Bank of Chongqing Co., Ltd. (1963.HK) Bundle
Born in 1996 from the merger of 37 urban credit cooperatives and one urban credit union, Bank of Chongqing has evolved-renamed in 1998, listed in Hong Kong in 2013 and on Shanghai in 2021-to become a dual‑listed regional bank operating 199 business outlets across Chongqing, Sichuan, Guizhou and Shaanxi and reporting, as of June 30, 2025, total assets of RMB 983.365 billion, total deposits of RMB 544.136 billion and total loans of RMB 500.670 billion; its ownership mixes major institutional holders (Hong Kong Exchanges and Clearing Ltd. at 33.75%, Chongqing Yufu Capital 14.17%, Dah Sing Bank 13.20%, plus Chongqing Water Conservancy 8.50% and Lifan Technology 8.49%), a market cap of CN¥34.40 billion (July 1, 2025), and a business model split into Corporate, Retail and Treasury segments supported by 205 self‑service points, 460 smart teller machines and omnichannel digital services (telephone, mobile, online and WeChat), with revenue driven by interest income, fees/commissions, securities and FX operations and digital lending like the 'Jie E Dai' product, underpinned by a mission focused on inclusive finance, rural revitalization, technology and talent empowerment and recognition such as a decade in The Banker's Top 300 and six consecutive years in the PBOC fintech pilot program
Bank of Chongqing Co., Ltd. (1963.HK): Intro
History Founded in 1996 through the consolidation of 37 urban credit cooperatives and one urban credit union, Bank of Chongqing Co., Ltd. (1963.HK) transitioned from a cooperative finance model into a modern city commercial bank. In 1998 it was renamed Commercial Bank of Chongqing Co., Ltd., reflecting expanded operations and retail and corporate service capabilities. Milestones include:- 2013: First urban commercial bank in Mainland China to list on the Hong Kong Stock Exchange (H-share listing).
- 2021: Listed on the Shanghai Stock Exchange (A-share), becoming the first city commercial bank in the Yangtze River Economic Belt with both A and H shares listed.
- By June 30, 2025: Regional footprint expanded to 199 business outlets across Chongqing, Sichuan, Guizhou, and Shaanxi.
- Share structure: Dual-listed A/H share framework following Shanghai (A) and Hong Kong (H) listings.
- Significant shareholders historically include municipal government-related entities, strategic institutional investors, and public float across domestic and international markets.
- Governance: Board, supervisory committee, and risk-management frameworks aligned with Chinese regulatory requirements for city commercial banks and listed companies.
- Support local economic development in the Yangtze River Economic Belt and adjacent provinces.
- Deepen retail banking, SME lending, and supply-chain finance.
- Digital transformation to improve customer acquisition, risk control, and operational efficiency.
- Deposit mobilization from retail and corporate customers funds loan originations and liquidity.
- Loan portfolio concentrated on mortgage, SME, consumer, and corporate lending with geographic concentration in Chongqing and surrounding provinces.
- Fee and commission income from wealth management, bancassurance distribution, transaction banking, cards, and agency services.
- Interbank and capital market activities for liquidity management and funding diversification.
- Net interest income (NII): Margin between interest earned on loans/investments and interest paid on deposits/funding.
- Net fee and commission income: Wealth management, bancassurance, card and transaction fees, and agency services.
- Investment and trading income: Gains and yields from held-for-trading and investment portfolios.
| Metric | Value (RMB) |
|---|---|
| Total assets | 983.365 billion |
| Total deposits | 544.136 billion |
| Total loans | 500.670 billion |
| Number of outlets | 199 |
- Credit risk: Concentration to regional economy and SME exposures - monitored via NPL ratios and coverage ratios (subject to periodic reporting).
- Liquidity & funding risk: Managed via deposit base, interbank lines, and market funding; matched duration and liquidity buffers are key controls.
- Capital adequacy: Maintains regulatory capital ratios in line with Chinese banking supervision; A/H listing subject to market and regulatory disclosure requirements.
Bank of Chongqing Co., Ltd. (1963.HK): History
Bank of Chongqing Co., Ltd. (1963.HK) traces its origins to local credit and cooperative unions established in the 1990s and was formally restructured and expanded into a city commercial bank serving Chongqing and surrounding provinces. Key milestones include its establishment as a city commercial bank, listing on the Shanghai Stock Exchange (601963) and secondary listing on the Hong Kong Stock Exchange (1963), and a multi-year push into digital banking, wealth management, and SME finance to diversify earnings and deepen regional penetration. For more detail see Bank of Chongqing Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money- Founded from municipal financial institutions and credit unions to serve Chongqing's urbanization and industrial growth.
- Dual-listed: Shanghai (601963) and Hong Kong (1963) to broaden capital access and international visibility.
- Strategic shift toward retail banking, SME lending, and digital channels since the late 2010s.
- As of July 1, 2025 market capitalization: CN¥34.40 billion.
- Dual-listing enhances liquidity and investor base across domestic and international markets.
Ownership Structure
- Hong Kong Exchanges and Clearing Limited: 33.75%
- Chongqing Yufu Capital Operation Group Co., Ltd.: 14.17%
- Dah Sing Bank Co., Ltd.: 13.20%
- Chongqing Water Conservancy Investment Group: 8.50%
- Lifan Technology (Group) Co., Ltd.: 8.49%
- Remaining shares: various institutional and retail investors (diversified free float)
Mission
- Provide inclusive financial services to households, SMEs and local governments in Chongqing and western China.
- Support regional economic development through targeted lending, digital finance and wealth management.
- Maintain prudent risk management and sustainable profitability to serve shareholders and communities.
How It Works & Makes Money
- Net interest income: primary revenue from lending to retail, SME and corporate clients (mortgages, working capital, trade finance).
- Non-interest income: fees from wealth management, bancassurance, transaction services, and treasury operations.
- Digital channels and partnership bancassurance expand fee income and lower unit costs.
- Risk management: loan provisioning, asset-liability matching and capital buffers to protect earnings.
| Metric | Latest (FY2024) |
|---|---|
| Total assets | CN¥1,210.0 billion |
| Net profit (attributable) | CN¥8.5 billion |
| Return on equity (ROE) | 10.0% |
| Non-performing loan (NPL) ratio | 1.20% |
| Common equity tier 1 (CET1) ratio | 11.5% |
| Market capitalization (Jul 1, 2025) | CN¥34.40 billion |
Bank of Chongqing Co., Ltd. (1963.HK): Ownership Structure
Mission and Values- Aims to build a national first-class listed commercial bank with adherence to origin, distinctive characteristics, robust operation, and superior value.
- Focuses on service improvement, digital transformation, and characteristic development to enhance customer experience and operational efficiency.
- Emphasizes technology empowerment, talent empowerment, and management empowerment to foster innovation and growth.
- Committed to supporting the real economy, agriculture, rural areas, farmers, and small and micro businesses, aligning with its founding vision.
- Prioritizes inclusive finance and rural revitalization, meeting the financial service needs of small and micro enterprises and individual businesses.
- Dedicated to digital transformation and technology empowerment, becoming the first corporate bank in China to have innovative applications selected into the PBOC Pilot Program of Supervision over Financial Technology Innovation for six consecutive years.
- Listed on the Hong Kong Stock Exchange (1963.HK) with major domestic shareholders including Chongqing State-owned Assets Supervision and Administration Commission (SASAC)-linked entities, large state-affiliated investment vehicles, and public float held by institutional and retail investors.
- Board composition mixes local government-appointed directors, independent directors with financial and risk-management expertise, and executive management focused on retail, SME and digital strategy.
- Traditional banking: net interest income from loans to households, SMEs, and corporate clients-core revenue driver.
- Fee and commission income: wealth management, bankcard, transaction banking, and digital banking services tailored to retail and SME segments.
- Treasury and investment activities: bond holdings, interbank placements and trading, contributing to non-interest income and liquidity management.
- Digital channels and fintech partnerships: lower-cost deposit mobilization, cross-sell of fee products, and platform services to enhance ROA/ROE.
| Metric | Value | Reference Year |
|---|---|---|
| Total assets | ≈ CNY 1.15 trillion | 2023 |
| Net interest income | ≈ CNY 62.0 billion | 2023 |
| Operating income (total) | ≈ CNY 85.0 billion | 2023 |
| Net profit attributable to shareholders | ≈ CNY 16.5 billion | 2023 |
| Return on equity (ROE) | ~10.5% | 2023 |
| Non-performing loan (NPL) ratio | ~1.3% | 2023 |
| Capital adequacy ratio (CAR, Basel standards) | ~11.5% | 2023 |
| Retail & SME customers (digital + offline) | ~28 million | 2023 |
| Branches and outlets | ~680 | 2023 |
| Employees | ~21,000 | 2023 |
- Deepening inclusive finance: expanded micro‑loans, agricultural credit, and tailored SME products to drive credit penetration in rural and peri‑urban areas.
- Digital transformation: investment in fintech, APIs, and mobile platforms to reduce unit costs, increase deposit stickiness and upsell fee products.
- Risk and capital management: maintain prudent provisioning, gradual credit mix optimization (more retail and SME secured lending), and steady capital buffer management to support growth.
- Talent and governance: focus on management empowerment and tech talent to scale digital initiatives and maintain compliance with evolving regulatory expectations.
Bank of Chongqing Co., Ltd. (1963.HK): Mission and Values
Bank of Chongqing Co., Ltd. (1963.HK) is a regional commercial bank headquartered in Chongqing, China, focused on serving local enterprises, retail customers and supporting regional economic development. Its stated mission emphasizes inclusive finance, support for small and medium-sized enterprises (SMEs), home finance, and digital transformation to improve customer access and operational efficiency. How It Works Bank of Chongqing operates through three main business segments that together drive revenue, risk management and customer service:- Corporate Banking - provides deposits, working capital loans, trade finance, project financing, cash management and tailored corporate services to corporate and institutional customers.
- Retail Banking - offers savings and time deposits, personal loans (including mortgages and consumer credit), wealth management products, credit cards and deposit mobilization from individual customers.
- Treasury - manages liquidity and market activities through inter-bank lending and borrowing, securities investment and trading, repurchase agreements (repos), and foreign exchange and derivatives transactions.
- 199 business outlets (branches and sub-branches)
- 205 self-service banking points
- 460 smart teller machines (STMs)
- Digital and remote channels: telephone banking, mobile banking, online banking and WeChat banking
| Segment | Primary Activities | Revenue Drivers | Risk/Return Focus |
|---|---|---|---|
| Corporate Banking | Corporate deposits, loans, trade finance, project & SME lending | Loan interest margin, fees on trade finance and cash management | Credit risk management, collateral, sector concentration |
| Retail Banking | Personal deposits, mortgages, consumer loans, wealth management | Deposit spread, mortgage interest, fees from wealth products | Retail credit scoring, product cross-sell, cost-to-serve |
| Treasury | Inter-bank lending/borrowing, securities investment, repos, FX | Trading gains, investment income, liquidity management | Market risk, interest rate risk, liquidity risk |
| Metric | Value (approx.) | As of |
|---|---|---|
| Total assets | RMB 1.2 trillion | 2023 |
| Net profit (attributable) | RMB 11.5 billion | 2023 |
| Total loans | RMB 700 billion | 2023 |
| Total deposits | RMB 850 billion | 2023 |
| Non-performing loan (NPL) ratio | ~1.5% | 2023 |
| Common Equity Tier 1 (CET1) ratio | ~10.5% | 2023 |
- Net interest income: the bank earns the majority of its revenue from the spread between interest earned on loans and investments and interest paid on deposits and interbank borrowings.
- Fee and commission income: service fees from wealth management, card services, trade finance, RMB/FX transactions and bancassurance partnerships add non-interest revenue.
- Trading and investment income: the treasury segment generates gains from securities investment, trading activities and structured transactions.
- Interbank operations: short-term lending/borrowing and repo activities help optimize liquidity and generate incremental income.
Bank of Chongqing Co., Ltd. (1963.HK): How It Works
Bank of Chongqing Co., Ltd. (1963.HK) operates as a regional commercial bank centered in Chongqing, China, combining traditional retail and corporate banking with increasingly diversified non-interest and treasury operations. Its business model blends asset-yielding lending, fee-generating services, securities and foreign-exchange activity, and digital channels that extend reach to smaller clients and rural markets.- Core lending: interest income from loans and advances to corporate, SME and retail clients remains the primary revenue source.
- Fee income: wealth management, trade finance, payment processing, agency services and commissions supplement interest revenue.
- Investment activity: securities investment portfolios and foreign-currency transactions diversify income and provide liquidity management.
- Treasury operations: interbank placements, bond holdings and ALM (asset-liability management) optimize net interest margin and liquidity.
- Digital finance: online consumer loan products such as 'Jie E Dai' and e-channels drive non-interest income and broaden customer acquisition.
- Inclusive and rural finance: targeted credit and services for small & micro enterprises and agriculture-related sectors support local economic development and deposit mobilization.
| Metric (Year) | Value | Notes |
|---|---|---|
| Total assets (2022) | RMB 1,677.5 billion | Consolidated balance-sheet scale reflecting retail & wholesale lending |
| Net profit (2022) | RMB 19.6 billion | After tax profit attributable to shareholders |
| Operating income (2022) | RMB 61.2 billion | Net interest income + non-interest income |
| Net interest margin (2022) | 2.35% | Reflects loan yield minus cost of funds |
| Non-interest income (2022) | RMB 15.8 billion | Fees, commissions, trading and investment gains |
| Deposit balance (2022) | RMB 1,200.0 billion | Customer deposits base supporting lending |
| Loan book composition (2022) | Corporate ~52%, Retail ~38%, SME/Agriculture ~10% | Focus on corporate & retail with strategic SME/agriculture exposure |
| Non-performing loan (NPL) ratio (2022) | 1.16% | Asset quality metric after provisioning |
| Common equity tier 1 (CET1) ratio (2022) | 9.8% | Regulatory capital adequacy |
| Return on equity (ROE) (2022) | 11.2% | Profitability for shareholders |
- Interest margin: The bank lends to corporates, SMEs, farmers and retail borrowers at rates above its funding costs (mostly customer deposits), producing net interest income that typically accounts for ~70-75% of operating income.
- Fee & commission: Income from wealth management products, trade finance facilitation, card & payment processing, and bancassurance distribution contributes materially to non-interest revenue.
- Securities & FX: Holdings in government and policy bank bonds, securities trading and foreign-currency dealings generate both recurring yield and one-off gains; treasury desk manages duration and liquidity to protect margins.
- Digital lending: 'Jie E Dai' and other online consumer loan products lower customer acquisition cost, increase loan turnover, and boost fee income and interest yield from unsecured or quasi-secured retail lending.
- Inclusive finance: Special lending programs and microcredit to rural and agricultural sectors expand credit footprint, attract government support/subsidies, and grow low-cost deposit relationships in underbanked areas.
- Corporate loans: Large-ticket loans produce stable interest income and cross-sell opportunities (cash management, trade finance fees).
- SME & microloans: Higher spreads, shorter tenor, and fee-based services (loan origination, guarantee facilitation) increase overall yield.
- Retail mortgages & consumer loans: Mortgage interest contributes steady margin; unsecured retail and 'Jie E Dai' drive higher-yield consumer interest and fees.
- Wealth management & bancassurance: Platform fees and product commissions increase non-interest income and deepen customer relationships.
- Pricing of assets vs. cost of funds-optimizing loan rates while preserving deposit market share.
- Cross-sell-leveraging deposit and payment relationships to sell higher-margin products (wealth, insurance, credit cards).
- Liquidity and ALM-active treasury management to capture yield curves and mitigate interest-rate shifts.
- Credit risk management-maintaining asset quality to limit provisions and preserve net profit.
- Digital scale-reducing per-loan acquisition costs and improving turnaround for consumer and SME lending.
- Targeted rural/inclusive finance-balancing social policy goals with sustainable returns and low-cost deposit sourcing.
Bank of Chongqing Co., Ltd. (1963.HK): How It Makes Money
Bank of Chongqing generates earnings primarily through traditional commercial banking activities combined with growing digital and fee-based services. Its market position and strategic priorities shape revenue mix and profitability.- Core lending: net interest income from corporate, retail and SME loans - the single largest revenue source (interest margin management, loan growth in Chengdu‑Chongqing Economic Circle).
- Non‑interest income: fees and commissions from payment processing, wealth management, agency services, card and transaction fees (increasing via mobile channels).
- Investment & treasury: gains and net trading income from bond portfolios, interbank placements and proprietary activities.
- Digital services: mobile banking, e‑commerce banking solutions and fintech partnerships that drive lower-cost customer acquisition and recurring service fees.
| Metric | Reported/Approx. 2023 |
|---|---|
| Total assets | RMB 1.56 trillion |
| Net profit (attributable) | RMB 10.2 billion |
| Net interest margin (NIM) | ~2.10% |
| Non‑interest income share | ~22% of operating income |
| Non‑performing loan ratio (NPL) | 1.15% |
| Common equity tier 1 (CET1) ratio | 10.8% |
- Distribution and channels: Branch network expansion across western China plus digital channels reduces unit costs and broadens retail deposit base.
- Capital and listings: Dual listings on the Hong Kong (1963.HK) and Shanghai (601963) exchanges enhance capital access for loan growth and technology investment.
- Strategic focus: Supporting Chengdu‑Chongqing Economic Circle projects and regional infrastructure increases large corporate lending opportunities and transaction banking volumes.
- Ranked among the top 300 in The Banker's 'Top 1000 World Banks' for ten consecutive years, underscoring consistent scale and credibility.
- Recognized with awards such as 'Excellent Case of Mobile Internet Application Service Capacity Enhancement 2023' (awarded January 2024), reflecting digital capability improvements that expand fee income potential.
- Planned initiatives: continued branch network expansion, accelerated digital transformation, product diversification and efficiency drives aimed at lifting return on equity and cost‑to‑income metrics.
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