Breaking Down Bank of Xi'an Co.,Ltd. Financial Health: Key Insights for Investors

Founded on June 6, 1997 as Xi'an City Cooperative Bank by 41 urban credit cooperatives and nine enterprises, the institution-renamed Bank of Xi'an Co., Ltd. in January 2010 and listed on the Shanghai Stock Exchange as 600928 on March 1, 2019-now reports a market capitalization around 16-17.9 billion CNY (16.53 billion CNY as of Dec 15, 2025; 17.87 billion CNY as of Oct 17, 2025), trailing P/E of 6.47, roughly 4.44 billion shares outstanding, and a 52-week price range of 3.210-4.560 CNY; its latest financials show trailing twelve-month revenue of 4.69 billion CNY and net income of 2.66 billion CNY, with net interest income of 7.929 billion CNY (TTM Sep 30, 2025), operating income of 2.50 billion CNY, a net profit margin of 56.85% and ROE of 7.39%, while operating through 177 outlets and about 3,428 employees across Corporate, Personal, Treasury and Other segments, targeting SMEs, digital transformation and a commitment to allocate 20% of its loan portfolio to green projects by 2025-read on to explore its history, ownership, mission, business model and how these metrics drive profitability.

Bank of Xi'an Co.,Ltd. (600928.SS): Intro

History

• Established on June 6, 1997 as Xi'an City Cooperative Bank, founded by 41 urban credit cooperatives (Xi'an) and nine enterprises with approval from the People's Bank of China.
• Renamed Xi'an Commercial Bank Co., Ltd. on September 15, 1998 to reflect expanded services and regional focus.
• Rebranded to Bank of Xi'an Co., Ltd. in January 2010 to align identity with growing prominence.
• Listed A-shares on the Shanghai Stock Exchange on March 1, 2019 under ticker 600928.

Ownership & Governance

• Major shareholders include state-owned entities, local government-related investors, institutional investors and public float following the 2019 IPO.
• Governance structure typical of listed Chinese city commercial banks: Board of Directors, Supervisory Board, executive management team led by CEO and president.

Mission & Strategic Positioning

• Mission: Support regional economic development, serve SMEs, households and local governments, and provide inclusive financial services within Shaanxi and neighboring provinces.
• Strategic focus: retail banking expansion, SME lending, risk-controlled corporate lending, and growth of non-interest fee income.

How It Works - Core Businesses

• Retail banking: deposits, mortgages, consumer loans, wealth management and card services to individuals.
• Corporate banking: working capital loans, project and real-estate financing, trade finance for local enterprises.
• Treasury & markets: liquidity management, interbank placements, bond investments and trading.
• Fee-based services: transaction fees, agency services, bancassurance distribution and wealth management fees.

How It Makes Money - Revenue Drivers

• Net interest income (NII): interest margin between loan yields and deposit/interbank funding costs - primary earnings source.
• Non-interest income: fees from payment/settlement, wealth management, consultancy, and trading gains.
• Investment income: bond portfolio yields and securities investment returns managed by treasury.
• Credit provisioning and cost control mediate net profitability.

Key Financial & Market Metrics (as of Dec 15, 2025)

Operational Footprint & Distribution

• Network of branches and sub-branches concentrated in Xi'an and provincial markets; digital channels for retail and corporate clients.
• Target sectors: local SMEs, real estate-related lending (subject to regulatory limits), public sector financing and consumer lending.

Risk Profile & Capital

• Credit risk concentrated in regional SME and property exposures - mitigated by collateral practices and provisioning.
• Market and liquidity risk managed through treasury operations and interbank access.
• Capital adequacy maintained to meet regulatory requirements; post-IPO capital strengthened equity base for lending growth.

Bank of Xi'an Co.,Ltd. (600928.SS): History

Founded in 1997 and headquartered in Xi'an, Shaanxi Province, Bank of Xi'an Co.,Ltd. evolved from a local commercial bank into a regional joint-stock commercial bank listed on the Shanghai Stock Exchange. Its growth has been driven by retail deposit mobilization, SME lending, and expanding fee-based services across northwest China. Strategic milestones include branch network expansion, adoption of digital banking platforms, and selective asset quality improvements following periodic regulatory stress tests.

• Public listing: Shanghai Stock Exchange (ticker 600928.SS)
• Main business lines: retail banking, corporate lending, treasury operations, fee income (wealth management, agency services)
• Geographic focus: Shaanxi and neighbouring provinces with growing urban and SME client base

Ownership structure insight:

• Shares are mainly held by public investors; insider stake is negligible at 0.03%.
• Institutional investors hold a modest portion (≈8.44%), indicating moderate professional investor participation.
• With ~4.44 billion shares outstanding and a market cap of 17.87 billion CNY, the bank trades at a low trailing P/E of 6.47, reflecting either attractive earnings or market discounting of risk.

How it works & makes money:

• Net interest income: main profit driver via interest rate spread between loans and deposits, focusing on mortgages, SME loans, and corporate lending.
• Fee and commission income: wealth management, payment/settlement services, bancassurance and agency fees.
• Treasury operations: short-term trading and investment in bonds to manage liquidity and capture market opportunities.
• Cost management & credit control: profitability sensitive to NPL trends, provisioning levels, and operating expense efficiency.

Market behavior and investor signals:

• 52‑week price volatility (3.210-4.560 CNY) shows investor sensitivity to macro credit conditions and regional growth outlook.
• Low insider ownership suggests limited founder/management lock-in; external investors largely determine market valuation.

Exploring Bank of Xi'an Co.,Ltd. Investor Profile: Who's Buying and Why?

Bank of Xi'an Co.,Ltd. (600928.SS): Ownership Structure

• Deliver comprehensive banking services across corporate banking, personal banking, treasury operations and other financial services.
• Promote innovation in products and processes-recognized with the 'Best Financial Innovation Award' for local financial institutions.
• Commit to ethical and community-oriented practice-awarded 'Socially Responsible Financial Institution' in 2023.
• Support the real economy with tailored financing for small and medium-sized enterprises (SMEs).
• Drive digital transformation to enhance customer experience and operational efficiency.
• Advance sustainability: target to allocate 20% of its loan portfolio to green projects by 2025.

• Interest margin: primary revenue from net interest income (difference between interest earned on loans and interest paid on deposits).
• Fee income: service charges, wealth management, card and transaction fees, and treasury income.
• SME and retail focus: scaled lending and cross-sell of deposit, payment, and cash-management services to reduce funding cost and increase lifetime customer value.
• Digital channels: reduce branch costs and increase transaction throughput via online/mobile banking and fintech partnerships.
• Sustainability-linked lending and green finance: new product lines aimed at renewable energy, energy efficiency and green supply chains to capture growth and ESG-linked funding.

• Publicly listed on Shanghai Stock Exchange (600928.SS) with a mix of retail and institutional shareholders.
• Local government and state-affiliated entities have historically been significant shareholders, aligning the bank with regional development priorities.
• Board and management emphasize retail/SME growth, risk control, digital strategy and ESG integration.

• Allocate 20% of loan book to green projects by 2025 to support national carbon goals and capture green demand.
• Increase SME lending share through tailored products and streamlined digital credit processes.
• Continue investment in fintech, improving mobile penetration and reducing unit operating cost.
• Maintain asset quality with NPL ratio management and provisioning aligned to regulatory standards.

Bank of Xi'an Co.,Ltd. (600928.SS): Mission and Values

• Mission: Support local economic development, provide inclusive financial services, and deliver stable returns for shareholders through prudent risk management and service innovation.
• Core values: Customer first, integrity, professionalism, innovation, and community responsibility.

• Corporate Banking
  • Services: corporate deposits, working capital and term loans, trade finance, project financing, bond underwriting, cash management and corporate settlement solutions.
  • Clients: small-to-medium enterprises (SMEs), large corporates, state-owned enterprises, and government agencies.
• Personal Banking
  • Services: personal loans (mortgages, consumer credit), credit and debit cards, time and demand deposits, retail wealth management and advisory services.
  • Distribution: branch-based relationship managers, digital channels, and wealth platforms for individual customers.
• Treasury Operations
  • Activities: inter-bank lending and borrowing, repurchase (repo) transactions, investment portfolio management across debt and equity instruments, liquidity management and interest-rate risk hedging.
• Other Services
  • Includes fee-based businesses such as agency services, payment/settlement processing, bank card services, and income from bancassurance/financial product distribution.

• Network: 177 business outlets (branches and directly subordinate branches) providing retail and corporate coverage across its core market.
• Employees: approximately 3,428 staff engaged in front-office, back-office, credit, risk management, and support functions.

• Net interest income: Primary driver-spread between interest earned on loans and investments and interest paid on deposits and wholesale funding.
• Fee and commission income: From card services, wealth-management distribution, loan agency and underwriting, trade finance fees, and settlement services.
• Treasury and investment returns: Gains and yield from securities portfolios, repo operations, and interbank placements.
• Other income: Penalties, sundry banking services, and ancillary operations (leasing, bancassurance commissions).

• Credit risk: Managed through a centralized credit approval framework, segmented underwriting standards for SMEs vs. large corporates, and regular portfolio stress testing.
• Liquidity management: Daily liquidity monitoring, use of interbank markets and repos, and maintenance of high-quality liquid assets to meet regulatory requirements.
• Capital allocation: Prioritizes lending in targeted sectors (infrastructure, manufacturing, trade) while balancing retail mortgage/consumer lending to diversify asset mix.

Bank of Xi'an Co.,Ltd. (600928.SS): How It Works

• Primary revenue: interest income generated from loans and advances to corporate and retail customers (net interest income is the largest single contributor).
• Fee-based income: service fees from trade financing, bond underwriting, wealth management, settlement and advisory services.
• Interbank and treasury operations: income from interbank placements, securities investments and trading activities.
• Cost control and efficiency initiatives: branch rationalization, technology-driven service channels and risk-adjusted pricing to protect margins.

How It Makes Money - Key Channels

• Commercial loans: term loans and revolving credit to SMEs and larger corporates - priced to generate interest margin over funding costs.
• Mortgage and consumer lending: retail installment loans and mortgages providing stable interest income and cross-sell opportunities.
• Fee services: trade finance fees, underwriting & advisory fees, wealth-management product fees and transaction/commission income.
• Investment income: interest and trading gains from bond portfolios and interbank placements.
• Risk and capital management: credit provisioning, loan-loss reserves and capital allocation affecting net profitability and ROE.

• Revenue composition: the bank's model remains interest-led (NII 7.929bn CNY), supplemented by fee income from trade finance, bond underwriting and wealth management.
• Profitability: high net profit margin (56.85%) together with an ROE of 7.39% indicates profitable operations relative to equity, while operating income of 2.50bn CNY shows operational efficiency.
• Risk & capital: lending margins, credit provisioning and liquidity/funding costs determine sustainable earnings; treasury and fee activities diversify income.

Bank of Xi'an Co.,Ltd. (600928.SS): How It Makes Money

• 2024 net profit: 2.56 billion CNY (up 3.91% vs. 2023)
• 2024 revenue: 4.51 billion CNY (up 1.26% vs. 2023)
• Market capitalization: 17.29 billion CNY
• Ranking: 16th among regional banks in China
• Strategic priorities: digitalization, SME lending, green finance (target: 20% of loan portfolio to green projects by 2025)

• Net interest income from commercial lending (retail, corporate, SME loans)
• Fee and commission income (payment services, wealth management, agency services)
• Investment income and trading gains from securities and bond portfolios
• Ancillary services: card fees, custody, bancassurance distribution

• Digital transformation - cost-to-income improvement and scalable retail/SME customer acquisition through online channels
• SME focus - higher-margin, relationship-driven lending to regional small and medium enterprises
• Sustainable finance push - reallocating credit toward green projects (20% target by 2025) to capture policy support and new lending demand
• Capital and risk management - preserving asset quality while supporting growth to sustain modest profit increases