Luzhou-based regional lender LUZHOU BANK reported solid interim results for the six months ended 30 June 2026. Operating income grew 15.74% year-on-year (YoY) to RMB 2.80 billion, driven by a 28.57% surge in net interest income to RMB 2.44 billion. Net profit reached RMB 1.00 billion, up 11.04% YoY, with the return on average equity at 14.17%.

Net interest margin widened 20 basis points to 2.64% as funding costs eased (average cost of interest-bearing liabilities down 43 bps to 1.83%). Net fee and commission income fell 33.11% to RMB 52.62 million, while trading and investment gains declined 30.13% to RMB 312 million following lower trading income.

Total assets increased 4.36% from end-2025 to RMB 211.29 billion. Net customer loans expanded 8.95% to RMB 129.42 billion, with corporate lending making up 89.46% of the book. Customer deposits rose 6.62% to RMB 166.93 billion, keeping the loan-to-deposit ratio at a manageable 78.1%.

Asset quality remained steady: the non-performing loan (NPL) ratio stayed at 1.18%, although absolute NPLs edged up to RMB 1.59 billion. Allowance coverage moderated to 383.89% (end-2025: 415.24%). Expected credit losses and other impairment charges climbed 74.27% to RMB 375.68 million, reflecting proactive provisioning.

By business line, corporate banking contributed 62.85% of pre-tax profit, followed by financial markets (25.50%) and retail banking (11.43%). Segment operating efficiency improved; the cost-to-income ratio fell to 32.58% from 37.94% a year earlier.

Key prudential ratios remained above regulatory floors: core tier-one capital adequacy ratio stood at 8.19% (regulatory minimum 7.5%); total capital adequacy ratio was 12.79% (regulatory minimum 10.5%). The liquidity ratio eased to 65.78% (end-2025: 72.16%) but remained well above the 25% requirement; the liquidity coverage ratio was 181.03%, and the net stable funding ratio 130.01%.

Looking ahead, management indicated continued focus on asset-liability optimisation, cost control and risk management while supporting regional economic development in Sichuan’s Chengdu-Chongqing economic circle.