Huishang Bank Issues Positive Profit Alert for FY2025: Strong Asset Growth and Improved Profitability

Key Highlights from the Announcement

• Significant Asset Expansion: Huishang Bank Corporation Limited (“the Bank”) has reported that, based on preliminary unaudited consolidated management accounts, the total assets of the Group exceeded RMB2.3 trillion as of December 31, 2025. This marks a robust year-on-year increase of approximately 15.5%.
• Steady Revenue Growth: The Bank achieved operating income of around RMB37.67 billion, up by approximately 1.2% compared to the previous year.
• Notable Rise in Net Profit: Net profit reached approximately RMB16.93 billion, reflecting a solid year-on-year increase of about 6.3%.
• Improvement in Asset Quality: The Bank’s non-performing loan (NPL) ratio dropped to around 0.98%, representing an improvement of 0.01 percentage point from the previous year. Meanwhile, the NPL provision coverage ratio improved to approximately 278.8%, underscoring strengthened risk buffers.

Details and Strategic Drivers

The Bank attributes its positive performance for 2025 to a few key strategic measures:

• Commitment to Serving the Real Economy: The Bank maintained a focus on supporting the real economy, increasing credit extension in key sectors, and fostering balanced, synergistic business growth.
• Optimized Asset Structure and Liability Management: Continuous optimization of asset composition and proactive management of liabilities contributed to the Bank’s improved performance.
• Effective Risk Mitigation: The Bank advanced the disposal of non-performing assets and implemented multiple risk mitigation strategies, resulting in enhanced asset quality and financial resilience.

Key Information for Shareholders and Potential Investors

• Price-Sensitive Disclosure: This announcement is made under the Inside Information Provisions of Hong Kong’s Securities and Futures Ordinance and the Listing Rules. The results indicate a positive outlook and could potentially impact the Bank’s share price.
• Preliminary and Unaudited Figures: The financial data disclosed is based on preliminary estimates from unaudited management accounts. Actual audited results may differ.
• Upcoming Results Announcement: The Bank will publish its full audited results for the year ended December 31, 2025, before the end of March 2026. Investors are advised to review the formal results announcement once released.
• Advisory to Investors: Shareholders and potential investors are urged to exercise caution when dealing in the Bank’s shares, given the preliminary nature of this information.
• Corporate Governance: The Board comprises a mix of executive, non-executive, and independent non-executive directors, ensuring sound governance and oversight.
• Regulatory Note: Huishang Bank Corporation Limited is not an authorized institution under Hong Kong’s Banking Ordinance and is not subject to Hong Kong Monetary Authority supervision.

Potential Impact on Share Price

The positive profit alert, with significant asset growth, improved profitability, and enhanced asset quality, is material and could affect the share price. The reduction in non-performing loans and increased provision coverage further strengthen the Bank’s risk profile, which could be viewed favorably by investors. However, as the announcement is based on unaudited figures, market participants should await the audited results for confirmation.

Disclaimer

The information provided in this article is based on the Bank’s preliminary unaudited management accounts and may be subject to changes upon the release of the audited annual results. Investors should exercise caution and consider all official disclosures before making any investment decisions. This article does not constitute investment advice.

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