Investing 21 million yuan, CZBANK executives' excessive shareholding

On December 17th, CZBANK announced that its management team has exceeded the share buyback plan.

As of the previous day's closing, the bank's directors, supervisors, and senior executives have cumulatively increased their holdings of the company's A-shares by 6.7122 million shares through centralized bidding, with a total investment amounting to 21.0431 million yuan, which is 105.22% of the lower limit of the planned amount.

In early April this year, CZBANK had issued an announcement regarding the executives' share buyback, disclosing a lower limit of 20 million yuan for the buyback amount;

Now, the bank's executive team has exceeded the target, with their holdings of A-shares accounting for approximately 0.03% of the total share capital.

Actively buying with their own funds represents the management team's most direct recognition of the company's value and development prospects. For CZBANK, which is currently under pressure in terms of performance fundamentals, such a statement is particularly important.

Affected by the "low growth, low interest margin" environment in the banking industry over the past two years, CZBANK has experienced performance fluctuations since 2023:

In the first three quarters of 2025, the bank's revenue and profit declined by 6.78% and 9.59%, respectively, ranking 41st among 42 A-share banks, only higher than Zijin Bank.

The management's statement on this is that the overall performance in the first three quarters is in line with the budget goals set at the beginning of the year, which are "consolidating results, solidifying foundations, and optimizing structures."

During the rapid growth phase from 2019 to 2023, CZBANK was involved in multiple default events, including LeEco and Peking University Founder Group. Subsequently, to quickly mitigate risks, it began to intensify the disposal of non-performing assets, leading to profit dilution.

Entering 2025, the new president Chen Haiqiang stated, "We will no longer blindly pursue scale, we will no longer follow the old path of 'building large accounts', and we will no longer focus on short-term performance or 'making quick money';"

He pointed out that the company's current pressures, whether in terms of balance sheet expansion speed or revenue and profit reporting, are more due to strategic proactive choices.

Referring to its transformation strategy and process, the management's active buyback also conveys confidence in the company's long-term positive outlook to the market.

Regarding the performance of the fundamentals in the first three quarters, the bank's management revealed that the pressure mainly comes from the decline in net interest margin and fluctuations in the bond market, and stated that the company has placed high importance on net interest margin management:

First, to cope with the general trend of narrowing interest margins through a net interest margin process control mechanism;

Second, to organize assets according to a "low risk, stable return" strategy, focusing on optimizing and adjusting existing businesses;

Third, to deepen the optimization of the liability structure, continuously reducing the deposit interest rate.

However, the time left for CZBANK is becoming increasingly limited.

The three years of slowing growth for the bank coincide with the three years in which banks in the Yangtze River Delta have taken advantage of the situation and rapidly expanded their balance sheets:

According to Xinfeng statistics, as of 2024, CZBANK's compound annual growth rate of net profit over the past three years is 6.29%; However, Hangzhou Bank, Changshu Bank, Su Nong Bank, Suzhou Bank, and Jiangsu Bank have respective percentages of 22.4%, 20.34%, 18.79%, 17.72%, and 17.37%.

Although CZBANK has stated that it does not pursue "large clients" or "quick profits," it still cannot avoid potential competition among regional peers.

In November of this year, Chen Haiqiang, who has officially served as president for only four months, was nominated again as chairman, becoming the only internally promoted chairman of CZBANK since 2004.

Facing cyclical challenges, Chen Haiqiang has stated, "We will steadfastly do the 'difficult but right' things as long-termists."

However, whether CZBANK can break through under the leadership of the new management remains to be seen over time