Ping An Bank past the worst point for net profit growth: analysts

Net profit decline in Q2 was narrower than recorded in Q1.

Ping An Bank (PAB) is past the “worst point” for net profit growth, albeit improvements are occurring at a slow pace, said CGS International.

The Chinese bank’s Q2 2025 net profit fell 1.6% year-on-year, better than the 6.5% decline in the previous quarter. This was due to net trading income’s decline narrowing, as well as stabilising net interest margin, said analysts Michael Chang and Laura Li Zhiyi in a report on 25 August 2025.

Notably, PAB’s net fee income rose 5.7% during the quarter, compared to an 8.2% decline in Q1. Its credit card non-performing loan ratio (NPL) also continued to improve, falling by 10 basis points (bp) quarter-on-quarter (QoQ) to 2.3%.

CGS International said that it did not like that the ratio of risk weighted average (RWA) to total assets was 77.4%, up 63 bp compared to Q1 2025 and 290 bp from Q2 2024.

NIM fell 7 bp compared to Q1 and 15 bp compared to Q2 2024. Core Tier 1 ratio was lower by 2 bp to 9.31% compared to a year earlier.

Looking ahead, PAB could be “a beneficiary of a future rebound in consumption,” CGS International said.