Assets surpass 1 trillion for the first time, CITIC Bank management details performance, five major initiatives, and bond market strategy

(Source: JM Financial)

On March 23, CITIC Bank (601998.SH) held its 2025 Annual Performance Release Conference.

Previously, CITIC Bank released its 2025 annual report, showing that CITIC Bank Group achieved operating income of 212.475 billion yuan, a slight decrease of 0.55% year-on-year, and net profit attributable to shareholders of 70.618 billion yuan, up 2.98% year-on-year. Notably, in terms of asset size, CITIC Bank’s total assets broke the 10 trillion yuan mark for the first time, reaching 10.13 trillion yuan, a 6.28% increase from the end of the previous year.

At the performance conference, CITIC Bank management discussed performance highlights, bond market trends, and other topics with the media.

Performance Highlights

CITIC Bank Chairman Fang Heying told media outlets including Jiemian News that the 2025 performance showed several key highlights:

1. Net profit growth rate ranks among the top in large and medium-sized banks. The dividend payout ratio increased by 1.2 percentage points to 31.7% in 2024 from a high level, allowing shareholders to share in CITIC Bank’s development dividends.

2. A balanced approach of stabilizing income and reducing costs to unlock growth potential: First, from stabilizing net interest margin to stable earnings, interest spread gradually stabilized, and revenue decline narrowed. The release of investment trading capabilities, continuous growth in fee income, and stable contributions to growth were evident. Second, non-performing loan ratio has decreased for seven consecutive years, with both special mention and overdue loan ratios declining from the beginning of the year. In 2025, CITIC Bank recovered 37.2 billion yuan of non-performing loans, including 12.9 billion yuan from asset disposal recoveries. The full-year loan cost rate decreased by 0.07 percentage points, making a key contribution to growth. Third, from controlling costs to reducing both operating costs and cost-to-income ratio: the bank reduced operating costs by 2.25 billion yuan, and the cost-to-income ratio decreased by 0.88 percentage points, significantly supporting growth.

3. Debt business volume and price management are balanced, with a relatively reasonable deposit structure. Corporate demand deposits account for 46%, ranking among the top two in joint-stock banks.

4. The further validation of the light-capital transformation path: CITIC Bank is the only institution among comparable peers to achieve positive growth in non-interest income for six consecutive years, with non-interest income share increasing by 9.3 percentage points over five years. Last year, fee income reached 32.77 billion yuan, a 5.6% increase, outperforming peers by 2.2 percentage points in growth rate, ranking second in total and growth among peers.

5. Strengthening the foundation of asset quality: CITIC Bank has reduced its non-performing rate for seven consecutive years, with the provision coverage ratio maintained above 200%. This is driven by relentless efforts in risk management and development, as well as increasing risk absorption capacity. Over five years, the bank has allocated 66 billion yuan annually for provisioning to absorb bad loans.

6. Continued high-intensity investment in technology is accelerating into productivity. Technology leadership is no longer just a slogan; CITIC Bank’s technology strategy is shifting from AI first to AI fast, moving from prioritizing AI to accelerating AI deployment.

Five Major Articles: Avoiding the Disconnect Between Strategy and Business

CITIC Bank Vice President Gu Lingyun explained to media outlets including Jiemian News that the bank’s approach to the three aspects of the “Five Major Articles” in finance is as follows:

First, starting with strategic integration to solidify the foundation for development. How can we accurately position ourselves in serving national strategies and build sustainable competitiveness in market competition? Our clear answer is to integrate the “Five Major Articles” with the creation of a value-driven bank, resolutely avoiding the disconnection between strategy and operations.

In CITIC Bank’s development plan from 2024 to 2026, a clear strategic framework was proposed to build five leading banks: leading in wealth management, comprehensive financing, transaction settlement, foreign exchange services, and digital banking—aligned naturally with the “Five Major Articles” emphasized by the central government, ensuring efficient synergy.

Second, advancing the “Five Major Articles” is not about merely meeting targets or data manipulation, but about truly building systems and strengthening capabilities. This reflects our deep understanding of development initiative. Only by deeply integrating the “Five Major Articles” into system capability building can we achieve coordinated improvements in scale, quality, efficiency, and customer satisfaction, fostering sustainable growth.

Third, using collaboration as a differentiator to create unique advantages. CITIC Group possesses a leading full-license financial resource platform, with core strengths in high-end manufacturing, elderly care, and other real economy sectors. As the group’s largest subsidiary, we leverage the “One CITIC, One Customer” philosophy to turn our unique ecosystem advantages into competitive edges.

Bond Market Outlook

CITIC Bank Vice President Hu Gang stated that in 2025, bond market fluctuations will gradually weaken, contrasting with the single-directional strength seen in 2024. The financial industry generally experienced negative growth, but CITIC Bank’s bond business maintained steady growth, with year-on-year performance significantly improving compared to the third quarter.

Data shows that CITIC Bank’s bond business outperformed the trend. Interest income from bonds declined by 15%, which is 9 percentage points lower than the industry average decline of 24%. Income from OCI account spread was 2.12 times higher than comparable peers, ranking among the top two in the industry. The bank underwrote 500 billion yuan in government bonds, ranking first among domestic commercial banks. Foreign exchange market-making transactions exceeded 4 trillion USD, a 21% increase year-on-year, with multiple foreign exchange indicators ranking in the top two and first among joint-stock commercial banks.

Hu Gang predicts that domestically, loose monetary policy and low interest rates are certain, and the interplay between stocks and bonds, along with macroeconomic recovery expectations, will pose challenges for bond market investments. Internationally, geopolitical conflicts, policy divergence among major economies, cross-border capital flows, and foreign exchange volatility introduce uncertainties. In 2026, the bond market is likely to present a neutral pattern characterized by low interest rates and high volatility.

For 2026, CITIC Bank has formulated three core investment strategies:

First, holding and earning coupons, increasing investments in loans and local government bonds, building credit, market-making capabilities, and brand strength. By 2025, the bank completed bond turnover of 750 billion yuan, a 240% increase year-on-year, with 900 counterparties, up 500 from the previous year.

Second, trading for spreads, maintaining significant holdings and proportions of government and policy financial bonds, using tactical operations to earn spreads, and enhancing digital capabilities to improve quantitative trading.

Third, optimizing asset allocation, improving the macro asset allocation system, and increasing overseas investments under risk control. In January-February 2026, overseas assets increased by $10 billion, with diversified investments across countries, currencies, and products. Non-U.S. investments now account for over 39%, while enhancing all-weather trading capabilities across commodities, foreign exchange, interest rates, and capital markets.