Xin Lang Cai Jing·2026-02-10 05:17Core Viewpoint - China Merchants Bank, known as the "King of Retail," is facing challenges despite its strong asset base and profit growth, prompting a need for a "second entrepreneurship" to regain its former glory [3][26]. Financial Performance - As of December 31, 2025, total assets reached 13.07 trillion yuan, an increase of 918.49 billion yuan or 7.56% from the previous year [4][22]. - The bank's net profit attributable to shareholders was 150.18 billion yuan, with a growth rate of 1.21%, indicating resilience in a challenging operating environment [5][6]. - Revenue for 2025 was 337.53 billion yuan, showing a slight increase of 0.01% compared to 2024 [6][10]. Income Structure - Interest income was the only positive growth driver, with net interest income rising to 215.59 billion yuan, a 2.04% increase from 2024 [10]. - Non-interest income decreased by 3.38% to 121.94 billion yuan, reflecting challenges in wealth management and investment banking sectors [12][13]. Asset Quality - The bank's non-performing loan (NPL) ratio was 0.94%, a slight decrease from 0.95%, while the provision coverage ratio fell to 391.79%, down 20.19 percentage points [12][13]. - The loan provision ratio also decreased to 3.68%, indicating a potential increase in asset quality pressure [13]. Retail Banking Challenges - Retail loan growth slowed to 1.43%, leading to declines in credit card transaction volumes and related income [23][24]. - Fee income from credit card transactions dropped by 16.37%, highlighting the impact of reduced consumer credit demand [24]. Strategic Initiatives - The bank is implementing an "AI First" strategy to enhance financial services and internal operations, aiming for a transformation towards a "value bank" [25]. - Management emphasizes maintaining asset quality while pursuing growth, indicating a cautious approach to expanding retail loans [25][26]. Leadership Changes - Xu Mingjie has been appointed as the Chief Risk Officer, reflecting the bank's commitment to strengthening risk management amid ongoing challenges [16][18].