After supplementing capital of 50 billion, what does SPD Bank plan to do?
SPD Bank introduced its future development plans at the performance briefing. In the first three quarters, operating income increased by 1.88% year-on-year, and net profit attributable to shareholders increased by 10.21% year-on-year. The total loan amount grew by 5.20%, showing significant strategic orientation. The company deepened asset-liability management, with a decrease in the deposit interest rate and stabilization of the net interest margin. The non-performing loan ratio has "dropped on both counts," and the provision coverage ratio has improved. SPD Bank completed the conversion of RMB 50 billion of convertible bonds into shares, increasing the capital adequacy ratio by approximately 0.65%, and introduced strategic investors to optimize the equity structure
As a joint-stock bank with a year-on-year growth of over 10% in net profit attributable to shareholders, the future performance of SPD Bank is attracting attention.
At the performance briefing on November 13, Vice President and Board Secretary Zhang Jian further analyzed the performance of SPD Bank, explaining the differences compared to other banks, the key directions for loan issuance, and the strategies for maintaining growth in the future.
Performance: Slightly Accelerated Compared to the First Half
At the performance meeting, Vice President and Board Secretary Zhang Jian introduced that in the first three quarters, the overall operating performance of the company continued to improve. Operating income increased by 1.88% year-on-year; net profit attributable to shareholders increased by 10.21% year-on-year, slightly accelerating compared to the first half.
In addition, by the end of the third quarter, the total amount of loans (including bill discounting) was CNY 56,721.30 billion, an increase of CNY 280.6 billion compared to the end of the previous year, a growth of 5.20%, ranking among the top of joint-stock banks. About 70% of the new loans came from strategic sectors; about 60% came from economically developed regions such as the Yangtze River Delta, showing significant results in strategic orientation and regional layout.
At the same time, the company has deepened proactive management of assets and liabilities. The ability to operate low-cost, high-value liabilities is increasingly solidified, with the interest rate on deposits of the parent company decreasing by 38bps year-on-year. The net interest margin has shown signs of stabilization this year, laying a foundation for stable and sustainable income growth.
Moreover, risk control is precise and effective, and asset quality continues to improve. The balance of non-performing loans and the non-performing loan ratio continue to show a "double decline" trend. The provision coverage ratio has continuously increased to 198.04%, up 11.08 percentage points from the end of the previous year.
Capital: Actively Promoting Major Shareholder Anti-Dilution
In addition, in October 2025, the CNY 50 billion convertible bonds issued by SPD Bank successfully completed conversion, with a cumulative amount of CNY 49.837 billion and a conversion rate of 99.67%. Zhang Jian also elaborated on the business direction after this capital replenishment.
First, introducing central financial institutions as strategic investors across systems and actively promoting major shareholder anti-dilution to enhance the diversification and stability of the equity structure, further improving corporate governance and laying the foundation for deepening business collaboration and resource integration.
Second, achieving the largest scale of convertible bond conversion in the history of A-shares, with a high conversion rate reflecting investors' recognition of the company's development strategy and future value.
Third, the total amount of this conversion fully replenishes core Tier 1 capital, expected to increase the capital adequacy ratio by about 0.65 percentage points, further enhancing credit issuance capacity, significantly strengthening the financial supply capacity to serve the real economy and improving the group-based, comprehensive operating service system.
Cost: Maintaining Continuous Contribution to Cost Reduction and Efficiency Improvement
Regarding how the company will maintain relatively stable performance growth in the face of a complex external environment, Zhang Jian stated that first, it will maintain strategic determination and continue to deepen the implementation of the "digital intelligence" strategy.
Second, it will promote systematic integration and continuously strengthen proactive asset-liability management. Strengthening the overall management of the balance sheet, comprehensively utilizing various resource allocations, organizational adjustments, and mechanisms to form synergy Third, maintain continuous contributions to cost reduction and efficiency improvement through refined and lean management.
Fourth, take advantage of the opportunity for capital replenishment to further strengthen capital management and enhance capital operation efficiency. The successful conversion of the company's convertible bonds effectively supplemented core Tier 1 capital, while continuously establishing and improving a long-term capital management mechanism to enhance operational efficiency and solidify the ability for internal capital replenishment.
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