Core Viewpoint - Huishang Bank has reported a double-digit growth in asset size for 2024, but has faced increased regulatory penalties and rising risks in asset quality due to its aggressive credit expansion strategy [1][2][3]. Financial Performance - As of the end of 2024, Huishang Bank's total assets reached 20,137.53 billion yuan, an increase of 2,076.09 billion yuan, or 11.49% from the beginning of the year, ranking seventh among listed city commercial banks in China [2]. - The total amount of customer loans and advances was 10,021.66 billion yuan, up 1,279.43 billion yuan, or 14.64%, which is higher than the overall asset growth rate [2]. - The net interest income for 2024 was 285.91 billion yuan, a decrease of 1.29 billion yuan from 2023, with the interest yield (net interest margin) falling to 1.71%, down 17 basis points year-on-year [3]. Regulatory Issues - In 2024, Huishang Bank faced administrative penalties exceeding 20 million yuan, an increase of nearly 5 million yuan from 2023, with six penalties exceeding one million yuan, all related to credit business violations [1][3]. - A total of 42 fines were issued by regulatory authorities, including 24 against bank employees, highlighting significant compliance issues within the bank [3][4]. Asset Quality - The non-performing loan (NPL) ratio fell below 1% by the end of 2024, with a total NPL balance of 9.876 billion yuan, a reduction of 1.146 billion yuan from the previous year [6]. - However, the amount of retail business non-performing loans increased significantly, raising concerns about future asset disposal costs and risks of further downgrades in loan quality [5][6][7]. A-Share Listing Challenges - Huishang Bank has been attempting to list on the A-share market since 2019, but ongoing issues related to corporate governance, shareholder disputes, and employee shareholding regulations have hindered progress [10][15]. - The bank's stock has primarily traded between 2 and 3 Hong Kong dollars since its listing in 2013, reflecting liquidity challenges in the Hong Kong market [10][15].
徽商银行：六年回A未果，内部现新裂痕