Profit Growth Takes Second Place, How Does Qilu Bank Win Higher Market Expectations

Listing | China Visitor Network

Review | Li Xiaoyan

On February 5th, Qilu Bank released its 2025 performance brief, achieving an operating income of 13.135 billion yuan for the year, a year-on-year increase of 5.12%; net profit attributable to shareholders of the listed company was 5.713 billion yuan, up 14.58% year-on-year. Among A-share listed banks by profit growth rate, the bank ranks second, slightly behind Qingdao Bank’s 21.66% growth. However, the market and institutions do not simply rank by growth rate; instead, they hold a more positive long-term outlook for Qilu Bank: China Securities predicts that the bank’s net profit will reach 6.46 billion yuan and 7.25 billion yuan in 2026-2027, with growth rates of 13.08% and 12.23%, respectively, continuing to surpass estimates for Qingdao Bank. From a short-term growth runner-up to a long-term value champion, Qilu Bank, under Zheng Zugang’s leadership, has charted a high-quality growth path centered on regional deepening, net interest margin breakthroughs, real economy integration, and people-oriented governance.

The persistent narrowing of net interest margin in the banking industry in 2025 has become a common challenge, but Qilu Bank is among the few commercial banks to achieve a rebound in net interest margin. Data shows that the bank’s full-year net interest margin was 1.53%, up 2 basis points year-on-year; net interest income reached 10.519 billion yuan, a significant increase of 16.48%, becoming the core engine of profit growth. Meanwhile, the asset scale has reached a new level, with total assets surpassing 800 billion yuan for the first time, reaching 804.381 billion yuan, up 16.65%; total loans were 382.834 billion yuan, up 13.55%; total deposits were 489.531 billion yuan, up 11.37%, with the loan-to-deposit ratio rising to 78.2%, a five-year high, supporting steady performance growth through volume and price increases.

The rebound in interest margins is not accidental but the result of dual efforts in liability cost control and asset structure optimization. The bank continuously optimizes deposit structures, lowers deposit pricing, actively responds to interest rate self-discipline initiatives, and makes good use of re-lending and rediscount policies to effectively reduce interest-bearing liability costs. CMB Securities estimates that in the first half of 2025, the bank’s costs for personal fixed deposits and corporate fixed deposits decreased by 33 basis points each, with quarterly interest costs down by 10 basis points, effectively offsetting downward pressure on asset yields. On the asset side, new loans focus on high-yield sectors such as technological innovation and green finance. As of the end of June 2025, loans to tech enterprises totaled 40.812 billion yuan, a 17.60% increase from the beginning of the year; green loans reached 43.692 billion yuan, a 30.03% increase, reflecting an upgrade in asset structure aligned with regional industry development.

Objectively, the bank’s non-interest income declined by 24.5% year-on-year, and its revenue structure still relies heavily on net interest income. There is room to expand intermediary and light-capital businesses, and future efforts should balance interest margin advantages with non-interest growth.

Behind the profit growth, what is more valuable is Qilu Bank’s role as a financial hub for the local economy. As of the end of November 2025, the bank’s technology loan balance was 51.8 billion yuan, serving over ten thousand tech companies, covering 66% of specialized and innovative enterprises and 86% of “Little Giant” enterprises in Jinan. The “Climb Loan” and supply chain credit lines ranked first in the city. Under this financial support, Jinan’s high-tech industry output value in the first half of 2025 grew by 19.73% year-on-year, accounting for 68.51% of the total industrial output; the city recommended 2,232 enterprises for national high-tech certification, with 7,730 tech SMEs registered, and over 2,500 high-tech enterprises cultivated, including six unicorns and 65 “Little Giants.”

This deep integration ties Qilu Bank’s growth to the real economy, moving beyond simple financial accounting. Unlike some banks relying on interbank and channel businesses, the bank directs credit resources precisely toward regional leading industries, tech innovation enterprises, and green projects, securing stable, high-quality assets and strengthening the local economic foundation, forming a positive cycle of “bank growth—industry prosperity—regional strength.” This is the core logic behind institutions’ stronger confidence in its long-term growth: short-term growth may fluctuate, but rooted growth in the real economy is irreplaceable in resilience.

In an environment where bank employee compensation generally declines, Qilu Bank’s staff salaries have grown against the trend. In the first half of 2025, employee compensation expenses increased by 5.76%, ranking among the top in industry growth; the third-quarter report shows further increases in business and management expenses, indicating ongoing improvement in employee income. In stark contrast, Chairman Zheng Zugang’s pre-tax salary in 2024 was only 1.5674 million yuan, placing him in the mid-to-upper range among bank executives, nearly 1 million yuan lower than the annual salary of Qingdao Bank’s chairman.

The leadership’s acceptance of lower pay and focus on frontline development demonstrate long-term governance wisdom. Zheng Zugang leads the team to focus on “serving Shandong and deepening Jinan,” avoiding short-term scale rushes or single-speed rankings, instead emphasizing interest margin management, real economy services, risk compliance, and talent incentives. This “low-profile leadership, empowering from the front” style makes the bank’s strategy more stable, execution more solid, and team more resilient, providing governance assurance for sustainable growth.

Qingdao Bank, with higher short-term growth, currently ranks first in profit growth, while Qilu Bank excels in four key areas: interest margin management, asset quality, regional penetration, and stable governance, earning the title of “hidden champion.” Data shows that the non-performing loan ratio fell to 1.05%, down 0.14 percentage points from the end of last year; the loan loss reserve coverage ratio rose to 355.91%, significantly enhancing risk resistance, with asset quality improving for seven consecutive years. Balancing scale, efficiency, quality, and responsibility, Qilu Bank’s growth is more sustainable.

Institutions like China Securities’ optimistic forecasts essentially recognize the regional deepening model. As a local city commercial bank in Shandong, Qilu Bank accurately aligns with policy guidance and industry trends, transforming financial resources into industrial momentum and local advantages into banking strengths, achieving unity of political stance, commercial value, and social responsibility. In uncertain market conditions, this rooted, collaborative, and prudent approach to operation is among the most scarce forms of certainty.

Its profit growth ranking second is not a shortcoming but a mark of steady development. Under Zheng Zugang’s leadership, the bank has reversed industry difficulties through interest margin rebound, empowered regional upgrades with tech innovation finance, fostered team cohesion through people-oriented governance, and navigated cycles with long-term vision. While financial data shows it as a runner-up, in terms of growth quality, real economy contribution, and governance level, Qilu Bank has long secured its own “number one.”