China Bohai Bank proposes major asset disposal to boost capital

China Bohai Bank is proposing a very substantial disposal of legally owned debt assets, totaling approximately RMB49,878 million in principal as of June 30, 2025, through a public tender process. The bank anticipates receiving no less than RMB48,883 million, representing a discount of approximately 30-34% to the total debts, including principal, interest, penalties, and judicial fees. This strategic move aims to optimize the bank’s asset structure, reduce risky assets, and enhance capital adequacy, with an expected positive financial effect on pre-tax earnings of approximately RMB953 million and post-tax earnings of RMB715 million.

The disposal, once approved, is projected to improve the bank's non-performing loan ratio to 1.54% (down 0.27 percentage points) and increase its capital adequacy ratio to 12.09% (up 0.85 percentage points). The proceeds are intended for the bank's general working capital, further boosting its liquidity and risk-resistant capabilities. The bank will convene its 2025 third EGM on November 14, 2025, to seek a general mandate for the board to proceed with this asset transfer in batches over a one-year period.

Shareholders will also vote on the election of Ms. Cui Hongqin as a non-executive director, filling a vacancy left by Mr. Duan Wenwu's resignation. The bank’s directors believe the proposed disposal and mandate are fair, reasonable, and in the best interests of the bank and its shareholders.