China Times: Non-performing Loan Ratio of 2.44% - How Langfang Bank Can Break Out of Performance Decline

China Economic Net Beijing, March 20 — Huaxia Times published an article yesterday titled “2.1% Fixed Deposit Rate Attracts Depositors, How Langfang Bank Breaks Through Performance Decline and Risk Pressure.” Amid the continuous narrowing of net interest margins in the banking industry, Langfang Bank offers deposit rates higher than local peers in some regions. The strategic motivations and sustainability of this approach have attracted market attention.

The article points out that, based on Langfang Bank’s recent annual reports, its operational pressure has been increasing. From 2022 to 2024, the bank’s operating income was 4.963 billion yuan, 4.563 billion yuan, and 3.613 billion yuan respectively; net profit was 803 million yuan, 569 million yuan, and 243 million yuan respectively. Notably, in 2024, both operating income and net profit decreased by 20.82% and 57.24% year-on-year, indicating a significant decline in profitability.

Additionally, from 2022 to 2024, Langfang Bank’s non-performing loan ratio was 2.4%, 2.03%, and 2.44%. After a reduction in 2023, it rose again in 2024. During the same period, the loan loss coverage ratio was 156.4%, 153.19%, and 104.29%. Furthermore, the concentration of the bank’s largest single customer’s loans increased sharply from 7.01% at the end of 2022 to 15.85% at the end of 2024, indicating rising customer concentration risk.

(Edited by: Guo Jiandong)

【Disclaimer】This article only reflects the author’s personal views and is not related to Hexun.com. Hexun.com maintains neutrality regarding the statements and opinions in the article and does not provide any explicit or implied guarantees regarding the accuracy, reliability, or completeness of the content. Readers are advised to use it for reference only and bear all responsibilities themselves. Email: news_center@staff.hexun.com