The 2025 annual reports of listed banks have been successively released, revealing significant shifts in the personal loan business of China's six major state-owned banks. By the end of 2025, the outstanding balance of personal housing loans at these banks amounted to approximately 24.48 trillion yuan, a decrease of 711.516 billion yuan from the previous year, marking a year-on-year decline of 2.82%. In contrast, consumer loans and business loans demonstrated strong performance, emerging as new growth drivers for personal lending.
According to the annual reports, the outstanding balance of personal consumer loans at the six major state-owned banks reached about 3.34 trillion yuan, an increase of 570 billion yuan from the previous year, representing a year-on-year growth of 20.56%. The outstanding balance of personal business loans stood at 9.36 trillion yuan, rising by 1.26 trillion yuan, a year-on-year increase of 15.63%. With the exception of Postal Savings Bank, which showed relatively moderate growth, the other five major banks all achieved double-digit growth in consumer loans. Similarly, excluding Postal Savings Bank and Bank of China, the remaining four major banks also recorded double-digit growth in business loans. Notably, China Construction Bank (CCB) saw growth rates approaching 30% in both consumer and business loans.
These figures align closely with the statistical data on financial institution loan allocations released by the central bank. At the end of the fourth quarter of 2025, the outstanding balance of RMB real estate loans was 51.95 trillion yuan, down 1.6% year-on-year, with a total decrease of 963.6 billion yuan for the year. The outstanding balance of business loans was 25.11 trillion yuan, up 4.0% year-on-year, with an annual increase of 937.8 billion yuan. The outstanding balance of consumer loans, excluding personal housing loans, was 21.16 trillion yuan, a slight increase of 0.7% year-on-year, rising by 180.2 billion yuan for the year.
It is worth noting that the year-on-year growth rates of consumer and business loans at the six major state-owned banks were significantly higher than the average growth rates disclosed by the central bank for financial institutions. This indicates that the surge in consumer and business loans is not entirely representative of the broader industry. Among the 22 listed banks that have disclosed their annual reports, several small and medium-sized banks reported negative year-on-year growth in consumer and business loans, reflecting the intensified divergence in retail credit structures within the banking sector.
**Mortgage Declines Offset by Growth in Consumer and Business Loans** Breaking down by bank, as of the end of 2025, China Construction Bank (CCB) had the largest outstanding balance of personal housing loans among the six major banks, at 5.99 trillion yuan, followed by Industrial and Commercial Bank of China (ICBC) (5.88 trillion yuan), Agricultural Bank of China (4.82 trillion yuan), Bank of China (3.98 trillion yuan), Postal Savings Bank (2.37 trillion yuan), and Bank of Communications (1.44 trillion yuan).
In terms of scale changes, ICBC experienced the largest year-on-year contraction in housing loans, at 3.41%, followed by Agricultural Bank of China, China Construction Bank (CCB), Bank of Communications, and Bank of China, with declines of 3.38%, 3.18%, 2.60%, and 1.65%, respectively. Postal Savings Bank remained largely flat compared to the previous year.
All six major state-owned banks achieved positive growth in personal consumer loans. Among them, China Construction Bank (CCB) recorded the highest year-on-year growth rate at 29.41%, followed by Bank of China and Agricultural Bank of China with growth rates of 28.35% and 26.95%, respectively. Bank of Communications and Industrial and Commercial Bank of China (ICBC) saw growth rates of 19.82% and 18.48%, respectively, while Postal Savings Bank posted a more moderate increase of 4.70%.
In terms of the scale of consumer loans, China Construction Bank (CCB) led with an outstanding balance of 683.174 billion yuan, followed by Postal Savings Bank and Agricultural Bank of China with balances of 642.705 billion yuan and 604.758 billion yuan, respectively. Bank of China and Industrial and Commercial Bank of China (ICBC) followed with balances of 515.733 billion yuan and 499.014 billion yuan, respectively, while Bank of Communications had a relatively lower balance of 395.731 billion yuan.
This shows that China Construction Bank (CCB) ranked first among the six major banks in both the year-on-year growth rate and the scale of its consumer loans. Regarding this performance, Tang Shuo, Vice President of China Construction Bank (CCB), stated at the 2025 annual results conference that the bank has focused on three key areas in leveraging finance to boost consumption: first, actively strengthening collaboration between commerce and finance to jointly promote consumption activities; second, proactively implementing a package of fiscal and financial policies to stimulate domestic demand; and third, concentrating on key consumption sectors by increasing financial support and innovation.
In terms of innovative measures, Tang Shuo explained that the bank has adopted a "circle-chain-group" service model, creating "Home Life" and "Car Life" platforms within the CCB Mobile Banking and "CCB Life" apps. These platforms integrate merchant resources to provide customers with comprehensive online one-stop "consumption + finance" solutions covering various scenarios such as home and car purchases, furniture and appliances, home decoration, property services, and refueling and maintenance.
All six major state-owned banks also achieved positive growth in personal business loans. China Construction Bank (CCB) again recorded the fastest year-on-year growth at 28.77%, followed by Agricultural Bank of China and Industrial and Commercial Bank of China (ICBC) with growth rates of 19.92% and 15.03%, respectively. Bank of Communications ranked fourth with an 11.76% increase, followed by Bank of China at 9.64%, while Postal Savings Bank showed a more moderate growth rate of 5.32%.
In terms of the scale of business loans, Agricultural Bank of China led with an outstanding balance of personal business loans reaching 2.99 trillion yuan, followed by Industrial and Commercial Bank of China (ICBC) and Postal Savings Bank with balances of 1.93 trillion yuan and 1.62 trillion yuan, respectively. China Construction Bank (CCB) and Bank of China followed with balances of 1.32 trillion yuan and 1.04 trillion yuan, respectively, while Bank of Communications had the lowest balance at 462.270 billion yuan.
Regarding the strong performance of Agricultural Bank of China in business loans, Vice President Lin Li shared at the 2025 annual results conference the bank's distinctive approach to inclusive retail credit management—centering on the customer's family to establish a "new perspective" in management.
Lin Li revealed that the bank has launched and promoted a unified credit view for all its inclusive retail customers, implementing "unified credit, integrated management, and consolidated risk control." This approach involves the integrated management of various businesses under the same family business entity, including small and micro enterprise legal persons, business owners and their close relatives, as well as personal business, consumer, and credit card services. This achieves cross-divisional and cross-product coordination and linkage, effectively preventing risks such as selective low-threshold product entry, duplicate credit granting, and excessive credit usage.
**Asset Quality Remains a Test Amid Growth** However, the robust growth in consumer and business loans at the major banks does not reflect the entire industry. Among the 22 listed banks that have disclosed their annual reports, several small and medium-sized banks reported negative year-on-year growth in both consumer and business loans.
For example, by the end of 2025, Ping An Bank's outstanding balance of personal business loans was 503.687 billion yuan, a year-on-year decrease of 5.22%, while Chongqing Bank's balance was 20.778 billion yuan, down 4.07% year-on-year. Similarly, China Citic Bank's outstanding balance of personal consumer loans was 281.777 billion yuan, a reduction of 9.29% year-on-year, and Qingdao Bank's balance was 16.234 billion yuan, a decline of 19.32% year-on-year.
Commenting on this trend, Dong Ximiao, Chief Economist at Zhaolian, noted that the growth of personal consumer loans at large banks has accelerated significantly since 2024. In contrast, consumer and business loans at some small and medium-sized banks have been affected by factors such as the "new regulations on assisted lending," leading to substantial declines at some institutions. This contrast between hot and cold performance highlights the increasing divergence in retail credit structures within the banking sector.
He further pointed out that in terms of cost, large banks, leveraging their extensive networks and strong brand credibility, can absorb deposits at lower costs. This allows them to offer interest rates on consumer and business loans that are difficult for small and medium-sized banks to match. From a policy perspective, in 2025, large banks and joint-stock banks were able to benefit from interest subsidies on personal consumer loans, an advantage many small and medium-sized banks did not enjoy, putting them at a competitive disadvantage.
Despite leading in the scale and growth of consumer and business loans, the asset quality of major banks remains a concern. In 2025, the non-performing loan (NPL) ratios for personal consumer loans at the six major state-owned banks showed a divergent trend. The NPL ratios at China Construction Bank (CCB) and Agricultural Bank of China decreased, with CCB's ratio falling from 1.09% to 1.07% and Agricultural Bank of China's dropping from 1.55% to 1.46%, indicating an improvement in asset quality. In contrast, the NPL ratios at Bank of Communications, Industrial and Commercial Bank of China (ICBC), Bank of China, and Postal Savings Bank all experienced slight increases. Bank of Communications saw the largest rise, from 1.12% to 1.77%, an increase of 0.65 percentage points, while ICBC had the smallest increase, from 2.39% to 2.58%, up 0.19 percentage points.
For personal business loans, the NPL ratios at the six major state-owned banks generally increased, with only China Construction Bank (CCB) recording a decrease, from 1.59% to 1.58%, indicating relative stability in asset quality. The NPL ratios at the other five banks all rose, with Bank of Communications experiencing the largest increase, from 1.21% to 1.94%, up 0.73 percentage points, while Postal Savings Bank had the smallest increase, from 2.21% to 2.44%, a rise of 0.23 percentage points.
This analysis shows that China Construction Bank (CCB) not only achieved nearly 30% year-on-year growth in both consumer and business loans but also maintained stable or slightly declining NPL ratios, making its performance particularly outstanding among the six major banks. However, CCB's NPL ratios for personal housing loans and credit card loans also increased slightly in line with the broader trend, leading to an overall rise in its personal loan NPL ratio from 0.98% to 1.19%.
In response, Li Jianjiang, Vice President of China Construction Bank (CCB), stated at the results conference that in the face of rising risks in the retail sector in recent years, the bank has vigorously optimized its credit risk management mechanism for retail business. This includes strengthening risk checks at key stages of the credit process and promoting centralized risk control for retail credit. He noted that multiple risk control measures implemented in 2025 have shown results, with the year-on-year increase in the NPL ratio for personal loans narrowing. He also emphasized that, given the current operational trends, risk prevention and control in the retail sector will remain a key focus for the bank.
Wang Jingwu, Vice President of Industrial and Commercial Bank of China (ICBC), stated at the results conference that over the past two years, influenced by multiple factors such as economic transformation and upgrading, adjustments in the real estate market, and temporary supply-demand imbalances, the bank's personal loan NPL ratio has entered a short-term upward trend, which is largely consistent with the industry-wide pattern. Considering China's stable economic foundation, strong resilience, and significant potential, he believes the fundamental conditions supporting long-term positive growth remain unchanged, and future risks in personal loans are controllable.
Wang Jingwu believes that, combined with consumption-stimulating policies such as trade-in programs and consumer loan interest subsidies, and as these policy packages are accelerated and their benefits continue to be realized, the market foundation for personal credit will gradually improve, and the asset quality of personal loans will return to reasonable levels.
He also emphasized that to adapt to market changes, ICBC has made corresponding adjustments to its internal structure and functions. By establishing a Personal Credit Business Department, the bank has achieved more concentrated and professional management of personal loan business, further enhancing operational standards. Simultaneously, the bank is strengthening digital and intelligent capabilities, enriching product innovation and supply in the personal consumption and business sectors, balancing development and security, and focusing on resolving various risk hazards while diligently managing the disposal of non-performing assets. Through the joint efforts of the "three lines of defense" in risk control, the upward trend in personal loan deterioration has already begun to slow.
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