Sou Hu Cai Jing·2025-11-16 15:11Core Insights - Minsheng Bank reported a revenue growth of 6.74% year-on-year for the first three quarters of 2025, marking a turnaround from a declining trend since 2021, but the net profit attributable to shareholders continued to decline, with a year-on-year decrease of 6.38% [1][4][5] Financial Performance - In Q3 2025, Minsheng Bank achieved a revenue of 36.125 billion RMB, a 4.61% increase compared to the same period last year [2] - The net interest income for the same period was 26.307 billion RMB, reflecting a growth of 4.55% [2] - The net profit attributable to shareholders was 7.162 billion RMB, showing a decline of 10.61% year-on-year [2] - For the first three quarters of 2025, total revenue reached 108.509 billion RMB, an increase of 6.74% year-on-year [4] Revenue Composition - The increase in revenue was primarily driven by a significant rise in fair value changes, contributing 87.03% to the revenue growth, while net interest income contributed only 25.80% [5] - Fair value changes in the first three quarters of 2025 amounted to 0.88 billion RMB, a 101.50% increase year-on-year [5] Credit Impairment Losses - Credit impairment losses have been a major factor affecting Minsheng Bank's profit performance, with losses increasing by 28.17% year-on-year in the first three quarters of 2025 [6][7] - The bank's credit impairment losses for the first three quarters of 2025 were 401.65 billion RMB, which accounted for 51.23% of operating expenses [16] Regulatory Issues - Minsheng Bank faced significant regulatory scrutiny, receiving a total of 72 fines from regulatory bodies in 2025, amounting to nearly 95 million RMB [2][15] - The bank's non-performing loan ratio has remained high, fluctuating around 1.48% to 1.82% from 2020 to Q3 2025 [16] Strategic Initiatives - A new leadership team was appointed in 2024, implementing measures to expand revenue and reduce credit impairment losses [17][18] - The bank has focused on strategic customer segments, including high-quality clients in technology and green sectors, with significant growth in these areas [20][21] - Enhanced risk management practices have been introduced, including setting exposure limits in high-risk sectors and utilizing AI for credit risk assessment [22][23]