AI Inquiry · Revenue Slightly Down, Net Profit Still Grows: How Does CITIC Bank Achieve Countercyclical Performance?

Text | Chen Zhaoyu

Editor | Liu Peng

On March 23, CITIC Bank held its 2025 annual performance briefing in Beijing. Earlier, on March 20, CITIC Bank released its 2025 annual report, showing total assets surpassing 10 trillion yuan, with revenue slightly declining for the year but net profit still increasing.

Financial data shows that in 2025, CITIC Bank achieved a net profit attributable to shareholders of 70.618 billion yuan, surpassing 700 billion yuan for the first time, a 2.98% year-on-year increase; total operating income was 212.475 billion yuan, a slight decrease of 0.55% year-on-year.

Total Assets Enter the “10 Trillion Club”

In terms of asset size, as of the end of 2025, CITIC Bank’s total assets reached 10.13 trillion yuan, a 6.28% increase year-on-year; total liabilities were 9.28 trillion yuan, up 6.4% from the end of 2024. Among them, total deposits exceeded 6 trillion yuan, reaching 6.05 trillion yuan, a 4.69% increase from the end of 2024.

Net interest margin (NIM) remained under pressure in 2025, with CITIC Bank’s NIM falling to 1.63%, down 14 basis points from the previous year, but still higher than the average of joint-stock commercial banks by 7 basis points.

Compared to peers, CITIC Bank’s NIM decline narrowed, thanks to its capital advantage in corporate settlement services. Its average cost of customer deposits was 1.52%, down 37 basis points year-on-year in 2025, indicating effective cost control of liabilities. Additionally, the bank’s current account deposit ratio was 33.8%, with a stable low-cost liability base, supporting stable NIM.

Looking at the full-year change in NIM, the first quarter’s margin decreased by 12 basis points compared to 2024, and the first half of the year saw a 2 basis point decline quarter-on-quarter. The pressure to narrow the margin was mainly concentrated in the first half, with some stabilization in the second half.

On the asset side, yields on interest-earning assets and loans were 3.21% and 3.67%, respectively, down 12 basis points from mid-year.

On the liability side, the cost rates of interest-bearing liabilities and deposits were 1.61% and 1.52%, respectively, down 12 and 13 basis points from mid-year.

The bank adjusted its deposit structure, compressed high-cost long-term deposits, and kept the cost rate of interest-bearing liabilities at 1.61%, down 0.41 percentage points from the previous year. Personal deposits accounted for 29.66%, up 0.9 percentage points; corporate SME deposits accounted for 22.83%, up 0.37 percentage points.

Amid more regulated deposit market pricing and proactive cost control of liabilities, the cost of liabilities improved, providing strong support for phase stabilization of NIM.

Two Approaches to Handle NIM Pressure

Faced with NIM pressure, CITIC Bank mainly stabilizes income through two paths.

First is “volume to compensate for price,” where loan expansion supports interest income.

Looking at loan allocation, corporate loans account for 56.18% of total loans, with a balance of 32,932 billion yuan, up 13.24% year-on-year, mainly invested in energy, infrastructure, and advanced manufacturing sectors. Meanwhile, cross-border loans increased significantly by 59.94% year-on-year to 130.8 billion yuan, with foreign exchange sales and purchase volume reaching 260.2 billion USD, up 10.17%, reinforcing the bank’s position in foreign exchange services.

Interest-earning assets and total loans grew 6.23% and 2.48% year-on-year, respectively, with a slight slowdown compared to mid-year, mainly due to weaker retail loan demand and the reduction of low-yield bills. The bank also increased bond holdings, with bond investments up 17.43% year-on-year, faster than the growth in the first three quarters.

Second, the bank seeks growth through wealth management services.

From the financial report, the bank’s interest net income for 2025 was 14.469 billion yuan, with a positive quarterly trend, increasing 0.73% quarter-on-quarter in Q4; non-interest net income was 68.006 billion yuan, up 5.58% year-on-year, maintaining good growth with a five-year compound annual growth rate of 8.99%. Among these, fee income was 32.772 billion yuan, a 5.58% increase.

Notably, among various fee income sources, card business fees remain the largest contributor but decreased by 10.3% year-on-year, mainly due to shrinking credit card transaction volumes across the market. Meanwhile, fees from wealth management and agency services surged by 45.2% and 24.8%, respectively, becoming key drivers of profit growth.

Non-performing Loan (NPL) Ratio Declines for 7 Consecutive Years

From core risk indicators, as of the end of 2025, non-performing loan (NPL) balance was 67.216 billion yuan, up 1.1% year-on-year, but the NPL ratio fell to 1.15%, down 1 basis point from the previous year, marking seven consecutive years of decline and the best level since 2014.

However, industry analysts note that since new NPL data was not disclosed, the estimated annualized new NPL generation rate based on the increase in NPL balance and write-offs is about 1.13%, slightly higher than the same period last year. This suggests that increased write-offs may be a reason for the NPL ratio decline, and ongoing monitoring is needed.

By business segment, corporate asset quality continued to improve, with declines in NPL ratios in manufacturing, leasing, and business services. Retail loans saw a slight increase in NPL ratio, a common industry issue, rising 0.07% from the end of 2024 but still within manageable range.

The bank’s loan loss reserve coverage ratio was 203.61%, down from 209.43% at the end of 2024 by 5.82 percentage points, but still at a healthy level, maintaining over 200% for four consecutive years.

As of the end of 2025, the bank’s capital adequacy ratio was 12.8% (down 0.56 percentage points from last year), with Tier 1 capital adequacy ratio at 10.9% (down 0.36 percentage points), and core Tier 1 capital ratio at 9.48% (down 0.24 percentage points).

Dividend Rate Increased Again; Per Capita Salary About 595,000 Yuan

It’s noteworthy that CITIC Bank’s dividend payout ratio increased to 31.75% in 2025, up 1.25 percentage points from the previous year, marking the second consecutive year of increase. The total cash dividends distributed were 21.201 billion yuan, accounting for 31.75% of net profit, both record highs. Over the past five years, total dividends amounted to nearly 89 billion yuan.

According to the 2025 annual report, CITIC Bank’s CEO position is currently vacant (former CEO Lu Wei was appointed CEO of Postal Savings Bank, now the chairman, Fang Heying, is acting as CEO), with five vice presidents. The annual compensation for each CEO candidate exceeded 2 million yuan.

Source: CITIC Bank 2025 Annual Report

Regarding staff, as of the end of 2025, CITIC Bank employed 67,600 people (including subsidiaries). With employee costs totaling 40.236 billion yuan that year, the average salary was approximately 595,000 yuan.

Additionally, in 2025, CITIC Bank continued to develop in the pension finance sector, with 2.9339 million personal pension accounts opened, a 34.08% increase, and pension industry loans grew by 146.58%. The bank also performed well in corporate governance, with MSCI ESG ratings rising to AAA (world’s best).

Looking ahead to 2026, net interest margins are expected to remain low, with ongoing pressure on NIM management. However, industry analysts believe that re-pricing of long-term high-interest deposits will continue to positively impact NIM. Meanwhile, the issue of asset scarcity may intensify, and the precision and profitability of credit deployment will face challenges.

As of March 23, CITIC Bank’s market capitalization was 416.284 billion yuan, with a P/E ratio of 6.21 and a P/B ratio of 0.61.