Recovered performance-based salary of 9.85 million yuan; Huaxia Bank has reduced staff.

Source: Yinrui Media

Author: Xu Shumin

Along with releasing its 2025 performance report, China Huaxia Bank issued a valuation enhancement plan.

This means that China Huaxia Bank has triggered a valuation enhancement situation.

From January 1, 2025 to December 31, 2025, the bank’s stock closing price on each trading day for 12 consecutive months was below the per-share net asset value attributable to ordinary shareholders of the most recent fiscal year that was audited.

That is, from January 1, 2025 to April 18, 2025, the closing price on each trading day was below the per-share net asset value attributable to the bank’s ordinary shareholders audited for 2023 (17.50 yuan);

From April 19, 2025 to December 31, 2025, the closing price on each trading day was below the per-share net asset value attributable to the bank’s ordinary shareholders audited for 2024 (18.97 yuan).

In the past year of 2025, bank stocks overall performed strongly, but China Huaxia Bank’s full-year return was -14.23%, making it one of the few bank stocks that finished the year down, leaving ample room for valuation improvement.

The capital market is where changes in a company are most keenly felt.

In its first year under the helm of Yang Shujian, China Huaxia Bank emphasized growth in scale. Its total assets surpassed 4.74 trillion yuan, and both the incremental amount and growth rate of deposits and loans hit the highest levels in nearly five years.

As of the end of 2025, the bank’s total assets were 47,376.19 billion yuan, up 8.25% from the end of the previous year; its total loans were 25,666.66 billion yuan, up 8.47% from the end of the previous year; and its total deposits were 23,816.99 billion yuan, up 10.71% from the end of the previous year.

Compared with growth in scale, the market is more focused on growth in earnings.

Looking back to 2022 and 2023, China Huaxia Bank was in a stage of negative revenue growth. It was not until 2024 that China Huaxia Bank returned to a situation where both revenue and net profit rose.

By 2025, the bank has developed into a state where both revenue and net profit declined, which is a rare occurrence since China Huaxia Bank was established.

During the period, the bank achieved operating income of 91.914 billion yuan, down 5.39% year over year, and realized net profit attributable to shareholders of listed companies of 27.200 billion yuan, down 1.72% year over year.

These changes are mainly due to the decline in non-interest income.

Specifically, in 2025, China Huaxia Bank recorded net interest income of 62.948 billion yuan, up 1.43% year over year, while net non-interest income was 28.966 billion yuan, down 17.44% year over year.

Within non-interest income, the bank recorded net fee and commission income of 5.576 billion yuan, up 2.44%; however, the net gains/losses from changes in fair value were -3.535 billion yuan, compared with 7.912 billion yuan in the same period of the prior year.

By region, in 2025, China Huaxia Bank’s revenue in the Yangtze River Delta region and the Guangdong-Hong Kong-Macao Greater Bay Area showed an upward trend, while revenue in the Beijing-Tianjin-Hebei region, the central and eastern regions, the western region, and the northeastern region all declined.

As for operating profit, China Huaxia Bank’s operating profit in the Beijing-Tianjin-Hebei region and the Yangtze River Delta region was 17.054 billion yuan and 10.148 billion yuan, respectively; while operating profit in the Guangdong-Hong Kong-Macao Greater Bay Area and the northeastern region in 2025 was -1.255 billion yuan and -1.244 billion yuan, respectively—its profitability needs to be improved urgently.

Judging by the loan situation, the loan balances in the Yangtze River Delta, Beijing-Tianjin-Hebei, and the central and eastern regions ranked in the top three, at 802.743 billion yuan, 552.781 billion yuan, and 397.199 billion yuan, respectively, accounting for 31.28%, 21.54%, and 15.48%, respectively.

In terms of growth rate, loan growth in the Yangtze River Delta region, the western region, the Guangdong-Hong Kong-Macao Greater Bay Area, and the central and eastern regions was relatively fast, with growth rates of 10.49%, 10.49%, 10.24%, and 9.55%, respectively.

Based on this, each region of China Huaxia Bank still has substantial development potential.

To leave room for development, China Huaxia Bank is reducing headcount and controlling costs.

China Huaxia Bank is cutting down its business outlets and optimizing its employee structure.

As of the end of 2025, China Huaxia Bank had set up 43 first-level branches and 79 second-level branches in 120 cities at the prefecture level or above nationwide. The total number of business outlets was 943, which is 20 fewer than at the end of the previous year.

In the same period, the bank had 36,752 employees in service, down by 2,185 from 38,937 at the end of the previous year.

China Huaxia Bank has comprehensively strengthened control over costs and expenses and pursued performance-based compensation.

In 2025, the bank’s business and administrative expenses were 28.133 billion yuan, down 820 million yuan year over year, a decline of 2.84%. Of this, staff compensation and benefits were 16.219 billion yuan, down 1.27% from the previous year.

During the period, the bank applied the clawback of performance-based compensation and recovered it from 577 employees, with the total clawed-back amount of performance-based compensation being 9.8503 million yuan. However, there was no clawback of performance-based compensation for senior management personnel.

But it can be seen that the compensation of key management personnel at China Huaxia Bank has decreased.

In 2025, the compensation of the bank’s key management personnel was 13 million yuan, down 45.83% from 24 million yuan in the previous year.

Among them, Chairman Yang Shujian’s compensation was 613,000 yuan, and President Qu Gang’s compensation was 754,900 yuan.

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Editor: Qin Yi