Bank of Hangzhou Co. (600926) Q4 2025 earnings summary

Executive summary

• Achieved record net profit of RMB 19.03 billion in 2025, up 12.05% year-over-year, with total assets reaching RMB 2.36 trillion, an 11.86% increase from the previous year.

• Completed the “2255” five-year strategy, doubling both asset scale and profitability since 2020, and launched the new “3366” five-year plan focused on customer, scale, and efficiency.

• Maintained strong asset quality with a non-performing loan (NPL) ratio of 0.76% and a provision coverage ratio of 502.24%.

• Board proposes a full-year cash dividend of RMB 6.60 per 10 shares, pending shareholder approval.

Financial highlights

• Operating income reached RMB 38.80 billion, up 1.09% year-over-year; net interest income grew 12.82% to RMB 27.59 billion.

• Net profit attributable to shareholders was RMB 19.03 billion, up 12.05% year-over-year; basic EPS was RMB 2.66.

• Total loans increased 14.33% to RMB 1.07 trillion; deposits rose 13.20% to RMB 1.44 trillion.

• Net interest margin (NIM) was 1.36%, down 5bps year-over-year; cost-to-income ratio rose to 30.03%.

• Capital adequacy ratio improved to 14.37%; core tier-1 capital ratio at 9.59%.

• Operating cash flow surged 142.06% to RMB 159.34 billion.

Outlook and guidance

• The new “3366” strategy (2026–2030) targets high-quality growth through customer expansion, digitalization, and internationalization.

• Management expects continued pressure on asset yields but aims to offset with cost control and business structure optimization.

• Focus areas include manufacturing, tech innovation, green finance, and SME support.