The industry cycle is fluctuating, and various potential risks are intertwined and surging. Under multiple environmental tests, how can city commercial banks build a reliable protective barrier and find a balance between business expansion and risk control? By flipping through the 2026 semi annual report of Suzhou Bank, one can glimpse the answer. Its strong risk control capabilities are an important support for the bank to calmly respond to market fluctuations and steadily move forward.

The ability to control risks is the fundamental basis for the long-term operation of financial institutions, and it is also the source of confidence for banks to embark on a high-quality development path. In the complex and ever-changing industry environment, Suzhou Bank adheres to the business philosophy of steady progress and permeates the entire process of risk management into all aspects of business expansion, product innovation, customer service, and internal operations. The bank adheres to parallel business expansion and risk control, with equal emphasis on scale growth and asset quality. It continuously refines its modern risk management framework, refines risk control measures for various business sectors, thickens risk buffer reserves, improves credit asset quality, empowers digital risk control, and implements compliance responsibilities for all employees. The bank achieves stable and controllable business pace, maintains good asset quality, and relies on a mature and complete risk control system to support the bank's path to advancement, demonstrating its strong business resilience.

Focus on the source of credit risk and refine the structure of high-quality credit assets

Credit risk is the most important risk in bank operations and also the primary focus of Suzhou Bank's risk control work. The bank combines the current internal and external economic and financial environment, always adhering to the concept of "not realizing that risk is the biggest risk, risk prevention is more important than risk disposal, and risk management can also create value", maintaining a cautious risk appetite, strengthening daily management, and continuously optimizing and improving credit risk prevention and control capabilities; Firmly guard the credit access checkpoint, increase credit tilt in sectors such as science and technology innovation industry, green projects, inclusive small and micro enterprises, advanced manufacturing industry, and people's livelihood engineering, and treat high-risk industries, backward production capacity, and entities with weak qualifications with caution. Control the quality of new loans from the source. The bank continues to improve its risk control integration mechanism throughout the entire process, focusing on pre loan parallel operations and conducting pre loan parallel operations for key projects, complex projects, and suspicious projects, and conducting in-depth inspections of the enterprise on the operating site; Secondly, we will focus on access consultation, and for businesses with novel or divergent business models, we will discuss in advance, communicate effectively, and improve the quality and efficiency of approval; Pay attention to the review and approval process, and continue to conduct a "look back" on key customers and projects, so that reviewers can be closer to the market, business, and front desk; After implementing parallel loans, risk control personnel proactively carry out parallel loans and develop effective resolution measures for customers with large warnings, significant project deviations, and increased suspicious data. As of the end of June 2026, the non-performing loan ratio of the bank was 0.81%, hitting a new low since its listing. The asset quality remained among the excellent ranks of regional peers, and the stability of credit assets continued to strengthen.

Strengthen risk buffer reserve and build a solid and reliable safety cushion layer

Adequate risk provisions and a healthy capital base are buffer barriers for banks to resist cyclical shocks and dispose of non-performing assets. Suzhou Bank has always attached great importance to the construction of risk resistance capabilities, adhered to a prudent management approach, continuously enriched its risk reserves, optimized its capital structure, and enhanced its risk response capabilities. The bank fully sets aside loan loss provisions in accordance with regulatory standards, dynamically adjusts the provision scale based on asset quality, and ensures that the buffer funds are sufficient to cover potential credit losses. As of the end of June 2026, the bank's provision coverage ratio reached 381.79%, higher than regulatory requirements, and sufficient risk reserves were reserved for future risk disposal. At the same time, the bank has improved its capital control mechanism, expanded capital replenishment channels, optimized capital occupation structure, and enhanced capital utilization efficiency. As of the end of June 2026, the core Tier 1 capital adequacy ratio is 9.16%, Tier 1 capital adequacy ratio is 11.06%, and capital adequacy ratio is 13.75%. All key indicators have been met, and good capital strength can buffer various tests caused by industry cycle fluctuations and credit fluctuations, and support the stable expansion of various businesses.

Intensify the construction of digital risk control, empower technology to achieve precise control

Seizing the opportunity of digital transformation, Suzhou Bank is promoting the intelligent iteration of risk control mode, breaking away from the limitations of traditional manual control, and creating a data-driven and responsive modern intelligent risk control system. Suzhou Bank continues to optimize its big data warning rules and strategies, improving the timeliness and accuracy of warnings; Enrich digital risk control methods and establish a comprehensive risk warning system for the entire process; Utilize knowledge graph functions to improve various risk application scenarios based on graph relationship mining, and continuously deepen their application; Explore the application of artificial intelligence big models, focus on business pain points, and develop risk management application plans. Continuously improving the level of risk control refinement, relying on digital defense lines to ensure the compliant and efficient operation of credit business. The "Su Zhiming" employee behavior management system has established a solid case prevention management network, and regularly carries out risk warning education, compliance training, business hazard investigation, and self-examination and rectification. It focuses on high-frequency risk points and weak business links, and promptly eliminates operational hazards. Normalize the management and control of multiple risks, develop various emergency response plans, and organize emergency drills to improve the efficiency of emergency response and ensure the smooth and orderly operation of the entire bank.

Suzhou Bank continues to strengthen its risk defense line, with sound risk management mechanisms, intelligent risk control tools, and sufficient risk buffer reserves, which have become its core competitive advantages in crossing industry cycles. The current industry environment is still full of variables, and various risk factors still exist for a long time. Standing at a key node of strategic iteration and upgrading, how will Suzhou Bank do a good job in risk control and calmly embrace market challenges and opportunities? We look forward to it.