Bank of Qingdao (BQD) delivered a solid start to its 15th Five-Year Plan period, reporting first-quarter 2026 net profit attributable to shareholders of RMB 1.52 billion, a 21.16% year-on-year increase. Operating income rose 7.43% to RMB 4.34 billion, driven by stronger net interest income and higher fee-based revenue.

Net interest income expanded 14.00% to RMB 3.02 billion. Interest income climbed to RMB 6.03 billion, outpacing a modest 1.53% rise in interest expenses to RMB 3.01 billion. The annualised net interest margin narrowed slightly to 1.63% (-3 bp versus end-2025), yet cost containment kept the cost-to-income ratio at 22.42%, markedly below the 31.65% recorded at year-end.

Non-interest revenue trends were mixed. Net fee and commission income advanced 49.11% to RMB 652 million on stronger transaction banking, wealth management and underwriting fees. Net trading gains improved to RMB 174 million, while investment gains eased to RMB 485 million (-46.35% YoY). Operating expenses were largely flat at RMB 1.02 billion, and expected credit losses fell 15.02% to RMB 1.39 billion, underpinning the profit upswing. Annualised return on average equity reached 14.63%, up 1.40 percentage points.

Balance-sheet expansion remained measured. Total assets grew 2.36% from end-2025 to RMB 834.20 billion, with loans to customers rising 5.65% to RMB 419.45 billion. Corporate lending led growth, up 7.11%, while personal loans slipped 0.70%. Customer deposits increased 2.00% to RMB 512.96 billion.

Asset quality continued to improve. The non-performing loan (NPL) ratio edged down 1 bp to 0.96%, and provision coverage strengthened to 305.61% (+13.31 ppt from end-2025). The loan provision ratio rose to 2.93%.

Capital and liquidity metrics remained above regulatory minima. The common equity tier-1 ratio inched up to 8.70% (+3 bp), while the overall capital adequacy ratio stood at 12.43% after the redemption of RMB 4 billion in tier-2 bonds. The leverage ratio was 5.60%, liquidity coverage ratio 165.71%, and liquidity ratio 98.21%.

Operating cash flow rebounded sharply to an inflow of RMB 12.78 billion from an outflow of RMB 0.48 billion a year earlier, mainly reflecting higher net cash from interbank activities.

BQD highlighted continued strategic focus on “Five Major Finance” pillars—technology, green, inclusive, pension, and digital finance. As of end-March, technology finance loans reached RMB 33.69 billion (+7.09% YTD), green loans RMB 61.36 billion (+4.33%), blue economy loans RMB 23.45 billion (+3.08%), and inclusive loans RMB 56.61 billion (+6.37%).