Summary of Key Points
Zhengzhou Bank has experienced a continuous period of personnel turmoil over the past three years: from a major reshuffle of its core management in 2023, to having only two senior executives left by 2025, and then to its first female president, Li Hong, stepping down after just 13 months in office. Behind these changes are the challenges of integrating external professional managers with the local city-based commercial bank, as well as ongoing pressures on management due to issues such as asset quality concerns and difficulties in business transformation. The executive team has not yet been fully replenished, and the operational pressures have not been fundamentally alleviated, making it uncertain whether the turmoil has come to an end.
I. Three Years of Personnel Turmoil: From "Rereshuffle" to "Only Two Executives Left"
The personnel adjustments at Zhengzhou Bank are not isolated incidents but part of a systematic change that has lasted for three years:
- 2023: The First Major Reshuffle: Chairman Wang Tianyu and President Shen Xueqing both resigned after many years in office. Zhao Feisheng was appointed as the new chairman, and the position of president remained vacant for 18 months, with the vice president acting in his place. The market interpreted this as a local state-owned asset restructuring of the management team.
- 2025: The Second Major Shock：President Li Hong, who was appointed from outside the bank, resigned just two months into her tenure, and six core executives left simultaneously. Only Li Hong and Sun Runhua were left in the 10-person team, leaving multiple business lines without management. There were 20 changes in the board of directors and senior management throughout the year, with 12 people stepping down, setting a record since the bank's listing. Key positions (such as the Chief Information Officer) remained vacant for over a year.
- 2026: Slow Replenishment：After Li Hong's resignation, Wang Sentao (with experience from the China Development Bank) was hired as vice president, and Pan Feng was promoted internally to Chief Risk Officer. However, the position of president is still vacant, and two more vice presidents are needed, with several professional positions remaining unfilled.
II. The Challenges Faced by an External President: Why Couldn't Li Hong Succeed?
Li Hong comes from a large state-owned bank (with 16 years of experience at the Postal Savings Bank of Beijing branch) and was expected to stabilize the team and drive transformation. However, she left after just 13 months due to three main reasons:
1. Complex Local Networks: As a leading local bank in Henan, Zhengzhou Bank's operations are closely tied to local state-owned enterprises and government platforms, creating complex internal interest relationships that are difficult for an outsider to navigate quickly.
2. Cumulative Industry and Regional Pressures: In 2025, the banking industry faced narrowing interest margins and pressure on asset quality. Additionally, Henan's real estate sector and some state-owned enterprises were in trouble, making the position of president particularly challenging.
3. Cultural Disagreements: Li Hong attempted to reform the team upon her appointment, but the old employees resigned en masse, indicating a failure to integrate external management practices with local culture. While such reforms aimed to introduce new ideas, they also caused disruptions in business operations and instability among staff.
III. Hidden Risks Beneath the Surface Data
Zhengzhou Bank's financial figures appear positive (with the non-performing loan ratio declining for three consecutive years and slight revenue growth), but there are underlying issues:
- Masked Non-Performing Loans: At the end of 2025, there were 10.16 billion yuan in loans overdue for more than 90 days, but only 7.03 billion yuan were classified as non-performing loans, indicating a deviation of over 140%—meaning many overdue loans were not correctly identified as such and could potentially become problematic in the future.
- Real Estate as the Biggest Risk: Although the non-performing loan ratio for real estate-related loans decreased from 9.55% to 5.11%, it remains the highest among all industries. Non-performing loan ratios in traditional sectors such as wholesale and retail, as well as construction, are also rising, and the personal loan non-performing ratio is the third-highest among listed city-based commercial banks.
- Transformation Stagnation: The bank's corporate business relies heavily on local state-owned enterprises (with limited pricing power), and its retail business has a weak foundation (with increasing risks in credit cards and consumer loans). New businesses such as technology finance and wealth management have not yet taken hold, making it difficult to sustain traditional profit models with narrowing interest margins.
IV. Future Challenges: Unfilled Positions and Persistent Operational Pressures
The current personnel turmoil at Zhengzhou Bank has paused for the time being, but potential problems remain:
- Incomplete Executive Team: The position of president is vacant, two vice presidents are needed, and several professional positions are still unfilled. Chairman Zhao Fei is temporarily in charge of operations, which may lead to unclear responsibilities and decision-making processes.
- Unresolved Operational Issues: Problems with asset quality, narrowing interest margins, and slow transformation have not been fundamentally addressed. If the bank's performance does not improve, personnel turmoil could erupt again.
- Speculations about the Next President: The market expects an external candidate with state-owned or regulatory background to be appointed, as the bank needs to connect with local resources and comply with strict regulations.
In Summary
The personnel turmoil at Zhengzhou Bank is a result of both operational pressures and difficulties in managing internal dynamics. To achieve stability, the bank must not only complete the recruitment of its executive team but also address core issues related to asset quality and business transformation. Otherwise, the turmoil may just be a temporary respite.