Ping An Bank Co.,Ltd., a major Chinese commercial bank backed by Ping An Insurance with nearly 6 trillion yuan in assets, recently released its 2025 financial results, which continued to reflect a challenging operating environment. On March 23, the bank’s Party Secretary and President Ji Guangheng sought to reassure investors during an earnings briefing, stating that the bank aims to "fully and vigorously return to growth in 2026." Whether this signals a genuine rebound or remains merely aspirational is yet to be seen.
In 2025, Ping An Bank reported operating revenue of 131.44 billion yuan, down 10.4% year-on-year, marking a third consecutive annual decline. Net profit attributable to shareholders fell 4.2% to 42.63 billion yuan, extending a two-year downtrend. Net interest income decreased by 5.8% to 88.02 billion yuan, while the net interest margin contracted by 9 basis points to 1.78%. Non-interest income dropped 18.5% to 43.42 billion yuan, accounting for 33% of total revenue.
The average yield on interest-earning assets declined by 54 basis points to 3.43%. Specifically, the average yield on loans and advances fell by 67 basis points to 3.87%, with corporate loans down 51 basis points to 3.05% and personal loans down sharply by 77 basis points to 4.79%. Meanwhile, the average cost of interest-bearing liabilities decreased by 47 basis points to 1.67%, with the average interest payout on deposits down 42 basis points to 1.65%.
Notably, the decline in asset yields outpaced the reduction in funding costs, particularly in the personal loan segment, highlighting an urgent need for structural adjustments. To resume growth, Ping An Bank must reduce high-cost time deposits and optimize its asset portfolio to curb the rapid slide in returns.
Operating expenses also fell 5.9% year-on-year to approximately 38.2 billion yuan. Employee costs edged down 0.2% to 19.08 billion yuan, while general administrative expenses dropped 11% to 13.9 billion yuan. Going forward, stabilizing net interest margins and further trimming daily operational costs will be essential to underpin a sustainable recovery.
As of the end of 2025, Ping An Bank's total consolidated assets stood at approximately 5.93 trillion yuan, up 2.7% from the prior year. Total loans and advances grew 0.5% to 3.39 trillion yuan, while total customer deposits increased 1.4% to 3.58 trillion yuan. The bank's non-performing loan (NPL) balance decreased by 3.5 billion yuan to 35.703 billion yuan, with the NPL ratio dipping 0.01 percentage points to 1.05%. Special-mention loans fell by 5.64 billion yuan to 59.328 billion yuan, accounting for 1.75% of total loans.
In terms of loan composition, corporate loans reached 1.66 trillion yuan by year-end, representing 49.1% of the total. However, the corporate NPL ratio rose by 0.17 percentage points to 0.87%, accelerating from an increase of 0.07 percentage points a year earlier, largely due to heightened risks in existing real estate exposures. The bank emphasized that overall asset quality remains manageable.
Outstanding real estate loans declined significantly by 35.1 billion yuan to 210.18 billion yuan, yet the NPL ratio for this segment increased by 0.43 percentage points to 2.22%. Vice President Xiang Youzhi attributed the rise in real estate NPLs to extended destocking cycles and liquidity constraints in the sector. Chief Compliance Officer Wu Leiming noted that the peak period for real estate risk formation has passed. While pressures in the property market will persist in 2026, risks are considered controllable.
In contrast to the corporate segment, retail NPLs showed improvement thanks to intensified disposal efforts. Retail loans totaled approximately 1.73 trillion yuan, accounting for 50.9% of total loans, with the NPL ratio declining 0.16 percentage points to 1.23%. Nonetheless, credit card NPLs remain elevated in both volume and ratio.
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