China Merchants Bank Co., Ltd.

For 2025, China Merchants Bank reported net operating income of RMB 337.2 billion, up 0.05% year on year, and net profit attributable to shareholders of RMB 150.2 billion, up 1.21%. ROAA was 1.19% and ROAE was 13.44%, both lower than a year earlier. Net interest income rose 2.04% to RMB 215.6 billion, while non-interest net income fell 3.31% to RMB 121.7 billion; net fee and commission income increased 4.39% and was the first positive growth since 2022. NIM was 1.87%, down 11 bps year on year; the cost-to-income ratio was 32.01%. Assets exceeded RMB 13 trillion, total 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, allowance coverage was 391.79%, and credit cost was 0.6%. Management said 2026 NIM should still decline, but the decline should be smaller than in 2025; it also expects stable profit growth, continued pressure on fee income, and a push to keep capital and RWA disciplined.

Chairman Miao said the bank’s core plan is to stay on a high-quality development path while accelerating innovation, transformation, and differentiation. He framed CMB’s moat as customer-centric culture plus market-oriented reform, and said the bank wants to deepen internationalization, comprehensive banking, and digital/AI capabilities. His tone was confident but realistic, repeatedly noting that the industry remains in a downward cycle and that CMB must continue adapting.

CFO Peng said 2025 performance was resilient but still under margin pressure, with NIM at 1.87% and a 11 bps decline, even after a 3 bps quarterly rebound in 4Q. He pointed to asset and liability management, repricing dynamics, and structure improvement as supports for the margin, but said weak loan demand and lower room for deposit-cost reduction will keep pressure on 2026 NIM. He also said the 391.79% coverage ratio remained above peers despite falling 20.19 percentage points, and linked the decline mainly to higher NPL balances; he emphasized continued prudent provisioning and capital discipline after the interim dividend and OCI effects reduced capital ratios.

Analysts asked about the 15th five-year plan, whether CMB can restore faster revenue/profit growth, when ROE may bottom, and whether the 4Q NIM improvement can continue in 2026. Management said the bank will pursue high-quality development, innovation, internationalization, and AI-first execution, while keeping NIM declines smaller and aiming to stabilize margins in the second half of 2026. On retail risk, management acknowledged pressure in micro loans, consumption loans, and other retail credit, saying NPL formation is slowing but that the environment remains challenging and provisioning will stay prudent. On AI, management said CMB is ahead in breadth and depth of application, with 856-859 scenarios implemented, but noted the impact is still evolving and must be balanced with regulatory expectations for human-plus-AI controls.