The competition for the top spot among Shandong's city commercial banks is intensifying, with the once-undisputed leader facing a formidable challenger. Bank Of Qingdao Co.,Ltd. no longer holds the top position securely, as Qilu Bank Co.,Ltd. has mounted a fierce pursuit, sparking an asset scale tug-of-war between the two institutions.

Both banks were established in 1996. Qilu Bank Co.,Ltd. traces its origins to Jinan City Cooperative Bank, formed by 16 urban credit cooperatives and associations, making it the first city commercial bank in Shandong Province. Meanwhile, Bank Of Qingdao Co.,Ltd. evolved from Qingdao City Cooperative Bank and Qingdao City Commercial Bank, with its headquarters based in Qingdao.

After three decades of parallel development, Qilu Bank Co.,Ltd. and Bank Of Qingdao Co.,Ltd. have expanded their footprints extensively, with nearly comparable branch networks. As of the end of June 2026, Qilu Bank Co.,Ltd. operated 219 branches, including 17 sub-branches and 202 outlets. In comparison, Bank Of Qingdao Co.,Ltd. has established 17 sub-branches in key Shandong cities such as Jinan, Yantai, and Weihai, with 208 business outlets, achieving full coverage across all 16 cities in the province.

By the first half of 2026, Qilu Bank Co.,Ltd.'s loan concentration in the Jinan region stood at 45.48%, while Bank Of Qingdao Co.,Ltd.'s loan proportion in Qingdao was significantly higher at 47.17%.

At the helm of these two major Shandong city commercial banks are Chairman Zheng Zugang of Qilu Bank Co.,Ltd. and Chairman Jing Zailun of Bank Of Qingdao Co.,Ltd., each bringing distinct operational strategies and strategic priorities. Both leaders, born in the 1970s, hail from major state-owned banks. However, Zheng Zugang spent an extended tenure within the Agricultural Bank of China system, while Jing Zailun accumulated over 30 years of experience in the Bank of China system, specializing in different areas of expertise.

In recent years, Qilu Bank Co.,Ltd. has accelerated its scale expansion, whereas Bank Of Qingdao Co.,Ltd. has prioritized profitability. Based on first-half 2026 results, Qilu Bank Co.,Ltd. has surpassed Bank Of Qingdao Co.,Ltd. in total assets, although Bank Of Qingdao Co.,Ltd. continues to lead in revenue and net profit figures.

As of the end of June 2026, Qilu Bank Co.,Ltd.'s total assets reached 869.955 billion yuan, a growth of 8.15% from the end of the previous year, while Bank Of Qingdao Co.,Ltd.'s total assets stood at 848.388 billion yuan, an increase of 4.10% from the end of last year. Qilu Bank Co.,Ltd.'s asset growth rate also outpaced that of Bank Of Qingdao Co.,Ltd..

However, Qilu Bank Co.,Ltd.'s total loan portfolio remains below that of Bank Of Qingdao Co.,Ltd.. By the end of June 2026, Qilu Bank Co.,Ltd.'s total loans amounted to 426.568 billion yuan, up 11.42% from the end of 2025, whereas Bank Of Qingdao Co.,Ltd.'s total loans reached 427.716 billion yuan, reflecting a 7.73% increase over the same period.

Both banks face a common challenge of being stronger in corporate lending while weaker in retail banking. In the first half of 2026, Qilu Bank Co.,Ltd.'s corporate loans (excluding discounts) totaled 339.555 billion yuan, up 17.28% from the end of last year, while its personal loan balance declined 4.44% to 74.784 billion yuan. Meanwhile, Bank Of Qingdao Co.,Ltd. reported corporate loans of 329.428 billion yuan, an 11.05% increase from the end of last year, with personal loans contracting 2.64% to 72.049 billion yuan.

On the asset quality front, Qilu Bank Co.,Ltd.'s non-performing loan (NPL) ratio is slightly higher than that of Bank Of Qingdao Co.,Ltd.. As of the end of June 2026, Qilu Bank Co.,Ltd.'s NPL ratio stood at 0.98%, down 0.07 percentage points from the end of last year, while Bank Of Qingdao Co.,Ltd.'s NPL ratio was 0.95%, a decrease of 0.02 percentage points from the end of last year.

Regarding profitability, Bank Of Qingdao Co.,Ltd. posted faster profit growth, while Qilu Bank Co.,Ltd. achieved higher revenue growth. In the first half of 2026, Bank Of Qingdao Co.,Ltd. recorded operating revenue of 8.364 billion yuan, up 9.15% year-on-year, with net profit attributable to shareholders reaching 3.619 billion yuan, a year-on-year surge of 18.08%. During the same period, Qilu Bank Co.,Ltd. generated 7.497 billion yuan in operating revenue, up 10.55% year-on-year, and net profit attributable to shareholders of 3.174 billion yuan, a 16.06% year-on-year increase.

Qilu Bank Co.,Ltd. aims for a balanced approach across volume, price, risk, and efficiency, yet its overall cost control capability still lags behind Bank Of Qingdao Co.,Ltd.. In the first half of 2026, Qilu Bank Co.,Ltd.'s business and management expenses reached 1.867 billion yuan, up 10.66% year-on-year, primarily driven by increases in branch and headcount numbers as well as technology investments. Staff compensation expenses alone accounted for 1.142 billion yuan, a 10.98% increase.

By comparison, Bank Of Qingdao Co.,Ltd.'s business and management expenses totaled 1.806 billion yuan, an increase of 82 million yuan year-on-year, or 4.75%. Of that, staff compensation expenses rose 7.74% to 1.03 billion yuan.

As of the end of June 2026, Qilu Bank Co.,Ltd. employed 6,034 staff members, while Bank Of Qingdao Co.,Ltd. had 5,493 on its payroll, a difference of 541 employees. Furthermore, compensation for key management personnel at Qilu Bank Co.,Ltd. was also higher. In the first half of 2026, Bank Of Qingdao Co.,Ltd. paid 6.339 million yuan to key management, a reduction of 3.306 million yuan from the previous year, whereas Qilu Bank Co.,Ltd. allocated 10.112 million yuan in key management compensation, marking an increase of 16,000 yuan.