--- title: "Bank Of Chongqing Crosses the Trillion-Yuan Threshold, Credit Structure Remains \"Unbalanced\"" type: "News" locale: "en" url: "https://longbridge.com/en/news/284532880.md" description: "Amid a cycle where the banking industry broadly faces an \"asset shortage\" and narrowing interest margins, Bank Of Chongqing delivered a notably impressive performance report: 20…" datetime: "2026-04-29T09:21:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284532880.md) - [en](https://longbridge.com/en/news/284532880.md) - [zh-HK](https://longbridge.com/zh-HK/news/284532880.md) --- # Bank Of Chongqing Crosses the Trillion-Yuan Threshold, Credit Structure Remains "Unbalanced" Amid a cycle where the banking industry broadly faces an "asset shortage" and narrowing interest margins, Bank Of Chongqing delivered a notably impressive performance report: In 2025, the bank's total assets crossed the trillion-yuan threshold, reaching RMB 1.03 trillion, a year-on-year increase of over 20%. By the first quarter of 2026, this figure continued to climb to RMB 1.11 trillion. Accompanying this scale expansion, both operating revenue and net profit attributable to shareholders maintained double-digit growth rates. Within the cohort of city commercial banks, this pace of expansion demonstrated a strong counter-cyclical character. However, an analysis of the composition of this financial report reveals that Bank Of Chongqing's growth logic did not stem from any structural transformation breakthrough. The growth in net interest income was the core engine driving its high performance. In 2025, Bank Of Chongqing's Net interest margin rose by 4 basis points against the trend, driving a substantial increase in net interest income. However, against the backdrop of declining Loan Prime Rates (LPR), this expansion did not come from pricing premiums on the asset side. Data shows that the average yield on Bank Of Chongqing's interest-earning assets actually fell by 27 basis points in 2025. The widening of the interest margin was attributed to the reduction in liability-side costs—its average cost rate of interest-bearing liabilities decreased by 40 basis points. This reflects that the bank captured phased dividends by squeezing liability costs during the deposit repricing cycle. **In terms of asset quality, Bank Of Chongqing presented a complex divergence.** On the surface, the non-performing loan (NPL) ratio continued to decline, falling from 1.25% in 2024 to 1.12% in the first quarter of 2026. However, pressure on risk exposure remained significant in segmented areas. In 2025, its NPL ratio for the real estate sector rose to 7.75%, and the NPL ratio for retail loans also climbed to 3.23%. **The decline in the overall NPL ratio was mainly due to the "denominator effect": through a rapid expansion of corporate loans exceeding 30%, the bank mathematically diluted existing risks.** This strategy of "diluting stock with incremental volume" was also reflected in the income statement. **In 2025 and the first quarter of 2026, the bank's credit impairment losses saw significant growth, indicating that management is using retained profits generated by scale expansion to hedge against the actual bad debt pressure emerging in the real estate and retail sectors.** Imbalance in business structure is another aspect behind the trillion-yuan scale. At a time when the entire industry is calling for "retail transformation," Bank Of Chongqing's credit resources are heavily tilted toward the corporate sector. In 2025, its corporate loan scale exceeded RMB 400 billion, while retail loans experienced negative growth. Meanwhile, due to the shrinkage of intermediate businesses such as agency wealth management, its net fee and commission income consecutive declined by more than 30%. This indicates that Bank Of Chongqing has encountered bottlenecks in the narrative of light-capital business, and its operational essence is returning to a traditional, heavy-asset path: serving as a leverage channel for regional infrastructure and government-related projects. **The logic driven by heavy assets inevitably leads to rapid capital consumption.** By the end of 2025, Bank Of Chongqing's Core Tier 1 capital adequacy ratio dropped sharply from 9.88% to 8.53%, a level that is in a tight balance among similar city commercial banks. Even with subsequent supplementation from retained profits, its capital buffer remains thin. Capital constraints have become the "tightening spell" restricting its ability to maintain high-speed expansion. Currently, the RMB 13 billion "Chongqing Bank Convertible Bonds" hanging over the bank still have a very high proportion that has not been converted into shares. In a situation where core capital is urgent, whether market value management can guide the conversion of convertible bonds to achieve external capital supplementation will determine whether this "expansion machine" will be forced to slow down due to exhaustion of momentum. Overall, Bank Of Chongqing's path to the trillion-yuan mark utilized phased dividends from liability costs and achieved apparent performance prosperity through corporate balance sheet expansion. **However, attention must still be paid to the implicit leverage under this logic: when liability dividends are exhausted, real estate risk clearance still takes time, and capital supplementation faces pressure, the sustainability of this high growth will face a true test.** ### Related Stocks - [601963.CN](https://longbridge.com/en/quote/601963.CN.md) - [01963.HK](https://longbridge.com/en/quote/01963.HK.md) ## Related News & Research - [Bank of Chongqing Posts Double-Digit Profit Growth in Q1 2026 on Expanding Balance Sheet](https://longbridge.com/en/news/284413921.md) - [Bank of Chongqing Schedules Board Meeting to Approve Q1 2026 Results](https://longbridge.com/en/news/282942065.md) - [08:44 ETFintel Connect and Cornerstone Advisors Release New Report Revealing the Marketing ROI Gap in Banking](https://longbridge.com/en/news/284575612.md) - [AI could reshape banking in the Agentic Economy, with challenges for trust, money, and risk governance.](https://longbridge.com/en/news/284556665.md) - [Techcombank targets US$4.5 billion capital increase, approves 7% cash dividend](https://longbridge.com/en/news/284082018.md)