The Chairman of Industrial Bank Co.,Ltd., Lv Jiajin, acknowledged during the bank's recent performance conference that commercial banks face significant operational challenges. He stated that the current business environment differs markedly from the past two decades, particularly due to pressures from low interest rates, narrowing net interest margins, and elevated risk levels. Despite these challenges, Chairman Lv affirmed that Industrial Bank successfully concluded its 14th Five-Year Plan period.
According to the annual report, Industrial Bank reported revenue of 212.741 billion yuan in 2025, representing a slight increase of 0.24% year-over-year, though growth decelerated by 0.42 percentage points compared to 2024. Net profit attributable to shareholders reached 77.469 billion yuan, up 0.34% from the previous year, with growth accelerating by 0.22 percentage points. The net interest margin stood at 1.71%, declining by 11 basis points.
By the end of 2025, the bank's total assets amounted to 11.09 trillion yuan, an increase of 5.58% year-over-year. Total loans reached 5.95 trillion yuan, rising by 3.70%, with corporate loans growing 8.63% to 3.74 trillion yuan, while personal loans decreased by 3.41% to 1.92 trillion yuan.
Regarding asset quality, the non-performing loan (NPL) ratio was 1.08% at year-end, up 0.01 percentage points from the previous year. The provision coverage ratio stood at 228.41%, down 9.37 percentage points. Capital adequacy ratios, including the core tier 1 capital ratio, experienced declines compared to the end of 2024.
Chairman Lv emphasized that the NPL ratio remained stable compared to the beginning of the year, and the provision coverage ratio stayed within a reasonable range, indicating sustained sound asset quality and risk resilience relative to industry peers.
Notable improvements were observed in key risk areas: newly generated NPLs in corporate real estate, local government financing vehicles, and credit card businesses all declined year-over-year.
Specifically, corporate real estate financing balances decreased by 53.293 billion yuan to 691.892 billion yuan by the end of 2025. The NPL ratio in this segment rose to 4.34%, attributed to enhanced risk assessment of existing projects and timely adjustments in risk classification for projects struggling to meet delivery conditions.
Exposure to local government financing vehicles was reduced by 46.643 billion yuan, with the NPL ratio in this segment reaching 6.52%. Credit card NPL and delinquency rates also declined.
Chairman Lv highlighted a 6.82% year-over-year decrease in newly generated NPLs across the bank, with significant reductions in key risk segments. Additionally, the bank recovered 16.2 billion yuan from written-off assets, contributing positively to profit growth.
Vice President Zeng Xiaoyang discussed the establishment of Xingyin Financial Asset Investment Co., Ltd. (AIC) in November 2025, emphasizing its role beyond a licensing addition. With a registered capital of 10 billion yuan, it is the first AIC established by a joint-stock bank.
By the end of the reporting period, Xingyin Investment had total assets of 10.02 billion yuan and net assets of 10.004 billion yuan, generating revenue of 19 million yuan and a net profit of 4 million yuan. The company allocated 6.808 billion yuan to projects in sectors such as semiconductors, photovoltaics, and new energy materials, supporting technology and private enterprises across multiple regions.
Vice President Zeng noted that the bank serves 365,000 technology enterprises, with related financing exceeding 2 trillion yuan, marking a 16% increase from the previous year. He emphasized that the AIC facilitates equity investments and debt-to-equity swaps, enabling the bank to act as a growth partner for small and medium-sized tech firms.
Looking ahead, the bank aims to develop technology finance as its fourth key focus area. Chairman Lv outlined internationalization as a strategic priority for the 15th Five-Year Plan period, targeting it as a new growth driver alongside digitalization and green finance.
In 2025, the bank's overseas revenue grew 46.39% to 4.336 billion yuan, with profits rising 49.22% to 3.456 billion yuan. Cross-border RMB settlement volume reached 1.88 trillion yuan, ranking among the top joint-stock banks. Foreign currency deposits increased by 70%, and personal foreign exchange transactions grew by 64%.
Chairman Lv acknowledged that while the bank demonstrates strong momentum, it continues to learn from the advanced products and service models of larger state-owned and commercial banks, recognizing substantial room for growth in international operations.
Comments