Shanghai Pudong Development Bank (SPDB) Asset Size Surpasses 10 Trillion Yuan: Analysis of ROE Performance and Investment Value

Based on the obtained data, I will provide you with a systematic analysis of Shanghai Pudong Development Bank (SPDB)'s asset size and ROE performance.

According to SPDB’s 2025 Annual Performance Express Report[0], as of December 31, 2025:

SPDB has officially joined the “10 Trillion Asset Club”, becoming the 8th bank in China with assets exceeding 10 trillion yuan, following Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank of China, and China Merchants Bank[1][2].

SPDB’s ROE has increased for two consecutive years, but its absolute level is still relatively low in the industry[0][1].

According to KPMG’s 2025 China Banking Industry Survey Report[4] and S&P Global Ratings China Report[3]:

(1)

• The average net interest margin of commercial banks in the first three quarters of 2025 was only 1.42%, down 0.11 percentage points year-on-year[3]
• The narrowing of net interest margins directly compresses banks’ profit margins

(2)

• The average ROE of commercial banks fell from 8.93% in 2023 to 8.1% in 2024, a decrease of 0.83 percentage points[4]
• Although SPDB’s ROE increased by 0.48 percentage points against the trend, it is still 1.34 percentage points lower than the industry average

(3)

• SPDB has actively controlled scale growth (its 6.55% asset growth rate is relatively moderate), focusing on optimizing its asset structure[1]
• Net assets attributable to parent company’s common shareholders increased by 12.28% year-on-year, which is higher than the asset growth rate, indicating enhanced endogenous capital generation capacity[1]

Despite the low ROE, SPDB’s 2025 performance still shows bright spots:

• 10.52% Growth in Net Profit
  : Leading among joint-stock commercial banks[2]
• 13.43% Growth in Net Profit Excluding Non-Recurring Gains and Losses
  : High profit quality[1]
• Non-Performing Loan Ratio of 1.26%
  : Down 0.10 percentage points from the end of the previous year, achieving a “double decline”[0][1]
• Provision Coverage Ratio of 200.72%
  : Up 13.76 percentage points from the end of the previous year, significantly enhancing risk mitigation capacity[0][1]
• Net Interest Margin Trend Stabilized
  : Interest-bearing costs have decreased through active asset-liability management[1]

• SPDB’s 6.76% ROE is indeed low in the current banking industry environment, mainly constrained by the overall narrowing of industry interest margins and historical asset quality pressures
• However, the bank has established a trend of continuous improvement in asset quality, stabilized net interest margins, and marginal improvement in profitability
• From a valuation perspective, the 0.41x price-to-book ratio has fully reflected the market’s concerns about its profitability; if fundamentals continue to improve, there may be opportunities for valuation recovery

[0] 2025 Annual Performance Express Report Announcement of Shanghai Pudong Development Bank Co., Ltd. (https://stockmc.xueqiu.com/202601/600000_20260114_87IY.pdf)

[1] Wall Street CN - SPDB Takes the Lead in Releasing 2025 Annual Performance Express Report (https://wallstreetcn.com/articles/3763191)

[2] 21 Finance - SPDB’s Net Profit Grows 10.52% in 2025 (https://www.21jingji.com/article/20260113/herald/379542812d3c87b633c6426f6336cbc5.html)

[3] S&P Global Ratings China - 2026 Commercial Banking Outlook and Overview of Rated Banks in 2025 (https://www.spgchinaratings.cn/upload/202512_Banking Outlook_V3_CN.pdf)

[4] KPMG - 2025 China Banking Industry Survey Report (https://assets.kpmg.com/content/dam/kpmg/cn/pdf/zh/2025/06/china-banking-industry-survey-report-2025.pdf)

[5] Bank of China - 2024 Operating Results (https://www.bankofchina.com/aboutboc/bi1/202503/t20250326_25304569.html)