China Merchants Bank's net profit last year was 150.181 billion, an increase of 1.21%, with a slight decrease in non-performing loan ratio.

China Merchants Bank (600036.SH, 03968.HK) released its 2025 performance report on the evening of March 27, showing that the bank achieved a net profit attributable to shareholders of 150.181 billion yuan, a year-on-year increase of 1.21%. The average return on total assets (ROAA) for shareholders and the average return on equity (ROAE) for ordinary shareholders were 1.19% and 13.44%, respectively, down 0.09 and 1.05 percentage points year-on-year.

In 2025, China Merchants Bank achieved net operating income of 337.273 billion yuan, a year-on-year increase of 0.05%. Among this, net interest income was 215.593 billion yuan, a year-on-year increase of 2.04%, and non-interest income was 121.680 billion yuan, a year-on-year decrease of 3.31%.

By the end of last year, China Merchants Bank’s total assets reached 13,070.523 billion yuan, an increase of 7.56% compared to the end of the previous year; total loans and advances amounted to 7,258.058 billion yuan, an increase of 5.37%; total liabilities were 11,789.624 billion yuan, an increase of 7.98%; and total customer deposits were 9,836.130 billion yuan, an increase of 8.13%.

As of the end of the reporting period, the bank’s non-performing loan balance was 68.206 billion yuan, an increase of 2.596 billion yuan compared to the end of the previous year; the non-performing loan ratio was 0.94%, down 0.01 percentage points compared to the end of the previous year; the provision coverage ratio was 391.79%, down 20.19 percentage points compared to the end of the previous year; and the loan provision ratio was 3.68%, down 0.24 percentage points compared to the end of the previous year.

In the real estate sector, by the end of last year, the balance of credit-related and contingent credit, self-owned bond investments, and self-owned non-standard investments in China Merchants Bank that bear credit risk totaled 353.970 billion yuan, a decrease of 5.38% compared to the end of the previous year. The balance of investments from wealth management funds, entrusted loans, actively managed trust sales by cooperative institutions, and main underwriting debt financing instruments that do not bear credit risk totaled 178.312 billion yuan, a decrease of 20.01% compared to the end of the previous year.

By the end of 2025, the balance of loans in the real estate industry was 283.114 billion yuan, a decrease of 3.251 billion yuan compared to the end of the previous year, accounting for 4.10% of total loans and advances, down 0.27 percentage points compared to the end of the previous year; the non-performing loan ratio in the real estate industry was 4.64%, down 0.10 percentage points compared to the end of the previous year.

By the end of last year, the balance of corporate loans at China Merchants Bank was 32,157.50 billion yuan, an increase of 12.29% compared to the end of the previous year, with corporate loans accounting for 44.31%. The non-performing amount of corporate loans was 28.622 billion yuan, a decrease of 1.853 billion yuan compared to the end of the previous year; the non-performing loan ratio for corporate loans was 0.89%, down 0.17 percentage points compared to the end of the previous year.

In terms of retail loans, by the end of 2025, China Merchants Bank’s retail loan balance was 37,201.91 billion yuan, an increase of 2.07% compared to the end of the previous year, with retail loans accounting for 51.26%. The balance of retail non-performing loans was 39.584 billion yuan, an increase of 4.449 billion yuan compared to the end of the previous year; the non-performing loan ratio was 1.06%, up 0.10 percentage points compared to the end of the previous year.

In 2025, the net interest yield for China Merchants Bank (group basis) was 1.87%, a year-on-year decrease of 11 basis points; in the fourth quarter, the group’s net interest yield was 1.86%, an increase of 3 basis points compared to the third quarter. Regarding the main reasons for the year-on-year decline in net interest yield, China Merchants Bank stated in its annual report that on the asset side, firstly, the decrease in last year’s stock mortgage rates, the decline of the Loan Prime Rate (LPR), and insufficient effective credit demand continued to push down the pricing of newly issued loans, leading to a continued decline in the average yield of loans; secondly, the sustained downward trend in market interest rates led to a continued decrease in yields on market-oriented assets such as bond investments, interbank transactions, and bill discounts. On the liability side, the growth of low-cost demand deposits faced pressure, and there was no obvious turning point in the trend of deposit term conversion, which somewhat weakened the effect of the market-oriented reduction of deposit interest rates, maintaining a relatively rigid cost of liabilities.

In wealth management, China Merchants Bank’s wealth management fee and commission income for 2025 was 26.711 billion yuan, a year-on-year increase of 21.39%. Among this, the income from the sale of wealth management products was 9.347 billion yuan, a year-on-year increase of 18.98%, mainly driven by growth in sales scale and optimization of product structure; income from agency funds was 5.846 billion yuan, a year-on-year increase of 40.36%, primarily affected by the increase in the scale and sales of equity funds; income from agency insurance was 5.823 billion yuan, a year-on-year decrease of 9.37%, mainly affected by changes in business structure; income from agency trust plans was 3.518 billion yuan, a year-on-year increase of 65.55%, mainly due to growth in agency trust scale; and income from agency securities transactions was 1.801 billion yuan, a year-on-year increase of 62.55%, mainly driven by increased securities trading demand from clients in the Hong Kong capital market.