China Bohai Bank faces high asset risk from retail and investment loans

Its NPL ratio rose 5 basis points in June 2025 compared to six months prior.

China Bohai Bank’s asset quality is stable, but formation of new non-performing loans (NPL) remains a possible issue due to high asset risk from its retail loan and investment portfolios.

Rising retail NPLs has pushed up China Bohai Bank’s NPL ratio by 5 basis points (bp) to 1.81% on 30 June 2025, compared to six months earlier, reported Moody’s Ratings in a January 2026 ratings commentary.

Loan loss reserves cover 159.7% of the bank’s NPLs.

Overall, China Bohai Bank is expected to maintain stable asset quality, capitalisation, profitability, and liquidity over the next 12-18 months, according to Moody’s.

Capitalisation is expected to remain modest over the next 12-18 months. Funding structure is also expected to remain modest over the same period, with reliance on less-stable funds mitigated by the bank’s adequate liquidity to cover short-term cash outflows.