Scan of non-performing assets in 23 listed banks: retail loans under pressure, Bohai Bank's personal loan non-performing rate reaches 3.8%

Ask AI · Why is the non-performing loan ratio of listed banks’ personal loans rising against the trend?

Cailian Press, April 1 (Editor: Yang Bin) As the banking industry intensifies asset disposal efforts and enriches disposal methods, the non-performing loan ratio of listed banks has remained stable or declined.

Cailian Press has compiled the 2025 annual reports disclosed by 23 listed banks so far; 17 banks saw a decrease in their non-performing loan ratio in 2025, with Qingdao Bank experiencing the largest decline of 0.17 percentage points. However, there is a significant divergence between personal loan non-performing rates and corporate non-performing rates, with most banks seeing an increase in personal non-performing loans. Qingdao Bank, Chongqing Bank, Bank of Communications, and Zheshang Bank all saw their personal non-performing loan ratios rise by more than 0.5 percentage points, with Bohai Bank’s personal NPL ratio reaching 3.80%. Analysts say that consumer and real estate-related loans are exerting some risk pressure on asset quality.

Listed banks’ non-performing loan ratios remain generally stable or decline, with the largest drop of 17 basis points

Among the 23 listed banks (22 A-shares and 1 Hong Kong stock) that have disclosed their 2025 annual reports, the median non-performing loan ratio is 1.23%, down 0.02 percentage points from 2024. Six banks had a non-performing loan ratio below 1% at the end of 2025, while three banks exceeded 1.5%. Additionally, five banks saw their non-performing loan ratios increase compared to the previous quarter, one remained flat, and the rest experienced a stable or declining trend, with five banks decreasing by more than 0.1 percentage points.

According to Ni Jun, Chief Analyst of Banking at GF Securities, the non-performing loan ratios of 22 A-share banks at the end of 2025 were 1.26% for state-owned large banks, 1.19% for joint-stock banks, and 1.01% for city and rural commercial banks, with changes from Q3 2025 of -0.6bp, -0.3bp, and -2.7bp respectively.

Chart: Non-performing loan ratios and changes of listed banks in 2025

(Source: Choice Data, compiled by Cailian Press)

Among state-owned banks, China Merchants Bank has the best asset quality. At the end of 2025, its non-performing loan ratio was 0.94%, the lowest among state-owned banks, down 0.01 percentage points from the previous quarter.

In its annual report, China Merchants Bank stated that in 2025, it continued to strengthen a fortress-style risk compliance management system, enhanced the collection of non-performing assets, and achieved high-quality risk resolution. The bank disposed of a total of 66.19B yuan of non-performing loans through various means, including conventional write-offs (22.61B yuan), securitization of non-performing assets (34.23B yuan), cash recoveries (7.5B yuan), and other methods such as debt-for-equity swaps, transfers, restructuring, and debt relief totaling 1.84 billion yuan.

Postal Savings Bank’s non-performing loan ratio at the end of 2025 was 0.95%. The bank stated that in 2025, it deepened refined management of non-performing assets and improved asset disposal efficiency. During the year, it disposed of 96.88B yuan of non-performing loans and principal, including cash recoveries of 21.33B yuan, write-offs of 29.45B yuan, securitization of 33.8B yuan, and other methods totaling 12.29B yuan.

Among city and rural commercial banks, Qingdao Bank’s non-performing loan ratio at the end of 2025 was 0.97%, a decrease of 0.17 percentage points from the previous quarter, the largest decline among the 23 listed banks that disclosed annual reports.

Qingdao Bank’s annual report pointed out that in 2025, it focused on key assets, carried out special campaigns to resolve existing risks, and targeted large corporate non-performing assets, already written-off assets, and key risk assets through special campaigns, establishing a “one household, one policy” disposal mechanism. It also enriched disposal methods, built a diversified market-oriented disposal system, deepened the coordination mechanism for non-performing asset disposal, and legally and compliantly applied traditional methods such as autonomous collection, judicial disposal, asset write-offs, and debt transfers. Simultaneously, it actively explored market-oriented disposal paths such as asset securitization to broaden disposal channels.

Other city and rural commercial banks, such as Yunnan Rural Commercial Bank and Chongqing Bank, saw their non-performing loan ratios decrease by more than 0.1 percentage points at the end of 2025, indicating significant improvement in asset quality. Among joint-stock banks, Shanghai Pudong Development Bank and Bohai Bank also saw their non-performing loan ratios decline by 0.1 percentage points.

Pudong Development Bank focused on key areas such as real estate, government debt, and retail loans, implementing proactive control strategies and continuously increasing efforts in disposing of and resolving non-performing assets and cash recoveries. Chongqing Bank managed non-performing assets through a dynamic, orderly management cycle; under the “collection–litigation–auction” framework, it carried out collection and disposal based on “one household, one policy” and classification strategies, extending disposal channels through digital means.

Non-performing loans include substandard, doubtful, and loss categories. Regarding the “watchlist” loans in the five-level loan classification, the proportion of watchlist loans in listed banks varies: Qingdao Bank, Yunnan Rural Commercial Bank, Agricultural Bank, and Bank of Communications have relatively low proportions, while Zheshang Bank, Huaxia Bank, Minsheng Bank, and Bohai Bank have proportions exceeding 2%.

Chart: Proportion and change of watchlist loans in listed banks in 2025

(Source: Choice Data, compiled by Cailian Press)

In terms of risk resistance, the overall provision coverage ratio of non-performing loans among listed banks in 2025 has decreased. The change in the provision coverage ratio varies among banks: for example, Postal Savings Bank and China Merchants Bank saw significant decreases, while Qingdao Bank and Pudong Development Bank experienced increases.

Chart: Non-performing loan provision coverage ratio and changes at the end of 2025

(Source: Choice Data, compiled by Cailian Press)

Ni Jun believes that the credit cost ratio of A-share listed banks declined year-on-year, and the overall provision coverage ratio remained stable. In 2025, the combined credit cost of 22 listed banks was 0.61%, down 4 basis points year-on-year. The banks’ total provision coverage ratio was 229.6%, down 2.02 percentage points from Q3 2025.

Retail loans face pressure, with some banks’ personal loan non-performing rates rising by 67 basis points

Despite the overall improvement in listed banks’ non-performing loan ratios, the trends of personal and corporate non-performing loans diverged significantly. Among banks that disclosed data by business type, corporate non-performing loan ratios almost all declined in 2025, while personal non-performing loan ratios almost all increased.

Specifically, only Ping An Bank, Pudong Development Bank, and Bohai Bank saw their personal non-performing loan ratios decrease in 2025. Bohai Bank’s personal NPL ratio fell by 0.35 percentage points but still reached 3.80%. Qingdao Bank, Chongqing Bank, Bank of Communications, and Zhejiang Bank all saw their personal non-performing loan ratios increase by more than 0.5 percentage points, with Zheshang Bank rising by 0.67 percentage points.

Chart: Personal non-performing loan ratios and changes of listed banks in 2025

(Source: Choice Data, compiled by Cailian Press)

Chart: Corporate non-performing loan ratios and changes of listed banks in 2025

(Source: Choice Data, compiled by Cailian Press)

Further statistics from Ni Jun’s report show that the non-performing rates of credit cards, consumer loans, and mortgages in A-share listed banks increased by 0.12, 0.10, and 0.07 percentage points respectively. Meanwhile, the non-performing rate of corporate real estate loans remains high. Under the debt resolution background, infrastructure loans generally maintain good quality, with continued declines in non-performing rates.

Huaxia Bank’s personal loan non-performing ratio increased by 0.31 percentage points in 2025. The bank explained in its annual report that external risk factors led to a decline in some debtors’ income levels and repayment ability, causing the personal NPL ratio to rise.

Ma Bo, Chief Risk Officer of Everbright Bank, stated at the earnings briefing that in Q4 2025, provisioning expenses increased compared to the previous quarter, mainly focusing on retail business. The current real estate market shows no obvious improvement. As a result, retail loans, especially those related to real estate, face significant risk pressure. Everbright Bank has increased provisioning for related businesses to strengthen risk mitigation.

Ni Jun predicts that with the recovery of consumer markets and the continued rebound of service industries, employment absorption capacity will further improve, driving population flow back to core cities. The real estate market and consumption demand in major first-tier cities may gradually stabilize, and retail loan asset pressures are expected to ease gradually.

Bank of China’s President Wang Liang stated at the earnings release that in recent years, retail business has faced new challenges, including a sharp slowdown in retail credit growth, market changes affecting credit card business, and fee reductions in wealth management. Miao Jianmin, Chairman of the bank, emphasized that future breakthroughs in retail business will focus on wealth management.

(Cailian Press, Yang Bin)