China Merchants Bank (3968) Q3 2025 earnings summary

Executive summary

• Maintained stable core profit indicators and high capital adequacy, with net profit attributable to shareholders up 0.52% year-over-year for the first three quarters, reaching RMB113.772 billion.

• Focused on balanced development in quality, profitability, and scale, with strong cost management and asset quality control.

• Retail and wealth management businesses showed robust growth, with retail AUM up 11.19% and wealth management fee income up 18% year-over-year.

• Corporate loan growth outpaced retail, reflecting strategic asset allocation amid weak retail loan demand.

• Asset quality remained stable with a non-performing loan (NPL) ratio of 0.94%, down 0.01 percentage point from year-end 2024.

Financial highlights

• Net operating income was RMB251.282 billion, down 0.52% year-over-year, but the decline narrowed from the first half.

• Net interest income for January–September 2025 was RMB160.042 billion, up 1.74% year-over-year; net interest margin was 1.87%, down 12 basis points.

• Net fee and commission income rose 0.90% to RMB56.202 billion; other net non-interest income fell 11.53%.

• Total assets grew 4.05% to RMB12.64 trillion; total loans up 3.6%, with corporate loans up 10.01% and retail loans up 1.43%.

• Customer deposits increased 4.64% to RMB9.52 trillion, with demand deposits at 49.45% of the total.

Outlook and guidance

• Expectation of continued stable macroeconomic growth, but with ongoing external uncertainties and sector-specific risks.

• Retail loans remain a strategic focus, but corporate lending will continue to grow in line with government guidance.

• NIM expected to stabilize at a lower level, with further room for deposit cost reduction limited.

• Fee income growth to face pressure from mutual fund industry fee cuts in 2026, but efforts underway to diversify and optimize product offerings.

• Plans to maintain stable asset quality through proactive risk monitoring and diversified disposal of non-performing assets.