China Minsheng Banking (600016) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 72.38 billion, up 7.83% year-over-year, with net profit attributable to shareholders at RMB 21.38 billion, down 4.87% year-over-year.

• Net interest income grew 1.28% year-over-year, while non-interest income surged 25.00% year-over-year, driven by investment and trading gains.

• Asset quality remained stable with a non-performing loan (NPL) ratio of 1.48%, and provision coverage at 145.06%.

• Capital adequacy improved: core tier-1 ratio at 9.50%, total capital adequacy at 13.25%.

• Liquidity coverage ratio stood at 155.16%, well above regulatory requirements.

Financial highlights

• Operating income: RMB 72.38 billion (+7.83% YoY); net interest income: RMB 49.20 billion (+1.28% YoY); non-interest income: RMB 23.18 billion (+25.00% YoY).

• Net profit attributable to shareholders: RMB 21.38 billion (-4.87% YoY); basic EPS: RMB 0.45.

• Cost-to-income ratio improved to 28.54% (-2.10ppt YoY).

• NPL ratio: 1.48%; provision coverage: 145.06%; loan loss provisions: RMB 26.04 billion (+26.70% YoY).

• Total assets: RMB 7.77 trillion (-0.59% from end-2024); total loans: RMB 4.47 trillion (+0.44% from end-2024); total deposits: RMB 4.31 trillion (+1.46% from end-2024).

Outlook and guidance

• The bank will focus on optimizing asset-liability structure, enhancing risk management, and supporting key sectors such as technology, green finance, and inclusive finance.

• Plans to maintain stable dividend policy, with interim cash dividend of RMB 1.36 per 10 shares.

• Management expects continued pressure on net interest margin but aims to offset with growth in non-interest income and cost control.