China Zheshang Bank net worth in 2024 reveals much about its financial growth and stability. With rising deposits and a strong loan portfolio, the bank continues to expand its assets and market cap.
Ando Money dives deep into the financial details, offering a clear picture of how this institution is performing.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | China Zheshang Bank |
| Full Name | China Zheshang Bank Co., Ltd. |
| Traded as | SEHK: 2016 |
| ISIN | CNE100002G70 |
| Founded | July 26, 2004 |
| Founders | Zhejiang Commercial Bank |
| Country/Territory | China |
| Headquarters | Hangzhou, Zhejiang Province, China |
| Chief Executive Officer | Liu Xiaochun |
| Number of Employees | 22,895 |
| Market Cap | $9.22 billion (as of September 2024) |
| Total Assets | RMB 3.25 trillion ($449 billion) |
| Total Equity | RMB 190.8 billion ($26.4 billion) |
| Revenue | RMB 35.3 billion ($4.88 billion) |
| Net Income | RMB 8 billion ($1.1 billion) |
What is the Net Worth/Market Cap of China Zheshang Bank in 2024?
As of September 2024, China Zheshang Bank boasts a market capitalization of $9.22 billion.
This places it among the mid-tier banks globally in terms of market value, although it’s important to recognize that market cap doesn’t always reflect the full financial picture of a bank.
For comparison, several other major banks in the global financial sector have higher market capitalizations. Some of the prominent names in the industry include:
- JPMorgan Chase
- Bank of China
- Industrial and Commercial Bank of China
- HSBC
- Citibank
- Wells Fargo
- Barclays
- Deutsche Bank
- Mitsubishi UFJ Financial Group
For more on how banks compare in terms of their financial standing, check out our list of the largest financial institutions worldwide.
Financial Performance Overview
Major Factors Contributing to Revenue
China Zheshang Bank’s financial success hinges on several key factors, including its robust loan portfolio and growing base of customer deposits.
The bank primarily offers corporate loans, personal loans, and discounted bills, all of which have significantly bolstered its operating income.
In the first half of 2024, the bank’s total loans amounted to RMB 1.81 trillion (approx. $249 billion), showing a healthy increase of 5.59% from the previous year.
These loans, especially in corporate banking, play a critical role in generating revenue for the bank, making up over 65% of its overall loan portfolio.
Customer deposits also form a solid foundation for the bank’s stability.
As of mid-2024, deposits had reached RMB 1.94 trillion ($267 billion), reflecting a 3.74% growth. B
oth time deposits and demand deposits play an essential role in maintaining liquidity and supporting loan disbursements.
Time deposits, in particular, saw notable growth, driven by increased customer interest in these products due to evolving market conditions.
Loan Portfolio and Its Impact
The bank’s loan portfolio has been strategically structured to target diverse sectors, with a special emphasis on corporate loans, which remain a major driver of income.
Corporate loans make up 65.82% of total loans, while personal loans account for 27.67%.
The bank has strengthened its offerings in green finance, manufacturing loans, and supply chain finance, which has proven pivotal in expanding its customer base.
Moreover, loans to small and medium-sized enterprises (SMEs) have helped the bank navigate through periods of economic uncertainty by tapping into sectors with growth potential.
The Role of Deposits in Financial Stability
Customer deposits not only provide liquidity but also support loan growth and are a key contributor to China Zheshang Bank’s revenue.
As of June 2024, the bank recorded RMB 1.94 trillion ($267 billion) in customer deposits.
The rise in both personal deposits and corporate deposits demonstrates the bank’s growing trust among its clients.
Time deposits, which have surged by 25.81%, provide long-term stability, while demand deposits continue to be an important resource for maintaining liquidity.
The ability to attract such a significant volume of customer funds reflects the bank’s strong reputation in the Chinese market.
By offering competitive deposit products and services, it has managed to maintain a low-cost liability base, which in turn has helped to improve its overall financial performance.
Risk Management and Non-Performing Loans
Risk management is essential to ensure the long-term stability of a financial institution, and China Zheshang Bank has excelled in this regard.
The bank’s non-performing loan ratio stood at 1.43% in 2024, reflecting a slight improvement compared to the previous year.
This achievement highlights the bank’s commitment to maintaining a prudent risk appetite while serving the real economy.
The bank’s strategy of focusing on loans with low sensitivity to economic cycles has paid off, helping it mitigate potential risks from non-performing assets.
Additionally, it has implemented a distinctive risk control officer assignment system, which ensures thorough monitoring and management of loans across different sectors.
Investment Portfolio and Contribution to Income
Investments play a crucial role in diversifying the bank’s income streams. The bank’s financial investments, which include securities, bonds, and financial assets, amounted to RMB 1.01 trillion ($139 billion) as of mid-2024.
This represents an increase of 1.31% from the previous year. Investments in funds and bonds have particularly bolstered income, contributing to a 40.18% increase in non-interest income.
Capital Adequacy and Regulatory Compliance
One of the bank’s key strengths lies in its capital adequacy, which stood at 12.86% in 2024.
This marks an increase of 0.67 percentage points compared to 2023, ensuring the bank has sufficient capital buffers to absorb shocks and sustain its growth trajectory.
This also highlights the bank’s compliance with regulatory standards set by the People’s Bank of China, which ensures that the institution is financially sound and able to meet its obligations.
Additionally, its core tier-one capital ratio of 8.38% reflects a solid financial position.
Profitability and Operating Income Trends
China Zheshang Bank’s operating income reached RMB 35.3 billion ($4.88 billion) in the first half of 2024, marking a 6.16% increase from the previous year.
This growth was driven by interest income and a remarkable rise in non-interest income.
Although net interest margin dropped slightly due to changes in interest rates, the bank managed to offset this with a significant boost in non-interest earnings, which grew by 25.58% year-on-year.
These trends underscore the bank’s ability to navigate market challenges while maintaining profitability.
FAQs about China Zheshang Bank
What is the history of the China Zheshang Bank?
The bank was established on July 26, 2004. It evolved from the earlier Zhejiang Commercial Bank. It has grown into a significant financial institution, headquartered in Hangzhou, China.
What services does it offer?
The bank provides corporate banking, investment banking, consumer banking, mortgages, credit cards, and insurance products. These services cater to individual and corporate clients.
What is the China Zheshang Bank’s market capitalization in 2024?
Its market capitalization as of September 2024 is $9.22 billion. This shows its solid financial standing in the banking industry.
Where is it headquartered?
The bank is headquartered in Hangzhou, Zhejiang Province, China. This location serves as the central point for its national and international operations.
Who are the major shareholders?
Zhejiang Finance Development Corporation owns 19.96%. Other major shareholders include Travelers Automobile Group with 8.99% and Hengdian Group Holdings Limited at 8.30%.
How many branches does it have?
The bank operates 350 branch outlets in 22 provinces across China and Hong Kong. These branches cover key economic regions.
What are its future growth plans?
It is focusing on digital transformation, wealth management, and expanding its cross-border services. The bank aims to deepen its presence in the Zhejiang region.
Conclusion
China Zheshang Bank’s financial performance in 2024 shows steady growth and resilience.
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