Record-Breaking Dividend Distribution, Annual Cash Payout of 21.2 Billion! CITIC Bank's 2025 Net Profit Exceeds 70 Billion for the First Time, Net Interest Margin Still Under Pressure

Source: Times Finance Author: He Xiulan

On the evening of March 20, CITIC Bank (601998.SH / 00998.HK) officially released its 2025 annual report. Despite a complex operating environment characterized by macroeconomic pressure and continued narrowing of industry interest spreads, the bank maintained steady progress throughout the year. Its net profit attributable to shareholders first exceeded 70 billion yuan, total assets officially surpassed 10 trillion yuan, asset quality continued to improve, non-interest income and retail business structures steadily advanced, and it launched the most substantial cash dividend plan in history.

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The annual report shows that in 2025, CITIC Bank achieved operating income of 212.475 billion yuan, a slight decrease of 0.55% year-on-year; net profit attributable to shareholders was 70.618 billion yuan, up 2.98%, maintaining a leading position in the industry.

                      Image source: CITIC Bank 2025 Annual Report screenshot            

According to Times Finance’s review, amid widespread industry profit pressure, CITIC Bank’s ability to maintain positive growth in profits mainly benefited from cost control and reduced credit impairment provisions. In 2025, the bank’s business and management expenses totaled 67.159 billion yuan, down 3.24% year-on-year; credit and other asset impairment losses were 58.172 billion yuan, down 4.81%, easing impairment pressures and supporting profit growth.

A historic breakthrough in scale indicators was a major highlight of this annual report. By the end of 2025, CITIC Bank’s total assets reached 10.13 trillion yuan, a 6.28% increase year-on-year, officially entering the “10 trillion yuan bank” club. From an asset-liability structure perspective, the bank’s liabilities remained stable, with total loans and advances of 5.86 trillion yuan, up 2.48%; total customer deposits reached 6.05 trillion yuan, up 4.69%.

Regarding the development direction after crossing into the “10 trillion yuan” category, Tian Lihui, Professor of Finance at Nankai University, told Times Finance that for joint-stock banks that have crossed the 10 trillion mark, the development logic must shift from “scale-driven” to “quality-driven.” The core task in the future will no longer be asset expansion but leveraging its nationwide network and comprehensive licenses to build a solid moat in high-value-added areas such as wealth management, investment banking, and financial technology, becoming a true comprehensive financial service provider. “This means that the competition will no longer be about the size of the balance sheet but about professional capabilities, customer experience, and return on equity (ROE).”

In terms of asset quality, CITIC Bank shows a differentiated structure with improvements in corporate loans and pressures in retail. As of the end of 2025, the non-performing loan (NPL) ratio was 1.15%, a slight decrease of 0.01 percentage points from the previous year; however, the NPL balance increased by 731 million yuan, indicating continued NPL generation. Meanwhile, the loan loss provision coverage ratio was 203.61%, down 5.82 percentage points from the previous year, slightly narrowing the risk buffer.

Specifically, CITIC Bank’s corporate loan NPL ratio decreased from 1.27% to 1.09% in 2025, with significant asset quality improvements in manufacturing, leasing, and commercial sectors; however, personal loan NPL ratio increased from 1.25% to 1.32%, with personal consumer loans rising by 0.66 percentage points to 2.80%, and credit card NPL ratio at 2.62%, up 0.12 percentage points year-on-year, indicating increased pressure on retail assets due to residents’ repayment capacity.

Notably, in 2025, CITIC Bank’s capital adequacy levels declined across the board, with increased pressure for capital replenishment. By the end of 2025, the core Tier 1 capital adequacy ratio was 9.48%, Tier 1 capital adequacy ratio was 10.90%, and the total capital adequacy ratio was 12.80%, down 0.24, 0.36, and 0.56 percentage points respectively from the end of the previous year. While meeting regulatory requirements, future capital replenishment needs may still arise.

Narrowing interest spreads were a common challenge for banks in 2025, and CITIC Bank was no exception. The annual report shows that in 2025, the bank’s net interest margin was 1.63%, narrowing by 0.14 percentage points year-on-year; net interest spread was 1.60%, down 0.11 percentage points. Additionally, due to a larger decline in the yield on interest-earning assets compared to the reduction in liability costs, the bank’s net interest income decreased by 1.51% in 2025, which may also be a direct reason for the slight decline in operating income.

In response to the pressure from narrowing spreads, CITIC Bank actively expanded its intermediary business, continuously optimized its income structure, and non-interest income became an important pillar of profit. In 2025, the bank achieved non-interest net income of 68.006 billion yuan, up 1.55% year-on-year, increasing its proportion of operating income to 32.0%. Among these, net fee and commission income was 32.772 billion yuan, up 5.58%, with wealth management fees increasing by 45.17% year-on-year, and steady growth in agency, custody, and settlement fees. However, bank card fees declined by 10.26% year-on-year, indicating that the stability of non-interest income still needs improvement.

Shareholder returns reached new heights in 2025. According to the profit distribution plan disclosed in the annual report, CITIC Bank plans to pay a cash dividend of 1.93 yuan (including tax) per 10 shares, totaling 10.740 billion yuan in cash dividends for the year. Combined with the 10.461 billion yuan already paid mid-year, the total cash dividends for the year amount to 21.201 billion yuan, or 3.81 yuan per 10 shares. The payout ratio of net profit attributable to common shareholders reached 31.75%, with both dividend amount and payout ratio setting new records among joint-stock banks, making it highly attractive to investors.