Annual report blunder! China Everbright Bank's latest response

Source: Securities Times Network Author: Huang Yulin

On the evening of April 1, Industrial Bank’s H Shares were announced on the Hong Kong Stock Exchange, requiring revisions to materials already published for preliminary results (i.e., the annual results announcement).

Previously, a “mix-up” in Industrial Bank’s annual report version drew market attention: in the annual reports initially released on the HKEX and the SSE, several data points such as the bank’s “asset size” in multiple branches showed clear formatting misalignment and were mixed up. Subsequently, the SSE version was quickly corrected, but the data still had a relatively large discrepancy compared with the HKEX version, resulting in the same bank disclosing branch asset sizes that differed greatly between the two locations.

According to the latest announcement released by Industrial Bank on the HKEX, all data for the 8 branches involved in the erroneous figures have now been fully corrected.

The data show that, as of the end of 2025, the asset sizes of Industrial Bank’s Shanghai branch, Shijiazhuang branch, Tianjin branch, Qingdao branch, Yantai branch, Ningbo branch, Shenzhen branch, and Chengdu branch were 120.27B yuan, 101.33B yuan, 98.01B yuan, 72.6B yuan, 81.89B yuan, 96.14B yuan, 39.54B yuan, and 961.35 billion yuan, respectively.

Previously, Industrial Bank’s H-share annual report listed the asset sizes of the aforementioned branches as 395.4 billion yuan, 59.84B yuan, 27.47B yuan, 338.49B yuan, 274.74 billion yuan, 51.88B yuan, 518.78 billion yuan, and 126.31B yuan.

Industrial Bank stated that the corrections do not have any impact on other materials contained in the annual results announcement.

The left side is a screenshot of Industrial Bank’s revised annual report released on the HKEX, and the right side is a screenshot of the bank’s annual report released on the SSE. The data involved have been marked.

The day before this annual report data “mix-up” took off, Industrial Bank had just held its 2025 annual results press conference.

The data show that in 2025, Industrial Bank achieved operating income of 39.14B yuan, down 6.72% year over year; net profit of 391.4 billion yuan, down 6.61% year over year. At the end of December 2025, the bank’s total assets exceeded 7 trillion yuan, up 2.96% from the end of the prior year to 70k yuan.

In terms of asset quality, as of the end of December 2025, Industrial Bank’s non-performing loan balance was 7.17T yuan, an increase of 14.9 billion yuan from the end of the prior year; the non-performing loan ratio was 1.27%, up 0.02 percentage points from the end of the prior year. The provision coverage ratio was 174.14%, down 6.45 percentage points from the end of the prior year.

Regarding the decline in revenue, management of Industrial Bank responded that there are mainly three reasons: first, the downward trend in net interest margin constrained the growth of interest income; second, other income declined on a phased basis due to the significant drop in bond market interest rates; third, the bank increased efforts to resolve risks related to relevant businesses and stepped up business transformation, resulting in phased pressure on credit card interest and fee income.

Management said that 2026 will be a year to consolidate fundamentals. The bank will adhere to development with differentiation, build distinctive advantages, increase income, control costs, strengthen risk control, bolster related resource support, and promote the stabilization and rebound of its profitability level.