Bank of Communications Vice President Flags Personal Loan and Property Risks
At its 2026 interim results briefing on August 28, Bank of Communications Vice President Gu Bin highlighted personal loans and corporate real estate as key risk areas. The bank reported that the new non-performing loan formation rate for domestic personal loans in the first half declined from the first quarter, following a special asset quality improvement campaign launched in March.
On August 28, Bank of Communications held its 2026 interim results briefing. Vice President Gu Bin said the group's key risk areas are concentrated in personal loans and the corporate real estate segment. The bank will coordinate development and security, adhere to a full-cycle, full-perspective, and full-process risk management philosophy, strengthen risk assessment and forecasting by business line and product, advance industry research and credit planning, and implement closed-loop, end-to-end management of risks.
In the corporate real estate segment, the bank will continue to implement national policies for the stable and healthy development of the property market, adopt city-specific and category-based management, and apply a "one policy per client" approach for high-risk developers to resolve existing risks. It will also strengthen dynamic risk monitoring centered on projects and use policy tools such as loan extensions and the coordination mechanism whitelist to maintain stability in corporate real estate lending.
On personal loans, Gu noted that non-performing loan and delinquency rates for major banks have risen over the past two years. In response to changes in retail asset quality since 2026, the bank launched a special campaign in March to improve retail asset quality, focusing on enhancing the quality of new business, strengthening management of existing portfolios, and resolving material risks. After the campaign, the upward trend in the non-performing loan ratio slowed. In the first half, the new non-performing loan formation rate for domestic personal loans declined from the first quarter, and new delinquent loans in the second quarter fell from the first quarter. Going forward, the bank will strengthen full-process risk prevention and control for personal loans, iteratively optimize risk models and strategy systems, enhance anti-fraud joint prevention and control, and continue to improve its collections system.