An overview of asset quality for 22 A-share listed banks: overall improvement, retail pressure, and outstanding performance by the six major state-owned banks

Ask AI · Is the rise in non-performing retail loans related to adjustments in the real estate market?

Everyday Economic News Reporter: Zhao Jingzhi    Edited by: Huang Sheng

As of March 31, 2026, among 42 A-share listed banks, 22 have already released their 2025 “results.” Of these, the six major state-owned banks (Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank) have all made their debut.

Judging from the 2025 annual reports submitted by these listed banks, overall asset quality among listed banks shows a generally steady and improving trend. Most banks’ non-performing loan ratios are basically unchanged or have improved compared with the previous year, while four banks show slight increases—resulting in an overall improving pattern.

However, in terms of structural changes, the reporter from Everyday Economic News noted that some listed banks saw an increase in the non-performing rate of their corporate loans in the real estate industry. In addition, the overall non-performing rate of retail loans at banks has increased, and the personal mortgage non-performing rates at multiple banks have also risen.

Asset quality generally improving

Asset quality is the “lifeline” of commercial banks. High-quality asset quality means that a bank’s assets can recover principal and interest on time, with stronger risk resistance—thereby ensuring the bank’s sound operations and sustainable development.

Based on the disclosed 2025 annual reports, the asset quality of the 22 listed banks above shows an overall improvement trend, aligning with the overall data released by the China Banking and Insurance Regulatory Commission—in 2025, non-performing rates for all types of banks improved. Among them, rural commercial banks showed the most significant improvement: the non-performing rate in the fourth quarter decreased by 0.14 percentage points from the first quarter to 2.72%.

As the ballast of the banking industry, the six major state-owned banks are particularly impressive. Except for Postal Savings Bank, the five banks—Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications—achieved year-over-year declines in their overall non-performing loan ratios, with the reduction concentrated between 0.02 and 0.03 percentage points. Specifically, the non-performing rates of Industrial and Commercial Bank of China and China Construction Bank are both 1.31%, Bank of Communications is 1.28%, Agricultural Bank of China is 1.27%, and Bank of China is 1.23%, all remaining at relatively low levels.

Currently, among the joint-stock banks that have disclosed their 2025 annual reports, Minsheng Bank, Industrial Bank, and China Everbright Bank saw their non-performing loan ratios rise slightly by 0.02, 0.01, and 0.02 percentage points to 1.49%, 1.08%, and 1.27%, respectively.

Among regional banks, the reporter from Everyday Economic News notes that as of March 31, 2026, seven banks have disclosed their 2025 non-performing rates. These seven banks are Zhengzhou Bank, Chongqing Bank, Yunnan Rural Commercial Bank, Ruifeng Bank, Bank of Qingdao, Zhangjiagang Bank, and Wuxi Bank. Among them, Ruifeng Bank’s non-performing rate rose slightly by 0.02 percentage points to 0.99%, while the non-performing rates of the other banks were either flat or decreased year over year.

Real estate loan non-performing rates still relatively high

A research analyst from GF Securities, Ni Jun, pointed out that as of March 31, 2026, among the 22 listed banks that have released their 2025 annual reports, the 2025 corporate non-performing rate decreased by 0.14 percentage points from the end of 2024 to 1.07%. Among them, the non-performing rate declines were larger in areas such as broad infrastructure (guangyi jian she), wholesale and retail trade, and manufacturing. By industry, in 2025 the non-performing rate on corporate real estate loans for commercial banks remained high, followed by wholesale and retail trade, construction, and manufacturing. In addition, in the context of deleveraging, loan quality in the infrastructure sector is generally relatively strong, and the non-performing rate continues to trend downward.

For corporate real estate loans, differences between banks are significant, showing a “polarization” trend.

Taking Zhengzhou Bank as an example, its non-performing loan ratio in the real estate sector was 9.55% in 2024, and 5.11% in 2025, a drop of 4.44 percentage points. In addition, the amount of non-performing loans in the real estate sector also fell from 21.23 billion yuan in 2024 to 9.41 billion yuan in 2025, a decline of more than 50%. Minsheng Bank’s total non-performing loan amount in the real estate sector also dropped sharply from 166.9 billion yuan in 2024 to 117.4 billion yuan in 2025, which drove the bank’s non-performing rate in real estate loans to fall from 5.01% to 3.61%.

But some banks face pressure from rising non-performing rates in the real estate sector. For example, Chongqing Bank and Industrial and Commercial Bank of China had both achieved declines in their real estate non-performing rates in 2024, falling to 5.63% and 4.99%, respectively, but in 2025 both rose by 2.12 percentage points and 0.4 percentage points, reaching 7.75% and 5.39%, respectively.

In terms of personal housing loans, Wind data shows that as of March 31, 2026, among multiple banks that have disclosed related information, the non-performing rates have increased. Only Minsheng Bank’s non-performing loan ratio decreased, while Industrial Bank’s remained flat.

For example, Zhengzhou Bank’s personal housing non-performing rate rose from 1.04% in 2024 to 1.28% in 2025; Industrial and Commercial Bank of China rose from 0.73% in 2024 to 1.06% in 2025; Bank of Communications rose from 0.58% in 2024 to 1.01% in 2025; Agricultural Bank of China rose from 0.73% in 2024 to 0.92% in 2025; China Construction Bank rose from 0.63% in 2024 to 0.89% in 2025; Postal Savings Bank rose from 0.64% in 2024 to 0.69% in 2025; and China Merchants Bank rose from 0.48% in 2024 to 0.51% in 2025.

At the 2025 performance briefing, Wang Jingwu, Vice President of Industrial and Commercial Bank of China, stated that the bank’s asset quality for personal loans has long remained excellent. In the past two years, due to factors such as economic transformation, adjustments in the real estate market, and short-term imbalances between supply and demand, the non-performing rate has risen in the short term, consistent with the overall trend in the industry.

Personal mortgage non-performing rates generally rising

Compared with corporate loans, the retail loan sector faces more widespread pressure— in 2025, many banks’ retail loan non-performing rates continued to rise. Among them, personal housing loans have become one of the key sources of stress.

Wind data shows that as of March 31, 2026, among A-share banks that have disclosed relevant information, only Minsheng Bank’s personal housing non-performing rate decreased, while Industrial Bank’s remained flat.

Specifically, Zhengzhou Bank’s personal housing non-performing rate rose from 1.04% in 2024 to 1.28% in 2025; Industrial and Commercial Bank of China from 0.73% in 2024 to 1.06% in 2025; Bank of Communications from 0.58% in 2024 to 1.01% in 2025; Agricultural Bank of China, China Construction Bank, Postal Savings Bank, and China Merchants Bank also saw slight increases.

At the 2025 performance briefing, Wang Jingwu, Vice President of Industrial and Commercial Bank of China, explained that the bank’s asset quality for personal loans has long been excellent. In the past two years, affected by factors including economic transformation and adjustments in the real estate market, the non-performing rate has risen in the short term, consistent with the overall industry trend.

Besides personal housing loans, risks across the entire retail loan sector are rising. Ni Jun pointed out that at the end of 2025, the non-performing rate in banks’ retail loan sector increased compared with the beginning of the year, and that all different business lines faced certain risk pressures.

The reporter from Everyday Economic News noted that China Merchants Bank’s performance is quite representative: its non-performing rate on micro-loans rose sharply from 0.79% in 2024 to 1.22% in 2025. Its personal mortgage non-performing rate rose slightly from 0.48% in 2024 to 0.51% in 2025, while only the non-performing rate on consumer loans decreased slightly.

Xu Mingjie, Chief Risk Officer of China Merchants Bank, candidly stated that in 2026, risks in the retail credit market will remain in an upward phase, and credit card asset quality also faces certain pressure. China Merchants Bank will take proactive measures to control risks in retail credit and ensure that the overall quality of retail credit remains basically under control.

Everyday Economic News