China Merchants Bank reports modest profit growth despite revenue dip

China Merchants Bank announced its Interim Report 2025, revealing a net profit attributable to shareholders of RMB74.930 billion for the first half of 2025, a modest year-on-year increase of 0.25%. Net operating income, however, saw a decrease of 1.73% to RMB169.923 billion, influenced by narrowing net interest margins and pressure on non-interest income. Total assets grew by 4.16% to RMB12,657.151 billion, with total loans and advances to customers increasing by 3.31% to RMB7,116.616 billion.

The non-performing loan ratio improved slightly, decreasing by 0.02 percentage points to 0.93%. The allowance coverage ratio stood at 410.93%, while the capital adequacy ratio under the Advanced Measurement Approach was 18.56%. Retail customers increased by 2.86% to 216 million, and corporate customers grew by 6.36% to 3.3679 million.

The bank continued its digital transformation, investing RMB4.444 billion in information technology and launching 386 new Fintech innovation projects. Overseas operations also showed positive momentum, with total assets of overseas institutions increasing by 6.56% year-on-year.