HUA XIA BANK(SH:600015) Nan Fang Du Shi Bao·2025-12-18 07:56Core Viewpoint - The compliance culture of Huaxia Bank is under scrutiny due to multiple regulatory penalties, indicating systemic issues in compliance management and internal controls [1][2][3]. Group 1: Regulatory Penalties - Huaxia Bank's Chongqing branch was fined 500,000 yuan for inadequate employee behavior management, with a sales representative banned from the banking industry for 12 years [1]. - Since 2025, Huaxia Bank has accumulated penalties exceeding 120 million yuan, with over 10 fines issued, particularly in credit approval processes [1]. - In September, the bank faced a fine of 87.25 million yuan for issues related to loan and bill management, and an additional 12 million yuan for non-compliance in investment operations [1][2]. Group 2: Compliance and Internal Control Issues - The bank's penalties in 2025 have already surpassed those of 2024, with recurring compliance issues across various business lines and branches, highlighting a failure to integrate compliance mechanisms into business processes [2]. - The bank's internal control deficiencies were evident, as multiple departments were implicated in regulatory violations, suggesting a broader systemic issue rather than isolated incidents [1][3]. 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 of 17.982 billion yuan, down 2.86% [2]. - The bank's non-performing loan ratio improved slightly to 1.58%, a decrease of 0.02 percentage points from the beginning of the year, while the provision coverage ratio was 149.33%, down 12.56 percentage points [2]. Group 4: Leadership and Strategic Focus - Huaxia Bank has undergone significant leadership changes, with a new chairman appointed in February 2025, focusing on technology and green finance as strategic areas for innovation and digital transformation [3]. - The chairman emphasized the need to strengthen risk management and compliance systems in a recent report, indicating a commitment to addressing the identified issues [3]. Group 5: Industry Context - The regulatory environment for the financial industry has tightened, with Huaxia Bank's penalties reflecting a broader trend of increased scrutiny across the sector [4].