FINANCE

Profits Rise at Chinese Banks as Revenue Growth Stalls

Published: Jan. 27, 2026 2:00 a.m. GMT+8

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China Merchants Bank in Beijing, May 7, 2025. Photo: VCG

Chinese banks posted stronger 2025 profits despite sluggish revenue, drawing on reserves and tightening costs to shore up their bottom lines. Preliminary results from eight listed lenders reveal that while net income climbed, revenue growth remained weak.

While complete annual reports aren’t due until March, early disclosures underscore the mounting pressure on banks to sustain earnings amid narrowing interest margins.

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Chinese banks reported higher 2025 net profits, mainly by cutting costs and drawing on reserves, despite weak revenue growth and narrowing interest margins.
Shanghai Pudong Development Bank led profit growth at 10.52%, while China Merchants Bank had the largest profit at 150.18 billion yuan (up 1.21%); regional banks in Jiangsu and Zhejiang outperformed peers.
Provision coverage ratios were sharply reduced but stayed above regulatory thresholds, supporting earnings; asset quality remained stable.

AI generated, for reference only

Who’s Who

Shanghai Pudong Development Bank Co. Ltd.: Shanghai Pudong Development Bank Co. Ltd. (SPDB) achieved the strongest net profit growth among national joint-stock banks in 2025, increasing by 10.52% to 50.02 billion yuan ($7.2 billion). This growth was attributed to increased lending to strategic sectors, optimized asset allocation, and lower funding costs. SPDB also reversed prior revenue declines, though gains were minimal.

China Merchants Bank Co. Ltd.: China Merchants Bank Co. Ltd. (CMB) led in profit size among national joint-stock banks, earning 150.18 billion yuan in 2025, up 1.21%. Despite a slight revenue increase of 0.01% after a prior decline, CMB reduced its provision coverage ratio by 20 points to 391.79%, still above regulatory thresholds, to support earnings.

Industrial Bank Co. Ltd.: Industrial Bank Co. Ltd. (兴业银行股份有限公司) recorded a modest net profit gain of 0.34% in 2025. Its revenue growth for the same year slowed to 0.24%. Despite these modest figures, the bank, like its peers, likely relied on drawing down reserves and tightening costs to support its bottom line amid narrowing interest margins.

China Citic Bank Corp. Ltd.: China Citic Bank Corp. Ltd. (中信银行股份有限公司) saw a modest 2.98% gain in net profit in 2025. However, the bank's revenue contracted by 0.55% in 2025, reversing growth from the previous year. This indicates a challenging environment for the bank despite its profit growth.

Suzhou Rural Commercial Bank Co. Ltd.: Suzhou Rural Commercial Bank Co. Ltd. significantly reduced its provision coverage ratio by over 58 percentage points to 370.19% in 2025. This move, while still above regulatory thresholds, provided substantial support to its earnings amidst a period of generally sluggish revenue growth across Chinese banks.

Bank of Hangzhou Co. Ltd.: Bank of Hangzhou Co. Ltd. dropped its provision coverage ratio by nearly 40 points to 502.24%. Despite this reduction, which provided significant support to its earnings, it still remains above regulatory thresholds. The bank led regional lenders with a 12.05% jump in net profit, outperforming national peers due to a resilient local economy.

Bank of Ningbo Co. Ltd.: Bank of Ningbo Co. Ltd. (宁波银行股份有限公司) performed strongly in 2025. It saw an 8.01% increase in revenue and an 8.13% rise in net profit. This growth was notably aided by a significant 30.72% gain in fee and commission income, indicating a diversified revenue stream.

Bank of Nanjing Co. Ltd.: Bank of Nanjing Co. Ltd. is a Chinese regional lender located in the eastern economic powerhouse region of Jiangsu and Zhejiang. It posted strong results, with its net interest income increasing by 31.08%. The bank, along with other regional lenders, outperformed national peers due to resilient local economies.

China Post Securities Co. Ltd.: China Post Securities Co. Ltd. anticipates corporate lending to be the primary driver of credit growth in 2026. They also suggest that a recovery in retail credit hinges on policies boosting consumer income and spending. Furthermore, the company forecasts a potential bottoming out of net interest margins this year, which could help stabilize bank revenues as they adjust their asset allocation and wealth management strategies.

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What Happened When

2025：: Chinese banks posted stronger profits, drawing on reserves and tightening costs to shore up their bottom lines. Preliminary results from eight listed lenders show that net income climbed, while revenue growth remained weak.

2025：: Shanghai Pudong Development Bank Co. Ltd. (SPDB) posted the strongest net profit growth among national joint-stock banks, up 10.52%. SPDB reported an absolute net profit of 50.02 billion yuan.

2025：: China Merchants Bank Co. Ltd. (CMB) led in profit size with 150.18 billion yuan, up 1.21%. Industrial Bank Co. Ltd. and China Citic Bank Corp. Ltd. posted net profit gains of 0.34% and 2.98% respectively.

2025：: Citic Bank’s revenue contracted 0.55%, reversing 2024 growth. Industrial Bank's revenue growth slowed to 0.24%. CMB’s revenue increased 0.01%, and SPDB cited revenue gains from increased lending to strategic sectors.

2025：: Asset quality remained largely stable with little movement in nonperforming loan ratios. Provision coverage ratios were sharply reduced: Suzhou Rural Commercial Bank Co. Ltd. cut its buffer by over 58 percentage points to 370.19%, Bank of Hangzhou Co. Ltd. dropped nearly 40 points to 502.24%, and CMB reduced its ratio by 20 points to 391.79%.

2025：: Regional lenders in Jiangsu and Zhejiang outperformed national peers. Bank of Hangzhou led with a 12.05% jump in net profit. Bank of Ningbo Co. Ltd. reported an 8.01% rise in revenue and an 8.13% increase in net profit, aided by a 30.72% gain in fee and commission income. Bank of Nanjing Co. Ltd. posted a net interest income increase of 31.08%.

AI generated, for reference only