Live Performance Review | Spread Management, Retail Development, Asset Quality... SPDB Bank Management Responds to These Hot Topics

The Daily Economic News reporter | Li Yuwen The Daily Economic News editor | Bi Luming

On March 31, the management of Pudong Development Bank (SH600000, share price 10.24 yuan, market cap 341 billion yuan) responded to hot-button issues such as net interest margin, loan growth, and digital and intelligent transformation at the bank’s 2025 annual results briefing.

In the face of challenges such as narrowing industry interest margins, Pudong Development Bank achieved marginal improvements in multiple key indicators through structural optimization, digital and intelligent-driven initiatives, and refined risk management.

By the end of 2025, Pudong Development Bank’s total assets exceeded 10 trillion yuan, up 6.55% from the end of the previous year. In the past year of 2025, the bank recorded operating revenue of 100k yuan, up 1.88% year over year; net profit attributable to shareholders of the parent company was 173.96B yuan, up 10.52% year over year, maintaining two consecutive years of double-digit growth.

Pudong Development Bank’s net interest margin in 2025 was 1.42%, unchanged from 2024. At the results briefing, Pudong Development Bank President Xie Wei said that the bank has caught up to the industry interest-margin level and, on a marginal basis, is outperforming the industry; this was due to its continued optimization of the industry structure, regional structure, customer structure, and product structure, as well as its proactive asset-liability management and the establishment of a top-down net interest margin management framework.

On the asset side, Pudong Development Bank implemented strategies aimed at improving quality and efficiency and dynamically adjusting priorities, increasing business support and resource guarantees for key sectors, key regions, key industries, and key products; reducing inefficient assets such as bills; increasing the proportion of mid- and high-yield assets; and improving the overall asset return level.

On the liability side, the bank remained committed to taking deposits at the bank level and to fine-grained management, working to achieve a favorable situation in which overall liabilities grow in volume, fall in cost, and improve in quality.

At the same time, in full-scope asset-liability management, it continued to optimize institutional and mechanism design and improve the efficiency of capital management.

Xie Wei frankly acknowledged, “Although in 2025 the entire interest-margin management achieved phased results, objectively speaking, compared with leading peers, the absolute value of our interest margin is still at a relatively not very ideal level.”

He said the bank’s next steps will take multiple measures to strive for even better performance in its net interest margin. First, it will focus on strategic value and push for in-depth optimization of the asset-liability structure; second, relying on digital and intelligent platforms, it will drive deep development across five major tracks; third, it will strengthen the balance of volume and price to improve its ability for refined pricing management; fourth, it will solidify liability quality, build an integrated settlement ecosystem for corporate, retail, and interbank businesses, and expand sources of low-cost, highly stable liabilities.

“Under the premise that momentum stabilized in 2024, in 2025 Pudong Development Bank’s retail business achieved continued positive momentum.” Zhang Jian, Vice President of Pudong Development Bank, said at the results briefing.

According to the information, as of 2025, Pudong Development Bank’s personal asset management scale (including market value) reached 4.66 trillion yuan, with a year-on-year increase of 20%. Savings deposits totaled 1.71 trillion yuan, up 10%.

In recent years, the overall retail credit business in the industry has faced some pressure. When discussing this topic, Zhang Jian provided related figures from Pudong Development Bank. In 2025, the bank’s retail loans (excluding business loans) increased by 45 billion yuan, up 3.05%; the incremental amount and growth rate ranked among the top in joint-stock banks. Of this, the combined increase in mortgage and consumer loans was 28.2 billion yuan.

Zhang Jian said that in 2026, retail banking will still face certain pressure, but there are also opportunities. The bank will focus on building five business “cards”: big treasury management, big services, big consumption, big ecosystem, and intelligent agents.

By the end of 2025, Pudong Development Bank’s non-performing loan ratio was 1.26%, down 0.10 percentage points from the end of the previous year, the lowest level in the past 11 years; risk offsetting capability continued to improve, with the provision coverage ratio at 200.72%, up 13.76 percentage points from the end of the previous year, the best level in nearly 10 years.

At the results briefing, Vice President Cui Bingwen of Pudong Development Bank explained some of the measures behind the improvement in asset quality.

First, customer access work—namely, the whitelist mechanism. Since the bank rolled out the mechanism across the whole bank last year, the total credit approved was about 950 billion yuan, and recently the whitelist mechanism has been further improved.

Second, risk monitoring system construction. At the head-office level, the bank established an enterprise-level risk monitoring system; meanwhile, across each track and each major business department, it set up department-level risk monitoring systems. These systems work together with information sharing.

Third, model management architecture. In the digital era, the rapid growth of online business and inclusive finance requires accurate models and a model-management architecture to control risks.

Fourth, a mechanism combining rate adjustment and mediation. In the past, retail credit—especially retail mortgage business—was Pudong Development Bank’s “keystone” business; but in recent years, under the influence of multiple factors, some customers’ repayment pressure has increased. For customers who are temporarily unable but not unwilling to repay, the bank needs to help them get through the economic cycle. Currently, Pudong Development Bank has established a four-tier mediation mechanism within the bank.

（Intern Cheng Xuebing also contributed to this article）

Cover image source: The Daily Economic News

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