Hua Xia Bank Co.,Limited (SHSE: 600015) is urgently in need of a valuation reassessment. With a high dividend yield and a low price-to-book ratio, the bank is poised for a valuation recovery. On July 22, the bank finalized its 2025 annual profit distribution plan. Based on a total share capital of 15.915 billion shares, it plans to distribute a cash dividend of 0.32 yuan per share, totaling 5.093 billion yuan. Combined with the mid-term dividend of 0.10 yuan per share already paid earlier this year, the full-year cash dividend per share is 0.42 yuan, with a total amount of 6.684 billion yuan. The record date is set for July 29, with ex-dividend occurring shortly after, and the cash dividend will be distributed on July 30.
As of the close on July 24, based on the trailing twelve-month (TTM) dividend yield, Hua Xia Bank is the only one among the 42 A-share listed banks with a dividend yield fluctuating around the 6% mark. With the 10-year government bond yield hovering near 1.7% and bank fixed deposit rates falling below 2%, this return is particularly prominent in the current low-interest-rate environment. However, market confidence in the bank's valuation appears to be lagging expectations. Hua Xia Bank's current price-to-book ratio is only 0.35 times, with a net asset value per share of 20.19 yuan, while its stock price lingers around 7 yuan. This national joint-stock bank, with total assets of 4.74 trillion yuan, is awaiting an opportunity for a valuation reassessment.
The dividend yield of 6% ranks first among A-share listed banks, indicating significant room for valuation recovery.
Hua Xia Bank has held the top spot for dividend yield among A-share listed banks for some time. According to data from East Money, the bank's dividend yield was 4.98% on July 28, 2025, rising to 6.02% by September 25, 2025, surpassing the 6% threshold for the first time in nearly a year. Subsequently, until late July 2026, its dividend yield remained relatively stable, fluctuating around 6% and frequently ranking first among A-share listed banks. During this period, the dividend yield once climbed to 6.64% in January 2026, reaching a cyclical high.
The rise in the dividend yield is driven by a combination of stock price movements and dividend payouts. In terms of stock price, Hua Xia Bank's shares began to rise in November 2022, climbing from a low of 4.77 yuan per share (ex-rights price) to 8.72 yuan per share on July 10, 2025, a cumulative increase of over 80%. However, the stock subsequently declined, falling back to around 7 yuan by July 2026, which passively increased the ratio of the dividend per share to the stock price. Regarding dividends, Hua Xia Bank distributed a total cash dividend of 0.42 yuan per share for the full year 2025, amounting to 6.684 billion yuan, with a dividend payout ratio of 24.57%. This represents an increase of 1.28 percentage points compared to the 23.29% payout ratio in 2024. The interplay of a falling stock price and rising dividends has further pushed up the dividend yield, creating a classic low-valuation, high-dividend characteristic.
It is worth noting that since 2020, Hua Xia Bank's dividend payout ratio has been on an upward trend. From 2020 to 2024, the payout ratios were 21.77%, 22.1%, 23.18%, 23.29%, and 24.57%, respectively, an increase of nearly 3 percentage points over five years. As compelling as the high dividend yield is, the bank's stock price still trades below its net asset value, making the potential for valuation recovery evident. As of July 26, the price-to-book ratio was 0.35 times, the net asset value per share was 20.19 yuan, and the stock price was hovering around 7 yuan. This means that the pricing of this national joint-stock bank is less than 40% of its book value per share. Trading below book value is not uncommon in the banking sector. According to the latest data, 17 of the 42 A-share listed banks have a price-to-book ratio below 0.5. However, Hua Xia Bank's price-to-book ratio of 0.35 remains among the lowest in the industry, only higher than Guiyang Bank's 0.31 and China Minsheng Bank's 0.22.
Fundamentals are improving, with Q1 2026 revenue growth of 35.33% hitting a new high.
In fact, the fundamentals of Hua Xia Bank are already improving, but the market's expectations for a valuation recovery still appear to be lagging. 2025 was a year of management transition for the bank, also viewed externally as "Year One of Reform." After the new team, led by Chairman Yang Shujian, took office, they implemented the "Ten Major Actions" to enhance business development. For the full year of 2025, the bank reported operating revenue of 91.914 billion yuan and net profit attributable to the parent company of 27.2 billion yuan, representing year-on-year declines of 5.39% and 1.72%, respectively—results that were not impressive. However, a deeper look reveals signs of structural adjustment and quality improvement. The year-on-year decline in net profit attributable to the parent company narrowed quarter by quarter, from 14.04% in Q1 to 1.72% for the full year, while the revenue decline narrowed from 17.73% to 5.39%. By the fourth quarter, revenue grew by 3.9% year-on-year, and net profit attributable to the parent company grew by 0.6% year-on-year, with both growth rates turning positive. A "V-shaped" recovery curve is gradually emerging.
Entering 2026, the trend of improving operations for Hua Xia Bank continued. The Q1 2026 report shows that the bank achieved operating revenue of 24.622 billion yuan, an increase of 6.428 billion yuan year-on-year, representing a growth rate of 35.33%. This growth rate is the highest for the same period in recent years and ranks among the top joint-stock banks. Among the details, net interest income was 17.669 billion yuan, up 13.66% year-on-year; interest expenses were 16.7 billion yuan, a significant decrease of 11.9% year-on-year, indicating effective cost control on liabilities. Non-interest income also contributed, with fair value gains/losses turning from a loss of 2.473 billion yuan in the same period last year to a profit of 2.207 billion yuan.
Alongside the improving performance, Hua Xia Bank's asset quality is also steadily improving. At the end of Q1 2026, the bank's non-performing loan (NPL) ratio was 1.55%, unchanged from the end of the previous year, while the provision coverage ratio increased to 146.37%, further strengthening its risk mitigation capacity and safety margin. Recently, Hua Xia Bank held its mid-year 2026 work conference to review the first half of the year's operations and deploy key tasks for the second half. Looking ahead to the second half of the year, the bank will firmly adhere to the principle of "returning operations to their roots, management to its essence, and positioning to its true nature," and will deeply implement the 2.0 upgraded version of the "Ten Major Actions." It will intensively cultivate the capital market, actively build "home court advantages," strengthen and optimize corporate banking, refine and advance retail banking, and steadily deepen the financial market business. At the same time, the bank will resolutely strengthen its risk defense line and solidify the foundation for stable operations.
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