Hua Xia Bank Co. (600015) H2 2025 earnings summary

Executive summary

• FY2025 assets rose 8.25% to RMB 4.74tn; loans grew 8.47% and deposits 10.71%, while NPL ratio improved 5 bps to 1.55%.

• Revenue and net profit declined YoY, but the declines narrowed through Q4; growth priorities include technology and green finance, digital services and tighter cost and risk management.

Financial highlights

• Revenue was RMB 91.914bn, down 5.39% YoY; operating profit was RMB 34.289bn, down 4.60%; net profit was RMB 27.751bn, down 1.58%.

• Net profit attributable to shareholders was RMB 27.200bn, down 1.72%; basic EPS was RMB 1.62, unchanged YoY.

• Net interest income rose 1.43% to RMB 62.948bn as lower interest expense offset lower interest income; non-interest net income fell 17.44% to RMB 28.966bn.

• Net fee and commission income rose 2.44% to RMB 5.576bn; business and management expenses fell 2.84% to RMB 28.133bn, and impairment losses fell 11.72% to RMB 25.416bn.

• Operating cash flow increased 62.52% to RMB 69.063bn; investing cash outflow narrowed to RMB 5.551bn, and financing cash flow was positive RMB 10.415bn versus an outflow in 2024.

Outlook and guidance

• 2026 priorities include growing deposits, focusing lending on strategic industries, technology and green finance, and expanding consumer lending in targeted scenarios; no numerical earnings guidance was stated.

• Plans include accelerating private banking, transaction banking, investment banking and custody, broadening fee income, and developing cross-border services in key trade regions.

• Digital priorities include the next-generation core system, an enterprise credit and investment data platform, mobile banking and wider AI use in service and risk control.

• Risk priorities include tighter controls in retail lending, real estate and local-government financing platforms, with continued focus on new-risk prevention and resolution of existing exposures.