China Merchants Bank Co., Ltd. Q4 FY2025 earnings call

Chairman Miao introduced 2025 annual results, mentioning steady operation, growth in asset and liability, consolidated structural advantages, stable asset quality, and efforts in digital and intelligent construction. President Wang introduced operational information including customer base consolidation, category asset allocation optimization, balanced development of 4 major segments, international and comprehensive development, risk management, and management innovation.

In 2025, net operating income was RMB 337.2 billion, up by 0.05%. Net profit attributable to the bank's shareholder was RMB 150.2 billion, up by 1.21%. ROAA was 1.19%, ROAE was 13.44%. Net interest income was RMB 215.6 billion, up by 2.04%, NIM was 1.87%. Non-interest net income was RMB 121.7 billion, down by 3.31%, with net fee and commission income up by 4.39%. Assets exceeded RMB 13 trillion; total loans and advances were RMB 7.26 trillion, up by 5.37%. Total liability was RMB 11.79 trillion, up by 7.98%. Non-interest income accounted for 36.08%, retail finance made over half of the contribution. NPL balance was RMB 68.2 billion, up by RMB 2.6 billion, NPL ratio was 0.94%, credit cost was 0.6%, allowance coverage ratio was 391.79%. IT input was RMB 12.9 billion, accounting for 4.31% of net operating income.

2026 outlook: Challenges and opportunities coexist in banking industry. Stick to value creation bank strategy, focus on high-quality tech self-reliance, domestic market, high-level opening up, maintain strategic determination, focus and sell through cycle, seize opportunity to speed up transformation, build resilience, and guard bottom line for risk and compliance management.

Facing downward interest rate trend, retail credit risks such as credit card, consumption loan, micro loan risks, pressure from external environment on retail business, and uncertainties in macro environment affecting asset quality.

Includes questions from investors and media on topics like strategic vision, NIM outlook, retail business, AI application, asset quality, moat, deposit movement, cross-border business, etc., and corresponding answers from CMB executives