Industrial Bank reports strong performance, strengthens China Tobacco ties

Industrial Bank Co., Ltd. announced a strong performance in its semi-annual assessment report for the "2025 quality improvement, efficiency enhancement, and high returns action plan," with operating income of 161.234 bn yuan and a net profit increase of 0.12% year-over-year by September 2025. The bank saw notable growth in retail customer numbers (up 3.40%) and corporate customer numbers (up 6.53%). Green finance and tech finance loan balances also grew significantly, reaching 2.47 trillion yuan and 1.13 trillion yuan, respectively. The bank also reported improvements in risk management, with a non-performing loan ratio of 1.08% and provision coverage of 227.81%.

The bank concurrently approved a significant related-party transaction with China Tobacco and its affiliates, granting a 39.5 bn yuan deposit class related-party transaction limit for 2025 and a 358.409 bn yuan related-party transaction limit for credit and non-credit services, effective for three years. This includes 23 bn yuan for credit and 335.409 bn yuan for non-credit services, such as property leasing, utilities, asset transfers, and various deposit products. These transactions are part of the bank's normal business operations, adhering to fair market principles and not adversely affecting the bank's independence or financial health.

The board of directors, including independent directors, reviewed and approved these related-party transactions, ensuring compliance with regulatory requirements. China Tobacco, holding 9.71% of Industrial Bank's common shares, is a key related party. These actions reflect Industrial Bank's commitment to sustained growth, improved shareholder returns, and enhanced operational efficiency.