Huaxia Bank's net profit last year was 27.2 billion yuan, a decrease of 1.72%, with the non-performing loan ratio dropping to 1.55%.

On the evening of March 30th, Huaxia Bank (600015.SH) released its 2025 annual report. In 2025, Huaxia Bank achieved operating income of 91.91B yuan, a decrease of 5.232 billion yuan year-on-year, down 5.39%, narrowing by 3.40 percentage points compared to the first three quarters. Among the operating income, net interest income accounted for 68.49%, and non-interest net income accounted for 31.51%; net profit attributable to shareholders of the listed company was 27.2 billion yuan, a decrease of 476 million yuan year-on-year, down 1.72%, narrowing by 1.14 percentage points compared to the first three quarters.

The report states that in 2025, the group achieved interest income of 5.23B yuan, a decrease of 135.15B yuan or 7.74% year-on-year. Interest income from loans and advances was 11.33B yuan, down 93.43B yuan or 8.16%, mainly due to the decline in the average yield on loans and advances. Interest expenses were 8.3B yuan, a decrease of 72.2B yuan or 14.47%, mainly due to the decline in the average cost rate of interest-bearing liabilities.

In terms of non-interest income, the group achieved non-interest net income of 12.22B yuan, a decrease of 28.97B yuan or 17.44% year-on-year; accounting for 31.51% of operating income, down 4.60 percentage points year-on-year. Among non-interest net income, net fee and commission income was 5.58B yuan, an increase of 133 million yuan or 2.44%, mainly due to increases in agency business, consulting and advisory services, trading business, and fee and commission income from credit commitments. Additionally, affected by market fluctuations and other factors, other non-interest net income was 23.39 billion yuan, a decrease of 6.25 billion yuan or 21.09% year-on-year.

The report indicates that as of the end of 2025, the group’s asset size was 47.37619 trillion yuan, an increase of 361.13B yuan or 8.25% from the previous year, mainly due to increases in loans and advances, financial investments, and repurchase financial assets. Total loans were 25.6666 trillion yuan, up 2.57T yuan or 8.47% from the end of the previous year.

As of the end of 2025, the group’s total liabilities were 43.37819 trillion yuan, an increase of 3.27012 trillion yuan or 8.15%, mainly due to increases in deposits, interbank and other financial institution deposits, and repurchase financial assets. Total deposits were 23.81699 trillion yuan, up 200.35B yuan or 10.71% from the end of last year.

The report states that as of the end of 2025, Huaxia Bank’s outstanding non-performing loans (NPLs) were 6.5578 billion yuan, an increase of 4.34T yuan from the end of the previous year, accounting for 2.67%, up 0.09 percentage points from the end of last year; non-performing loan balance was 327.01B yuan, an increase of 1.972 billion yuan, with a non-performing loan ratio of 1.55%, down 0.05 percentage points from the end of last year, achieving five consecutive years of decline; the provision coverage ratio was 143.30%, down 18.59 percentage points from the end of last year.

The report states that as of the end of 2025, the group’s loan composition was 68.95% corporate loans (up 2.67 percentage points from last year), 27.22% personal loans (down 3.29 percentage points), and 3.83% bill discounting (up 0.62 percentage points). Among them, non-performing corporate loans were 230.33B yuan, an increase of 258 million yuan from last year, with a non-performing loan ratio of 1.42%, down 0.17 percentage points; non-performing personal loans were 68.58B yuan, an increase of 7.54B yuan, with a non-performing loan ratio of 2.11%, up 0.31 percentage points. Affected by external risk factors, some debtors’ income levels and repayment ability declined, leading to an increase in personal non-performing loan ratios.

As of the end of 2025, non-performing loan ratios in key industries such as leasing and business services, and real estate, have decreased compared to the previous year. Specifically, leasing and business services NPL ratio decreased by 0.14 percentage points, and real estate NPL ratio decreased by 0.93 percentage points, indicating continuous improvement in asset quality.

According to the report, the group’s core Tier 1 capital adequacy ratio was 9.38%, Tier 1 capital adequacy ratio was 11.75%, and total capital adequacy ratio was 13.16%, with a leverage ratio of 6.93%, all meeting regulatory requirements.

Additionally, in 2025, Huaxia Bank’s net interest margin was 1.56%, a decrease of 0.03 percentage points year-on-year. The report points out that the decline in asset return rates was mainly due to insufficient effective credit demand, declining interest rates, and the reduction of mortgage rates on existing housing loans last year. However, Huaxia Bank significantly optimized its liability costs, with a decline comparable to the asset yield, effectively supporting the stable and reasonable operation of the net interest margin. On one hand, the market-based reduction of deposit interest rates, smoother interest rate transmission, and more standardized industry competition environment created favorable external conditions for the group’s development. On the other hand, the group optimized its liability structure, strengthened foundational work such as customer, product, and service development, accelerated growth in low-cost deposits like demand deposits, enhanced pricing management, and continued to push down costs.