Bank of Communications: 2025 Revenue and Net Profit Both Increase, Net Interest Income Shows Strong Performance, Annual Dividend Yield Near 5%

Bank of Communications recently announced its 2025 annual report, which shows that BANKCOMM achieved positive growth of over 2% in both revenue and net profit for the full year of 2025, demonstrating a steady performance among large state-owned banks.

The annual report indicates that by effectively reducing the Cost Of Debt, BANKCOMM's Net Interest Income for the full year increased by 1.91% year-on-year. This performance is relatively outstanding among peer banks and stabilized the largest fundamental component of operating revenue.

The annual report also mentioned that BANKCOMM successfully completed the implementation of its RMB 120 billion private placement plan in 2025, significantly strengthening its core capital and laying a solid foundation for subsequent credit extension and risk mitigation.

Revenue and Net Profit Exceed 2%

Financial data shows that for the full year of 2025, Bank of Communications achieved an operating revenue of RMB 265.071 billion, a year-on-year increase of 2.02%; it realized a net profit attributable to shareholders of the parent company of RMB 95.622 billion, a year-on-year increase of 2.18%.

As of the end of the reporting period, the group's total assets surpassed the RMB 15 trillion mark, reaching RMB 15.55 trillion, an increase of 4.35% from the end of the previous year.

During the reporting period, BANKCOMM successfully completed the private placement of 14.1 billion A-shares to specific subscribers such as the Ministry of Finance and China Tobacco, with net proceeds of nearly RMB 120 billion. This move directly boosted its core tier-1 capital adequacy ratio by 1.19 percentage points from the end of the previous year to 11.43%, laying a solid foundation for subsequent credit growth and risk mitigation.

Significant Results in Liability Management

Against the backdrop of overall pressure on interest margins in the banking industry, BANKCOMM's net interest margin in 2025 was recorded at 1.20%, a year-on-year decrease of 7 basis points. Although the absolute value of the interest margin is still declining, the rate of decline has gradually stabilized.

Data shows that affected by the LPR reduction and intense market competition, BANKCOMM's average yield on customer loans decreased by 58 basis points year-on-year to 3.03% in 2025. However, by strengthening the control over the shift toward time deposits and long-term deposits, BANKCOMM's average cost rate of customer deposits significantly decreased by 38 basis points to 1.74% for the full year. The effective reduction in the Cost Of Debt allowed BANKCOMM's Net Interest Income for the full year not only to avoid shrinking but also to grow by 1.91% year-on-year to RMB 173.075 billion, stabilizing the largest fundamental component of operating revenue.

Rapid Growth in Wealth Management Income

Despite the dual impact of reduced agency fee rates and fluctuations in the capital market, BANKCOMM's intermediary business income demonstrated strong resilience.

In 2025, the bank achieved a net fee and commission income of RMB 38.183 billion, a year-on-year increase of 3.44%. During the reporting period, BANKCOMM's sales revenue from wealth management, funds, and precious metals increased by 19.43%, 15.84%, and 33.18% year-on-year, respectively.

As of the end of the year, retail AUM (assets under management) reached RMB 5.98 trillion, an increase of 8.91% from the end of the previous year; the increase in revenue from wealth management and agency businesses became the core engine driving the growth of non-interest income.

Optimization of Asset Indicators

In terms of asset quality, BANKCOMM's overall trend is "stable and improving." As of the end of 2025, the group's non-performing loan ratio was 1.28%, a decrease of 0.03 percentage points from the beginning of the year; the provision coverage ratio further increased by 6.44 percentage points to 208.38%.

From an industry distribution perspective, challenges in the real estate sector have been steadily resolved. The balance of non-performing loans in the corporate real estate sector decreased from RMB 25.612 billion at the end of the previous year to RMB 21.656 billion, and the non-performing rate significantly decreased from 4.85% to 4.20%. At the same time, however, the non-performing loan ratio for personal loans on the retail credit asset side has risen.

Management stated in the financial report that the overall quality of retail credit assets in the domestic banking industry is under pressure, and BANKCOMM's trend is largely consistent with major peers. Going forward, the bank will continue to strengthen business access and customer group management, iteratively optimize access strategies, enhance fraud risk control, and improve the collection and disposal capabilities of retail credit business to effectively manage asset quality.

Reshaping the Entire Business Process with AI Technology

Looking ahead to 2026, BANKCOMM management provided clear strategic guidance in the financial report. With serving the "five major articles" as the general lead and strengthening the Shanghai "home-field" advantage as the focus, the bank will coordinate the promotion of business restructuring, technological empowerment, risk control, and value returns.

It was mentioned that the bank will embrace the "AI+" wave to reshape a new paradigm of digital intelligence development, promoting the transformation of financial technology from a support tool to a core productivity and innovation engine. By reshaping the entire business process with AI technology, the bank will internally build an "AI+ Operations" intelligent core and comprehensively upgrade smart risk control to create a digital risk management system covering the entire group, all processes, all scenarios, and all products; externally, it will build an "AI+ Services" open ecosystem to inject intelligent momentum into the real economy, such as providing dynamic supply chain financing and personalized inclusive finance solutions by analyzing industrial chain data through artificial intelligence. Deeply integrating artificial intelligence into the fabric of financial services will drive the evolution of business models toward a future bank that is precise, self-adaptive, and high-value.

According to the financial report, BANKCOMM's financial technology investment reached RMB 12.342 billion in 2025, with its proportion of operating revenue increasing to 5.78%. The bank has cumulatively deployed over 2,500 AI agent assistants, covering scenarios such as retail inclusion, risk credit, and operational customer service.

Annual Dividend of RMB 28.7 Billion

Regarding the dividend distribution, which is of high interest to the market, the BANKCOMM board of directors stated that to further enhance investors' sense of gain while balancing long-term development capital needs, and following approval by the shareholders' meeting, the company completed the distribution of profits for the first half of 2025 to all ordinary shareholders in the first quarter of 2026, with a cash dividend of RMB 1.563 per 10 shares (tax included).

Subsequently, in March 2026, the BANKCOMM board of directors reviewed and approved a dividend plan to distribute profits for the 2025 fiscal year to ordinary shareholders, with a further cash dividend of RMB 1.684 per 10 shares (tax included). Consequently, for the year 2025, BANKCOMM distributed a total cash dividend of RMB 28.692 billion to ordinary shareholders, accounting for 32.3% of the net profit attributable to ordinary shareholders of the parent company.

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