Chongqing Rural Commercial Bank(SH:601077) Xin Lang Cai Jing·2025-12-29 11:58Core Viewpoint - Chongqing Rural Commercial Bank (601077.SH) has been penalized with an 8.7 million yuan fine for five major violations in its credit review process, marking the highest penalty in three years, alongside significant personnel repercussions including lifetime bans for two executives [1][2][19]. Group 1: Violations and Penalties - The bank was fined for five violations, including inadequate diligence in loan "three checks," insufficient investigation of large risk losses, errors in non-site statistical data, failure to verify the source of guarantees, and rolling invoices [1][20]. - This penalty is the second million-level fine received by the bank this year, following a 2.9586 million yuan fine for foreign exchange business violations in January [2][20]. - Ten responsible individuals faced varying degrees of punishment, with two receiving lifetime bans from the banking industry, including former Vice President Shu Jing and Chief Credit Officer Feng Hongwei [2][20]. Group 2: Executive Accountability - Shu Jing, who served as Vice President for over eight years, was dismissed in March 2024 and subsequently expelled from the party for severe violations, including accepting gifts and misusing power for personal gain [4][22][23]. - The bank's internal governance and oversight mechanisms were highlighted as lacking, particularly in the credit approval process, which contributed to the violations [25]. Group 3: Loan Performance and Risk - The bank's loan balance reached 777.973 billion yuan by the end of Q3 2025, reflecting an 8.92% year-on-year increase, with corporate and personal loans at 418.434 billion yuan and 303.676 billion yuan, respectively [25]. - Retail loan growth has significantly slowed, with growth rates dropping below 3% since 2022, and the growth rate for 2024 is only 0.55% [26][27]. - The non-performing loan (NPL) ratio for retail loans has been rising, reaching 2.04% in Q3 2025, up 0.44 percentage points from the previous year [29][30]. Group 4: Financial Performance - The bank's total assets reached 1.66 trillion yuan by the end of Q3 2025, a 9.3% increase year-on-year, positioning it as a leader among A-share listed rural commercial banks [30]. - After two years of revenue decline, the bank reported a revenue of 21.658 billion yuan in Q3 2025, a 0.67% increase year-on-year, and a net profit of 10.694 billion yuan, up 3.74% [31]. - Investment income, which had previously seen significant growth, declined by 8.08% in the first three quarters of the year, with losses in fair value changes widening [33]. Group 5: Management Changes - The bank has undergone significant management changes, including the appointment of a new chairman, Liu Xiaojun, whose qualifications are still pending regulatory approval after eight months [34][36]. - The current management team, led by Xu Jun, consists of individuals with extensive experience in the local financial system, raising questions about their ability to enhance internal controls and revitalize retail financial operations [37].