Zheshang Bank’s net profit in 2025 was 12.9 billion yuan, down 14.85% year-on-year. Chairman Chen Haqiang said the bank will stick to long-termism.

Operator Finance Network Zhang Yundi / Text

Recently, Zhejiang Merchant Bank announced its 2025 performance report and held the 2025 annual performance briefing, attracting market attention.

Data shows that in 2025, Zhejiang Merchant Bank achieved operating income of 62.51B yuan, a decrease of 7.59% compared to the previous year; net profit attributable to the bank’s shareholders was 12.93B yuan, down 14.85% from the previous year. In terms of asset quality, as of the end of the reporting period, Zhejiang Merchant Bank’s non-performing loan ratio was 1.36%, down 0.02 percentage points from the end of the previous year; the provision coverage ratio was 155.37%, down 23.30 percentage points from the end of the previous year, indicating a weakening of risk offsetting capacity.

In terms of scale indicators, as of the end of the reporting period, Zhejiang Merchant Bank’s total assets were 3.48 trillion yuan, an increase of 4.68% from the end of the previous year.

Overall, Zhejiang Merchant Bank experienced a decline in both profits and performance last year, with a clear pressure on results. Compared to 12 nationwide joint-stock banks, the bank not only lags significantly behind leading joint-stock banks such as China Merchants Bank, Industrial Bank, and CITIC Bank in profitability, but even when compared to banks with similar revenue and profit declines like Huaxia Bank and Guangfa Bank, the decrease is notably greater.

In response to the performance, Chairman Chen Haiqiang stated at the performance briefing that the bank has not pursued short-term gains or followed the traditional path of “building big clients,” but instead adheres to long-termism by strengthening fundamentals, adjusting structure, enhancing compliance, and controlling risks, thereby maintaining overall stable operations.

This development path reflects the true situation of Zhejiang Merchant Bank, and Chen Haiqiang has not been the first to make similar statements. After all, the bank’s long-standing reliance on a high-cost liability business model has accumulated considerable pressure. Maintaining prudent operations and solidifying the development foundation remain the bank’s current core tasks.

However, contrasting with the repeated emphasis by senior management that “risk prevention and control, and compliance management are the top priorities,” Zhejiang Merchant Bank’s compliance implementation has not met expectations.

For a bank committed to a long-term route, a decline in performance can be gradually repaired, but lapses in compliance are an urgent issue to be addressed. Operator Finance Network will continue to monitor the bank’s subsequent developments.

(Editor: Zhang Yundi)