FINANCE

Everbright Bank Rejects Claims It Hid 20 Billion Yuan in Bad Loans

Published: Jul. 25, 2026 1:51 a.m. GMT+8

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For the first quarter of 2026, Everbright reported net profit of 11.5 billion yuan, down 8.1% from a year earlier. Photo: VCG

China Everbright Bank Co. Ltd. denied market rumors that it was concealing nearly 20 billion yuan ($3 billion) of bad loans, saying its operations remain stable and that it has no undisclosed major risks.

The speculation stemmed from a roughly 20 billion yuan gap in the Beijing-based lender’s 2025 annual report between its reported non-performing loan (NPL) balance and a larger stock of credit-impaired assets calculated under accounting standards.

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China Everbright Bank denied hiding 20 billion yuan bad loans, citing a gap in 2025 between NPL (50.7 billion) and Stage 3 loans (70.7 billion) under new rules.
Regulators allowed banks until end-2025 to reclassify legacy assets, with temporary flexibility for some collateral-backed troubled loans.
The bank said operations are stable with no undisclosed risks; comparable banks showed negligible differences.

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Who’s Who

China Everbright Bank Co., Ltd.: China Everbright Bank denied rumors it was concealing nearly 20 billion yuan in bad loans. The speculation arose from a gap between its reported NPL balance (50.7 billion yuan) and Stage 3 loans (70.7 billion yuan). The bank states its operations are stable with no undisclosed major risks, citing a transition in regulatory classification rules.

China Merchants Bank: The article reports that a Caixin review of joint-stock banks, including China Merchants Bank, found their non-performing loan (NPL) and Stage 3 loan balances were generally the same or differed only marginally, contrasting with China Everbright Bank's large gap.

China CITIC Bank: According to the article, a Caixin review found that China CITIC Bank’s Non-Performing Loan (NPL) and Stage 3 loan balances were generally the same or differed only marginally. This contrasts with the wider divergence reported for China Everbright Bank.

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What Happened When

End of March 2026：: China Everbright Bank's NPL balance rose to 53.4 billion yuan, with an NPL ratio of 1.32%, and reported net profit of 11.5 billion yuan for the first quarter of 2026, down 8.1% year-over-year.

Early July 2026：: An investor questioned on the Shanghai Stock Exchange's interactive platform whether the bank was hiding bad debt due to the gap.

July 24, 2026：: China Everbright Bank's Shanghai-listed stock closed at 3.15 yuan.

End of 2025：: China Everbright Bank's annual report showed a reported NPL balance of 50.7 billion yuan and Stage 3 loans of 70.7 billion yuan, creating a nearly 20 billion yuan gap.

By the end of 2025：: Chinese regulators required banks to complete the reclassification of legacy assets under stricter asset-risk classification rules introduced in 2023.

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