Hua Xia Bank CEO Addresses Revenue Growth with Profit Decline
Hua Xia Bank reported first-half 2026 revenue of RMB 51.308 billion, up 12.71% year on year, but net profit fell 17.51% to RMB 9.688 billion. The bank's CEO attributed the decline to a strategic increase in loan loss provisions, which rose 66%, driving total credit impairment losses up 58.5%. The non-performing loan ratio improved to 1.50% from 1.55% at end-2025.
In the first half of 2026, Hua Xia Bank achieved operating revenue of RMB 51.308 billion, up 12.71% year on year, while net profit reached RMB 9.688 billion, down 17.51% from the same period last year. The bank's semi-annual report, released on August 28, showed that operating expenses surged nearly 29% year on year, the primary factor behind the decline in net profit. Among these expenses, credit and other asset impairment losses totaled RMB 23.6 billion, accounting for 60% of operating expenses and rising 58.5% year on year. Additionally, net profit attributable to shareholders fell 18.35% year on year, with loan impairment losses increasing sharply by 66%.
On August 31, Hua Xia Bank President Qu Gang addressed the "revenue growth without profit growth" situation at the 2026 interim results briefing. He stated that the significant increase in credit impairment losses was mainly due to higher loan impairment provisions, reflecting the bank's strategic choice to accelerate asset clearing and risk resolution. On one hand, rapid loan growth naturally increased provisioning requirements; on the other hand, the bank strengthened provisioning to expedite the clearing of existing risks, solidify asset quality, and enhance its capacity to absorb losses.
According to the interim report, Hua Xia Bank's non-performing loan ratio fell from 1.55% at the end of 2025 to 1.50%. Qu Gang said the bank continues to strengthen full-lifecycle asset management, strictly control new risks, and further promote the resolution of existing risks to improve asset quality.