Huaxia Bank 2025 Annual Report: Deposit and loan growth reaches a five-year high, asset quality has improved for five consecutive years

In 2025, China’s domestic banking industry is at a critical juncture for deepening supply-side structural reforms in finance and implementing the “five major articles” of finance. As the main force of state-owned financial institutions in serving the real economy, they are facing a new development test of “striving for both quality and efficiency, while upholding integrity and pursuing innovation.”

Against this backdrop, Huaxia Bank recently released its 2025 annual report, delivering an impressive answer that combines both scale growth and quality improvement. Its operating scale moved upward against the trend: both its asset and deposits/loans incremental growth rates hit new highs in the past five years. Profitability remained steady, asset quality continued to improve for the fifth consecutive year, and the risk defense line was continuously strengthened.

Worth noting is that during the reporting period, Huaxia Bank achieved notable results in implementing the “five major articles” of finance. Its dual strengths in technology finance and green finance created a demonstration effect. Digital transformation deeply empowered business development; reform and innovation injected vitality into its internal drivers. With the practical actions and sense of responsibility of a state-owned financial enterprise, it paints a vivid picture of financial services supporting the real economy.

In the transition period, both quantity and quality rise together—strengthening the fundamental base for development

As the banking industry’s consensus shifts from “expanding scale” to “improving quality,” how to organically unify reasonable growth in volume with effective improvement in quality has become the core yardstick for measuring the resilience of financial institutions’ development.

In 2025, Huaxia Bank used its “Top Ten Actions” to elevate business and development. It broke the industry misconception that “scale and quality are hard to balance,” achieved an all-around positive trend in operating indicators, and laid a solid foundation for high-quality development.

Behind the “accelerator” of scale growth is Huaxia Bank’s precise grasp of market demand and efficient allocation of resources. According to the annual report, in 2025 the bank’s total assets reached 4.74 trillion yuan, up 8.3% year over year; its deposit balance stood at 2.38 trillion yuan, up 10.7%; and its loan balance was 2.57 trillion yuan, up 8.5%. Both the incremental amount and growth rate of deposits and loans reached new highs in the past five years. Against the backdrop of a relatively steady credit disbursement pace across the banking industry, this demonstrates strong business expansion capabilities.

More importantly, scale growth is not simply “a climb in numbers,” but comes alongside continuous optimization of the business mix: the proportions of deposits and loans increased by 1.1 and 0.1 percentage points respectively; the share of businesses related to the “five major articles” of finance increased by 6.1 percentage points. Funds were directed even more toward key areas and weak links of the real economy, achieving synchronized “scale expansion” and “structural optimization.”

The “dual steadiness” of profitability and quality confirms the sustainability of Huaxia Bank’s business development. In 2025, the bank realized net profit attributable to shareholders of listed companies of 27.2 billion yuan. Even under pressures of narrowing industry interest margins, it maintained stable profitability capacity, highlighting the resilience of a diversified profit model.

Asset quality also delivers a “continuously improving for five straight years” performance. The non-performing loan ratio fell to 1.55%, down 0.05 percentage points from the prior year. Stock risks continued to be resolved, and results in managing incremental asset quality control were significant. At the same time, capital adequacy ratio indicators remained at relatively solid levels, further strengthening the bank’s capital strength.

In terms of brand influence, Huaxia Bank’s tier-one capital rose to 47th place in the global ranking of the world’s top 1,000 banks by the UK’s The Banker magazine, up two places from the previous year. Behind this ranking is strong global recognition of its operating strength, risk management capability, and development potential.

From an industry perspective, Huaxia Bank’s improvements in both quantity and quality are not accidental numeric performance, but the inevitable result of its commitment to the financial sector’s underlying mission and its tight alignment with the theme of high-quality development. Under the leadership of the newly appointed Party committee leadership team, the bank sets advanced peers as benchmarks, scientifically plans development goals and catch-up paths, and integrates “aligning objectives, benchmarking actions, and reporting results” into its operating practice—so that scale growth has a direction, quality improvement has levers, and it becomes a typical example of how state-owned banks achieve steady growth during the transition period.

Each of the “five major articles” shines, drawing a new blueprint for serving the real economy

Finance is the lifeblood of the real economy. Doing well on technology finance, green finance, inclusive finance, pension finance, and digital finance—the “five major articles”—is the core task for China’s banking industry to serve the real economy in 2025. Senior authorities clearly stated in their guiding opinions that state-owned commercial banks should comprehensively increase financial support in areas covered by the “five major articles” of finance and act as the main force in serving the real economy.

As a state-owned financial enterprise, Huaxia Bank has always remained true to the初心 of “finance for the people.” Guided by its dual distinctive positioning of “building a technology finance characteristic and deepening a green finance characteristic,” it channels financial liquidity precisely into every corner of the real economy. This allows the “five major articles” to take root, bloom, and bear fruit in practice.

Technology finance has become the “vanguard” of Huaxia Bank’s strategy to serve innovation-driven development. In line with the national requirements for high-level scientific and technological self-reliance and strength, the bank broke away from traditional lending mindsets and built a “loan-investment linkage” service system. It also launched distinctive products such as R&D loan, invest-or-loan linkage, and option-based loans, providing technology companies with comprehensive financial services across their full lifecycle—from the startup stage to maturity.

In 2025, Huaxia Bank’s technology finance loan balance reached 244.6 billion yuan, up 53.7%. This fast-growth figure not only reflects technology companies’ real financing demand, but also powerfully confirms Huaxia Bank’s ability to empower technological innovation through financial innovation.

Green finance has become a “green engine” for Huaxia Bank to support the development of a beautiful China. Under the guidance of the dual-carbon targets, the bank has built a full-chain green finance service system. It is not limited to a single channel of credit disbursement; instead, through diversified financial instruments, it injects momentum into the development of green industries.

In 2025, Huaxia Bank worked with the Asian Development Bank to carry out key projects such as “promoting the green and low-carbon development of industrial parks,” continuously enhancing the brand influence of “Building a Beautiful Huaxia in Green.” Its green finance loan balance reached 373.4 billion yuan, up 31%. It also successfully issued 20 billion yuan in green finance bonds, providing ample funding support for areas including new energy, energy conservation and environmental protection, and green buildings.

Inclusive finance, pension finance, and digital finance targeted three major challenges of the times—ensuring people’s livelihoods, population aging, and industrial digitalization respectively—achieving “broad coverage and deep penetration” of financial services.

In the inclusive finance segment, the bank iteratively upgraded the “Longshang Loan” digital inclusive finance product to enable fully online processing for the entire process. It also cut real financing costs for enterprises by waiving 20 fee items. In 2025, the balance of inclusive loans to small and micro enterprises reached 193.6 billion yuan, up 6%. Having completed regulatory plans for eight consecutive years, it ensures that the sunshine of financial services illuminates the path for small and micro enterprises to grow.

In pension finance, it has formed a “three-in-one” development framework covering pension finance, pension services finance, and pension industry finance, enabling full coverage across four major categories: pension savings, funds, wealth management products, and insurance. The number of individual pension accounts reached 776,000, up 30.8%. Financing in the pension industry reached 58.6 billion yuan, up 32.8%, providing support for the development of China’s pension cause through the strength of finance.

In digital finance, it accelerates the deep integration of digital technology and financial business, with key deployment in people-livelihood scenarios such as smart education. It has built integrated services such as “smart campuses” and “digital cafeterias.” In 2025, loans to the core industries of the digital economy totaled 97.1 billion yuan, up 29.9%, providing precise financial support for industrial digital transformation.

If the “five major articles” of finance are the “construction drawings” that the state sets for the banking industry to serve the real economy, then Huaxia Bank’s practice is a vivid case of converting those “construction drawings” into an “on-site scene.”

With technology finance and green finance as the two wheels, and inclusive finance, pension finance, and digital finance as supporting pillars, financial services are no longer “cast in the air,” but truly rooted in the soil where the real economy develops, becoming an important force driving high-quality development of the real economy.

Innovation and risk control, driven by two engines—activating long-term development momentum

High-quality development requires not only “positive efforts” to expand business, but also “endogenous driving forces” from reform and innovation and “bottom-line protection” from risk prevention and control.

In 2025, Huaxia Bank carefully grasped new developments in the financial industry. With two engines—deepening reform and innovation, and adhering to bottom-line thinking—it took one approach to activate development momentum through comprehensive reform and accelerate business transformation to build a diversified development new pattern. In parallel, it strengthened the risk prevention and control system to build a safety defense line, achieving coordinated advancement of development and safety and accumulating strong momentum for long-term development.

Reform and innovation is Huaxia Bank’s key move to solve development challenges and activate internal drivers. Faced with a complex and challenging operating environment, the bank systematically promoted “Top Ten Actions” to enhance business development, reshaping its development system across multiple dimensions, including development goals, development strategy, evaluation systems, and cost reduction and efficiency improvement.

At the strategic level, the bank keeps pace with national development strategy, promotes business back to its roots, focuses on its primary responsibilities and main business, and clarifies the development direction of “strengthening corporate banking, improving retail banking, and enhancing the quality of the capital market.” It fully leverages Beijing’s home advantage and promotes key branches to integrate into the regional mainstream economy.

At the level of the evaluation system, it has built an integrated evaluation mechanism of “3 major core indicators + 5 key objectives,” combining goals such as benefits, scale, and quality with those related to customers and distinctive businesses. It covers institutions at all levels, making evaluations the “command baton” that drives business development.

In terms of cost reduction and efficiency improvement, the bank boldly pushed optimization of its organizational structure: it streamlined five first-tier departments at the head office, adjusted the internal setup of 26 head-office departments, and promoted institutional streamlining and clearer authority and responsibilities. It also optimized its expense management mechanism, achieving a year-on-year decrease in group expenses, thereby fully unleashing organizational efficiency.

Business transformation made Huaxia Bank’s development landscape more diversified and its development foundation more solid. In the corporate finance area, the bank firmly established a customer-centered philosophy. In 2025, it had 730,500 corporate customers, up 6.7%; its corporate deposit balance was 1.78 trillion yuan, up 11.4%. It also deepened “commercial bank + investment bank” coordination, with investment banking business scale of 1.02 trillion yuan, up 13.4%. Cross-border RMB settlement and payment volume reached 151.1 billion yuan, up 22.7%, achieving both “growth in volume” and “enhancement of service capabilities.”

In retail finance, it built an integrated operating system. The number of personally active customers with balances of over one thousand yuan reached 1.691 million, up 30.8%; private banking customers were 202,000, up 21.7%. Total personal financial assets were 1,114.8 billion yuan, up 11.3%. Retail business became an important support for profitability growth.

In the financial markets segment, it strengthened market research and trading capabilities. The cumulative trading volume of RMB and foreign-currency funds reached 8.69 trillion yuan, and the assets custody scale surpassed 4 trillion yuan, up 18.9%. It also implemented its first QDII custody business, with its business footprint continuing to expand.

Digital transformation added “technological wings” to Huaxia Bank’s operating development. The bank accelerated key project construction such as a new generation core system and an enterprise-level credit-investment intelligent platform, consolidating the digital development foundation. In 2025, it had 31.31 million mobile banking contracted customers and 6.26 million monthly active users. Its capability to reach users through digital services continued to strengthen.

Meanwhile, Huaxia Bank’s integrated operations layout produced notable results. Huaxia Financial Leasing’s total assets exceeded 200 billion yuan. ROE ranked first among 66 peers, and green leasing’s proportion of scale was 53.4%. Huaxia Wealth Management’s product management scale was 1.2 trillion yuan, up 45.8%. Its growth rate ranked among the top in the industry for three consecutive years, and its subsidiaries became an important growth engine for the group’s development.

While pursuing reform and transformation, Huaxia Bank has always placed risk prevention and control in a prominent position, building the “safety defense line” for steady and sound development. It continuously improved its risk governance system: it implemented a risk posting system for key lines of business, strengthened centralized controls on credit approval, and established a risk governance structure with clearly defined authority and responsibilities.

At the same time, it upgraded its smart data-driven risk control capabilities, iterating the Longdun big data risk identification and early warning system, and optimizing internal credit risk rating models—making risk prevention and control more precise and efficient.

More worth noting is that Huaxia Bank became the first financial institution in the banking industry to establish a compliance officer team systemically. It built a compliance management system covering the head office, branches, and subsidiaries. It advanced the compliance digitization transformation to prevent case risks and money-laundering risks across the full chain, making compliance operations a conscious action of all employees.

In 2025, the bank’s non-performing loan ratio continued to decline for five consecutive years, directly reflecting the continuous improvement in its risk prevention and control capabilities, and also providing a solid guarantee for its sustained, steady, and sound development.

Innovation and reform make development more vibrant; risk prevention and control make development more confidence-backed. With a two-engine drive of transformation and innovation on one side and risk control as the foundation, Huaxia Bank broke the misconception that transformation must inevitably involve risk, achieving dynamic balance between development and safety.

The solid performance achieved in 2025 is the result of Huaxia Bank’s deep cultivation of the real economy and its commitment to integrity and innovation, and it is also the starting point of its new journey toward high-quality development. From a new development starting point, Huaxia Bank’s path is clear and firm: it will continue to deepen its focus on the real economy, take technology finance and green finance dual distinctive features as the guiding force, and keep deepening and implementing the “five major articles” of finance. It will channel more financial resources toward key areas such as new quality productive forces, manufacturing, strategic emerging industries, and private-sector businesses, achieving its own development while serving major national strategies.

Huaxia Bank will also contribute the “Huaxia strength” with even firmer confidence and more pragmatic actions: it will anchor itself to the real economy’s underlying mission, forge ahead on a new journey toward high-quality development, and irrigate the real economy with a steady stream of financial liquidity—contributing solid support toward achieving the second centennial goal of striving.