CITIC Bank's 2025 Performance: How Does It Look? Fang Heying Details Seven Highlights

On March 23, the frontline financial news, CITIC Bank held its 2025 annual performance release conference, where Chairman Fang Heying introduced the highlights of operational management for 2025.

First, net profit increased by 3%, ranking among the top in large and medium-sized banks. The dividend payout ratio was raised by 1.2 percentage points to 31.7%, building on a high level in 2024, allowing shareholders to share in CITIC Bank’s development dividends.

Second, a combination of stable income and cost reduction opened up growth space and demonstrated resilience. Profit growth potential was unlocked from three aspects: First, from stable net interest margin to stable revenue, with interest margins gradually stabilizing and revenue decline narrowing. The release of investment transaction capabilities, continuous growth in fee income, and stable contributions to growth played key roles. Second, non-performing loan (NPL) ratio has decreased for seven consecutive years, lowering credit costs and achieving effective control. The NPL and overdue loan ratios both declined compared to the beginning of the year. In 2025, CITIC Bank recovered a total of 37.2 billion yuan in NPLs, with 12.9 billion yuan recovered through asset disposal, and the annual credit cost rate decreased by 0.07 percentage points, making a significant contribution to growth. Third, from cost control to operational cost ratio reduction, CITIC Bank reduced operating costs by 2.25 billion yuan for the year, with the cost-to-income ratio decreasing by 0.88 percentage points, significantly supporting growth.

Third, balanced management of liability volume and pricing promoted the creation of a buffer zone to resist the impact of low interest rate spreads. Looking deeper, CITIC Bank’s deposit structure is reasonable, with 46% of corporate demand deposits, ranking among the top two among joint-stock banks.

Fourth, the further validation of the light-capital transformation path. Strategically, CITIC Bank had proposed the “Three New” strategies years ago, considering this feature as one of the four major operational themes and a top priority. Practically, CITIC Bank is the only institution among peers to achieve positive non-interest income growth for six consecutive years, with non-interest income accounting for an increased 9.3 percentage points over five years. Focusing on fee income, last year, CITIC Bank achieved 32.77 billion yuan in fee income, a 5.6% increase, outperforming peers by 2.2 percentage points, ranking second in total volume and growth rate. Additionally, the bank’s comprehensive risk weight was 75%, down 1.3 percentage points last year, moving from the bottom to second place among peers over five years.

Fifth, a risk control strategy centered on structural adjustment further solidified asset quality. CITIC Bank has achieved a non-performing rate decline for seven consecutive years, with a provision coverage ratio maintained above 200%. First, based on a disciplined risk approach, the bank has relentlessly built a development-promoting and effective risk control system, leading to positive changes in risk management. Second, on the basis of revenue creation, the bank increased risk absorption capacity, allocating 66 billion yuan annually over five years to absorb bad loans. Third, leveraging CITIC’s unique risk-sharing advantages, the bank accelerated the disposal of key projects. More critically, CITIC Bank has continuously taken structural adjustment as the main theme of risk control, increasingly considering future risk costs in asset management, reducing credit concentration, and timely reducing or exiting high-risk real estate clients.

Sixth, sustained high-intensity technological investment is accelerating into productivity. Leading in technology is no longer just a slogan but a state. CITIC Bank’s current technology strategy is shifting from AI first to AI fast, moving from prioritizing AI to accelerating AI deployment.

Seventh, the brand image has become more three-dimensional and enriched.