Assets surpass 1 trillion for the first time, CITIC Bank management details performance, five major initiatives, and bond market strategy

Ask AI · Slight Revenue Decline, How Can Net Profit Grow Against the Trend?

Jiemian News Reporter | An Zhen

On March 23, CITIC Bank (601998.SH) held its 2025 annual performance briefing.

Previously, CITIC Bank released its 2025 annual report, showing that the CITIC Bank Group achieved operating income of 212.475 billion yuan, a slight decrease of 0.55% year-on-year, and net profit attributable to shareholders of 70.618 billion yuan, up 2.98% year-on-year. Notably, in terms of asset size, CITIC Bank’s total assets broke through the 10 trillion yuan mark for the first time, reaching 10.13 trillion yuan, a 6.28% increase from the end of the previous year.

At the performance briefing, CITIC Bank management discussed performance, bond market conditions, and other issues with the media.

Performance Highlights

CITIC Bank Chairman Fang Heying told Jiemian News and other media at the briefing that the 2025 performance showed several key highlights:

First, net profit growth rate ranks among the top in large and medium-sized banks. The dividend payout ratio in 2024 was already high, and was increased by 1.2 percentage points to 31.7%, allowing shareholders to share in CITIC Bank’s development dividends.

Second, a combination of stable income and cost reduction opened up growth space: First, from stable net interest margin to stable revenue, interest spread gradually stabilized, and the decline in revenue narrowed. The release of investment trading capabilities and continuous growth in fee income contributed steadily to growth. Second, the non-performing loan ratio has decreased for seven consecutive years, with the ratios of special mention and overdue loans both declining from the beginning of the year. In 2025, CITIC Bank recovered a total of 37.2 billion yuan in non-performing loans, including 12.9 billion yuan from written-off accounts, and the full-year loan cost rate decreased by 0.07 percentage points, making a key contribution to growth. Third, from controlling costs to reducing operational cost ratios, CITIC Bank reduced operating costs by 2.25 billion yuan, and the cost-to-income ratio decreased by 0.88 percentage points, significantly contributing to growth.

Third, balanced management of liability volume and price, with a relatively reasonable deposit structure: 46% of corporate deposits are demand deposits, ranking among the top two in joint-stock banks.

Fourth, further validation of the light capital transformation path. CITIC Bank is the only institution among comparable peers to achieve positive growth in non-interest income for six consecutive years, with the proportion of non-interest income increasing by 9.3 percentage points over five years. Focusing on fee income, last year CITIC Bank achieved 32.77 billion yuan in fee income, a 5.6% increase, outperforming peers by 2.2 percentage points, ranking second in total volume and growth rate among peers.

Fifth, further solidifying the asset quality foundation. CITIC Bank has achieved a decline in non-performing rate for seven consecutive years, with the provision coverage ratio maintained above 200%. This is based on relentless efforts in risk management and effective risk control systems. Additionally, on the basis of revenue creation, the bank has increased its risk absorption capacity, allocating 66 billion yuan annually over five years to absorb non-performing loans.

Sixth, ongoing high-intensity technological investment is accelerating into productivity. Technology leadership is no longer just a slogan; CITIC Bank’s current tech strategy is shifting from AI first to AI fast, meaning from prioritizing AI to accelerating AI deployment.

Five Major Articles: Avoiding Strategy and Business Disconnection

CITIC Bank Vice President Gu Lingyun explained to Jiemian News and other media the bank’s three approaches to the “Five Major Articles” in finance:

First, starting with strategic integration to strengthen the foundation of development. How can we find our positioning in serving national strategies and build sustainable competitiveness in market competition? Our clear answer is to integrate the “Five Major Articles” with the creation of a value bank, resolutely avoiding disconnection between strategy and business.

In CITIC Bank’s development plan from 2024 to 2026, a clear strategic framework of building five leading banks is proposed: leading wealth management, comprehensive financing, transaction settlement, foreign exchange services, and digital banking, aligned with the five major articles emphasized by the central government, naturally connected and highly efficient.

Second, advancing the “Five Major Articles” is not about meeting targets or inflating data, but about truly building systems and strengthening capabilities. Behind this is our deep understanding of development autonomy. Only by deeply integrating the “Five Major Articles” into system capability building can we achieve coordinated improvements in scale, quality, efficiency, and customer satisfaction, cultivating a sustainable growth curve.

Third, using collaboration as a differentiator to create unique advantages. CITIC Group has a full-license financial resource-leading financial holding platform, with core strengths in high-end manufacturing, elderly care, and other real economy sectors. As the group’s largest subsidiary, we fully rely on the “One CITIC, One Customer” philosophy, turning our unique ecological advantages into distinctive competitive advantages.

On Bond Market Conditions

CITIC Bank Vice President Hu Gang said that in 2025, bond market fluctuations will gradually weaken, differing from the single-directional strength seen in 2024. The financial industry generally experienced negative growth, but CITIC Bank’s bond business maintained steady growth, with year-on-year performance significantly improving compared to the third quarter.

Data shows that CITIC Bank’s bond business outperformed the trend. Interest income from bonds declined by 15%, lower than the industry’s 24% decline, a 9 percentage point difference. Income from OCI account spread was 2.12 times higher than comparable peers, both top two in the industry. The bank underwrote 500 billion yuan in government bonds, ranking first among domestic commercial banks, and foreign exchange market-making transactions exceeded 4 trillion USD, up 21% year-on-year, with multiple foreign exchange indicators ranking in the top two in the market and first among joint-stock banks.

Hu Gang believes that domestically, loose monetary policy and low interest rates are certain, and the interest rate and stock market dynamics, along with macroeconomic recovery expectations, will make bond investment challenging. Internationally, geopolitical conflicts, policy divergence among major economies, cross-border capital flows, and foreign exchange volatility introduce uncertainties. In 2026, the bond market is likely to present a neutral pattern characterized by low interest rates and high volatility.

For 2026, CITIC Bank has formulated three core investment strategies:

First, holding and earning coupons, increasing the proportion of credit and local government bond investments, building credit, market-making capabilities, and brand. In 2025, the bank completed bond turnover of 750 billion yuan, a 240% increase year-on-year, with 900 counterparties, up 500 from the previous year.

Second, trading for spread gains, maintaining large exposures to government and policy financial bonds, and using tactical operations to earn spread income. The bank will also enhance digital empowerment and improve quantitative trading capabilities.

Third, optimizing asset allocation, improving the macro asset allocation system, and increasing overseas investments under controlled risk conditions. In January-February 2026, overseas assets increased by $10 billion, with diversified investments across countries, currencies, and products. Non-U.S. investments now account for over 39%, while enhancing the bank’s all-weather trading capabilities across commodities, foreign exchange, interest rates, and capital markets.