China's National Financial Regulatory Administration has released key regulatory data for the banking and insurance sectors for the fourth quarter of 2025. Throughout 2025, commercial banks achieved a cumulative net profit of 2.4 trillion yuan. By the end of the fourth quarter, the average return on capital stood at 7.78%, while the average return on assets was 0.60%. Total assets of banking financial institutions reached 480 trillion yuan in domestic and foreign currencies, marking an 8.0% year-on-year increase. Meanwhile, the total assets of insurance companies and insurance asset management companies amounted to 41.3 trillion yuan, reflecting a 15.1% growth since the beginning of the year.
The banking and insurance sectors continued to expand their total assets by the end of the fourth quarter of 2025. Banking financial institutions reported total assets of 480 trillion yuan in domestic and foreign currencies, up 8.0% compared to the same period last year. Large commercial banks accounted for 210.8 trillion yuan of this total, a 10.8% increase year-on-year, representing 43.9% of the overall assets. Joint-stock commercial banks held 77.8 trillion yuan in assets, growing by 4.8% year-on-year and making up 16.2% of the sector's total. Insurance companies and insurance asset management companies saw their combined assets reach 41.3 trillion yuan, a 15.1% rise from the start of the year. Property insurance companies contributed 3.1 trillion yuan, up 7.5%; life insurance companies accounted for 36.4 trillion yuan, increasing by 15.4%; reinsurance companies held 857.3 billion yuan, growing 3.5%; and insurance asset management companies totaled 145.6 billion yuan, a 14% increase.
Financial services in the banking and insurance sectors continued to strengthen. By the end of the fourth quarter, outstanding loans to small and micro businesses under inclusive finance reached 37 trillion yuan, an 11.0% year-on-year increase. Inclusive agricultural-related loans stood at 14.2 trillion yuan, up 10.3%. In 2025, insurance companies recorded original premium income of 6.1 trillion yuan, a 7.4% rise from the previous year. Claims and benefit payments totaled 2.4 trillion yuan, increasing by 6.2%, while the number of new policies issued reached 116.8 billion, up 12.6%.
The credit asset quality of commercial banks remained generally stable. Non-performing loans stood at 3.5 trillion yuan by the end of the fourth quarter, a decrease of 24.1 billion yuan from the previous quarter. The non-performing loan ratio was 1.50%, down 0.02 percentage points from the end of the prior quarter. Normal loans amounted to 230.2 trillion yuan, comprising 225.1 trillion yuan in standard loans and 5.1 trillion yuan in special-mention loans.
Commercial banks demonstrated ample risk resilience. The cumulative net profit for 2025 reached 2.4 trillion yuan. The average return on capital was 7.78%, and the average return on assets was 0.60% by the end of the fourth quarter. Provisions for loan losses stood at 7.2 trillion yuan, with a provision coverage ratio of 205.21% and a loan provision ratio of 3.07%. The capital adequacy ratio was 15.46%, the tier-1 capital adequacy ratio was 12.37%, and the core tier-1 capital adequacy ratio was 10.92%.
Liquidity indicators for commercial banks remained stable. The liquidity coverage ratio was 157.99%, up 8.27 percentage points from the previous quarter. The net stable funding ratio was 127.83%, increasing by 0.16 percentage points. The liquidity ratio reached 80.95%, rising 0.85 percentage points. The excess reserve ratio for yuan stood at 1.64%, up 0.10 percentage points, while the loan-to-deposit ratio was 80.08%, down 0.38 percentage points.
The insurance sector maintained sufficient solvency. The average comprehensive solvency adequacy ratio was 181.1%, and the core solvency adequacy ratio was 130.4%, both exceeding regulatory requirements of 100% and 50%, respectively. Property insurance companies reported ratios of 243.5% and 212.7%, life insurance companies recorded 169.3% and 115.0%, and reinsurance companies posted 244.6% and 212.5%.
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