Bank Of Qingdao Co.,Ltd. (002948) has become the first A-share listed bank to publicly announce its exit from internet co-branded consumer lending. At its interim results briefing on the afternoon of September 4, Chairman Jing Zailun addressed the retail credit segment directly, stating that the bank's personal consumer loan book primarily comprises internet consumer lending and credit card operations. In the internet consumer lending space, overall market risk has escalated due to industry conditions. To comply with regulatory requirements and mitigate credit risk, the bank has proactively wound down its co-branded internet consumer lending activities, leading to a substantial reduction in such exposure during the first half of the year. Prior to this, none of the 42 A-share listed banks had made such an unequivocal announcement about exiting this line of business in a public forum.
Indeed, the contraction in retail lending is not a challenge unique to Bank Of Qingdao Co.,Ltd.. Central bank data shows household consumer loan balances fell from approximately 58.17 trillion yuan at the end of last year to 57.12 trillion yuan by mid-2026, a net decline of about 1.05 trillion yuan. Concurrently, statistics indicate that among the 42 A-share listed banks, only 14 recorded positive growth in personal loan balances during the same period, while 28 saw a decrease. Against this backdrop of industry-wide pressure, Bank Of Qingdao Co.,Ltd. has simply brought its strategic adjustment to the forefront earlier and with greater clarity.
Where the cuts are concentrated
Data from the interim report illustrates the scale of this adjustment more starkly than the briefing comments. By the end of June, the bank's personal consumer loan balance stood at 13.731 billion yuan, down 2.503 billion yuan, or 15.42%, from the end of the previous year. Within that, personal internet loans reached 9.739 billion yuan, a drop of 591 million yuan from year-end levels. Extending the timeline reveals a clearer contraction pattern: the balance was 18.458 billion yuan at the end of June 2025, fell to 16.234 billion yuan by December 2025, and further declined to 13.731 billion yuan by June 2026. Over twelve months, the portfolio shrank by roughly 4.7 billion yuan.
This 4.7 billion yuan reduction applies to the overall personal consumer loan segment and does not imply that co-branded internet lending alone decreased by that amount in a single year. Based on disclosures, internet personal loans fell by 591 million yuan in the first half, while the overall personal consumer loan contraction was clearly more pronounced. In other words, the current retail adjustment at Bank Of Qingdao Co.,Ltd. goes beyond simply eliminating co-branded internet lending; the broader personal consumer credit portfolio is also being tightened.
Within the personal loan category, performance has diverged markedly. Residential mortgage balances declined 2.49% from 45.49 billion yuan to 44.359 billion yuan, while personal business loans increased 13.71% from 12.276 billion yuan to 13.959 billion yuan, surpassing consumer loans in size for the first time. Collectively, total personal loans and advances fell 2.64% to 72.049 billion yuan from 74.001 billion yuan. This contrasts with total bank loans and advances, which grew 7.73% to 427.716 billion yuan from 397.008 billion yuan. As overall lending expands, the share of personal loans dropped from 18.64% to 16.85%.
If exiting co-branded internet consumer lending represents a 'subtraction' on the retail side, then the growth in personal business loans is the 'addition' the bank is attempting to cultivate. This shift has been underway for some time. From 2021 to 2023, personal consumer loan balances were 19.015 billion yuan, 16.932 billion yuan, and 21.843 billion yuan, respectively. Internet lending was a significant growth driver, peaking at 13.381 billion yuan at the end of 2023. According to the bank's co-operation responsibility list published on its website in August 2024, Bank Of Qingdao Co.,Ltd. assumed 100% of the credit risk in loan facilitation projects and 70% in co-lending arrangements, with partners covering the remaining 30%. Platforms handled customer acquisition and initial screening, while the bank bore all or most of the principal risk.
For smaller banks, this model leveraged platform reach to scale retail lending rapidly, proving efficient during expansion. However, as the regulatory environment and risk profile shifted, such arrangements have come under new constraints. Based on disclosed changes, Bank Of Qingdao Co.,Ltd. is reducing its reliance on internet platform customer acquisition, pivoting toward personal business loans and proprietary consumer credit as fresh retail growth engines.
Retail risk pressures surface as portfolio shrinks
While consumer loan balances decline, risk pressures on the retail side are intensifying. By the end of June, the retail loan non-performing loan (NPL) ratio stood at 3.39%, up 0.81 percentage points from the end of 2025. Retail NPL balances rose 28.11% to 2.444 billion yuan, an increase of 536 million yuan from the start of the year. In contrast, the bank's overall NPL ratio improved slightly to 0.95%, down 0.02 percentage points. Reflecting tighter personal credit management, recent complaints on consumer platforms have highlighted credit card limit reductions. Customers reported limits being cut by 15,000 yuan after timely repayments, while others saw 14,000 yuan limits reduced to just 1 yuan. Some long-standing customers with clean repayment histories also experienced limit adjustments post-repayment.
Although credit card limit cuts and the exit from co-branded internet lending are distinct operations, combined with the shrinking consumer loan portfolio and rising retail NPL ratio, it is evident that Bank Of Qingdao Co.,Ltd. is constricting its retail risk exposure. Loan classification data further suggests rising potential credit risk. Stage 2 loans reached 15.894 billion yuan by June, up 5.547 billion yuan, or 53.61%, from 10.347 billion yuan at the start of the year, with their share of amortised cost loans rising from 2.84% to 4.08%. Stage 2 impairment provisions grew 60.89% to 2.426 billion yuan from 1.508 billion yuan.
Post-exit strategy: What fills the gap?
Despite retreating from co-branded internet consumer lending, Bank Of Qingdao Co.,Ltd. is not abandoning retail; rather, it is recalibrating its growth approach. Jing Zailun indicated the launch of a new proprietary consumer loan product, 'Youyidai', in September. For personal business loans, the bank is leveraging products like 'Fangdidai', 'Shangyidai', and 'Huinongdai' to deepen scenario-based finance, while expanding residential mortgage outreach to quality property developments.
Personal business loans are already emerging as a primary growth driver. The emphasis on products such as 'Fangdidai', 'Shangyidai', and 'Huinongdai' suggests the bank is redirecting retail growth toward segments where it retains direct control over customers and scenarios. This contrasts sharply with the co-branded internet lending model, where platforms historically handled customer acquisition and initial vetting, allowing rapid scale via external traffic. Now, with co-operative business contracting, the bank must rely more on its own customer base, products, and scenarios to generate incremental business. Whether 'Youyidai' proves to be a viable component of this strategy remains to be validated by future operational data.
Notably, 'Youyidai' is not an entirely new name. During its September 2025 interim briefing, the bank referenced enhancements to proprietary products including 'Qingyirong' and 'Youyidai'. Furthermore, Bank Of Qingdao Co.,Ltd.'s shift is not isolated in the industry. Following the implementation of new rules on loan facilitation in October 2025, Urumqi Bank announced it would cease issuing co-branded personal internet consumer loans, covering both co-lending and facilitated loans. Similarly, a vice president at Guiyang Bank stated that co-operation with internet banks had expired, with no new platform business initiated. Many smaller banks are also trimming their lists of co-operative partners. These developments collectively signal that the retail lending model combining platform-led customer acquisition with bank funding is transitioning from an expansionary phase to one focused more on risk, capital efficiency, and compliance discipline.
Two key questions remain from Bank Of Qingdao Co.,Ltd.'s announcement. First, the list of co-operative institutions for personal internet loans posted on its website on May 29, 2026, still names 15 platforms, including Du Xiaoman, Lexin, ByteDance, Ping An Rongyi, Weicai, Shanghai Erxu, Yangqianguan, JD.com, Mashang Consumer Finance, Ant Group, Zhongyuan Consumer Finance, Haier Consumer Finance, 360, Meituan, and Sunlight. Whether all listed partners have active business and whether the 'exit' applies to outstanding portfolios or solely new origination requires further disclosure for clarity. Second, as of June, personal internet loan balances remained at 9.739 billion yuan. The specific proportion of co-branded internet loans within this total has not been disclosed in either the interim report or the briefing. Consequently, it is premature to conclude that co-branded internet lending has been fully wound down.
The 'exit' is thus an ongoing strategic adjustment rather than a completed event. The more significant issue for Bank Of Qingdao Co.,Ltd. is whether it can successfully transition its retail operating model post-exit. Jing Zailun stated that the bank will continue refining its business mix and personal loan products in line with market conditions and regulatory policy, aiming for high-quality retail development with controlled risk.
Three indicators will signal whether this shift succeeds: whether proprietary consumer loans generate meaningful scale growth, whether personal business loans maintain momentum, and whether retail asset quality improves. Historically, co-branded internet consumer lending helped many smaller banks access the retail market quickly. As this model recedes, the fundamental question for such banks is now returning to the fore—can they rebuild their retail operations using proprietary products, scenarios, and customer relationships, without relying on large-scale external platform acquisition?