Hengfeng Bank will achieve a revenue of 27.16B yuan in 2025, with net interest margin rising against the trend by 4 basis points.

Hengxin News April 2 (Reporter Jin Lei) On April 1, Hengfeng Bank released its 2025 annual report. In 2025, the bank achieved operating income of RMB 27.159 billion, a year-on-year increase of 5.37%; and net profit of RMB 5.906 billion, a year-on-year increase of 10.25%. By the end of 2025, Hengfeng Bank’s total asset size had surpassed RMB 1.6 trillion, reaching RMB 1610.413 billion, up 4.89% from the end of the previous year.

During the reporting period, the bank realized net interest income of RMB 22.572 billion, a year-on-year increase of 8.72%; in terms of non-interest income, last year the bank’s net fee and commission income was RMB 2.573 billion, with a growth rate of 10.00%, mainly because fee income increased from consulting and advisory business as well as settlement and clearing business. Other net income was RMB 2.014 billion, down 24.68% year on year, mainly due to a year-on-year decrease in gains from asset disposal and fair value changes in profit and loss.

The annual report shows that in 2025, Hengfeng Bank’s net interest margin rebounded against the trend to 1.56%, up 4 basis points from the end of the previous year. It outperformed the 2025 industry average of 1.42% for commercial banks, producing a direct, positive push to Hengfeng Bank’s net interest income, and was one of the core factors driving the bank’s overall performance growth in 2025.

Based on data from the financial report, it can be seen that the net interest margin’s rise against the trend was mainly due to better cost control on Hengfeng Bank’s liabilities side.

According to the bank’s annual report data, by the end of 2025, the bank’s total loans and advances reached RMB 927.242 billion, a year-on-year increase of 7.68%, and the proportion of loans to total assets increased to 57.58%.

Hengfeng Bank said that last year, factors such as the LPR rate cut, sharing the benefits with the real economy, and strengthening support for areas such as inclusive small and micro businesses led to a year-on-year decline in the yield on loans and investments. The average yield on interest-earning assets was 3.38%, down 33 basis points year on year.

However, on the liabilities side, the bank strengthened liability cost control, reduced the deposit cost ratio, and optimized the liability structure. The average cost rate of interest-bearing liabilities was 1.93%, down 37 basis points year on year; of which, the average cost rate of customer deposits was 1.93%, down 34 basis points year on year. The decline in liability costs exceeded the decline in asset yields, which enabled the net interest margin to ultimately achieve an increase of 4 basis points against the trend.

In terms of asset quality, as of the end of 2025, the bank’s non-performing loan ratio was 1.35%, down 0.14 percentage points from the end of 2024. It has continued to decline for seven consecutive years, falling to the lowest level since the restructuring; the balance of non-performing loans was RMB 12.515 billion, down RMB 0.358 billion from the end of 2024; and the provision coverage ratio was 162.30%, up 7.90 percentage points from the end of 2024, the highest level since the restructuring.

At the end of the reporting period, Hengfeng Bank’s core tier-one capital adequacy ratio, tier-one capital adequacy ratio, and capital adequacy ratio were 8.78%, 9.89%, and 12.63%, respectively.