Chongqing Rural Commercial Bank 2025 Financial Report Analysis: 2 Million "Yu Kuai Hui" Merchants Driving Revenue and Net Income Growth

Chongqing’s operational advantages in the region continue to be reflected in local banks.

On the evening of March 25, Chongqing Rural Commercial Bank (hereinafter referred to as Yunnan Rural Bank) disclosed its 2025 annual report, showing single-digit growth in both revenue and profit. This demonstrates the bank’s ability to seize local opportunities, but the slower growth compared to Chongqing Bank, also based in the city, highlights the challenges in the operating environment.

Looking at several key indicators, the most notable data for the year is the asset size. By the end of 2025, Yunnan Rural Bank’s assets continued to expand rapidly, with total group assets surpassing 1.66 trillion yuan, a 9.95% increase from the previous year, reaching the highest growth rate in nearly four years.

Net profit excluding non-recurring gains and losses increased by 8.55%

Despite a complex macro environment, Yunnan Rural Bank’s profit statement in 2025 showed resilience. By expanding interest-earning assets and managing liability costs, the bank achieved positive growth in both revenue and net profit.

The annual report shows that in 2025, Yunnan Rural Bank achieved operating income of 28.648 billion yuan, a 1.37% increase year-on-year. Amid market fluctuations that dragged non-interest income down by 23.92%, the strong growth of 7.85% in net interest income was the main factor stabilizing overall revenue.

Additionally, the bank realized a net profit of 12.42 billion yuan, up 5.35% year-on-year; after excluding non-recurring gains and losses, net profit attributable to shareholders was 12.097 billion yuan, an 8.55% increase, indicating the presence of non-recurring losses in that year.

Net interest margin stabilizes

For current bank stock investors, the trend of net interest margin and the stability of non-interest income are two major concerns.

Yunnan Rural Bank’s annual report shows that, amid multiple reductions in the Loan Prime Rate (LPR) and adjustments to existing mortgage rates, the net interest margin in 2025 was 1.51%, unchanged from the previous year; net interest yield was 1.60%, a slight decrease of just 1 basis point. This indicates effective pricing management on the liability side, with a decline in liability costs offsetting the negative impact of overall industry rate cuts.

Specifically, the bank’s liability costs were significantly reduced in 2025, with interest paid on customer deposits falling to 1.45%, a substantial decrease of 28 basis points year-on-year. Through a categorized deposit management system, the bank strictly controlled high-cost deposits, which helped it increase total deposits by 9.21% to surpass one trillion yuan, while interest expenses actually decreased by 8.61% year-on-year.

Decline in investment income and fair value gains

The financial report shows that non-interest net income in 2025 was 4.388 billion yuan, down 23.92% year-on-year. Among these, net fee and commission income fell by 19.71%, and investment income and gains from fair value changes also declined.

This was mainly due to increased bond market volatility, declining funding market interest rates, and reduced demand for distribution services in the macro environment of 2025.

Notably, the bank successfully obtained approval for securities investment fund custody within the year, which is expected to become a new growth driver for future intermediary business income.

“Three new growth drivers” gain momentum

A significant development for Yunnan Rural Bank in 2025 was its restructuring of the underlying business logic. The bank leveraged new scenarios and digital tools to drive sales growth, aligning with its emphasis on “digital-driven, supply chain-driven, scene-circle-driven” three new growth engines highlighted in its annual report.

A typical example is the “Yukui Hui” business ecosystem, which sets up consumption events in characteristic districts of specific cities, combining “Yukui” services and shopping discounts to create a one-stop consumption experience that includes shopping, New Year goods, folk customs, and scenic experiences, thereby boosting related customer financial services.

The annual report states that the number of merchants in “Yukui Hui” exceeded 2 million, activating a vast number of individual customers. Additionally, the bank provided scene-based credit loans to over 40,000 merchants through “Yukui Revitalization Loan 2.0,” enhancing its scene ecosystem’s comprehensive service capacity.

Furthermore, by deepening scene and supply chain ecosystem development, the bank is also enhancing growth momentum. For example, the balance of loans to tech companies reached 90.906 billion yuan, ranking first among local legal person banks.

Total dividends of 3.645 billion yuan in the year

In 2025, Yunnan Rural Bank paid an interim cash dividend of 2.0336 yuan per 10 shares (tax included). The board of directors proposed a final cash dividend of 1.1755 yuan per 10 shares (tax included), to be distributed to all shareholders. The total annual cash dividend amounted to 3.2091 yuan per 10 shares, totaling 3.645 billion yuan (tax included).

The chairman stated that the bank will implement a stable and sustainable dividend policy. Over the past five years, the bank has distributed a total of 15 billion yuan in dividends, with a dividend payout ratio of no less than 30%.

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