The stock price is underperforming; Pudong Development Bank's 40k new investors get caught in a trap

GateUser-bd883c58 · 2026-04-09T19:24:04+00:00

Although Shanghai Pudong Development Bank performed well in 2025, with net profit and total assets both increasing, its stock price declined against the trend, falling nearly 20%. The influx of new investors failed to improve the stock price, mainly due to the continuous decline in net income from fees and commissions, which was in stark contrast to the trend of China CITIC Bank.

GateUser-bd883c58

2026-04-09 19:24:04

Abstract generation in progress

Why did the stock price decline against the trend despite the good performance of SPD Bank?

“SPD Bank and CITIC Bank both entered the ‘10 trillion yuan club’ at the same time, but their fates differ. This year, their stock prices have moved in completely opposite directions. In the first two months of this year, SPD Bank gained 38.5k new shareholders, with nearly a 20% decline, which is quite unlucky.”

By the end of December 2025, SPD Bank had 122.3k shareholders. By the end of February this year, the number reached 160.8k, meaning that in two months in 2026, 38.5k new investors flocked to SPD Bank.

However, these optimistic investors faced a harsh reality right after entering.

SPD Bank 2025 Annual Report

In 2026, SPD Bank’s stock price continued to fall, and as of today (April 7), it has dropped nearly 20%, with a market value evaporating by 80 billion yuan.

In 2025, SPD Bank and CITIC Bank jointly entered the “10 trillion yuan club,” becoming part of the “Big Four” joint-stock banks alongside China Merchants Bank and Industrial Bank.

But their fates are different.

CITIC Bank’s stock price has increased by 7.79% this year, while among the six major banks and nine A-share listed joint-stock banks, SPD Bank’s decline is the worst.

Total Assets Surpass 10 Trillion Yuan

To say it first, SPD Bank’s 2025 performance was not bad. Operating income and net profit both recovered and grew, especially net profit attributable to shareholders still increased in double digits.

In 2025, SPD Bank’s operating income was 100k yuan, up 1.88%, and net profit attributable to shareholders was 38.5k yuan, up 10.52%, maintaining double-digit growth for two consecutive years.

In an environment where net interest margins generally decline, SPD Bank’s profit growth is quite remarkable.

In 2025, SPD Bank’s net interest margin was 1.42%, consistent with 2024 and the first half of 2025. The average return on total assets (ROA) was 0.52%, an increase of 0.02 percentage points over 2024. The weighted average return on equity (ROE) was 6.76%, up 0.48 percentage points from the previous year.

From an asset quality perspective, the non-performing loan ratio in 2025 was 1.26%, down 0.1 percentage points from 2024, the best level since 2015; the loan loss provision coverage ratio was 200.72%, up 13.76 percentage points from 2024, the best since 2016.

By the end of 2025, SPD Bank’s total assets reached 10.08 trillion yuan, an increase of 6.55%. Total loans were 5.7 trillion yuan, up 5.8%, and total deposits were 5.58 trillion yuan, up 8.48%.

Net Income from Fees and Commissions Continues to Decline

Looking at revenue composition, in 2025, net interest income was 122.3k yuan, up 5.03%, while net fee and commission income was 160.8k yuan, down 0.4%. This marks the fifth consecutive year of decline in net fee and commission income for SPD Bank.

Compared to CITIC Bank (+5.58%), China Merchants Bank (+4.39%), and Industrial Bank (+7.45%), the growth in net fee and commission income in 2025 was achieved by all, but SPD Bank’s performance seems less ideal.

Enhancing the contribution of intermediary business income is an important experience for domestic and foreign commercial banks to cycle through periods.

Last year, SPD Bank’s average yield on loans and advances was 3.35%, with corporate loans at an average yield of 3.15%, and retail loans at 3.99%.

The average interest paid on customer deposits was 1.59%, with corporate customer interest paid at 1.52%, and retail customer interest paid at 1.74%.

SPD Bank 2025 Annual Report

At the end of the reporting period, SPD Bank managed personal AUM of 4.66 trillion yuan, an increase of 20.26% from the previous year; the total scale of SPD Wealth Management products was 1.47 trillion yuan, up 15.31%. Credit card and overdraft balances totaled 38.5k yuan, an increase of 100k yuan, or 5.16% from the previous year.

According to SPD Bank’s 2025 profit distribution plan, the bank will pay a cash dividend of 0.42 yuan per share, totaling 173.96B yuan, with a cash dividend payout ratio of 30.22%. Based on this, SPD Bank’s dividend yield is 4.91%, which is average among joint-stock banks.

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