The banking landscape in Zhejiang has witnessed a significant shift in leadership. CZBANK, once the undisputed leader among Zhejiang-based banks, has officially lost its top position in 2025. With the release of third-quarter reports, Ningbo Bank and Hangzhou Bank have surpassed CZBANK in key metrics including total assets, operating income, and net profit, marking a fundamental change in the competitive dynamics of Zhejiang's banking sector.
**Performance Comparison: CZBANK Declines While Peers Grow Steadily** In the first three quarters of 2025, CZBANK reported declines in both revenue and net profit. The bank's operating income fell 6.78% year-on-year to RMB 48.931 billion, while net profit attributable to shareholders dropped 9.59% to RMB 11.668 billion.
In contrast, Ningbo Bank posted an 8.32% increase in operating income to RMB 54.976 billion, with net profit rising 8.39% to RMB 22.445 billion. Hangzhou Bank reported a modest 1.35% revenue growth to RMB 28.880 billion, but its net profit surged 14.53% to RMB 15.885 billion.
In terms of total assets, Ningbo Bank led with RMB 3.578 trillion, followed by CZBANK at RMB 3.389 trillion and Hangzhou Bank at RMB 2.295 trillion. While Ningbo Bank dominated in operating income (RMB 54.976 billion) and net profit (RMB 22.578 billion), Hangzhou Bank outperformed in profitability metrics, boasting a return on equity (ROE) of 12.68%, compared to Ningbo Bank's 10.36% and CZBANK's 6.62%.
**Why CZBANK Fell Behind** CZBANK's underperformance stems from its reliance on high-cost liabilities. Its average interest-bearing liability cost stood at 1.95%, higher than Hangzhou Bank's 1.87% and Ningbo Bank's 1.79%. Asset quality also lagged, with a non-performing loan ratio of 1.36% (down year-on-year but still above peers' 0.76%) and a provision coverage ratio of 159.56%, significantly lower than Ningbo Bank's 375.92% and Hangzhou Bank's 513.64%.
Frequent management changes and regulatory penalties—including an RMB 11 million fine for "imprudent internet lending practices"—have further challenged CZBANK.
**Strategic Pivot: From Scale to Quality** CZBANK is now pivoting away from its traditional growth-at-all-costs approach, emphasizing sustainable development over short-term gains. By September 2025, its total assets grew just 3.44%, reflecting this strategic slowdown.
Meanwhile, Ningbo Bank thrives with diversified profit centers spanning corporate banking, retail, and wealth management, while Hangzhou Bank excels in regional market penetration and fee-based businesses.
**The New Tripartite Landscape** Zhejiang's banking sector has evolved into a three-way race: Ningbo Bank leads with comprehensive capabilities and risk management; Hangzhou Bank shines with steady growth and asset quality; and CZBANK, as a national joint-stock bank, seeks equilibrium during its transformation.
For newly appointed President Chen Haiqiang, balancing short-term performance with long-term restructuring and optimizing liability costs against asset quality will be critical to regaining competitiveness.
This shift mirrors broader trends in China's banking industry, where regional focus, specialization, and risk resilience are replacing indiscriminate expansion. The rivalry for Zhejiang's top spot ultimately benefits the region's financial ecosystem, fostering a more diversified and efficient sector.
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