Bank Of Lanzhou(SZ:001227) Xin Jing Bao·2025-09-01 14:57Core Viewpoint - Lanzhou Bank, the largest city commercial bank in Gansu Province, reported a slight decline in revenue and a marginal increase in net profit for the first half of 2025, but its asset quality remains a significant concern, with the highest non-performing loan (NPL) ratio among A-share listed banks [2][5]. Financial Performance - As of June 30, 2025, Lanzhou Bank achieved a revenue of 3.921 billion yuan, a year-on-year decrease of 1.86% [2]. - The net profit attributable to shareholders was 0.952 billion yuan, reflecting a slight increase of 0.87% year-on-year [2]. Asset Quality Indicators - The non-performing loan ratio stood at 1.81% as of June 30, 2025, a decrease of 0.02 percentage points from the beginning of the year, but it remains the highest among A-share listed banks [2][3]. - Lanzhou Bank has consistently reported the highest NPL ratio among A-share banks for three consecutive quarters [2][5]. Market Position - Lanzhou Bank holds a significant position in the local financial system, ranking high in market share for deposits and loans in Gansu Province and Lanzhou City [2]. - The bank's total assets reached 509.742 billion yuan, growing by 4.82% since the beginning of the year, with loans and advances amounting to 257.382 billion yuan, an increase of 4.90% [5]. Loan Composition and Quality - The bank's loan portfolio is predominantly corporate, with corporate loans and advances accounting for 76.31% of the total [5]. - The NPL ratio for corporate loans was 1.74%, a decrease of 0.11 percentage points from the end of 2024 [5]. Sector-Specific Insights - The majority of loans are concentrated in five sectors: real estate, manufacturing, leasing and business services, construction, and wholesale and retail, with real estate and construction having NPL ratios of 1.70% and 1.33%, respectively [5]. - The increase in overall NPL ratio is primarily attributed to the personal loan sector, particularly personal business loans and credit cards, which have seen significant increases in their NPL ratios [7][9]. Asset Management Strategy - Lanzhou Bank plans to enhance its asset quality management by focusing on recovery, transfer, write-off, restructuring, and reduction strategies for non-performing assets [11]. - The bank aims to leverage big data to improve its risk control systems and increase the efficiency of non-performing loan recovery efforts [11]. Provision Coverage - As of June 30, 2025, the bank's provision coverage ratio was 207.89%, an increase from 201.60% at the end of 2024 [12].