average Return on Equity | 14.62 | 14.07 | 0.55 | | Net Interest Spread | 2.71 | 2.77 | (0.06) | | Net Interest Margin | 2.44 | 2.55 | (0.11) | | Cost-to-Income Ratio | 37.94 | 29.97 | 7.97 | Management Discussion and Analysis This section provides an in-depth analysis of Luzhou Bank's operating environment, strategic direction, financial performance, asset quality, capital adequacy, and risk management Environment and Outlook In the first half of 2025, China's economy maintained stable and positive growth, with Sichuan Province outperforming the national average, while the banking sector faced challenges from narrowing net interest margins and intensified competition - In the first half of 2025, China's GDP grew by 5.3% year-on-year, and Sichuan Province's GDP grew by 5.6% year-on-year, 0.3 percentage points higher than the national average[10] - The banking industry faces multiple challenges, including continuously narrowing net interest margins and intensified "involutionary" competition[11] - Luzhou Bank's operations in the first half of the year showed a good trend of stable scale growth, improved efficiency, and controllable risks[11] Development Strategy In the second half of 2025, Luzhou Bank will focus on high-quality development, business transformation, asset structure optimization, liability cost reduction, credit risk control, fintech investment, and integration into regional economic strategies - Anchor high-quality development goals, unswervingly promote business transformation, and continuously optimize asset structure[12] - Continuously reduce liability costs and increase the proportion of high-quality customers through innovative measures[12] - Further strengthen full-process credit risk management and proactively prevent reputational risks[12] - Continue to increase investment in financial technology to solidify the foundation of financial technology[12] - Closely align with the Chengdu-Chongqing economic circle and Luzhou's "one body, two wings" development strategy, actively integrating into the overall regional economic development[12] Income Statement Analysis In the first half of 2025, Luzhou Bank's pre-tax profit and net profit increased by 19.78% and 11.65% year-on-year, respectively, primarily due to a significant reduction in expected credit losses, despite a 14.57% decrease in operating income 2025 H1 Income Statement Key Item Changes (RMB Thousand) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Pre-tax Profit | 1,239,926 | 1,035,133 | +204,793 | | Net Profit | 902,489 | 808,336 | +94,153 | | Operating Income | 2,422,775 | 2,835,908 | -413,133 | | Expected Credit Losses / Other Asset Impairment Losses | (215,577) | (903,809) | +688,232 | Financial Performance Summary In the first half of 2025, Luzhou Bank's pre-tax profit increased by 19.78% year-on-year to RMB 1.24 billion, and net profit increased by 11.65% to RMB 902 million, mainly driven by a significant reduction in expected credit losses 2025 H1 Pre-tax Profit Change Impact (RMB Thousand) | Item | Amount | | :--- | :--- | | Pre-tax Profit for the 6 months ended June 30, 2024 | 1,035,133 | | Change in Net Interest Income | 139,343 | | Change in Net Fee and Commission Income | (3,932) | | Change in Net Gains from Trading Activities, Financial Investments, and Other Operating Income | (548,544) | | Change in Operating Expenses | (70,185) | | Change in Expected Credit Losses / Other Asset Impairment Losses | 688,232 | | Change in Share of Profit of Associates | (121) | | Pre-tax Profit for the 6 months ended June 30, 2025 | 1,239,926 | Operating Income In the first half of 2025, Luzhou Bank's operating income decreased by 14.57% year-on-year to RMB 2.42 billion, with net interest income's share rising to 78.30% and non-interest net income's share falling to 21.70% 2025 H1 Operating Income Composition (%) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | 78.30 | 61.98 | | Net Fee and Commission Income | 3.25 | 2.91 | | Net Gains from Trading Activities, Financial Investments, and Other Operating Income | 18.45 | 35.11 | | Total | 100.00 | 100.00 | Net Interest Income In the first half of 2025, Luzhou Bank's net interest income increased by 7.93% year-on-year to RMB 1.897 billion, driven by growth in interest-earning assets and a decrease in interest-bearing liability costs, despite declines in net interest margin and net interest spread - Net interest income increased by 7.93% year-on-year to RMB 1.897 billion, primarily due to growth in interest-earning assets and a decrease in interest-bearing liability costs[19] - Net interest margin decreased by 0.11 percentage points to 2.44%, and net interest spread decreased by 0.06 percentage points to 2.71%[24] 2025 H1 Net Interest Income Change Analysis (RMB Thousand) | Item | Scale Factor | Interest Rate Factor | Net Increase (Decrease) | | :--- | :--- | :--- | :--- | | Change in Interest Income | 466,459 | (339,869) | 126,590 | | Change in Interest Expense | 292,072 | (304,825) | (12,753) | | Change in Net Interest Income | 174,387 | (35,044) | 139,343 | Interest Income In the first half of 2025, Luzhou Bank's interest income increased by 3.38% year-on-year to RMB 3.872 billion, primarily driven by the growth in interest-earning assets, with customer loan interest income being the main contributor - Interest income increased by 3.38% year-on-year to RMB 3.872 billion, mainly influenced by the growth in interest-earning assets[27] - Customer loan interest income: RMB 3.354 billion, a year-on-year increase of 7.15%[28] - Investment interest income: RMB 421 million, a year-on-year decrease of 19.46%, mainly due to a decrease in the average yield on investments[31] - Interest income from balances with central bank: RMB 66 million, a year-on-year increase of 18.16%, mainly due to an increase in deposit size[33] Interest Expense In the first half of 2025, Luzhou Bank's interest expense decreased by 0.64% year-on-year to RMB 1.975 billion, primarily due to a decrease in the average cost of interest-bearing liabilities, with customer deposit interest expense and debt instrument interest expense being the main components - Interest expense decreased by 0.64% year-on-year to RMB 1.975 billion, primarily due to a decrease in the average cost of interest-bearing liabilities[34] - Customer deposit interest expense: RMB 1.713 billion, a year-on-year increase of 2.79%[35] - Interest expense on deposits from and borrowings from banks and other financial institutions: RMB 38 million, a year-on-year decrease of 45.85%, mainly due to a decrease in scale[38] - Interest expense on debt instruments issued: RMB 172 million, a year-on-year decrease of 8.84%, mainly due to a decrease in the average cost rate[39] Net Non-Interest Income In the first half of 2025, Luzhou Bank's net non-interest income significantly decreased by 51.24% year-on-year to RMB 526 million, primarily due to a reduction in net gains from trading activities, financial investments, and other operating income - Net non-interest income decreased by 51.24% year-on-year to RMB 526 million[41] 2025 H1 Net Non-Interest Income Composition (RMB Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Fee and Commission Income | 78,660 | 82,592 | | Net Gains from Trading Activities, Financial Investments, and Other Operating Income | 447,092 | 995,636 | | Total Net Non-Interest Income | 525,752 | 1,078,228 | Net Fee and Commission Income In the first half of 2025, Luzhou Bank's net fee and commission income decreased by 4.76% year-on-year to RMB 78.66 million, mainly due to a decline in wealth management business fee income - Net fee and commission income decreased by RMB 3.932 million to RMB 78.66 million year-on-year[42] 2025 H1 Fee and Commission Income Composition (RMB Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Wealth Management Business Fee Income | 78,907 | 94,274 | | Agency Business Fee Income | 5,301 | 1,254 | | Guarantee and Commitment Business Fee Income | 13,342 | 3,991 | | Total Fee and Commission Income | 102,556 | 104,615 | | Fee and Commission Expense | (23,896) | (22,023) | | Net Fee and Commission Income | 78,660 | 82,592 | Net Gains from Trading Activities, Financial Investments, and Other Operating Income In the first half of 2025, Luzhou Bank's combined net gains from trading activities, financial investments, and other operating income decreased by 55.09% year-on-year to RMB 447 million, with all components showing a downward trend - Combined net gains from trading activities, financial investments, and other operating income decreased by RMB 549 million, a 55.09% decrease year-on-year[45] 2025 H1 Net Gains from Trading Activities, Financial Investments, and Other Operating Income Composition (RMB Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Gains from Trading Activities | 321,174 | 492,091 | | Net Gains from Financial Investments | 88,745 | 197,435 | | Other Operating Income | 37,173 | 306,110 | | Total | 447,092 | 995,636 | Operating Expenses In the first half of 2025, Luzhou Bank's operating expenses increased by 7.82% year-on-year to RMB 968 million, primarily due to increased staff costs, while business and administrative expenses decreased - Operating expenses increased by 7.82% year-on-year to RMB 968 million[47] - Staff costs increased by 7.76% year-on-year to RMB 479 million[47] - Business and administrative expenses decreased by 5.32% year-on-year to RMB 281 million[47] Expected Credit Losses / Other Asset Impairment Losses In the first half of 2025, Luzhou Bank's expected credit losses / other asset impairment losses significantly decreased by 76.15% year-on-year to RMB 216 million, with loan expected credit losses decreasing by 28.60% - Expected credit losses / other asset impairment losses decreased by 76.15% year-on-year to RMB 216 million[50] - Loan expected credit losses were RMB 452 million, a year-on-year decrease of 28.60%[52] 2025 H1 Major Components of Expected Credit Losses (RMB Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Expected Credit Losses on Loans Measured at Amortized Cost | 451,919 | 630,126 | | Expected Credit Losses on Credit-Type Financial Investments | (231,868) | 22,072 | | Expected Credit Losses on Financial Assets Measured at Amortized Cost | 4,446 | 248,389 | | Total | 215,577 | 903,809 | Analysis of Key Balance Sheet Items As of June 30, 2025, Luzhou Bank's total assets increased by 12.43% year-on-year to RMB 192.25 billion, driven by loan growth, while total liabilities increased by 13.06% to RMB 179.26 billion, with customer deposits as the primary funding source - Total assets increased by 12.43% year-on-year to RMB 192.25 billion, primarily due to growth in customer loans and other items[53] - Total liabilities increased by 13.06% year-on-year to RMB 179.26 billion, mainly due to steady growth in customer deposits[74] - Shareholders' equity increased by 4.44% year-on-year to RMB 12.993 billion[80] Assets As of June 30, 2025, Luzhou Bank's total assets increased by 12.43%, with net customer loans accounting for 58.20% and financial investments for 18.49% of total assets; corporate loans grew by 15.78%, while personal loans decreased by 4.37% 2025 H1 Total Assets Composition (RMB Thousand) | Item | Amount | Percentage of Total % | | :--- | :--- | :--- | | Net Customer Loans | 111,900,229 | 58.20 | | Financial Investments - Financial Assets at Fair Value Through Profit or Loss | 35,550,571 | 18.49 | | Financial Investments - Financial Assets at Amortized Cost | 20,638,532 | 10.74 | | Total Assets | 192,253,762 | 100.00 | - Total customer loans were RMB 117.59 billion, an increase of 13.15% from the end of the previous year[57] - Total corporate loans were RMB 103.78 billion, an increase of 15.78% from the end of the previous year, accounting for 88.26% of total customer loans[59] - Personal loans were RMB 12.845 billion, a decrease of 4.37% from the end of the previous year, accounting for 10.92% of total customer loans[61] - Investment book value was RMB 63.61 billion, an increase of 9.88% from the end of the previous year[62] Liabilities As of June 30, 2025, Luzhou Bank's total liabilities increased by 13.06%, with customer deposits accounting for 86.51% as the primary funding source, and corporate demand deposits' share of total customer deposits increasing 2025 H1 Total Liabilities Composition (RMB Thousand) | Item | Amount | Percentage of Total % | | :--- | :--- | :--- | | Customer Deposits | 155,081,860 | 86.51 | | Debt Instruments Issued | 14,366,963 | 8.01 | | Borrowings from Central Bank | 5,609,509 | 3.13 | | Total Liabilities | 179,260,751 | 100.00 | - Total customer deposits were RMB 155.082 billion, an increase of 14.61% from the end of the previous year[76] - The proportion of corporate demand deposits to total customer deposits was 32.43%, an increase of 2.65 percentage points from the end of the previous year[77] - Debt instruments issued were RMB 14.367 billion, an increase of 12.72% from the end of the previous year[79] Shareholders' Equity As of June 30, 2025, Luzhou Bank's total shareholders' equity was RMB 12.993 billion, an increase of 4.44% from the end of the previous year 2025 H1 Shareholders' Equity Composition (RMB Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share Capital | 2,717,752 | 2,717,752 | | Other Equity Instruments | 2,399,547 | 2,296,704 | | Retained Earnings | 2,960,546 | 2,627,492 | | Total Shareholders' Equity | 12,993,011 | 12,440,404 | Other Financial Information As of the end of the reporting period, Luzhou Bank's credit commitments amounted to RMB 4.042 billion, with no overdue debts, and some assets were pledged to the central bank as collateral - Credit commitments amounted to RMB 4.042 billion, representing the main component of off-balance sheet items[82] - There were no overdue debts at the end of the reporting period[83] - Some assets were pledged to the central bank as collateral in accordance with agreements[84] Loan Quality Analysis As of June 30, 2025, Luzhou Bank's total loans increased by 13.13%, with the non-performing loan ratio slightly decreasing by 0.01 percentage points to 1.18%; corporate loan NPL ratio remained flat, while retail loan NPL ratio increased by 0.52 percentage points to 4.18% - Total loans were RMB 116.829 billion, an increase of 13.13% from the end of the previous year[85] - Total non-performing loans were RMB 1.384 billion, an increase of RMB 156 million from the end of the previous year[85] - Non-performing loan ratio was 1.18%, a decrease of 0.01 percentage points from the end of the previous year[85] - Corporate loan NPL ratio remained flat compared to the end of the previous year, while retail loan NPL ratio increased by 0.52 percentage points to 4.18%[93][95] Loan Distribution by Five-Category Classification As of June 30, 2025, Luzhou Bank's total non-performing loans amounted to RMB 1.384 billion, with a non-performing loan ratio of 1.18%; the proportion of substandard and doubtful loans decreased, while loss loans increased 2025 H1 Loan Five-Category Classification Distribution (RMB Thousand) | Item | June 30, 2025 Amount | Percentage of Total % | | :--- | :--- | :--- | | Pass Loans | 113,599,469 | 97.24 | | Special Mention Loans | 1,845,647 | 1.58 | | Substandard Loans | 419,716 | 0.36 | | Doubtful Loans | 294,557 | 0.25 | | Loss Loans | 670,106 | 0.57 | | Total Non-performing Loans | 1,384,379 | 1.18 | Loan and NPL Distribution by Industry As of June 30, 2025, Luzhou Bank's corporate non-performing loans were primarily concentrated in real estate, leasing and business services, and construction, accounting for 88.10% of total corporate NPLs - Corporate non-performing loans mainly include real estate, leasing and business services, and construction, accounting for 88.10% of total corporate non-performing loans[89] 2025 H1 Corporate Loan NPL Ratio (by Industry) | Industry | Loan Amount (RMB Thousand) | NPL Ratio % | | :--- | :--- | :--- | | Real Estate | 7,867,678 | 4.94 | | Leasing and Business Services | 35,613,768 | 0.56 | | Construction | 34,522,607 | 0.46 | Loan and NPL Distribution by Product Type As of June 30, 2025, corporate loans' share increased to 88.83% with a flat NPL ratio, while retail loan balance decreased, its share declined, and the NPL ratio rose by 0.52 percentage points to 4.18% - Corporate loan share increased by 2.03 percentage points to 88.83%, with the NPL ratio remaining flat[92][93] - Retail loan balance decreased by RMB 587 million, its share decreased by 2.02 percentage points to 10.99%, and the non-performing loan ratio increased by 0.52 percentage points to 4.18%[94][95] Loan and NPL Distribution by Region As of June 30, 2025, loans in Luzhou accounted for 66.71% of the total with an NPL ratio of 1.25%, while loans outside Luzhou accounted for 33.29% with an NPL ratio of 1.05% 2025 H1 Loan NPL Ratio (by Region) | Region | Loan Amount (RMB Thousand) | Percentage of Total % | NPL Ratio % | | :--- | :--- | :--- | :--- | |