Bank of Hangzhou Undergoes Branch Leadership Adjustments; Chairman Acting as President for 8 Months

Recently, Bank of Hangzhou Co., Ltd. (600926) disclosed that it has hosted research visits from 39 institutions since November 18, with discussions focusing on dividends and net interest margins. The bank’s 2025 interim profit distribution plan includes a cash dividend of RMB 0.38 per share, totaling RMB 2.755 billion, representing a payout ratio of 23.62%.

At the Q3 earnings briefing, Chairman Song Jianbin addressed concerns about the bank’s relatively low dividend ratio compared to peers, stating, “Investors should prioritize the sustainability and growth potential of dividends, which depend on the sustainability and growth of profits. Without profit growth, higher payout ratios are unsustainable.”

Notably, Chairman Song has been acting as president for eight months since Yu Liming resigned on April 2 due to personal reasons, exceeding the regulatory six-month limit for interim appointments. A permanent successor has yet to be appointed.

Last week, leadership adjustments were announced across multiple branches: - Qiu Shuhong, former head of Huanbei Sub-branch, has been appointed president of Shenzhen Branch, replacing Gu Jinlong, who now leads Beijing Branch. Qiu previously served as Party Secretary of Xiaoshan Sub-branch and assistant president of Ningbo Branch. - Dai Li, deputy head of the Asset-Liability Management Department, will lead Huanbei Sub-branch. - Zheng Xuandong, former deputy president of Nanjing Branch, has been named deputy head of the Sci-Tech Finance Division. - Zhang Keke, assistant head of the Sci-Tech Finance Division, will assume the role of deputy president at Nanjing Branch.

As of June 2025, Bank of Hangzhou operates 291 branches, including 128 in Hangzhou, 84 across Zhejiang Province, and 78 in key cities like Beijing, Shanghai, Shenzhen, Nanjing, and Hefei. The bank also runs a financial operations center in Shanghai.

The bank employs a regional strategy, deepening its presence in Hangzhou while expanding in the Yangtze River Delta, Bohai Rim, and Pearl River Delta regions. Staff numbers remained stable at 14,380, with a slight reduction in branch employees.

In H1 2025, operating expenses rose 1.41% YoY to RMB 4.838 billion, driven by higher employee costs, which accounted for 67.56% of total expenses. Average per capita costs dipped slightly to RMB 227,300, while average salaries declined 3.51% to RMB 162,400. Executive compensation also fell 2.12% to RMB 7.285 million.

The bank continues to refine its compensation system, emphasizing performance-based incentives and deferred payments for senior roles, while accelerating salary adjustments for junior and high-performing staff.