On November 18, Bank of Changsha announced that its eighth interim board meeting approved the bulk disposal of non-performing assets totaling 695.27 million yuan, involving seven debtors.
A source close to the bank stated that this move is a proactive measure to enhance disposal efficiency and reduce management costs.
Established in May 1997, Bank of Changsha is the largest financial institution in Hunan Province and the region’s first listed bank. It went public on the Shanghai Stock Exchange in September 2018, with a registered capital of 4.02 billion yuan.
The bank’s asset quality has shown slight deterioration this year. As of Q3 2025, its non-performing loan balance stood at 7.16 billion yuan, up 779 million yuan from the previous year-end. The non-performing loan ratio edged up 0.01 percentage points to 1.18%, while the provision coverage ratio declined slightly to 311.88%.
Despite this, the bank reported steady growth in total assets (12.44 trillion yuan, +8.5% YoY), operating income (19.72 billion yuan, +1.3% YoY), and net profit (6.56 billion yuan, +6.0% YoY) for the first three quarters.
The financial sector has accelerated non-performing asset disposals in Q4. Earlier in October, Bohai Bank announced plans to transfer distressed debts worth approximately 70 billion yuan at a minimum 70% discount. Similarly, Guangzhou Rural Commercial Bank disclosed a potential sale of 18.93 billion yuan in credit assets.
Industry analysts attribute this trend to regulatory pressures, operational needs, and tax optimization strategies. Faster disposal helps banks free up capital, improve financial metrics, and strengthen competitiveness—particularly ahead of year-end reporting.
According to the National Financial Regulatory Administration, Chinese banks resolved 1.5 trillion yuan in bad loans in H1 2025, up 123.6 billion yuan YoY. By end-Q2, the industry’s non-performing loan balance fell to 3.4 trillion yuan, with the ratio dropping 0.02 percentage points to 1.49%.
Comments