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As it approaches its 40th anniversary, China Merchants Bank has delivered a report showing growth in both revenue and net profit.
On the evening of March 27, the bank released its annual report for 2025. In 2025, the bank's revenue increased by 0.01% year-on-year to RMB 337.532 billion, and net profit rose by 1.21% year-on-year to RMB 150.181 billion. It is reported that last year, the bank's net interest income achieved positive growth, net fee income growth turned positive, and wealth management income saw double-digit growth, with revenue growth improving quarter by quarter and net profit growth showing a positive trend, while the non-performing loan ratio decreased.
China Merchants Bank announced a cash dividend of RMB 2.016 per share (before tax) for the year, with a dividend payout ratio of 35.34%. After deducting the interim cash dividend of 2025 that has been distributed, the cash dividend per share this time is RMB 1.003 (before tax), with a proposed cash dividend distribution of approximately RMB 25.296 billion (before tax).
In 2026, China Merchants Bank will celebrate its 39th anniversary, moving towards its 40th year. &#34;Adhere to long-termism, create the extraordinary in every detail, and move from excellence to greatness in 'earlier, faster, better, and longer',&#34; said the bank's president Wang Liang in the financial report.
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Interest Income:
Net interest margin continues to narrow, expected to remain under pressure this year
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In recent years, the banking industry has faced increasing operational pressure, and China Merchants Bank has also encountered challenges. In the first quarter of 2025, the bank's revenue and net profit slightly declined. Although there was some pressure at the beginning of the year, its operating revenue growth improved quarter by quarter, with year-on-year growth rates of -3.1%, -1.7%, -0.5%, and 0.01% for the first quarter, first half, first three quarters, and the whole year, respectively. The annual growth rate turned positive for the first time since 2023, highlighting the bank's operational resilience.
Profitability indicators also began to improve from mid-2025. In the second half of the year, profit growth further expanded, with net profit attributable to shareholders of the bank increasing by 1.21% year-on-year for the whole year.
The return to positive operating revenue is closely related to the narrowing year-on-year decline in net interest margin. The financial report shows that last year, the bank's net interest income was RMB 215.593 billion, an increase of 2.04% year-on-year. The net interest margin was 1.78%, a decrease of 8 basis points year-on-year; the net interest yield was 1.87%, a decrease of 11 basis points year-on-year.
Data from the Financial Regulatory Administration shows that by the end of the fourth quarter of 2025, the average net interest margin of the banking industry was 1.42%, a decrease of 0.1 percentage points compared to the end of 2024. Among them, the net interest margin of joint-stock banks was 1.56%. This means that although China Merchants Bank could not avoid the narrowing interest margin environment, its net interest margin level still outperformed its peers and led among joint-stock banks.
It is worth mentioning that last June, at the shareholders' meeting, some investors were concerned about whether the bank's net interest margin could return to the 2%-3% range. At that time, Wang Liang responded, &#34;It is quite difficult.&#34; The reason is that from the asset side, current real enterprises and local governments hope that banks will further lower interest rates to reduce financing costs;
From the liability side, the overall liability interest rate of banks is already very low, with both the interest rates for demand deposits and time deposits being low. Time deposit rates have basically entered the &#34;1&#34; range, and rates above 2% are rare. Therefore, there is little room for further decline in liability costs.
Looking ahead to 2026, China Merchants Bank (CMB) expects that the net interest margin will still be under pressure to some extent. The bank will strengthen its ability to organize high-quality assets on the asset side, continuously optimize the credit structure, and enhance refined pricing management; on the liability side, it will strengthen the acquisition of low-cost funds, optimize the deposit structure, and increase the promotion of low-cost interbank deposits, flexibly and proactively arrange various types of active liabilities absorption, and manage the liability portfolio well.
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Non-Interest Income:
Wealth Management Fees and Commission Income Increased by 20% Year-on-Year
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In terms of non-interest income, last year, CMB achieved a non-interest net income of 121.939 billion yuan, a year-on-year decrease of 3.38%.
Among them, the net fee and commission income was 75.258 billion yuan, a year-on-year increase of 4.39%, the growth rate turned positive for the first time since 2022.
In the fee and commission income, wealth management fees and commission income was 26.711 billion yuan, a year-on-year increase of 21.39%; asset management fees and commission income was 11.927 billion yuan, a year-on-year increase of 10.94%; bank card fee income was 13.643 billion yuan, a year-on-year decrease of 18.60%; settlement and clearing fee income was 15.465 billion yuan, a year-on-year decrease of 0.26%; credit commitment and loan business commission income was 3.961 billion yuan, a year-on-year decrease of 6.12%; custody business commission income was 5.375 billion yuan, a year-on-year increase of 9.90%; other income was 7.183 billion yuan, a year-on-year increase of 3.98%.
In the wealth management fees and commission income, the income from selling financial products was 9.347 billion yuan, a year-on-year increase of 18.98%, mainly driven by the growth in sales scale and optimization of product structure; agency fund income was 5.846 billion yuan, a year-on-year increase of 40.36%, mainly influenced by the increase in the scale and sales of equity funds; agency insurance income was 5.823 billion yuan, a year-on-year decrease of 9.37%, mainly affected by changes in business structure; agency trust plan income was 3.518 billion yuan, a year-on-year increase of 65.55%, mainly due to the growth in agency trust scale; agency securities trading income was 1.801 billion yuan, a year-on-year increase of 62.55%, mainly influenced by the increased demand for securities trading from clients in the Hong Kong capital market.
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Asset Quality:
Credit Card and Consumer Loan Non-Performing Loan Ratio Decreased
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In terms of asset scale, CMB has reached a new level. As of the end of last year, CMB's total assets were 13,070.523 billion yuan, an increase of 7.56% compared to the end of the previous year. Over the past five years, its asset scale has successively crossed the thresholds of 10 trillion yuan, 11 trillion yuan, 12 trillion yuan, and 13 trillion yuan.
In terms of asset quality, as of the end of last year, the bank's non-performing loan balance was 68.206 billion yuan, an increase of 2.596 billion yuan compared to the end of the previous year; the non-performing loan ratio was 0.94%, a decrease of 0.01 percentage points compared to the end of the previous year;
The provision coverage ratio is 391.79%, a decrease of 20.19 percentage points compared to the end of last year; the loan provision ratio is 3.68%, a decrease of 0.24 percentage points compared to the end of last year.
According to data from the Financial Regulatory Administration, by the end of the fourth quarter of 2025, the non-performing loan ratio of commercial banks will be 1.50%, unchanged from the end of 2024; the provision coverage ratio will be 205.21%, slightly down by 5.98 percentage points from the end of 2024. Among them, at the end of last year, the non-performing loan ratio of joint-stock banks was 1.21%, and the provision coverage ratio was 207.20%. It can be seen that China Merchants Bank's non-performing loan ratio and provision coverage ratio far exceed those of its peers.
In terms of product classification, last year, the non-performing loan ratio of corporate loans at China Merchants Bank was 0.89%, a decrease of 0.17 percentage points compared to the end of last year; the non-performing loan ratio of retail loans was 1.06%, an increase of 0.1 percentage points compared to the end of last year.
In retail loans, the non-performing loan ratio of micro and small loans rose from 0.79% at the end of 2024 to 1.22%; the non-performing loan ratio of personal housing loans rose from 0.48% to 0.51%. However, the non-performing loan ratios for credit card loans and consumer loans decreased, with the non-performing loan ratio for credit card loans dropping from 1.75% to 1.74%; the non-performing loan ratio for consumer loans decreased from 1.04% to 1.02%.
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Retail Performance:
AUM exceeds 17 trillion, nearly 200,000 private banking clients
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As the &#34;king of retail,&#34; China Merchants Bank's retail business has attracted much attention.
The financial report shows that last year, the pre-tax profit of China Merchants Bank's retail financial business was 87.417 billion yuan, a year-on-year decrease of 0.65%; the operating income of retail financial business was 185.293 billion yuan, a year-on-year decrease of 3.74%, accounting for 61.89% of the company's operating income. The retail wealth management fee and commission income reached 23.794 billion yuan, a year-on-year increase of 17.85%, accounting for 51.27% of the retail net fee and commission income; the retail bank card fee income was 13.516 billion yuan, a year-on-year decrease of 18.74%.
It is worth mentioning that by the end of last year, the total assets under management (AUM) of retail clients managed by China Merchants Bank reached a new milestone of 17 trillion yuan, amounting to 170.82519 billion yuan, an increase of 14.44% compared to the end of last year, with more than 2 trillion yuan added that year, setting a historical high.
In fact, at the Wealth Partners Forum held by China Merchants Bank on August 7 last year, Wang Liang had already announced that the retail AUM managed by China Merchants Bank exceeded 16 trillion yuan.
Retail AUM includes customer deposits, wealth management, funds, etc. It reflects the comprehensive customer value and wealth management capability of the bank's retail business and is one of the key indicators for measuring the strength of the bank's retail business. As early as 2007, China Merchants Bank was the first in the industry to propose the operational concept of retail AUM and took 9 years to achieve the first 5 trillion. Subsequently, China Merchants Bank accelerated its wealth management, shortening the second 5 trillion to 5 years, and it took just over 3 years to surpass the third 5 trillion
In the retail business, private banking is like the jewel in the crown. The financial report shows that China Merchants Bank's private banking clients (referring to retail clients with an average total asset of RMB 10 million or more in the bank) reached 199,326, an increase of 17.87% compared to the end of last year.
&#34;Running a bank is like a marathon, not a 100-meter sprint; you cannot run a marathon at the speed of a 100-meter sprint, otherwise it is unsustainable,&#34; Wang Liang once stated. In this financial report, he reiterated the concept of long-termism: &#34;Adhere to long-termism, create the extraordinary in every detail, and move from excellence to greatness in 'earlier, faster, better, and longer.'&#34;
Written by: Nandu Bay Financial Society reporter Liu Lanlan

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China Merchants Bank released its 2025 annual report, with revenue of 337.532 billion yuan, a year-on-year increase of 0.01%; net profit of 150.181 billion yuan, a year-on-year increase of 1.21%. The bank achieved positive growth in net interest income, a turnaround in the growth rate of net fee income, and significant growth in wealth management income. The cash dividend per share is 2.016 yuan, with a dividend payout ratio of 35.34%. Despite facing operational pressures, the operating revenue and net profit of China Merchants Bank improved quarter by quarter in 2025, demonstrating operational resilience

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AUM breaks 17 trillion! How solid is the revenue and net profit growth report card of China Merchants Bank?