Zhengzhou-based Zhongyuan Bank has unveiled its plan for the takeover of three other banks in Henan province, amidst a wave of consolidation in the Chinese regional banking sector.
On 7 December Zhongyuan Bank announced that its board of directors had approved the takeover of Bank of Luoyang (洛阳银行), Bank of Pingdingshan (平顶山银行) and Bank of CTS.JZ (焦作中旅银行), all of whom are situated in the central Chinese province of Henan.
The move comes after Zhongyuan Bank announced on 27 October that it planned to take over its regional peers.
According to the announcement Zhongyuan Bank plans pay a potential total consideration of 28.5 billion yuan to acquire the trio of Henan-based banks.
First founded in December 2014, Zhongyuan Bank is headquartered in the Henan province capital of Zhengzhou, and listed on the Hong Kong Stock Exchange in July 2017.
As of 30 June Zhongyuan Bank had total assets of 753.002 billion yuan, while its total loans were 384.994 billion yuan and its deposit balance was 448.5 billion yuan, for YoY growth of 7.8% and 5.5% respectively.
In the first half of 2021 Zhongyuan Bank posted operating revenues of 9.718 billion yuan, and net profits of 2.112 billion yuan, for YoY growth of 4.2%.
The announcement arrives following spate of mergers of China’s regional banks, following concerns over the health of the sector which first came to a head with the forcible takeover of Inner Mongolia’s Baoshang Bank in May 2019.