ZhongAn Online profit balloons 11 times, ZA Bank turns profitable for the first time

ZhongAn Online P & C Insurance (6060) said its first-half net profit ballooned 11 times to 668 million (HK$727 million), mainly due to the increase in the profit of the insurance business, the turnaround from the loss of ZA Bank, and the significant reduction in net loss of the technology business.

The insurer recorded 16.67 billion yuan in gross written premiums for the six months, up by 9.3 percent, but the insurance revenue slightly dipped to 15.04 billion yuan. 

During the period, ZA Bank booked a profit of HK$49 million, becoming the second local digital bank to make a turnaround following WeLab Bank. 

The lender’s net revenue advanced by 82.1 percent to HK$457 million, of which non-interest income surged by 272.1 percent to HK$160 million. 

The technology segment recorded a net loss of 56 million yuan, representing a year-on-year improvement of 32.2 percent.