Sou Hu Cai Jing·2025-04-30 11:12Core Insights - The overall asset quality of city commercial banks in A-shares has improved, with a notable decrease in non-performing loan (NPL) ratios, particularly in the southeastern coastal region compared to the central and western regions [2][3][6] - Despite the overall decline in NPL ratios, there is a significant increase in personal loan NPL ratios, indicating a shift in the quality of loan portfolios [2][6][8] - The pressure on net interest margins is expected to increase in 2025, leading to greater provisioning pressures for city commercial banks [2][9] Summary by Category Asset Quality - As of the end of 2024, the NPL ratio for A-share listed city commercial banks was reported at 1.7% or higher for three banks, namely Lanzhou Bank and Zhengzhou Bank, which exceeded the national average NPL ratio of 1.76% [3][4] - A total of 11 out of 17 listed city commercial banks reported a decrease in NPL ratios, while three banks saw their ratios remain stable and three experienced increases [4][6] Regional Differences - City commercial banks in the southeastern coastal regions generally reported lower NPL ratios, with most banks maintaining ratios below 1% [5][6] - In contrast, banks in the western regions, such as Lanzhou Bank and Zhengzhou Bank, reported higher NPL ratios, indicating a stark contrast in asset quality between regions [3][5] Loan Types - The NPL ratio for corporate loans has generally decreased across the majority of city commercial banks, with significant reductions noted for Chongqing Bank and Qilu Bank [7][8] - Conversely, personal loan NPL ratios have increased for most banks, with several banks reporting ratios of 2% or higher, highlighting a growing concern in this segment [8][9] Asset Disposal Challenges - The methods employed by banks for disposing of non-performing assets include collection, restructuring, write-offs, and asset transfers, with retail loans posing higher costs for collection due to their smaller, more dispersed nature [9] - The current environment suggests that city commercial banks will face significant provisioning pressures due to the high costs associated with disposing of personal non-performing loans and the immature state of bulk disposal methods for retail loans [9]