During the 2026 Shanghai-listed Companies Collective Reception Day and Half-Year Results Briefing held on September 16, Bank Of Communications Co.,Ltd. Board Secretary He Zhaobin addressed investor inquiries regarding liability cost management and net interest margin trends.

In the first half of the year, the bank set and continuously optimized deposit rate control targets based on business development and market interest rate movements, implementing tiered rate management for key products to drive down deposit cost ratios. Moving forward, the bank will continue its comprehensive margin management efforts, and absent major policy-related impacts, expects the full-year net interest margin to maintain a stable and improving trajectory.

Regarding retail credit asset quality, He noted that the bank has refined its disposal mechanisms and processes tailored to the characteristics of non-performing retail loan products, utilizing a variety of resolution methods. Overall, the efficiency and effectiveness of non-performing retail loan recovery in the first half showed notable improvement compared to 2025. Since March, the bank has launched a special initiative to enhance retail asset business quality, balancing business growth with risk management. Since the initiative began, leading indicators across various products have shown marginal improvements.

Going forward, Bank Of Communications Co.,Ltd. will strengthen full-process retail credit risk prevention and control, iteratively upgrade risk models and strategy systems, bolster anti-fraud joint defense mechanisms, and continuously improve collection infrastructure to maintain stable asset quality. On the "Shanghai Home Base" strategy, He stated that the bank's operational efficiency and value creation capability in Shanghai and the broader Yangtze River Delta region have further strengthened this year.

During the first half, the Yangtze River Delta region contributed nearly half of the group's total profit, with net revenue contribution reaching approximately 40%. The bank will maintain strategic focus on the Shanghai Home Base initiative, aiming for deposit and loan growth in Shanghai and the Yangtze River Delta region to outpace the bank's overall average, while steadily enhancing profitability and profit contribution.