Bank of Chongqing Co Ltd

The A+H bank sector strengthened against the market during the broader pullback, with the CSI Bank Index rising 1.43% and the Hong Kong Stock Connect Mainland Financial Index up 0.15%. Ping An Bank, Bank of Nanjing, Bank of Ningbo, and Bank of Jiangsu have already disclosed interim reports, with year-on-year growth in both operating revenue and net profit attributable to the parent turning positive. Among them, Bank of Ningbo's net profit attributable to the parent grew 12.12% year-on-year. Shanghai Pudong Development Bank, Bank of Chongqing, and Chongqing Rural Commercial Bank disclosed preliminary results, with Bank of Chongqing's operating revenue and net profit attributable to the parent both growing more than 10% year-on-year. The industry-wide net interest margin saw its first quarter-on-quarter rebound in nearly four years. Analysts believe the stabilization of net interest margins mainly benefited from improved liability costs brought by the repricing of time deposits, but loan yields still face downward pressure, and margins are expected to remain broadly stable in the second half of the year.

While major market indices fell collectively, the banking sector rose against the trend. The CSI Banks Index gained 1.34 percent, and the Hang Seng Stock Connect Mainland Financials Index added 0.20 percent. Data from the National Financial Regulatory Administration show that at the end of the second quarter this year, the commercial banking net interest margin stood at 1.41 percent, up 1 basis point from the end of the first quarter, marking the first positive quarter-on-quarter increase since the first quarter of 2022. Among A-share banks, Chongqing Rural Commercial Bank rose 3.08 percent, Xiamen Bank gained 2.77 percent, and China CITIC Bank advanced 2.15 percent. In Hong Kong, Bank of Chongqing rose 2.14 percent. The ChinaAMC Banking ETF is the lowest total fee ETF tracking the CSI Banks Index, while the ChinaAMC Stock Connect Financials ETF is the largest ETF tracking the Hang Seng Stock Connect Mainland Financials Index.

Bank of Chongqing released its first-half 2026 report, with net profit attributable to the parent company of 3.518 billion yuan, up 10.29% from the same period last year, marking five consecutive years of growth. Total operating revenue was 8.486 billion yuan, up 10.79% year on year, achieving four consecutive years of growth. Net cash inflow from operating activities was 50.486 billion yuan, up 25.92% year on year. The company's latest asset-liability ratio was 93.62%, return on equity was 5.21%, and diluted earnings per share was 0.99 yuan.

Data from the National Financial Regulatory Administration shows that in the second quarter of 2026, the net interest margin of commercial banks was 1.41 percent, up 0.01 percentage point from 1.40 percent in the first quarter, marking the first quarter-on-quarter increase since 2022. As of August 18, Ping An Bank, Shanghai Pudong Development Bank, Bank of Jiangsu, Bank of Chongqing, and Chongqing Rural Commercial Bank have all released their 2026 interim results or preliminary earnings reports. All five banks achieved positive growth in both revenue and net profit in the first half, and their year-on-year revenue growth rates all improved compared with the same period last year. Bank of Chongqing's revenue rose 10.80 percent year on year to 8.486 billion yuan, Bank of Jiangsu grew 9.11 percent to 48.952 billion yuan, Chongqing Rural Commercial Bank increased 7.81 percent to 15.892 billion yuan, Shanghai Pudong Development Bank rose 3.55 percent to 93.777 billion yuan, and Ping An Bank grew 1.8 percent to 70.617 billion yuan. In terms of net profit, Bank of Chongqing's net profit attributable to shareholders was 3.518 billion yuan, up 10.28 percent year on year; Bank of Jiangsu posted 21.876 billion yuan, up 8.09 percent; Chongqing Rural Commercial Bank reported 8.168 billion yuan, up 6.09 percent; Shanghai Pudong Development Bank recorded 30.951 billion yuan, up 4.08 percent; and Ping An Bank delivered 25.696 billion yuan, up 3.3 percent. A common feature of the five banks is that deposit growth was significantly higher than loan growth, consistent with central bank data: at the end of July 2026, the outstanding balance of renminbi deposits grew 8.1 percent year on year, while the outstanding balance of loans grew 5.1 percent. Bank of Jiangsu had the largest gap between deposit and loan growth, with deposits up 17.39 percent from the end of last year and loans up 12.20 percent. Bank of Chongqing's deposits grew 10.87 percent and loans grew 9.63 percent. Shanghai Pudong Development Bank's deposits rose 5.05 percent and loans rose 2.88 percent. Ping An Bank's deposits increased 2.2 percent and loans increased 1.8 percent. Ping An Bank President Ji Guangheng said effective financing demand remains insufficient, and retail personal loan growth in the first half was only a few billion yuan. On asset quality, Bank of Jiangsu's non-performing loan ratio was 0.81 percent, the best since its listing; Chongqing Rural Commercial Bank's ratio was 1.05 percent, down 0.03 percentage point from the end of last year; Ping An Bank's ratio was 1.05 percent, unchanged; and Shanghai Pudong Development Bank's ratio was 1.25 percent, down 0.01 percentage point.

Bank of Chongqing completed the issuance of the first tranche of its 2026 special financial bond for loans to small and micro enterprises on August 13, 2026, with an issuance size of 3 billion yuan and a coupon rate of 1.59%. The bond is a three-year fixed-rate instrument, and after deducting issuance expenses, the proceeds will be used entirely to extend loans to small and micro enterprises. The funds will be directed first to industries related to pension finance, such as residential services, medical equipment, and pharmaceutical manufacturing, to support the development of the elderly care industry.

On the evening of July 20, nearly 100 companies listed on the Shanghai Stock Exchange disclosed a flurry of positive news, covering buybacks, increased holdings, upbeat earnings, interim dividends, and long-term insurance capital investment. On that day, 16 companies announced new buyback plans with a combined upper limit of 4.5 billion yuan, and 9 companies announced new shareholding increase plans with a combined upper limit of 6.875 billion yuan, bringing the total to 11.375 billion yuan. Another 30 companies released progress updates on buybacks and increased holdings. On the semi-annual earnings front, 15 Shanghai-listed companies reported positive results. Shanghai International Port Group expects a net profit attributable to shareholders of approximately 8.47 billion yuan for the first half, up about 5.35 percent year-on-year. Shanghai Electric expects a net profit of 920 million to 1 billion yuan, up about 12 to 22 percent. Putailai expects a net profit of 1.4 billion to 1.5 billion yuan, up 32.66 to 42.14 percent. Jihua Group achieved a net profit of 474 million yuan, surging 1,272.52 percent. Bank of Chongqing posted a net profit of 3.518 billion yuan, up 10.28 percent. Ten companies disclosed interim dividend plans. The controlling shareholders or chairmen of six companies—Chint Electrics, Yiwu China Commodities City, Industrial Securities, Juhua Group, Hualu Hengsheng, and Hundsun Technologies—proposed interim dividends. The controlling shareholder of Shanghai Airport proposed raising the interim dividend payout ratio. Several companies' shareholders pledged not to reduce holdings or terminated reduction plans early. For example, the controlling shareholder and actual controller of Keli Sensing voluntarily committed not to reduce holdings, and Bethel Automotive announced that its shareholder did not reduce holdings and terminated the reduction plan early. In the insurance sector, China Pacific Insurance, Ping An Insurance, and New China Life Insurance expressed firm support for capital market development, vowing to leverage the advantages of insurance funds, adhere to long-term and prudent investment principles, support the cultivation of new quality productive forces, act as patient capital in the market, and firmly implement profit distribution policies by optimizing dividend frequency and carrying out interim dividends to enhance shareholder returns.

Bank of Chongqing will set July 6, 2026 as the record date, with ex-dividend and ex-rights dates on July 7. The cash dividend is 0.2797 yuan per share, tax inclusive. Bank of Chongqing is a constituent of the Dividend Low Volatility Index, which selects 50 securities with good liquidity, continuous dividends, high dividend yields, and low volatility. As of July 3, the index's trailing 12-month dividend yield stood at 5.34%. As of 1:41 p.m. on July 6, the Dividend Low Volatility Index rose 1.36%, while the ChinaAMC Dividend Low Volatility ETF tracking the index gained 1.43%.