Bank of Shanghai reports mixed Q3 results, lawsuit, and related-party deals

Bank of Shanghai reported a total asset increase of 2.52% to RMB 3.31 bn and a 4.04% rise in operating income to RMB 41.14 m for the first nine months of 2025. Net profit attributable to parent company shareholders grew by 2.77% to RMB 18.08 m. However, net cash flow from operating activities saw a significant decrease of RMB 178.29 bn, mainly due to an increase in financial assets held for trading and a decrease in repurchase agreements.

The bank disclosed a lawsuit concerning a property demolition and compensation contract dispute, involving a sum of RMB 3.8 bn. The Shanghai Intermediate People's Court supported the bank's jurisdiction objection, transferring the case to its own jurisdiction for trial, and the bank anticipates no material impact on current or future profits.

Additionally, Bank of Shanghai approved several related-party transactions, including credit lines of RMB 2.3 bn to China Jianyin Investment Leasing, HK$ 3.5 bn to Bank of Shanghai International, RMB 10 bn to Shanghai Rural Commercial Bank, and RMB 7 bn to Shenwan Hongyuan Securities. The bank emphasized these transactions are normal business activities and adhere to commercial rules.