HZBank(SH:600926) Zheng Quan Zhi Xing·2025-07-11 10:34Core Viewpoint - Hangzhou Bank has recently received a significant fine due to regulatory violations related to its loan operations, despite its stock price rising alongside the banking sector. The bank's loan growth has consistently outpaced industry averages, leading to ongoing pressure on its capital adequacy [1][3]. Regulatory Penalties - Hangzhou Bank's Shanghai branch was fined 3.8 million yuan for serious violations in pre-loan investigations and supervision of working capital loans, primarily related to loan business irregularities [3][6]. Loan Growth and Quality - As of the end of Q1 this year, Hangzhou Bank's total loans increased by 6.15% compared to the end of the previous year, slightly above the growth rate of commercial loans in the same period. The bank's loan growth has been significantly higher than the industry average from 2021 to 2024 [1][5]. - The non-performing loan (NPL) ratio remained stable at 0.76% as of the end of Q1, but the provision coverage ratio decreased by 11.38 percentage points compared to the end of the previous year [4][5]. Capital Adequacy and Supplementation - The rapid loan growth has created substantial pressure on Hangzhou Bank's capital adequacy. The bank's core Tier 1 capital adequacy ratio has shown slight fluctuations, recorded at 9.01% as of the end of Q1 this year [6][7]. - The bank has successfully converted a significant portion of its 15 billion yuan convertible bonds issued in 2021, enhancing its capital adequacy. However, it continues to seek additional capital supplementation opportunities [6][7]. - A recent shareholders' meeting approved extending the authorization for the board to handle the issuance of A-shares and capital bonds, with plans to raise up to 8 billion yuan for core capital supplementation [7].