The performance of the stock industry is a tale of two extremes: 5 companies with double growth, 4 with double decline, and a hidden shift in rankings.

Asking AI · Why Is the Net Interest Margin Rebound Limited to Only Three Banks Despite the Market Reversal?

The 2025 “report cards” for joint-stock banks have been released—some banks are happy, others are worrying.

As of now, among 12 joint-stock banks, except for Guangfa Bank, the other 11 have already published their 2025 annual reports. Nandu Bay Finance and Society reporter statistics show that the combined revenue of these 11 joint-stock banks reached 1,544.87 billion yuan, down 1.51% year-on-year versus 2024; the combined net profit attributable to shareholders totaled 511.84 billion yuan, almost flat year-on-year, rising only 0.07%.

The differentiation is especially clear: five banks—including China Merchants Bank, Industrial Bank, Shanghai Pudong Development Bank, Bank of Bohai, and Hengfeng Bank—achieved “double growth” in both revenue and net profit attributable to shareholders; Ping An Bank, China Everbright Bank, Huaxia Bank, and Zhejiang Commercial Bank suffered “double decline.” Among the other two banks, CITIC Bank saw profit increase but revenue not increase, while Minsheng Bank saw revenue increase but profit not increase.

From the perspective of driving factors, last year the decline in joint-stock banks’ net interest margin generally narrowed. Three banks even rebounded against the trend, which helped improve overall net interest income and reduced the number of institutions turning downward significantly compared with 2024. In addition, benefiting from an active capital market and the release of residents’ wealth-management demand, last year most joint-stock banks’ net fee and commission income grew positively, performing better than in 2024.

Operating Revenue:

Industrial and CITIC “Chasing Each Other”

Hengfeng and Minsheng Have the Highest Revenue Growth

In terms of revenue scale, the 11 joint-stock banks can roughly be divided into four tiers.

In the first tier, China Merchants Bank’s revenue last year reached 337.531 billion yuan, the only one among joint-stock banks exceeding 300 billion yuan. The other two—Industrial Bank and CITIC Bank—are almost neck and neck, at 212.741 billion yuan and 212.475 billion yuan respectively, with a difference of less than 300 million yuan. Notably, in 2024, CITIC Bank’s revenue was still above Industrial Bank; now the ranking order has changed, and the revenue contest among the leading joint-stock banks has entered a “centimeter-level” race.

In the second tier, Shanghai Pudong Development Bank, Minsheng Bank, Ping An Bank, and China Everbright Bank all have revenues above 1 trillion yuan. Compared with 2024, these four banks also changed their revenue rankings: Minsheng Bank surpassed Ping An Bank to move up to fifth place.

The third and fourth tiers are both banks with revenue below 1 trillion yuan. Among them, Huaxia Bank and Zhejiang Commercial Bank, with revenues of 91.914 billion yuan and 62.514 billion yuan respectively, widened the gap from the fourth tier, which includes Hengfeng Bank and Bank of Bohai—both of which have revenues below 300 billion yuan.

As for revenue growth rates, six banks saw year-on-year growth while five saw declines. Hengfeng Bank ranked first, reaching 5.37%; Minsheng Bank was second at 4.82%. The reason these two banks’ revenue growth rates are leading by a wide margin is related to their net interest income and net fee and commission income both growing at the same time.

Financial reports show that Hengfeng Bank achieved net interest income of 22.572 billion yuan last year, up 8.72%. Against the backdrop of narrowing industry spreads, its net interest margin grew against the trend by 4BP to 1.56%. For non-interest income, last year its net fee and commission income was 2.573 billion yuan, up 10.00%, mainly because fee income from consulting and advisory business, as well as fees from settlement and clearing business, increased.

Minsheng Bank’s net interest income last year was 100.126 billion yuan, up 1.46% year-on-year. It is said that the growth in net interest income mainly benefited from scale growth and the stabilization of the net interest margin. Last year the bank’s net interest margin was 1.40%, up 1BP year-on-year. For non-interest income, last year the bank’s net fee and commission income was 18.321 billion yuan, up 0.42% year-on-year.

Joint-stock banks’ 2025 revenue and net profit attributable to shareholders. Data source: Qiyu Yujing Tong (Enterprise Early Warning), bank financial reports

Net Profit Attributable to Shareholders:

China Merchants Bank’s Net Profit Is Twice That of the Second Place

Shanghai Pudong Development Bank and Hengfeng Lead in Growth Rates

Looking at net profit attributable to shareholders, the ranking order changes again. China Merchants Bank, with 150.181 billion yuan, stands out as a clear gap leader among joint-stock banks—nearly twice the net profit of the second-place bank, Industrial Bank. CITIC Bank and Shanghai Pudong Development Bank also both have net profits attributable to shareholders above 50 billion yuan.

Although Minsheng Bank’s revenue surpassed Ping An Bank, its net profit attributable to shareholders lagged—at 30.563 billion yuan, which is 12.07 billion yuan less than Ping An Bank’s 42.633 billion yuan. Compared with China Everbright Bank as well, it is also behind, with a gap of 8.263 billion yuan.

Among banks with relatively smaller net profit attributable to shareholders, Huaxia Bank and Zhejiang Commercial Bank are 27.2 billion yuan and 12.931 billion yuan respectively. Hengfeng Bank and Bank of Bohai are 5.907 billion yuan and 5.498 billion yuan respectively.

In terms of growth rates of net profit attributable to shareholders, Shanghai Pudong Development Bank leads decisively, at 10.52%, and is also the only joint-stock bank whose growth rate of net profit attributable to shareholders exceeds double digits. Second is Hengfeng Bank at 8.31%. Regarding the bank’s high growth in performance, its chairman Xin Shuren said in the annual report: “The past 5 years have been five years in which Hengfeng Bank recovered from a major illness, regained its vitality, and gradually strengthened its core capabilities—also five years of training and growth, experiencing storms and gradually developing and expanding.” Third is Bank of Bohai, with net profit attributable to shareholders up 4.61% year-on-year.

Among the other joint-stock banks, China Merchants Bank, Industrial Bank, and CITIC Bank all saw modest growth in net profit attributable to shareholders, each below 3%.

Overall, among the 11 banks, five achieved “double growth” in both revenue and net profit attributable to shareholders—China Merchants Bank, Industrial Bank, Shanghai Pudong Development Bank, Bank of Bohai, and Hengfeng Bank; four experienced “double decline”—Ping An Bank, China Everbright Bank, Huaxia Bank, and Zhejiang Commercial Bank; in addition, CITIC Bank saw revenue decline but net profit attributable to shareholders grow, while Minsheng Bank saw the opposite.

Net Interest Income:

The Overall Decline in the Spread Has Been Partly Narrowed

Three Banks’ Net Interest Margins Rebounded Against the Trend

Although overall performance improvement among joint-stock banks is not very obvious, if we break down the total volume and structure, both net interest income and net fee and commission income—the two major revenue pillars—show signs of improvement.

For net interest income, among the 11 joint-stock banks, four (CITIC Bank, Ping An Bank, China Everbright Bank, Zhejiang Commercial Bank) saw year-on-year declines, while seven saw growth. In 2024, eight banks saw declines year-on-year, and among them four had double-digit decline rates.

Joint-stock banks’ net interest income last year. Data source: Qiyu Yujing Tong (Enterprise Early Warning), bank financial reports

One of the factors supporting the overall improvement in joint-stock banks’ net interest income is that the decline in net interest margin has narrowed. Among the 11 joint-stock banks, three (Hengfeng Bank, Minsheng Bank, Bank of Bohai) rebounded against the trend; one (Shanghai Pudong Development Bank) was flat; the other seven declined. In 2024, among these 11 banks, 10 all showed declines. Data released by the Financial Regulatory Administration also shows that by the end of 2025, joint-stock banks’ average net interest margin was 1.56%, a decline of 5BP, while the decline by the end of 2024 was 15BP.

Joint-stock banks’ net interest margin last year. Data source: Qiyu Yujing Tong (Enterprise Early Warning), bank financial reports

Dongfang Securities analyst Qu Jun believes that in 2026, the decline in asset-side yields is expected to narrow further, while the liability side will continue to benefit from deposit repricing windows. With interbank deposit self-discipline mechanisms becoming even stricter, the space for improvement in liability costs remains considerable, which is expected to support relatively resilient net interest margin performance in 2026.

A report from Huatai Securities also states that there are signs that the interest spread has stabilized. It expects that in 2026, with the narrowing of the decline on the asset side and continued improvement on the liability side, the spread may reach a stabilization inflection point, leading to a rebound in net interest income growth.

Intermediation Business Income:

Multiple Banks’ Net Fee and Commission Income Recovers

Growth in Wealth Management and Agency Business Is the Main Driver

Regarding net fee and commission income, among the 11 joint-stock banks, seven saw year-on-year growth. Hengfeng Bank had the highest increase: last year its net fee and commission income rose 10% year-on-year, mainly due to higher fee income from consulting and advisory business, as well as from settlement and clearing business.

Four banks saw net fee and commission income decline year-on-year: Shanghai Pudong Development Bank, Bank of Bohai, Ping An Bank, and Zhejiang Commercial Bank. Among them, Zhejiang Commercial Bank fell 16.38% and Bank of Bohai fell 22.90%.

Notably, compared with before, in 2025 the overall trend of net fee and commission income for joint-stock banks presented an improving posture. In 2024, among the 11 joint-stock banks, other than Hengfeng Bank’s net fee and commission income growing year-on-year, the remaining 10 all declined without exception, and seven had decline rates exceeding 10%.

The improvement in net fee and commission income is most evident at China Merchants Bank, known as the “King of Retail.” Last year, the bank’s net fee and commission income was 75.258 billion yuan, up 4.39% year-on-year; the growth rate turned positive for the first time since 2022.

Joint-stock banks’ net fee and commission income last year. Data source: Qiyu Yujing Tong (Enterprise Early Warning), bank financial reports

Which specific businesses drove the recovery in net fee and commission income? Financial reports show that many banks saw significant year-on-year growth in income from agency business or wealth management business. For example, last year China Everbright Bank’s fee income from wealth management services grew 61.41% year-on-year; China Merchants Bank’s wealth management income grew 21.39% year-on-year, and its asset management income grew 10.94%; last year CITIC Bank’s fees from wealth management business grew 45.17%, and its fees from agency business grew 24.77%; Huaxia Bank’s agency business income grew 29.74%; and Shanghai Pudong Development Bank’s agency business income grew 16.30% year-on-year.

Huatai Securities’ research report believes that if the capital market remains active in 2026, growth in income from intermediation businesses such as wealth management and investment banking will be supported. It expects that banks’ intermediation business income will continue to recover steadily. Under the trend of integrated operations, banks whose subsidiary licenses are complete will have greater advantages.

Ping An Securities analyst Yuan Zheqi also believes that in 2026, as regulatory factors from the past two years fade and the equity market recovers, the wealth management segment is expected to see a rebound.

Asset Quality:

Non-Performing Loan Ratios Rise at Minsheng and China Everbright

Shanghai Pudong Development and Hengfeng Keep Declining for Several Years in a Row

In terms of asset scale, by the end of 2025, CITIC Bank and Shanghai Pudong Development Bank successfully surpassed the 10 trillion yuan mark, expanding the “10 Trillion Club” of joint-stock banks from 2 members (on the basis of China Merchants Bank and Industrial Bank) to 4 members.

For non-performing loan ratios, among the 11 joint-stock banks, China Merchants Bank still has the best figure at 0.94%, the only one below 1%. Ping An Bank and Industrial Bank also have relatively low non-performing loan ratios at 1.05% and 1.08% respectively.

The highest non-performing loan ratio is Bank of Bohai at 1.66%. The financial report shows that at the end of last year, the bank’s non-performing loan ratio for corporate loans and advances was 1.15%, up 0.04 percentage points from the end of the previous year; the non-performing loan ratio for personal loans was 3.80%, down 0.35 percentage points. Although it declined, it is still relatively high within the banking industry.

Joint-stock banks’ non-performing loan ratio situation. Data source: Qiyu Yujing Tong (Enterprise Early Warning), bank financial reports

Looking at changes in non-performing loan ratios, among the 11 joint-stock banks, 8 achieved declines year-on-year from the end of the previous year, including Hengfeng Bank, which declined by 14BP. The financial report shows that by the end of last year, Hengfeng Bank’s balance of non-performing loans was 12.515 billion yuan, down 3.58 billion yuan from the end of the previous year. Its non-performing loan ratio has fallen for seven consecutive years, dropping from 28.44% before restructuring down to 1.35%.

Shanghai Pudong Development Bank’s non-performing loan ratio also declined by 10BP compared with the end of 2024, and it has achieved declines for 6 consecutive years, falling continuously from 2.05% at the end of 2019 to 1.26% by the end of 2025.

Three joint-stock banks saw their non-performing loan ratios rebound. Minsheng Bank’s non-performing loan ratio rose from 1.47% at the end of 2024 by 2BP to 1.49%. The financial report shows that by the end of last year, the bank’s non-performing loan ratio for corporate loans was 1.24%, down 2BP from the end of the previous year; the non-performing loan ratio for personal loans was 1.92%, up 12BP from the end of the previous year. Among personal loans, the non-performing loan ratio for credit card overdrafts increased from 3.28% by 59BP to 3.87%; the non-performing loan ratio for micro-loans rose from 1.54% by 9BP to 1.63%; the non-performing loan ratio for housing loans decreased from 0.96% to 0.77%.

At the earnings release conference, Minsheng Bank vice president Huang Hongri said that currently, the main pressure in the large retail segment comes from credit cards. Affected by factors such as the external environment, some customers’ income declined, leading to repayment difficulties and sustained pressure on credit card business risks. The bank will proactively adjust its business strategy by taking measures such as strict new-customer admission, strengthening management of existing balances, and increasing efforts for collection, disposal, and resolution so that asset quality in the large retail segment stabilizes as soon as possible.

China Everbright Bank’s non-performing loan ratio also rose by 2BP. The financial report shows that by the end of last year, the bank’s balance of non-performing loans was 50.742 billion yuan, up 14.90 billion yuan from the end of the previous year; the non-performing loan ratio was 1.27%, up 2BP from the end of the previous year.

At the earnings release conference, China Everbright Bank vice president Qi Ye said that judging from the newly occurred non-performing cases, the overall scale of non-performing loan generation in the corporate sector has decreased compared with last year. For retail loans, the asset quality is under pressure for housing-related loans and for consumer credit assets mainly centered on credit cards. China Everbright Bank has clearly identified this as a key area, setting up dedicated teams, establishing mechanisms, and tilting resources. It strengthens control and resolution. On the one hand, it strictly controls the entry gate: it forms differentiated admission strategies around regional selection and customer rating, strengthens collateral ratio management, enhances due diligence and anti-fraud management, and standardizes the management of partner institutions, thereby controlling new risks from the source. On the other hand, it strengthens overall coordination through dedicated teams, supplements strength, and improves the full-process post-loan management system.

In addition, the non-performing loan ratio at Industrial Bank rose by 1BP to 1.08%. Although it increased slightly, it still remains at an excellent level within the industry. At the earnings briefing, the bank’s chairman Lv Jiajin said that last year Industrial Bank carried out risk management reforms, with a focus on strengthening comprehensive risk management, clarifying responsibilities across three lines of defense, establishing an approval- and officer-led mechanism to provide research and empowerment, and promoting deep integration between risk and business. At the same time, it further improved compliance and internal control mechanisms, as well as the leadership’s linked supervision mechanism for key areas of risk.

Written by: Nandu Bay Finance reporter Liu Lanlan