Breaking Down Bank of Chongqing Co., Ltd. Financial Health: Key Insights for Investors

Curious whether Bank of Chongqing (1963.HK) is a value play or a cautionary tale? The bank reported operating income of RMB 7.53 billion in H1 2025, up 8.24% year-over-year, and TTM revenue of RMB 10.73 billion (a 10.82% YoY rise), while net interest income made up 77.88% of operating income and net non-interest income the remainder; profitability shows a TTM net income of RMB 5.73 billion (EPS RMB 1.28) and a P/E of 6.41, yet balance-sheet signals include total assets of RMB 1,019.4 billion versus liabilities of RMB 947.3 billion (equity RMB 72.13 billion; debt-to-equity ~13.14), negative working capital at RMB -477.74 billion, cash & equivalents of RMB 174.82 billion against total debt of RMB 394.81 billion, a book value per share of RMB 19.85 and a P/B of 0.51; operating cash flow and free cash flow remain healthy at RMB 12.34 billion and RMB 10.90 billion (FCF capex RMB 1.43 billion), market cap stood at HKD 36.83 billion with enterprise value ~RMB 433.64 billion, and valuation multiples such as P/FCF 3.38 and P/OCF 2.99 suggest market discounting-read on for a section-by-section, numbers-first breakdown of revenue, profitability, liquidity, leverage, valuation and risks.

Bank of Chongqing Co., Ltd. (1963.HK) - Revenue Analysis

• H1 2025 operating income: RMB 7.53 billion (+8.24% YoY)
• TTM revenue (to Sep 30, 2025): RMB 10.73 billion (+10.82% YoY)
• FY 2024 revenue: RMB 10.07 billion (+4.92% YoY)
• Net interest income share: 77.88%
• Net non-interest income share: 22.12%
• Employees: 5,337; Revenue per employee: RMB 2.01 million
• Price-to-sales (P/S) ratio: 3.14

• Revenue growth has accelerated from FY 2024 (+4.92%) to TTM Sep 30, 2025 (+10.82%), indicating momentum into 2025.
• The income mix (77.88% interest vs 22.12% non-interest) signals continued reliance on interest margins with a meaningful contribution from fee and other income.
• Revenue per employee (RMB 2.01 million) and P/S (3.14) provide productivity and valuation context for investor comparisons.

Bank of Chongqing Co., Ltd. (1963.HK) - Profitability Metrics

Key profitability indicators for Bank of Chongqing Co., Ltd. (1963.HK) show solid earnings with a relatively low market valuation on a trailing basis. Below are the primary figures investors should note for performance through the trailing twelve months (TTM) ending September 30, 2025 and for the first half of 2025.

• Net income (TTM ending Sep 30, 2025): RMB 5.73 billion
• Earnings per share (EPS, TTM ending Sep 30, 2025): RMB 1.28
• Trailing twelve months Price-to-Earnings (P/E) ratio: 6.41
• Net profit (H1 2025): RMB 3.19 billion - up 5.39% year-over-year
• Basic EPS (H1 2025): RMB 0.33 - up 5.75% year-over-year
• Return on equity (ROE, TTM ending Sep 30, 2025): not specified in available data
• Net profit margin (TTM ending Sep 30, 2025): not specified in available data

For additional investor-focused context and ownership trends, see: Exploring Bank of Chongqing Co., Ltd. Investor Profile: Who's Buying and Why?

Bank of Chongqing Co., Ltd. (1963.HK) - Debt vs. Equity Structure

• Total assets: RMB 1,019.4 billion (30 Jun 2025)
• Total liabilities: RMB 947.3 billion (30 Jun 2025)
• Equity attributable to shareholders: RMB 72.13 billion (30 Jun 2025)
• Calculated debt-to-equity ratio (Liabilities / Equity): ≈ 13.14
• Net cash position: negative - cash & cash equivalents RMB 174.82 billion vs. total debt RMB 394.81 billion (net debt ≈ RMB 219.99 billion)
• Book value per share: RMB 19.85

• High leverage: a debt-to-equity ratio ~13.1 indicates the bank funds operations predominantly through liabilities (deposits, borrowings), amplifying sensitivity to funding costs and deposit flows.
• Negative net cash: with cash of RMB 174.82bn against debt of RMB 394.81bn, the bank carries meaningful net indebtedness (~RMB 220bn), relevant for liquidity stress scenarios.
• Loan-to-deposit context: loans RMB 392.935bn vs. deposits RMB 414.813bn (Dec 31, 2023) shows loans are largely funded by customer deposits but growth differentials (loans +11.45% vs deposits +8.42% YoY) can pressure reliance on wholesale funding if trends persist.
• Book value per share (RMB 19.85) provides a baseline for equity valuation relative to market price; shareholders' equity of RMB 72.13bn is the buffer against credit losses and mark-to-market shocks.

Bank of Chongqing Co., Ltd. (1963.HK) - Liquidity and Solvency

Key liquidity and solvency metrics for Bank of Chongqing Co., Ltd. (1963.HK) for the trailing twelve months ending September 30, 2025:

• Operating cash flow (TTM ending 2025-09-30): RMB 12.34 billion
• Free cash flow (same period): RMB 10.90 billion
• Capital expenditures (same period): RMB 1.43 billion
• Working capital: RMB -477.74 billion (negative)
• Current ratio: not specified in available data
• Quick ratio: not specified in available data
• Solvency ratio (debt-to-assets or similar): not specified in available data

Implications and context:

• Positive operating and free cash flow (RMB 12.34bn and RMB 10.90bn) indicate the bank is generating cash from operations after investment spending of RMB 1.43bn.
• The markedly negative working capital (RMB -477.74bn) signals a structural mismatch between current assets and current liabilities that could reflect reliance on short-term funding or large deposit balances classified as current liabilities.
• Without published current, quick, and solvency ratios, investors should review the bank's balance sheet composition (liquid assets, deposit mix, short-term borrowings) and regulatory capital disclosures to assess short-term liquidity and long-term solvency more precisely.
• For historical and corporate context that may affect liquidity and capital strategy, see: Bank of Chongqing Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Bank of Chongqing Co., Ltd. (1963.HK) - Valuation Analysis

• P/B 0.51: equity market value is roughly half reported book value - signals market discount to accounting equity.
• P/TBV 0.54: tangible equity also shows similar undervaluation versus market price.
• P/FCF 3.38 and P/OCF 2.99: low multiples imply the market is valuing the bank's cash generation conservatively or pricing in risk.

• EV of RMB 433.64 billion places the firm's total enterprise worth substantially above market cap (reflecting debt and other non-equity claims).
• Implied book and cash-flow figures (shown in table) provide quick checkpoints for balance-sheet-backed valuation and cash-based valuation comparisons.

Bank of Chongqing Co., Ltd. (1963.HK) Risk Factors

Key balance sheet and liquidity risks for Bank of Chongqing Co., Ltd. (1963.HK) are highlighted below with the most recent available figures.

• Negative net cash position: cash and cash equivalents RMB 174.82 billion vs. total debt RMB 394.81 billion.
• Negative working capital: RMB -477.74 billion, signaling potential short-term liquidity pressure.
• Several standard performance and solvency metrics are not specified in the available data for the TTM ending September 30, 2025:
• Solvency ratio: not specified.
• Return on equity (ROE): not specified.
• Net profit margin: not specified.
• Current ratio: not specified.

• Implications for investors:
  • A sizable gap between cash and debt increases refinancing and interest-rate sensitivity risk.
  • Negative working capital can constrain operational flexibility and may force asset sales or external financing under stress.
  • Absence of disclosed solvency and profitability metrics for the TTM ending 2025-09-30 complicates peer comparison and trend analysis.

Bank of Chongqing Co., Ltd. (1963.HK) - Growth Opportunities

• Scale advantage: RMB 1,019.4 billion in assets provides capacity to expand lending and diversify asset mix without immediate capital constraints.
• Credit growth runway: Loans up 11.45% (RMB 392.935 billion) vs. prior year suggests strong origination momentum, especially in SME and mortgage segments.
• Deposit-led funding: Deposits of RMB 414.813 billion (+8.42%) support a stable low-cost funding profile for further loan growth.
• Profitability improvement: H1 2025 operating income +8.24% and net profit +5.39% indicate improving operating leverage and room to invest in digital channels.
• Market confidence: Market cap of HKD 36.83 billion reflects investor appetite to price future earnings growth into equity value.

• Retail deposit and fee income expansion through enhanced digital onboarding and wealth-management products to monetize the existing deposit base.
• Targeted SME lending where risk pricing is improving; continued loan book expansion supported by deposit growth.
• Asset-liability optimization to translate the bank's sizable asset base into higher risk-adjusted returns while managing duration and credit risks.
• NPL resolution and credit-cost management to preserve incremental net income as lending volumes rise.
• Capital and market-access initiatives that could leverage the bank's HK listing to raise capital or improve liquidity at attractive valuations.