HUA XIA BANK(SH:600015) Nan Fang Du Shi Bao·2025-12-17 08:54Core Viewpoint - The compliance culture of Huaxia Bank is revealed to have significant shortcomings, as evidenced by multiple fines and regulatory actions due to inadequate employee behavior management and systemic issues in compliance and internal controls [2][3][6]. Group 1: Regulatory Penalties - Huaxia Bank's Chongqing branch was fined 500,000 yuan due to employee management failures, with a sales representative banned from the banking industry for 12 years [2]. - Since 2025, Huaxia Bank has accumulated fines exceeding 120 million yuan, with over 10 penalties issued, indicating persistent issues in credit approval processes [2]. - In September, the bank faced a fine of 87.25 million yuan for imprudent management of loans, bills, and interbank business, along with a 12 million yuan penalty for non-compliance in investment operations [2]. - Additional fines in November totaled approximately 13.81 million yuan, targeting violations in core business areas such as account management and anti-money laundering [2]. Group 2: Compliance and Internal Control Issues - The frequency and amount of penalties in 2025 have surpassed those in 2024, highlighting recurring compliance issues across various business lines and branches [3]. - The bank's compliance mechanisms have not been effectively integrated into business processes, exposing systemic flaws in compliance management and internal controls [3]. - A total of eight individuals were held accountable for violations, indicating that issues are not isolated but rather systemic, affecting multiple departments [2]. Group 3: Financial Performance - For the first three quarters of 2025, Huaxia Bank reported revenues of 64.881 billion yuan, a year-on-year decline of 8.79%, and a net profit attributable to shareholders of 17.982 billion yuan, down 2.86% [3]. - The bank's non-performing loan ratio stood at 1.58% at the end of the third quarter, a slight decrease of 0.02 percentage points from the beginning of the year, suggesting some improvement in asset quality [3]. Group 4: Leadership and Strategic Focus - Under the leadership of Yang Shujian, who took over as chairman in May 2025, Huaxia Bank is focusing on technology finance and green finance, aiming for business innovation and digital transformation [6]. - Yang emphasized the need to strengthen risk management and compliance systems in a recent work report, indicating a strategic shift towards enhancing the bank's operational resilience [6]. - Despite accepting the penalties and committing to rectification, industry experts suggest that a comprehensive overhaul of the internal control system is necessary for sustainable business health [6].