China Merchants Bank (3968) Q4 2025 earnings summary

Executive summary

• Achieved stable growth in net operating income and profit, with both reaching record highs despite a challenging macroeconomic environment.

• Maintained industry-leading positions in net interest margin, non-interest income proportion, ROAE, NPL ratio, and allowance coverage.

• Continued strategic transformation, with significant improvements in digitalization, risk management, and international operations.

• Retail customer base exceeded 220 million, corporate customers reached 3.62 million, and AUM from retail customers surpassed RMB17 trillion.

• MSCI ESG rating remained at AAA, reflecting strong ESG performance.

Financial highlights

• Net operating income: RMB337.273 billion, up 0.05% year-over-year.

• Net profit attributable to shareholders: RMB150.181 billion, up 1.21% year-over-year.

• Total assets: RMB13,070.523 billion, up 7.56% from previous year-end.

• Total loans and advances: RMB7,258.058 billion, up 5.37% year-over-year.

• Total deposits: RMB9,836.130 billion, up 8.13% year-over-year.

• Basic EPS: RMB5.70, up 0.71% year-over-year.

• Cost-to-income ratio: 32.01%, up 0.09 percentage points year-over-year.

• Non-performing loan (NPL) ratio: 0.94%, down 0.01 percentage points year-over-year.

• Allowance coverage ratio: 391.79%, down 20.19 percentage points year-over-year.

Outlook and guidance

• Targeting 6–7% growth in both total deposits and total loans for 2026.

• Net interest margin expected to remain under pressure due to low interest rate environment, but proactive asset-liability management and regulatory changes may provide support.

• Continued focus on technology finance, green finance, inclusive finance, retirement finance, and digital finance.

• Plans to further enhance risk management, digital transformation, and internationalization.