Huaxia Bank transfers 7.5 billion yuan in credit card bad debts in bulk, leaving significant room for collection.

By Rui Finance | Xu Shumin

The Huaxia Bank Credit Card Center has new developments.

On the YinDeng website, the Huaxia Bank Credit Card Center has consecutively disclosed five rounds of bidding announcements for the credit card non-performing loan transfer projects.

Specifically, in the 2026 No. 1 credit card non-performing loan project, the amount of debt claims is RMB 2.226 billion. Of this, the principal amount is RMB 1.015 billion, and the interest and fees amount to RMB 1.211 billion.

In the 2026 No. 2 credit card non-performing loan, the amount of debt claims is RMB 1.915 billion. Of this, the principal amount is RMB 0.716 billion, and the interest and fees amount to RMB 1.200 billion.

In the 2026 No. 3 credit card non-performing loan project, the amount of debt claims is RMB 1.136 billion. Of this, the principal amount is RMB 0.482 billion, and the interest and fees amount to RMB 0.653 billion.

In the 2026 No. 4 credit card non-performing loan project, the amount of debt claims is RMB 1.389 billion. Of this, the principal amount is RMB 0.519 billion, and the interest and fees amount to RMB 0.870 billion.

In the 2026 No. 5 credit card non-performing loan project, the amount of debt claims is RMB 0.923 billion. Of this, the principal amount is RMB 0.454 billion, and the interest and fees amount to RMB 0.469 billion.

In total, the amount of non-performing loan debt claims transferred by the Huaxia Bank Credit Card Center in this instance is as high as RMB 7.589 billion.

These non-performing loans are all loans with relatively long delinquency periods.

Taking the No. 1 non-performing loan project as an example, the weighted average number of overdue days is 1,652 days, exceeding 4 years. The borrowers are mainly concentrated in Guangdong Province.

According to the announcement, the highlight of these assets lies in the concentration of the debtors’ locations, which is conducive to concentrating collection efforts. Moreover, the vast majority of the assets are non-sued assets, leaving substantial room for collection through various disposal approaches.

In addition, the proportion of creditor balances at or below RMB 50,000 is high; the average principal per account is about RMB 20,000. This means the difficulty of subsequent debt collection is relatively low. The borrowers’ ages are mainly concentrated around 40, with decent professional capability and a strong need for credit repair, allowing for a longer time window for recovery.

For this batch of projects, the bidding/auction time is expected to fall in mid-April.

It is evident that the Huaxia Bank Credit Card Center faces significant pressure in disposing of non-performing assets.

As an important institution in the Huaxia Bank system, the Huaxia Bank Credit Card Center is facing a situation of scale contraction.

As of the first half of 2025, Huaxia Bank’s cumulative credit cards issued were 42.6386 million cards, up 1.57% from the end of the previous year; credit card loan balances were RMB 159.587 billion, down 5.73% from the end of the previous year; and effective customers were 16.6287 million households, down 4.18% from the end of the previous year.

From January to June 2025, the bank’s total credit card transaction volume was RMB 358.670 billion, down 16.32% year over year, realizing credit card business revenue of RMB 7.574 billion, down 12.91% year over year.

And the unused credit card limits may have a major impact on the financial position and operating results.

As of the end of June 2025, Huaxia Bank’s unused credit card limits were RMB 333.93 billion, down RMB 7.891 billion from the end of last year.

In the financial consumer complaint situation published by Huaxia Bank, credit card business is the business type with the largest number of complaints.

In the first half of 2025, Huaxia Bank received 1,203.78 personal customer complaints per one million personal customers. Complaints were more concentrated in credit card business, debt collection business, and personal loan business, with shares of 67%, 14%, and 9%, respectively.

Meanwhile, credit card complaints are mainly concentrated in Shandong, Guangdong, and Jiangsu, accounting for 11%, 9%, and 8% of credit card business complaints, respectively.

To better respond to various challenges, the Huaxia Bank Credit Card Center plans to replace its leadership.

Reports say that Zhao Caozi, general manager of the Retail Finance Department of Huaxia Bank’s head office, is set to be appointed as general manager of the Credit Card Center.

Zhao Caozi has extensive experience working on the front line. He served as the president of Huaxia Bank’s Dalian Branch starting in April 2015, then became president of the Kunming Branch in 2019, and later was transferred to the head office in 2023. He has held positions such as general manager of the inclusive finance department of the head office, general manager of the personal business department, and general manager of the retail finance department, and he also has ample management experience in retail finance business.

With the new leader taking the stage, can it bring about new changes?

Related company: Huaxia Bank sh600015