Bank of Communications reports solid half-year results, raises capital, and declares dividends

Bank of Communications reported a 1.61% increase in net profit attributable to shareholders, reaching 46.016 bn yuan for the first half of 2025. Total operating revenue grew by 0.77% to 133.368 bn yuan, with net interest income rising 1.20% to 85.247 bn yuan. The bank’s total assets climbed by 3.59% to 15.435 trillion yuan, driven by a 5.18% increase in customer loans to 8.998 trillion yuan. Customer deposits rose 4.22% to 9.171 trillion yuan. The non-performing loan ratio improved by 0.03 percentage points to 1.28%, with a 209.56% provision coverage ratio.

The bank's board approved a semi-annual cash dividend of 1.563 yuan per 10 shares (tax inclusive) on 88.364 bn ordinary shares, totaling 13.811 bn yuan, representing 30.0% of the net profit attributable to shareholders. Additionally, a cash dividend of 4.07 yuan per share (tax inclusive) will be distributed to holders of "Jiaohang You 1" preferred stock. This follows a private placement of over 14.1 bn A-shares at 8.51 yuan per share, raising over 119.9 bn yuan to replenish core Tier 1 capital.

Bank of Communications also issued 30 bn yuan in green financial bonds and 20 bn yuan in technology innovation bonds in April and May 2025, respectively. In June, the bank issued 40 bn yuan in TLAC non-capital bonds and redeemed 40 bn yuan in 2020 secondary capital bonds and 30 bn yuan in 2022 small and micro enterprise special financial bonds.