GRCB proposes asset disposal to improve financial health, NPL ratio

Guangzhou Rural Commercial Bank (GRCB) plans a substantial disposal of non-performing credit assets totaling approximately 14.978 bn yuan in principal, with an unaudited book value of 12.133 bn yuan as of June 30, 2025. The transaction, expected to generate an initial minimum consideration of 12.2 bn yuan, will be conducted via public auction on the Equity Exchange. This initiative is designed to reduce the non-performing loan ratio, improve asset quality, and release capital for reinvestment.

The disposal is projected to yield a positive financial impact of approximately 67m yuan for the bank. Following the disposal, GRCB anticipates its non-performing loan ratio to decrease by 0.30 percentage points to 1.68%, and its capital adequacy ratio to increase by 0.17 percentage points to 13.79% as of June 30, 2025. Proceeds will be used for general working capital.

Shareholders will vote on the proposed mandate at an extraordinary general meeting on November 21, 2025, in Guangzhou. The mandate, if approved, will be valid for 12 months, allowing the board to finalize and execute the disposal, which may include Guangzhou Asset Management Co., Ltd. as a potential transferee.