Zhong Guo Zheng Quan Bao·2026-01-26 20:54Core Viewpoint - The overall performance of the eight banks in China for 2025 shows steady growth, with positive increases in operating income and net profit attributable to shareholders, alongside improvements in asset quality [1][2]. Group 1: Financial Performance - All eight banks reported positive year-on-year growth in net profit attributable to shareholders, with seven banks achieving both revenue and profit growth [1]. - Hangzhou Bank led with a 12.05% increase in net profit, while other notable performers included Ningbo Bank (8.13%) and Nanjing Bank (8.08%) [1]. - Among joint-stock banks, Shanghai Pudong Development Bank reported a 10.52% increase in net profit, while CITIC Bank, China Merchants Bank, and Industrial Bank showed modest growth rates of 2.98%, 1.21%, and 0.34%, respectively [1]. Group 2: Asset Quality - The asset quality of the banks has improved, with most banks reporting a decrease in non-performing loan (NPL) ratios [2]. - Specifically, Shanghai Pudong Development Bank's NPL ratio decreased by 0.10 percentage points to 1.26%, while CITIC Bank and China Merchants Bank's ratios fell to 1.15% and 0.94%, respectively [2]. - City commercial banks like Ningbo Bank and Hangzhou Bank maintained low NPL ratios of 0.76%, while Nanjing Bank's ratio was 0.83% [2]. Group 3: Cost Control and Profitability - Banks have successfully controlled funding costs, with Ningbo Bank reducing its deposit interest rate by 33 basis points through optimizing its deposit structure [2]. - The overall provisioning coverage ratio has slightly decreased but remains at a sufficient level, with Hangzhou Bank exceeding 500% and several others maintaining above 300% [2]. Group 4: Future Outlook - Analysts predict a gradual alleviation of interest margin pressure, which is expected to support performance improvements in 2026 [3]. - The banking sector is anticipated to benefit from a stable asset-liability structure and a reduction in credit costs, which will facilitate profit release [4]. - There is a strategic shift towards expanding non-interest income sources, with banks like Ningbo Bank reporting a 30.72% increase in net fee and commission income, indicating growth potential in intermediary businesses [4].