Bank of Qingdao: H1 Net Interest Margin Stable, Net Profit Up 18% YoY

Date of Investor Meeting: September 21, 2026 Listed Entity: Bank of Qingdao Co., Ltd. (Stock Code: 002948)

On September 21, 2026, Bank of Qingdao held an investor research meeting attended by representatives from GF Securities (Ni Jun, Zhang Xiaohui, Wang Yu), Industrial Global Fund (He Yue), Founder Securities (Zhu Zhangyuan), and Zhongan Insurance (Yuan Boyu). The following is a summary of key topics discussed.

1. Credit Deployment and Loan Growth

Question: Please provide an overview of Bank of Qingdao's credit deployment.

Response:

In 2026, the Bank continued to optimize its asset-liability structure, steadily expand total assets, and increase loan disbursements to support the real economy.

• Total assets as of end-June 2026: RMB 848.388 billion, an increase of RMB 33.428 billion (+4.10%) compared to end-2025.
• Total customer loans as of end-June 2026: RMB 427.716 billion, up RMB 30.708 billion (+7.73%) from end-2025.
• Loans accounted for 50.42% of total assets, an increase of 1.70 percentage points from end-2025.

Going forward, the Bank plans to:

• Corporate lending: Align with national macro-control policies and provincial/municipal industrial plans; focus on "eight major tracks" with segmented, customized financial solutions.
• Retail lending: Actively meet刚性 and improvement housing loan demand; optimize credit structure to achieve balanced growth.

2. Managing Net Interest Margin (NIM) Compression

Question: How is the Bank addressing narrowing interest margins?

Response:

In H1 2026, the Bank's net interest yield (annualized) stood at 1.63%, stable compared to Q1 2026. Key measures include:

A. Performance Assessment & Resource Allocation

• Emphasize quality and efficiency over scale; increase weight of revenue-related metrics.
• Strengthen考核 on deposit-loan spreads, fee income ratio, and economic capital returns.
• Implement differentiated assessment based on regional characteristics to optimize asset allocation.

B. Asset-Side Optimization

• Increase proportion of high-yield assets in interest-earning assets.
• Accelerate loan growth focused on the "five key areas" and "eight major tracks."
• Direct more funds to key regions, quality customers, SMEs, and the real economy.

C. Liability-Side Cost Reduction

• Prioritize deposit growth as a core strategy; expand deposit sources.
• Adjust pricing strategies and strengthen market-based deposit rate adjustments.
• Control high-cost deposit volumes and terms; promote low-cost deposits through托管, wealth management, underwriting, supply chain finance, and cash management tools.

3. Net Profit Growth of Over 18% in H1 2026

Question: How did the Bank achieve a year-on-year net profit increase of over 18%?

Response:

In H1 2026, the Bank reported:

• Operating revenue: RMB 8.364 billion, up RMB 701 million (+9.15% YoY)
• Net profit attributable to shareholders: RMB 3.619 billion, up RMB 554 million (+18.08% YoY)

Key drivers:

1. Net interest income growth: Increased by RMB 802 million (+14.97% YoY) to RMB 6.164 billion, driven by asset expansion, structural optimization, and stable NIM management.
2. Fee and commission income growth: Increased by RMB 264 million (+32.66% YoY) to RMB 1.071 billion, supported by transaction banking, wealth management, and underwriting businesses.
3. Cost discipline: Tight expense management and improved credit risk cost control led to a year-on-year decline in operating expenses.

Overall, the Bank achieved steady profit growth by expanding scale, adjusting structure, and reducing costs, with revenue growth outpacing expense growth.

Company Overview

Primary Business: Bank of Qingdao provides corporate and retail deposit, loan, payment, and settlement services, driven by three business segments: Retail Banking, Corporate Banking, and Financial Markets.

H1 2026 Financial Highlights (Unaudited)

| Metric | H1 2026 | YoY Change | |--------|---------|------------| | Operating Revenue | RMB 8.364 billion | +9.15% | | Net Profit (Attributable) | RMB 3.619 billion | +18.08% | | Core Net Profit (excl. non-recurring) | RMB 3.601 billion | +18.56% | | Q2 2026 Revenue | RMB 4.022 billion | +11.22% | | Q2 2026 Net Profit (Attributable) | RMB 2.094 billion | +15.93% | | Q2 2026 Core Net Profit | RMB 2.088 billion | +15.88% | | Debt-to-Asset Ratio | 93.73% | – | | Investment Income | RMB 1.185 billion | – |

Analyst Ratings & Market Data

• Institutional ratings (past 90 days): 8 ratings issued — 6 "Buy," 2 "Accumulate"
• Average target price (past 90 days): RMB 7.51
• Margin trading (past 3 months):
• Net margin buying: RMB 176 million (margin balance increased)
• Net short selling: RMB 4.2641 million (short balance increased)

Disclaimer: The above information is compiled from publicly available sources by Securities Star and is for reference only. It does not constitute investment advice.