Chang Jiang Shang Bao·2026-01-26 00:55Core Viewpoint - In 2025, China Merchants Bank reported a slight increase in revenue and net profit, with total assets exceeding 13 trillion yuan for the first time, indicating steady growth despite a decline in return on equity (ROE) [2][8]. Financial Performance - In 2025, the bank achieved operating revenue of 337.53 billion yuan, a year-on-year increase of 0.01% [3][4]. - The net profit attributable to shareholders reached 150.18 billion yuan, reflecting a growth of 1.21% year-on-year [3][4]. - The total profit amounted to 178.99 billion yuan, with a year-on-year increase of 0.19% [3]. Asset Quality - As of the end of 2025, the bank's total assets surpassed 13 trillion yuan, marking a 7.56% increase from the previous year [5][6]. - The non-performing loan (NPL) ratio stood at 0.94%, a decrease of 0.01 percentage points year-on-year, maintaining a level below 1% for five consecutive years [8]. - The provision coverage ratio was 391.79%, down 20.19 percentage points from the previous year, indicating a strong risk mitigation capacity [8]. Return on Equity (ROE) - The ROE for 2025 fell to 13.33%, a decrease of 1.05 percentage points from the previous year, raising concerns among investors [8][9]. - The management acknowledged that the decline in ROE is linked to slower profit growth and net asset growth, emphasizing the importance of maintaining a high ROE for shareholder returns [9]. Market Performance - In 2025, the A-shares and H-shares of China Merchants Bank saw cumulative increases of 13.23% and 32%, respectively [10]. - The bank's A and H share prices were reported at 37.5 yuan and 46.4 HKD, with an AH premium rate of approximately -12%, indicating a rare occurrence of price inversion among A+H listed banks [10]. Dividend Policy - The bank announced its first interim dividend in 2025, totaling 25.55 billion yuan, with a dividend payout ratio of 35.02% [9][10].