Ping An Bank Co., Ltd. (000001.SZ) Bundle
From its founding in 1987 in Shenzhen as Shenzhen Development Bank to the transformative merger in June 2012 that brought it under the ticker 000001.SZ, Ping An Bank has evolved into a tech-forward lender whose controlling shareholder, Ping An Insurance, owns roughly 58% of shares while a ~42% free float trades on the Shenzhen Stock Exchange; today the bank sits on 5.77 trillion CNY in assets, a market capitalization near 222.59 billion CNY, and posts an ROE of 8.72% with an NPL ratio of 1.05%, leveraging its "five-in-one" smart retail model, AI and blockchain investments, and diversified revenue mix - from net interest income and fee-based wealth management to interbank trading - to compete with China's largest lenders, a journey that includes accolades like the 2015 Business Model of the Year and a strategic focus on digital, green and inclusive finance that you'll explore in detail below
Ping An Bank Co., Ltd. (000001.SZ): Intro
Ping An Bank Co., Ltd. (000001.SZ) traces its roots to Shenzhen Development Bank Co., Ltd., established in 1987 in Shenzhen. The institution transformed through a major consolidation in June 2012 when it merged with the former Ping An Bank Co., Ltd., adopting the Ping An Bank name and the stock code 000001.SZ. That merger materially expanded the bank's asset base, customer base and market footprint, accelerating its shift toward integrated retail and corporate banking under the broader Ping An ecosystem.- Founded: 1987 (Shenzhen Development Bank Co., Ltd.)
- Merged/renamed: June 2012 → Ping An Bank Co., Ltd. (000001.SZ)
- Award: Business Model of the Year, The Asian Banker International Excellence in Retail Financial Services Awards (2015)
- Strategic emphasis: digital transformation, customer-centric services, integration with Ping An Group technology and insurance capabilities
| Year / Date | Event | Impact |
|---|---|---|
| 1987 | Establishment as Shenzhen Development Bank | Entry into reform-era Chinese banking, focus on corporate & retail clients |
| June 2012 | Merger with former Ping An Bank; adoption of 000001.SZ | Substantial asset and customer base increase; enhanced competitive position |
| 2015 | Business Model of the Year (The Asian Banker) | Recognition for retail innovation and digital strategy |
| 2015-2025 | Digital transformation and ecosystem integration | Growth in digital channels, cross-selling with Ping An Group affiliates |
- Retail and corporate banking platforms serving millions of individual and enterprise clients across China
- Omnichannel distribution: branches, online/mobile platforms, and partnership channels within Ping An Group
- Product mix spans deposits, loans, wealth management, credit cards, trade finance and transaction banking
- Net interest income (NII): primary income source - interest earned on loans and securities minus interest paid on deposits and funding (typically the majority of operating revenue).
- Fee and commission income: wealth management fees, card fees, agency services, bancassurance-related commissions via Ping An ecosystem.
- Trading and investment income: gains from proprietary trading, investment securities portfolios and ALM activities.
- Cross-selling within Ping An Group: insurance distribution, fintech-enabled product bundling and customer acquisition synergies that lower acquisition costs and increase lifetime value.
- Cost structure: branch network and digital investment; efficiency gains from digitalization and centralized data/AI platforms.
- Total assets: materially increased after the 2012 consolidation and have been driven by loan growth and securities portfolios.
- Loan book composition: mix of corporate lending, SME lending and consumer loans (credit cards, mortgages, personal loans).
- Capital and asset quality metrics: Common Equity Tier 1 (CET1) ratio, non-performing loan (NPL) ratio and loan loss reserves are core supervisory and investor focus areas.
- Digital adoption indicators: active mobile users, online transaction volumes and contribution of digital channels to new account openings.
- Deepening integration with Ping An Group's insurance, technology and asset management businesses to drive cross-selling.
- Investing in fintech, big data and AI to improve risk management, customer segmentation and product personalization.
- Expanding retail credit and wealth management while controlling credit risk and maintaining capital adequacy.
Ping An Bank Co., Ltd. (000001.SZ): History
Founded in 1987 as Shenzhen Development Bank and rebranded after acquisition by Ping An Insurance Group, Ping An Bank has grown from a regional commercial bank into one of China's largest joint-stock banks by integrating retail banking, technology, and insurance-linked services across the Ping An ecosystem.
- Major milestones: 1987 founding; 2002 listed in Shenzhen; 2012 strategic investment and eventual control by Ping An Insurance Group; full integration of digital capabilities through the 2010s and 2020s.
- Digital transformation: large-scale adoption of fintech platforms, customer-facing AI, and cross-selling with Ping An Insurance's life and property businesses.
Ownership and governance today are concentrated to maintain strategic alignment with the Ping An Group while retaining public-market access:
- Controlling shareholder: Ping An Insurance (Group) Company of China, Ltd. and its subsidiaries - approximately 58% of shares outstanding.
- Free float: about 42% publicly traded on the Shenzhen Stock Exchange (000001.SZ).
- Notable minority holder: China Securities Finance Corporation Limited - 2.21% (as of June 2025).
- Board and oversight: Board of Directors chaired by Xie Yonglin; Supervisory Board chaired by Wang Chun Ye, overseeing compliance and internal controls.
- Governance composition: executive, non-executive and independent non-executive directors to balance group strategy and minority shareholder protections.
| Metric | Value | Reference Date |
|---|---|---|
| Total assets | RMB 6.7 trillion | End-2024 |
| Net profit (attributable) | RMB 55.0 billion | 2024 |
| Return on equity (ROE) | ~11.5% | 2024 |
| Controlling share (Ping An Group) | ~58% | June 2025 |
| Free float (public) | ~42% | June 2025 |
| Notable minority holder | China Securities Finance - 2.21% | June 2025 |
How the ownership drives strategy and revenue generation:
- Strategic alignment with Ping An Insurance allows deep cross-selling of insurance, wealth management, and bancassurance products to the bank's retail and affluent clients.
- Large shareholder backing supports capital access, risk-sharing on large corporate lending, and accelerated fintech investment.
- Governance structure - board + supervisory board - enforces compliance, risk controls and integrates group-level strategy while maintaining market accountability.
Core business model and primary revenue streams:
- Net interest income from retail and wholesale lending (mortgages, consumer loans, corporate loans).
- Fee income from wealth management, bancassurance distribution, transaction services, and electronic payments.
- Investment income from securities portfolios and treasury operations.
- Growth levered by Ping An Group synergies: customer acquisition via insurance channels, shared tech platforms, and group-wide data analytics to improve risk pricing.
For investor-focused details and evolving shareholding dynamics: Exploring Ping An Bank Co., Ltd. Investor Profile: Who's Buying and Why?
Ping An Bank Co., Ltd. (000001.SZ): Ownership Structure
Ping An Bank's stated mission is to become 'China's most outstanding and world-leading smart retail bank,' driven by technological innovation and customer-centric services. The bank emphasizes a strategic policy of 'strong retail banking, selective corporate banking, and specialized interbank business,' and advances 'tech-oriented development, retail breakthroughs, and selective corporate banking' through digital transformation and AI-led solutions. Its operating blueprint - the 'five-in-one' model - integrates comprehensive bank, AI bank, remote bank, offline bank, and open bank approaches to deliver diverse, scalable services.- Mission focus: smart retail banking, customer-centricity, and tech-driven service delivery.
- Strategic orientation: retail-first, selective corporate, specialized interbank.
- Values: customer orientation, continuous innovation, and support for the real economy.
| Metric | Value (approx.) | Period |
|---|---|---|
| Total assets | RMB 4.6 trillion | 2023 |
| Net profit (attributable) | RMB 41.6 billion | 2023 |
| Common Equity Tier 1 (CET1) ratio | ~11.8% | 2023 |
| Non-performing loan (NPL) ratio | ~1.34% | 2023 |
| Return on Equity (ROE) | ~9-10% | 2023 |
| Shareholder | Approx. stake |
|---|---|
| Ping An Insurance (Group) Company of China, Ltd. (core controlling shareholder) | ~55-58% |
| Public float (A-share holders, institutional & retail) | ~30-40% |
| Strategic / other institutional investors | ~2-10% |
- Retail-led revenue: deposit margins, wealth-management fees, card and payment services, and consumer loans driven by a broad retail franchise and digital channels.
- Selective corporate banking: fee income from cash management, trade finance, and tailored lending to strategic sectors.
- Technology monetization: AI and cloud capabilities reduce operating costs, enable personalized products, and increase cross-sell rates.
- Interbank & treasury: capital-market income and investment returns supplement net interest income, supporting overall profitability.
Ping An Bank Co., Ltd. (000001.SZ): Mission and Values
Ping An Bank Co., Ltd. (000001.SZ) operates as a full-service commercial bank organized around three primary business segments: Wholesale Banking Business, Retail Banking Business, and Other Businesses. The bank combines traditional banking capabilities with technology-driven channels to serve individual consumers, corporates, and institutional counterparties. How It Works- Wholesale Banking Business: provides corporate loans, trade finance, supply-chain financing, cash management, syndicated lending, and structured finance tailored to manufacturing, real estate, infrastructure, and technology sectors.
- Retail Banking Business: offers personal loans, deposit accounts, credit cards, auto/home financing, and wealth management products, with a heavy focus on digital distribution via mobile apps, online channels, and integrated financial ecosystems.
- Other Businesses: includes interbank activities (interbank lending, FX, money-market operations), wealth-management advisory for high-net-worth clients, asset management products, bancassurance coordination with Ping An Group affiliates, and treasury operations.
- Customer-centric model: product suites and pricing calibrated by segment (retail, SME, corporate) and by lifecycle, emphasizing convenient onboarding, segmented pricing, and cross-sell within the Ping An ecosystem.
- Digital platforms: mobile banking, API integrations, and digital lending engines support rapid origination and servicing-improving turnaround time and lowering cost-to-serve.
- Advanced technologies: AI for credit scoring and fraud detection, big-data analytics for customer segmentation, robotic process automation for backoffice efficiency, and pilot blockchain solutions for trade finance and document verification.
- Interbank and markets: active market-making and liquidity management via interbank lending, FX dealing, bond trading, and repurchase agreements to optimize balance-sheet liquidity and marketplace presence.
| Revenue Source | Primary Drivers | Notes |
|---|---|---|
| Net interest income | Loan interest margins, deposit funding mix, loan book growth | Largest single contributor - driven by retail and corporate lending spreads |
| Non‑interest income | Wealth management fees, bancassurance commissions, trading and fee income | Growing share via cross-selling within Ping An Group and fee-based products |
| Interbank & Treasury | Trading gains, investment yields, liquidity management | Supports profitability and manages interest-rate and liquidity risk |
| Other services | Card fees, settlement and advisory fees, service charges | Diversifies revenue and improves fee-to-income ratio |
- Total assets: RMB 3.8 trillion
- Net profit attributable to shareholders: RMB 52.4 billion
- Net interest margin (NIM): ~2.1% annually
- Loan book: RMB 2.4 trillion (mix of retail and corporate)
- Customer deposits: RMB 2.6 trillion
- Cost-to-income ratio: ~36% (reflecting scale and digital efficiencies)
- Non-performing loan (NPL) ratio: ~1.4%
- Retail: rapid growth in unsecured and mortgage lending via app-driven origination; wealth-management AUM expanding through cross-selling with Ping An Insurance affiliates.
- Corporate: diversified portfolio across trade finance, term lending, and cash management; emphasis on middle-market corporates and supply-chain finance.
- Interbank & Markets: active liquidity deployment and market-making; proprietary trading and asset portfolios used to stabilize earnings volatility.
- Major shareholder: Ping An Insurance (Group) Company of China (limited) - strategic integration within a broader financial-services ecosystem enables bancassurance and distribution synergies.
- Cross‑sell strategy: leverages group data and channels to convert insurance customers into depositors, borrowers, and wealth clients.
- Risk management: centralized credit policy, stress testing, and market-risk frameworks combined with digital monitoring for early warning on asset quality.
- Expand retail footprint and deepen SME lending while maintaining asset-quality metrics.
- Scale digital platforms and AI-driven credit decisioning to lower acquisition and service costs.
- Enhance fee-income streams (wealth management, bancassurance) to reduce dependence on interest-rate spreads.
- Invest in compliance, cybersecurity, and blockchain pilots for trade and settlement efficiency.
Ping An Bank Co., Ltd. (000001.SZ): How It Works
Ping An Bank Co., Ltd. (000001.SZ) operates as a full-service commercial bank within the Ping An Group ecosystem, combining traditional banking with digital finance, wealth-management distribution and corporate banking services. Its business model blends interest margin-driven lending with fee-based financial services and investment activities, supported by heavy investment in fintech and a large retail & SME customer base.
- Core customer segments: retail deposits and loans, small- and medium-sized enterprises (SMEs), corporate clients, and affluent/wealth-management customers.
- Distribution: branch network, digital channels (mobile apps, online banking), and cross-selling through Ping An Group platforms (insurance, asset management).
Primary revenue drivers and mechanics:
- Net interest income - the spread between interest earned on loans, securities and interbank placements and interest paid on deposits and wholesale funding; this is the largest single income source.
- Fee and commission income - wealth-management sales, brokerage, trade finance fees, card and payment fees, and transaction processing.
- Investment and trading income - realized and unrealized gains/losses from held-for-trading and available-for-sale securities, dividends and institutional trading activities.
- Other interest income - including interbank lending, repo financing and foreign-exchange-related interest and trading margins.
- Digital monetization - platform fees, fintech services, online transaction fees, and revenue from embedded financial products sold via Ping An's digital ecosystems.
| Metric (approx.) | 2023 (RMB, or %) - illustrative |
|---|---|
| Total assets | ~9.0-10.0 trillion RMB |
| Net interest income share of operating income | ~65-70% |
| Fee & commission income share | ~15-20% |
| Investment/trading income share | ~8-12% |
| Net profit attributable (annual) | several tens of billions RMB (variable by year) |
| Non-performing loan (NPL) ratio | low-to-mid single digits (%) depending on cycle |
How these elements translate into cash flow and profitability:
- Loan book growth and pricing drive core interest income; asset mix (mortgages, SME loans, corporate lending) determines margin volatility.
- Deposit base stability and cost of funds management (term vs. demand deposits, retail vs. wholesale funding) control interest expense.
- Fee businesses (wealth management, transaction services, trade finance) deliver higher-margin, capital-light revenue and diversify earnings.
- Investment portfolio allocation - duration, credit quality and trading strategies - affects short-term earnings through realized/unrealized gains.
- Digitalization reduces per-transaction costs, increases cross-sell rates and creates new fee streams from platform services and embedded finance products.
- Cost management (branch rationalization, IT automation, process optimization) improves efficiency ratio and operating leverage.
Key operational levers managers focus on:
- Asset-liability management (ALM): optimize loan composition, securities holdings and deposit tenor to protect net interest margin (NIM).
- Fee income expansion: grow wealth-management AUM, card and payment volumes, and trade-finance throughput.
- Investment returns: active portfolio management to capture capital gains and stabilize trading income without increasing credit risk unduly.
- Digital & distribution scale: reduce customer acquisition cost, boost retention and cross-sell via mobile and group ecosystems.
- Risk & cost control: maintain asset quality, manage provisions, and lower operating expense ratio through automation.
For investor-focused detail on ownership and shareholder composition, see: Exploring Ping An Bank Co., Ltd. Investor Profile: Who's Buying and Why?
Ping An Bank Co., Ltd. (000001.SZ): How It Makes Money
Ping An Bank generates revenue through a mix of traditional banking activities and technology-enabled financial services, leveraging its parent group ecosystem and digital capabilities.
- Net interest income: lending to retail and corporate customers (mortgages, consumer loans, SME lending) earns interest margin.
- Non‑interest income: fees and commissions from wealth management, payments, custody, card services, and bancassurance partnerships within Ping An Group.
- Treasury & markets: trading, bond investments and interbank business contribute trading and investment income.
- Digital & platform services: fintech solutions, platform fees, and data-driven services to retail and corporate clients.
- Cross‑sell with Ping An ecosystem: insurance referrals, pension and asset management distribution enhance fee income.
| Key metric (Dec 2025) | Value |
|---|---|
| Market capitalization | 222.59 billion CNY |
| Return on equity (ROE) | 8.72% |
| Total assets | 5.77 trillion CNY |
| Non‑performing loan (NPL) ratio | 1.05% |
Market Position & Future Outlook
- Position: A major joint‑stock commercial bank competing with larger state‑owned banks and peers, with strong retail franchise and growing corporate business.
- Strategic focus: continued digital transformation, enhanced AI capabilities, and deepening integrated finance to support the real economy.
- Growth pillars: technology, green finance, inclusive finance, pension finance, and digital finance aligned with national economic priorities.
- Outlook: leveraging scale (5.77 trillion CNY assets) and improving profitability (ROE 8.72%) to capture market share while maintaining asset quality (NPL 1.05%).
For more context: Ping An Bank Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
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