China Merchants Bank 2025 Annual Report Released: Achieved a net profit of 150.181 billion yuan, with net interest margin narrowing to 1.87%

Every reporter｜Zhao Jingzhi Every editor｜Yang Jun

On the evening of March 27, China Merchants Bank (SH600036, stock price 39.44 yuan, market capitalization 994.7 billion yuan) announced its 2025 performance report, with a total market value of approximately 10 trillion yuan.

The performance report shows that China Merchants Bank’s total assets reached 14 trillion yuan. During the reporting period, the bank achieved operating income of 337.273 billion yuan and net profit of 150.181 billion yuan, representing year-on-year growth of 0.05% and 1.21%, respectively.

Net interest margin narrowed by 11 basis points year-on-year

The 2025 annual report shows that China Merchants Bank’s total assets at the end of the period were 13.07 trillion yuan, an increase of 7.56% compared to the end of the previous year; the total customer deposits amounted to 9.84 trillion yuan, a year-on-year increase of 8.13%.

In terms of income structure, net interest income accounted for 63.87% of China Merchants Bank’s revenue, while non-interest net income accounted for 36.13%, maintaining an industry-leading level.

In addition, the net interest margin of China Merchants Bank decreased by 11 basis points year-on-year to 1.87%. It is noteworthy that on a quarter-on-quarter basis, the net interest yield in the fourth quarter of 2025 showed a quarter-on-quarter increase, rising by 3 basis points from the third quarter to 1.86%.

“Looking ahead to 2026, the group’s net interest yield is expected to remain under certain pressure,” said China Merchants Bank, which will enhance asset-liability portfolio management to promote continuous growth in net interest income and stable operation of net interest yield.

In 2020, China Merchants Bank proposed to create a value cycle chain for wealth management, aiming to connect customer funding and financing demands more effectively with a new model, expanding light capital business. In 2024, the bank’s wealth management income (including fees and commissions from wealth management, asset management, and custody services) was 37.647 billion yuan, a year-on-year decrease of 16.84%. The reporter noted that in 2025, China Merchants Bank’s wealth management business rebounded, with income of 44.013 billion yuan, a year-on-year increase of 16.91%.

The income from wealth management fees and commissions was 26.711 billion yuan, a year-on-year increase of 21.39%. Notably, after experiencing a significant decline, China Merchants Bank announced in 2024 that the fund distribution rate would be fully discounted to 10%, with the “volume for price” strategy showing results. The reporter from Daily Economic News noted that in 2025, the income from fund agency services was 5.846 billion yuan, a year-on-year increase of 40.36%.

In terms of asset management fees and commissions, China Merchants Bank’s income in 2025 was 11.927 billion yuan, a year-on-year increase of 10.94%, mainly due to the growth in the scale of the subsidiary’s asset management business. Custody commission income was 5.375 billion yuan, a year-on-year increase of 9.90%, primarily due to the growth in custody scale and quality improvement.

Credit card circulation increased, transaction volume decreased

Over the past year, the credit card market continued to contract, with the industry adjustment entering a “deep water zone.”

According to the latest data from the central bank, as of the end of the fourth quarter of 2025, the number of credit cards and loan cards in circulation nationwide decreased to 696 million, a reduction of about 31 million cards compared to the end of 2024 and a decrease of 11.1 million cards from the historical high at the end of the third quarter of 2022.

Notably, according to the data disclosed by China Merchants Bank, as of the end of 2025, the number of credit cards in circulation was 97.451 million, and the number of active accounts was 70.1065 million, an increase from 96.859 million cards and 69.4409 million accounts at the end of 2024. However, the transaction volume of credit cards in 2025 continued to shrink, amounting to 4.082047 trillion yuan, a year-on-year decrease of 7.62%.

Regarding credit card asset quality, the reporter noted that the non-performing loan ratio for China Merchants Bank’s credit cards in 2025 was 1.74%, a decrease of 0.01 percentage points from 2024.

However, the overall non-performing loan ratio for retail loans remained on the rise. In terms of personal housing loans, the reporter noted that the non-performing loan ratio for personal housing loans at China Merchants Bank was 0.51%, an increase of 0.03 percentage points from the end of the previous year; the attention loan ratio was 1.57%, an increase of 0.29 percentage points from the end of the previous year; and the overdue loan ratio was 0.87%, an increase of 0.06 percentage points from the end of the previous year.

China Merchants Bank stated that the company has always adhered to regular monitoring and re-evaluation of the value of existing collateral, timely adjusting the value of mortgage assets. As of the end of the reporting period, the weighted average mortgage rate for personal housing loans was 40.59%, an increase of 3.44 percentage points from the end of the previous year, with collateral remaining sufficiently stable, and the overall risk of personal housing loan business being controllable.

In terms of small and micro loans, the loan and advance balance of China Merchants Bank was 873.559 billion yuan, and the non-performing loan ratio rose sharply from 0.79% to 1.22%, with the overdue loan ratio also increasing from 0.97% to 1.43%.

However, the non-performing loan ratio for corporate loans at China Merchants Bank saw a significant decline, dropping from 1.01% in 2024 to 0.84% in 2025, helping to reduce the overall non-performing loan ratio from 0.95% to 0.94%.

Cover image source: Daily Economic News