China Merchants Bank: stable asset quality in Q3 2025 as profit edges up

China Merchants Bank Co., Ltd. reported a net profit attributable to shareholders of 113.772 bn yuan for the first nine months of 2025, a year-on-year increase of 0.52%. Net operating income for the period was 251.282 bn yuan, down 0.52% year-on-year, primarily due to a 4.27% decrease in net non-interest income. The bank’s total assets grew by 4.05% to 12,644.075 bn yuan by the end of September 2025, while total liabilities increased by 4.12% to 11,368.939 bn yuan, driven by a 4.64% rise in customer deposits to 9,518.697 bn yuan.

The group maintained stable asset quality, with non-performing loans increasing by 1.815 bn yuan to 67.425 bn yuan, but the non-performing loan ratio decreased by 0.01 percentage point to 0.94%. The allowance coverage ratio stood at 405.93%, a decrease of 6.05 percentage points from the end of the previous year. Corporate loans saw a significant increase of 10.01% to 3,150.344 bn yuan, while retail loans grew by 1.43% to 3,696.619 bn yuan. The total balance of real estate-related businesses subject to credit risks decreased by 4.74% to 356.361 bn yuan, with the non-performing loan ratio for the property development industry falling by 0.50 percentage point to 4.24%.

Capital adequacy ratios remained strong, with the core Tier 1 capital adequacy ratio under the Advanced Measurement Approach at 13.93% and under the Weighted Approach at 11.99%. The bank reported 220m retail customers and 16,597.523 bn yuan in assets under management (AUM) from retail customers, an increase of 11.19% year-on-year.