ZYBANK recently announced that the qualifications of Zhang Tao as President, Executive Director, and Vice Chairman have been approved by the Henan Financial Regulatory Bureau, with his term commencing September 14 until the third board of directors is re-elected.

Combined with the approval of Zhou Feng's Chairman qualification in July this year, this management reshuffle—which began in April when Guo Hao resigned, Zhou Feng transitioned to Chairman, and Zhang Tao entered as President-designate—has now been formally finalized.

The "Zhou Feng + Zhang Tao" leadership duo has begun fully helming this provincial-level city commercial bank, which holds nearly RMB 1.5 trillion in total assets, operates 18 branches, and controls subsidiaries in consumer finance, financial leasing, and village banking.

Complementary Leadership Structure Takes Shape

This round of management adjustments at ZYBANK has been tight and orderly. On April 21, former Chairman Guo Hao resigned due to a work transfer, and then-President Zhou Feng was elected by the board as Chairman and resigned from the presidency. On the same day, the board appointed Zhang Tao as President.

On June 29, the shareholders' meeting approved Zhang Tao's appointment as Executive Director, and the board elected him as Vice Chairman. On September 17, regulatory approval landed, officially certifying Zhang Tao. The entire transition period lasted nearly five months and was completed smoothly.

The two executives' backgrounds form a complementary structure. Zhou Feng, born in 1977, spent a long career at the former Henan Banking and Insurance Regulatory Bureau, later served on secondment at the Tibet Finance Department, as Deputy Mayor of Puyang, and as Deputy Secretary-General of the Henan Provincial Government. He joined ZYBANK as President in October 2025 and transitioned to Chairman in April 2026. His foundation lies in financial regulation, regional government affairs, and top-level strategy.

Zhang Tao, born in 1975, worked in the Industrial and Commercial Bank of China's Henan system for over twenty years, serving as President of the Jiyuan and Zhengzhou branches and General Manager of the Provincial Branch's Internal Control and Compliance Department. Starting in 2023, he participated in the reform of Henan Rural Commercial United Bank and Henan Rural Commercial Bank, serving as Vice President. He excels in frontline operations, internal control and compliance, and rural credit risk resolution.

For a province-affiliated city commercial bank, having a Chairman focused on government resources and strategic coordination alongside a President focused on business execution and risk disposal can effectively reduce misalignment between "strategy and execution." This is especially important after ZYBANK absorbed and merged three banks—Luoyang, Pingdingshan, and Jiaozuo Zhonglv—resulting in numerous consolidated entities and deep county-level penetration. The bank must both consolidate its corporate banking foundation and manage risks across village banks, consumer finance, and financial leasing. This combination may lay a solid governance foundation for subsequent refined operations.

Interim Report Review: Interest Margin Recovery, Corporate Banking Leads

Before Zhang Tao officially took over, ZYBANK had already delivered an interim report showing "steady progress." As of the end of June, total assets reached RMB 1,496.467 billion, up 5.8% from the beginning of the year; revenue was RMB 14.271 billion, up 5.2% year-on-year; net profit was RMB 2.15 billion, up 1.0%; and net profit attributable to parent was RMB 2.119 billion, up 4.2%, successfully reversing the dual decline in revenue and attributable net profit in the first half of 2025.

The core drivers supporting this earnings recovery came from interest margin improvement and solid corporate banking performance. In the first half, the bank's net interest income was RMB 12.011 billion, up 8.7% year-on-year; net interest margin was 1.71% and net interest spread was 1.62%, up 0.05 and 0.04 percentage points respectively year-on-year. The margin recovery benefited from a significant decline in funding costs: the average interest rate paid on deposits dropped from 1.83% to 1.43%, and interest expenses on issued bonds fell 45.3%. While deposit scale expanded, interest payment costs actually declined, reflecting refined liability management capabilities.

On the corporate side, corporate loans stood at RMB 434.135 billion, up 2.9% from the beginning of the year; corporate deposit balances reached RMB 363.557 billion, ranking first in the province by market share; and corporate clients numbered 518,100, with 19,000 added in the half-year. Technology loans reached RMB 82.230 billion, green credit RMB 53.824 billion, and cumulative supply chain financing provided in the first half totaled RMB 135.092 billion—all growing steadily, demonstrating precise support for the real economy.

At the same time, the interim report also reflected some structural issues that are being improved. On intermediate business income, net fee and commission income was RMB 993 million, down 19.7% year-on-year, of which wealth management business fees were RMB 111 million, down 46.8% year-on-year. The lightweight transformation still requires time. On the risk side, asset impairment losses in the first half were RMB 8.121 billion, of which loan impairment was RMB 4.106 billion, up 71.3% year-on-year. The non-performing loan ratio held flat at 1.96%, special-mention loans accounted for 4.09%, and overdue loans were approximately RMB 33.1 billion, an increase of about RMB 4.4 billion from the beginning of the year.

Must-Answer Questions for the New Team: Risk Resolution, Fee Income Growth, Capital Stability

The ZYBANK that the "Zhou-Zhang" team has taken over is no longer a bank driven by scale expansion, but one that is cultivating deeply in the stock era and advancing toward high-quality development. ZYBANK was established in December 2014 through the restructuring of city commercial banks within the province, listed on the Hong Kong Stock Exchange (1216.HK) in July 2017, and after absorbing and merging Luoyang, Pingdingshan, and Jiaozuo Zhonglv banks in May 2022, its assets exceeded one trillion yuan, making it the largest province-affiliated city commercial bank in Henan with province-wide branch coverage.

It currently operates 18 branches and over 600 outlets, and holds subsidiaries in consumer finance, financial leasing, and village banking. With total assets approaching RMB 1.5 trillion in mid-2026, it has entered a new stage of "consolidated deep cultivation plus stock management."

Henan's "1+2+4+N" industrial strategy, major project investments, special bond issuance, and technology and green transformation provide broad natural scenarios for ZYBANK's corporate banking business. The interim report shows that corporate banking revenue already accounts for 54% of total bank revenue, with a solid leading position in the province in institutional clients, strategic clients, treasury payments, and special bond services. Zhou Feng's government resources combined with Zhang Tao's grassroots experience are expected to upgrade corporate banking from "extending loans" to "integrated financing + cash management + supply chain services," further consolidating the foundation.

The new management team is likely to focus on three main lines. The first is the steady clearing of asset quality. In the first half, within corporate loans, the non-performing loan ratio for real estate was 6.08%, wholesale and retail 4.15%, agriculture, forestry, animal husbandry and fishery 6.00%, and accommodation and catering 4.35%. Within personal loans, the non-performing ratio for consumer loans was 3.31%, business loans 3.28%, housing mortgages 1.62%, and credit cards and other personal loans 7.96%. Zhang Tao participated in reform and risk resolution in the Henan rural commercial system, giving him directly relevant experience. Combined with the coordinated management of 8 village banks, 2 financial leasing companies, and 1 consumer finance company within the consolidated scope, subsequent collection, restructuring, and write-off work is expected to accelerate.

The second is the rebuilding of fee income capability. In the first half, ZYBANK's net-value wealth management scale was RMB 57.9 billion. Although wealth management fees are under short-term pressure, as wealth management, transaction banking, and investment banking underwriting businesses continue to gain traction, the recovery space for non-interest income is worth anticipating.

The third is the balance between capital and dividends. In the first half, ZYBANK's core tier-one capital adequacy ratio was 9.08% and capital adequacy ratio was 13.33%, both meeting standards and within a reasonable range. No interim dividend was declared in the interim report, with profits retained as a buffer, reserving ample ammunition for subsequent non-performing disposal and credit deployment. If operations continue to improve, the pace of capital replenishment will also become more comfortable.

The focus of "Zhou Feng + Zhang Tao" in the coming years will be repairing assets, increasing fee income, and stabilizing capital. With a balance sheet of nearly RMB 1.5 trillion, as long as the three indicators—fee income ratio, special-mention loan ratio, and overdue loan ratio—are gradually brought down, this management adjustment is expected to truly translate into an operational inflection point, opening a new chapter in ZYBANK's high-quality development.