Bank of Guiyang Co., Ltd. recently disclosed its third-quarter report for 2025. The data shows that the bank achieved revenue of 9.435 billion yuan in the first three quarters, a year-on-year decline of 13.73%, while net profit attributable to shareholders of the parent company stood at 3.915 billion yuan, down only 1.39% year-on-year, indicating a significant narrowing of the decline compared to previous periods.
Notably, the bank's third-quarter performance showed a divergence, with revenue declining while net profit increased. Xue Hongyan, a researcher at a financial institution, explained that this phenomenon was mainly due to a substantial reduction in credit impairment losses, which effectively offset the pressure from declining revenue and became a key driver of the profit growth.
Additionally, frequent changes in the bank's senior management in recent years have raised concerns about potential impacts on operations. Economist Zheng Lei noted that frequent executive turnover could affect strategic execution and management stability, negatively impacting revenue and market confidence, particularly during critical transformation periods or sensitive market phases.
On November 3, inquiries regarding the divergence in revenue and profit trends and the impact of executive changes were sent to Bank of Guiyang, but no response was received by the time of publication.
The third-quarter report revealed a dual decline in revenue and net profit for the first nine months. However, in the third quarter alone, the bank's performance diverged, with revenue falling 16.89% year-on-year to 2.935 billion yuan, while net profit attributable to shareholders rose 10.48% to 1.441 billion yuan.
The pressure on net interest income, a core revenue source, was the primary drag on overall performance. In the first three quarters, net interest income dropped 12.29% year-on-year to 7.606 billion yuan, while the net interest margin and net interest spread narrowed by 23 and 16 basis points, respectively, exacerbating revenue pressure.
However, growth in investment income and other business revenues provided a boost to net profit. In the first nine months, fee and commission income, along with investment income, totaled 2.698 billion yuan, up 23.93% year-on-year. Investment income alone surged 34.23% to 2.188 billion yuan, driven by gains from the disposal of other debt investments. Other business revenue skyrocketed 825.50% to 275 million yuan, attributed to increased operating lease income from a subsidiary.
The third-quarter profit growth was also supported by improved asset quality, which eased provisioning pressure. As of the end of September, Bank of Guiyang's total assets reached 746.589 billion yuan, up 5.80% year-on-year, with loans and deposits growing 1.95% and 3.77%, respectively. The non-performing loan ratio improved to 1.63%, down 0.07 percentage points from the previous quarter. Core tier-1 capital adequacy, tier-1 capital adequacy, and total capital adequacy ratios all remained above regulatory requirements.
Credit impairment losses in the first three quarters fell 39.14% year-on-year to 2.383 billion yuan, indicating reduced loan risk and lower provisioning needs. Xue Hongyan noted that the divergence between revenue and profit suggested the bank was maintaining profitability by cutting provisions, but core revenue-generating capabilities still needed improvement.
Executive turnover has been frequent at Bank of Guiyang from 2020 to 2025, with multiple changes in directors, supervisors, and senior management. Analysts pointed out that frequent leadership changes could disrupt strategic continuity, particularly in long-term projects like digital transformation and retail upgrades. However, robust corporate governance and talent development could mitigate such impacts.
Investors often view executive stability as a key indicator of governance quality, and frequent changes may trigger market concerns, leading to stock price volatility or valuation downgrades, especially for smaller banks. While Bank of Guiyang's core management team has recently stabilized, establishing long-term stability remains a critical challenge.
In contrast, Shen Meng, a capital market expert, argued that while executive capabilities might influence performance, bank earnings are primarily driven by macroeconomic factors such as monetary policy and economic conditions.
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