The rivalry between two leading city commercial banks in Shandong province has intensified, with both institutions demonstrating strong growth trajectories. According to recently disclosed performance reports, by the end of 2025, both Bank Of Qingdao Co.,Ltd. and Qilu Bank Co.,Ltd. had surpassed total assets of 800 billion yuan. Bank Of Qingdao Co.,Ltd. expanded its assets by approximately 49.4 billion yuan in the fourth quarter alone, nearly double the growth of Qilu Bank Co.,Ltd. during the same period, enabling it to reclaim the top position in asset scale by year-end.

Among the 12 A-share banks that have released preliminary earnings reports, Bank Of Qingdao Co.,Ltd. and Qilu Bank Co.,Ltd. reported the highest growth rates in net profit attributable to shareholders, at 21.66% and 14.58% respectively. In terms of absolute value, Qilu Bank Co.,Ltd. achieved a net profit of 5.713 billion yuan, outperforming Bank Of Qingdao Co.,Ltd.'s 5.188 billion yuan, maintaining its lead in profitability.

Headquartered in different sub-provincial cities—Bank Of Qingdao Co.,Ltd. in Qingdao and Qilu Bank Co.,Ltd. in Jinan—the two banks have adopted distinct competitive strategies. Qilu Bank Co.,Ltd. leverages Shandong's robust county-level economy to develop rural finance, while Bank Of Qingdao Co.,Ltd. focuses on marine economy initiatives, aiming to become China's first blue finance-focused bank.

Both banks significantly outperform other local city commercial banks in Shandong in terms of both scale and profitability. From 2020 to 2024, Bank Of Qingdao Co.,Ltd. consistently maintained a larger asset base than Qilu Bank Co.,Ltd., though the gap narrowed progressively. By the end of 2024, their scales were nearly equivalent.

In the first three quarters of 2025, Qilu Bank Co.,Ltd. temporarily overtook its rival in asset growth. At the end of Q1, both banks exceeded 700 billion yuan in total assets, with Qilu Bank Co.,Ltd. taking the lead. By Q2, its advantage expanded to 8.3 billion yuan, reaching 13.1 billion yuan by Q3. However, Bank Of Qingdao Co.,Ltd. staged a strong comeback in Q4, adding 49.4 billion yuan in assets—largely through increased credit issuance—to end the year with a 10.6 billion yuan lead.

For the full year 2025, Bank Of Qingdao Co.,Ltd. reported total assets of 814.96 billion yuan, an increase of 125 billion yuan or 18.12% year-on-year. Qilu Bank Co.,Ltd.'s assets reached 804.381 billion yuan, up 114.8 billion yuan or 16.65%. Both banks showed robust growth in deposits and loans. Bank Of Qingdao Co.,Ltd.'s loans grew 16.53% to 397 billion yuan, while deposits increased 16.41% to 502.9 billion yuan. Qilu Bank Co.,Ltd.'s loans rose 13.55% to 382.8 billion yuan, with deposits up 11.37% to 489.5 billion yuan.

Asset quality improved for both institutions. Bank Of Qingdao Co.,Ltd. reported a non-performing loan (NPL) ratio below 1%, with NPL balance dropping to 3.841 billion yuan and NPL ratio declining 0.17 percentage points to 0.97%. Its provision coverage ratio increased to 292.3%. Qilu Bank Co.,Ltd.'s NPL ratio fell 0.14 percentage points to 1.05%, with provision coverage reaching 355.91%, marking seven consecutive years of improvement in key asset quality metrics.

While Bank Of Qingdao Co.,Ltd. led in revenue growth—with operating income up 7.97% to 14.573 billion yuan compared to Qilu Bank Co.,Ltd.'s 5.12% increase to 13.135 billion yuan—Qilu Bank Co.,Ltd. maintained higher profitability. Its net interest margin rose 2 basis points to 1.53%, driving net interest income up 16.48% to 10.519 billion yuan.

The profitability gap stems partly from cost management differences. Bank Of Qingdao Co.,Ltd.'s business and management expenses have historically been higher than Qilu Bank Co.,Ltd.'s. In 2024, these expenses were approximately 4.7 billion yuan for Bank Of Qingdao Co.,Ltd., 1.3 billion yuan more than its competitor. The cost-to-income ratio for Bank Of Qingdao Co.,Ltd. has consistently exceeded 30%, significantly higher than Qilu Bank Co.,Ltd.'s ratio, though the gap narrowed to 1.46 percentage points in the first three quarters of 2025.

Founded in 1996, both banks have expanded their footprints. Bank Of Qingdao Co.,Ltd. operates 17 branches with over 200 outlets across Shandong, plus two subsidiary companies. Qilu Bank Co.,Ltd. has 237 branches and 12 village banks, with investments in other regional banks.

Qilu Bank Co.,Ltd.'s county-level finance business has been a key growth driver, accounting for 30% of its total deposits and loans by mid-2025. Meanwhile, Bank Of Qingdao Co.,Ltd. has pioneered blue finance, developing specialized products for marine industries. Its blue loan portfolio reached 21.341 billion yuan by September 2025, growing 27.17% year-on-year. The bank also launched China's first marine economy bond index in collaboration with the Shanghai Clearing House.