Industrial Bank (601166) H2 2025 earnings summary

Executive summary

• Total assets reached RMB 11.09 trillion, up 5.58% year-over-year; loans and deposits both grew, with loan balance at RMB 5.95 trillion and deposit balance at RMB 5.93 trillion at year-end 2025.

• Operating income was RMB 212.74 billion, up 0.24% year-over-year; net profit attributable to shareholders was RMB 77.47 billion, up 0.34% year-over-year.

• Asset quality remained stable with a non-performing loan (NPL) ratio of 1.08% and provision coverage ratio at 228.41%.

• The bank completed the full redemption of all preferred shares and continued to optimize its capital structure, with a core tier-one capital adequacy ratio of 9.70%.

• Cash dividend payout ratio exceeded 30% for the first time, with a total cash dividend of RMB 22.56 billion for 2025.

Financial highlights

• Net interest income was RMB 148.75 billion, up 0.44% year-over-year; net interest margin (NIM) was 1.71%, down 11bps year-over-year.

• Non-interest net income was RMB 63.99 billion, down 0.20% year-over-year; fee and commission net income rose 7.45% to RMB 25.89 billion.

• Operating profit was RMB 89.95 billion, up 3.15% year-over-year; cost-to-income ratio was 29.56%.

• Return on average assets (ROAA) was 0.72%; return on average equity (ROAE) was 9.15%.

• Basic EPS was RMB 3.46; diluted EPS was RMB 3.21.

Outlook and guidance

• The bank will focus on digital, green, international, integrated, and ecosystem-driven strategies, aiming to deepen industry finance and enhance its four core business areas: technology finance, green finance, wealth banking, and investment banking.

• 2026 macro policy is expected to remain supportive, with continued focus on risk management, asset-liability optimization, and stable net interest income growth.

• The bank targets to maintain NIM above industry average, stable asset quality, and further growth in fee-based income.