Ping An Bank Retail NPL Ratio at 1.23%; Online Loan NPL Drops 18bp Quarter-on-Quarter

On August 17, Ping An Bank disclosed retail risk data at its 2026 interim results conference. As of the reporting period, the retail NPL ratio stood at 1.23%. Since 2024, the cumulative retail NPL formation rate has declined by 106 basis points, and credit costs have fallen by 59 basis points, indicating improvement in asset quality in certain areas, although risk exposure remains concentrated in specific businesses.

Affected by the real estate market, home-secured loans (zhai di dai) are currently at historically high risk levels. According to the bank's interim report, special-mention loans and their ratio increased from the beginning of the year, mainly related to home-secured loans. Following relevant regulatory policy, the bank restructured some home-secured loan customers facing temporary difficulties, leading to higher special-mention loan ratio and balance, though NPL formation improved from the start of the year.

For online lending, the NPL ratio in the second quarter was 2.09%, down 18 basis points from the first quarter but up 36 basis points from the beginning of the year. The NPL formation rate was 4.86%, down 99 basis points from the first quarter but up 75 basis points from the beginning of the year. While the second quarter showed marked improvement over the first, overall market pressure remains severe. The bank applies its own risk controls for online lending, and through model adjustments and customer selection criteria, NPL formation has shown a downward trend.

For credit card business, as of the end of June, the credit card receivable NPL ratio was 2.23%, slightly lower than both the end of the first quarter and the beginning of the year. After several years of reducing high-risk assets, further room to compress NPL formation is limited.