China Merchants Bank Co., Ltd.

In 2025, China Merchants Bank reported net operating income of RMB 337.2 billion, up 0.05% year over year, and net profit attributable to shareholders of RMB 150.2 billion, up 1.21%. Net interest income was RMB 215.6 billion, up 2.04%, while non-interest net income was RMB 121.7 billion, down 3.31%; net fee and commission income rose 4.39%, its first positive growth since 2022. NIM was 1.87%, down 11 bps year over year, ROAA was 1.19%, and ROAE was 13.44%. Total assets exceeded RMB 13 trillion; loans and advances were RMB 7.26 trillion, up 5.37%, and customer deposits were RMB 9.84 trillion, up 8.13%. The NPL ratio was 0.94%, NPL balance was RMB 68.2 billion, credit cost was 0.6%, and allowance coverage was 391.79%. For 2026, management said NIM will likely continue to decline, but the decline should be smaller than in 2025, with a hoped-for stabilization in the second half of the year. Management also described operating income and profit growth as likely to remain under pressure, while aiming for stable growth, stronger asset-liability management, and continued capital discipline.

Chairman Miao framed 2026 as a tougher but still opportunity-filled year, saying banks face a low-rate, low-spread, low-fee environment, but China’s economy still supports commercial banking. He said CMB will stick to a value-creation-bank strategy and push its three core capabilities: wealth management, digital/intelligent technology, and risk management. His tone was confident and strategic, emphasizing that CMB’s moat comes from customer-centric culture, market-oriented reforms, and differentiation rather than any single business line.

CFO Peng highlighted that earnings were still resilient despite pressure on spreads and fees, and pointed to the year’s 1.87% NIM, 13.44% ROAE, 0.94% NPL ratio, and 391.79% allowance coverage. He said the NIM’s quarterly decline moderated through 2025, with a 3 bps q/q increase in the fourth quarter, helped by better asset-liability management, improved pricing discipline, and a higher share of earning assets. Looking ahead, he said NIM should keep declining in 2026 because of weak credit demand, repricing pressure, and limited room for further deposit-cost reduction, while ROE is likely under pressure and could trend toward 10% if conditions allow.

Analysts pressed management on the 15th Five-Year Plan, the sustainability of revenue and profit growth, the NIM turnaround, retail credit risk, and how CMB can defend its edge after years of retail-led success. Management answered that the bank is shifting toward a more balanced model across retail, corporate, IB/GM, and wealth/asset management, while also expanding international and regional franchises. On AI, executives said CMB has already implemented large-model applications in more than 800 scenarios, saved 15.56 million working hours, and sees AI as a key source of future competitiveness, though they stressed regulators require human-plus-AI governance and that risk control remains critical. On retail credit, management acknowledged rising stress in micro loans and consumption loans, said the problem is industry-wide, and pledged tighter underwriting, more collateral-based lending, and adequate provisioning.