China Everbright Bank: Q3 profit declines amid related-party deals, capital bond issue

China Everbright Bank reported a net profit of yuan 37,278 million for the first nine months of 2025, a 3.40% decrease year-on-year. Operating income also fell by 7.94% to yuan 94,270 million, primarily due to a 5.11% decline in net interest income. Total assets grew by 3.72% to yuan 7,217.717 bn, while non-performing loan ratio increased by 0.01 percentage points to 1.26%.

In parallel, the bank issued yuan 400 bn in undated capital bonds on September 18, 2025, with a coupon rate of 2.29% for the first five years, aimed at replenishing its additional Tier 1 capital. This issuance contributes to the bank’s capital adequacy, which stands at 13.65% for total capital, 11.70% for Tier 1, and 9.65% for core Tier 1, all meeting regulatory requirements.

The bank disclosed several related-party transactions, including a yuan 115 bn credit line to Everbright Securities and $2.6 bn in revolving loans to Everbright Holdings. Additionally, Everbright Group, the controlling shareholder, increased its stake in the bank by purchasing 13.97 million A shares, representing 0.02% of total share capital, for yuan 51,660,999.