CITIC FAMC Delivers RMB11.09 Billion Profit in 2025, Extends Turnaround With Stronger Asset Quality

China CITIC Financial Asset Management Co., Ltd. (CITIC FAMC) reported total income of RMB80.48 billion for 2025, driven chiefly by distressed-asset operations. Net profit attributable to equity holders reached RMB11.09 billion, up 15.30 % year on year, while return on average equity edged up to 18.70 %.

The distressed-asset management segment remained the core earnings engine, contributing RMB69.41 billion in revenue and RMB14.36 billion in pre-tax profit. Asset management and investment operations added RMB13.46 billion in revenue but recorded a RMB5.42 billion pre-tax loss, reflecting valuation volatility and higher impairment charges.

Impairment losses under the expected credit-loss model fell 52.40 % to RMB33.79 billion, underscoring a third consecutive year of asset-quality improvement. Stage 3 exposure within debt instruments at amortised cost dropped 5.28 percentage points, and the distressed-asset ratio shrank by 0.41 percentage point.

Total assets stood at RMB1.06 trillion, up 7.40 % from 2024, supported by a RMB49.45 billion expansion in financial assets at fair value through profit or loss and a RMB63.12 billion rise in interests in associates and joint ventures. Total liabilities rose in tandem to RMB1.00 trillion, maintaining a capital adequacy ratio of 16.52 % and a leverage ratio of 7.8:1, both above regulatory minimums.

Cost-to-income ratio improved to 11.13 %, down 5.43 percentage points, reflecting ongoing cost-discipline measures. Operating expenses slipped 3.90 % to RMB5.80 billion, while interest expense decreased 13.50 % amid a shift toward longer-tenor borrowings and lower funding costs.

The Board proposes no cash dividend for 2025.

Chairman Liu Zhengjun stated the group met the three-year “quality and efficiency” goal ahead of schedule, highlighting a 28 % share-price gain during the year and emphasis on distressed-asset acquisitions, relief financing and equity investments aligned with national priorities.

Looking to 2026, management targets consolidation of benchmark status in the distressed-asset sector, reinforced by a “One-Three-Five” strategy focusing on risk resolution, real-economy support and capital-efficient growth.