Bank of Qingdao Co.,Ltd. has delivered a robust performance with double-digit growth in net profit and total assets surpassing 800 billion yuan, against a backdrop of narrowing interest margins and slowing growth across the banking industry.

On the evening of March 26, the bank released its 2025 annual results report. The report indicates that the bank's operating income reached 14.573 billion yuan, a year-on-year increase of 7.97%. Net profit attributable to shareholders of the parent company was 5.188 billion yuan, rising by 21.66% compared to the previous year. Both operating income and net profit showed growth. Among the 42 A-share listed banks, the 21.66% net profit growth rate ranks near the top.

In addition to the growth in revenue and profit, Bank of Qingdao's asset scale also maintained strong growth, officially exceeding 800 billion yuan by the end of 2025.

Regarding asset size, Bank of Qingdao's total assets reached 814.960 billion yuan in 2025, an increase of 18.12% year-on-year. Specifically, total customer loans amounted to 397.008 billion yuan, an increase of 56.319 billion yuan from the end of the previous year, growing by 16.53%. Total customer deposits were 502.899 billion yuan, increasing by 70.875 billion yuan from the end of the previous year, a growth of 16.41%. Total liabilities stood at 764.706 billion yuan, up 18.55% year-on-year.

According to central bank statistics, the balance of RMB loans at financial institutions grew by 6.4% year-on-year at the end of 2025. Industry insiders noted that at a time when the banking sector generally faces multiple pressures including narrowing interest margins, an asset shortage, and risk exposure, Bank of Qingdao's credit growth rate of over 16% significantly outpaces the industry average, reflecting its strong momentum in asset acquisition. This also signifies that while many peers are opting for "balance sheet contraction" or "slow expansion" to mitigate risks, Bank of Qingdao has adopted a relatively aggressive strategy of scale expansion.

Alongside rapid scale expansion, Bank of Qingdao's asset quality has also improved significantly. The annual report shows that in 2025, both the amount and ratio of non-performing loans (NPLs) achieved a "double decline." The NPL ratio fell below 1% for the first time, reaching 0.97%, a decrease of 0.17 percentage points from the end of the previous year. The balance of NPLs was 3.841 billion yuan, a reduction of 32 million yuan from the end of the previous year.

While Bank of Qingdao's performance is undoubtedly strong, the bank's dividend distribution intensity has continued to weaken in recent years. Despite sustained growth in net profit, its dividend payouts have been relatively conservative.

Reviewing past announcements, from 2021 to 2024, Bank of Qingdao's annual dividend remained at approximately 931 million yuan. The dividend payout ratio (dividend as a percentage of net profit attributable to the parent company's shareholders) declined year after year, falling from 31.86% to 21.84%.

The annual report indicates that for 2025, Bank of Qingdao plans to distribute a cash dividend of 1.80 yuan per 10 shares (before tax) to all ordinary shareholders, totaling a cash dividend payout of 1.048 billion yuan. This represents 20.19% of the net profit attributable to shareholders of the parent company in the consolidated financial statements. This payout ratio is a further decrease compared to 2024. In contrast, Qilu Bank, a peer in the same region, maintained a dividend payout ratio around 26% in its annual dividend plans from 2021 to 2024.

It was also noted that Bank of Qingdao's core tier 1 capital adequacy ratio for 2025 decreased by 0.44 percentage points year-on-year to 8.67%. This is only 1.25 percentage points above the regulatory minimum of 7.5%, indicating a narrowing buffer.

To alleviate capital pressure, Bank of Qingdao has supplemented its capital through external means. On October 28, 2025, the bank successfully issued 2 billion yuan in perpetual capital bonds to supplement its other tier 1 capital. In August 2025, the bank announced plans to issue up to 4.8 billion yuan in A-share convertible bonds to replenish its core tier 1 capital.

Simultaneously, a major shareholder provided support through share purchases. Between September 15 and November 5, 2025, Qingdao Guoxin Industry Finance Holding Group Co., Ltd. (Guoxin Industry Finance Holding) cumulatively purchased 243 million H-shares through the Stock Connect scheme, with a total investment of 957 million yuan. After these purchases, its combined shareholding with parties acting in concert increased to 19.17%, making it the largest shareholder of Bank of Qingdao.

In the bank's Detailed Rights Change Report, the information disclosure obligor clearly stated that the purpose of the share purchases was based on recognition of the long-term investment value of Bank of Qingdao's stock and to support its long-term development.