On August 29th, Bank of Communications held its 2025 interim results briefing. Vice President Gu Bin provided explanations regarding provisions management and asset quality control. He stated that Bank of Communications consistently adheres to regulatory requirements for commercial banks' implementation of expected credit loss methodology, continuously strengthening risk resilience through dynamic optimization of risk assessment mechanisms.

Gu Bin introduced that Bank of Communications continuously improves internal management based on comprehensive assessment of customers' potential risk situations, dynamic updates of monitoring model parameters, and full reflection of forward-looking information's impact on expected credit losses. As of the end of June, the Group's provision coverage ratio reached 209.56%, an increase of 7.62 percentage points compared to the end of last year, with "provision levels being generally reasonable and appropriate."

He emphasized that Bank of Communications will continue to make reasonable provisions in accordance with accounting standards and regulatory requirements. "Against the backdrop of China's economy withstanding pressure and maintaining stable growth with a positive trend in the first half of this year, Bank of Communications has enhanced its risk management capabilities through asset quality campaigns and consolidation of achievements. The future will remain stable, maintaining the provision coverage ratio within a reasonable range."

Regarding non-performing asset write-off management, Gu Bin clearly stated that Bank of Communications will continue to make stabilizing asset quality a priority this year. "We will make full use of write-off resources while striving to improve the quality and efficiency of collection and disposal, accelerate the clearance of non-performing assets, and effectively prevent and resolve financial risks."

He revealed that Bank of Communications' write-off resources for 2025 remain basically consistent with last year. "We will control asset quality through enhanced collection and disposal, leveraging write-offs and various other coordinated measures."