On October 31, China Everbright Bank Company Limited (601818) held its Q3 2025 earnings briefing. Addressing the reasons behind the earnings decline, Board Secretary Zhang Xuyang explained that rising bond market interest rates this year led to lower valuation gains and losses. Coupled with the high base effect from last year's declining market rates, other non-interest income saw a significant year-on-year drop, resulting in reduced revenue and net profit for the bank.
Zhang further elaborated that the recent release of the "15th Five-Year Plan" recommendations emphasizes more proactive macroeconomic policies and improved monetary policy transmission mechanisms. Additionally, the central bank has expanded its monetary policy toolkit to enhance coordination between monetary and fiscal policies. In the short term, these measures signal continued monetary easing, which could help restore bond market sentiment. Over the long term, they will increase monetary policy flexibility, ensure ample bond market liquidity, mitigate excessive interest rate volatility, and promote stable, healthy development of the bond market. As the bond market gradually recovers, business scale and profitability are expected to improve steadily.
Regarding future plans, Zhang stated that China Everbright Bank will thoroughly implement the guiding principles of the Fourth Plenary Session of the 20th CPC Central Committee, strategically plan for the "15th Five-Year" period, and draft a scientific development roadmap. The bank will remain committed to serving the real economy, refocusing on customer needs, building differentiated business strengths, creating value, and mitigating financial risks to sustain steady growth.
Key initiatives include: 1. Fully implementing the central government's economic and financial policies, prioritizing key sectors, enhancing specialized competitive advantages, increasing credit supply, and preparing for next year's credit reserves to improve service quality for the real economy. 2. Driving revenue growth and stabilizing net interest margins by expanding fee-based businesses and boosting non-interest income contributions to restore profitability. 3. Balancing development and risk management by strengthening asset quality controls, proactive risk oversight, targeted mitigation of financial risks in critical areas, and transforming special asset operations to derive value from risk management.
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