In 2025, revenue and net profit both declined. Everbright Bank Vice President Liu Yan analyzes the internal and external factors influencing this trend.

March 31 financial news from the front lines: China Everbright Bank held its 2025 annual results briefing session today. Regarding the situation in which both revenue and net profit for China Everbright Bank in 2025 saw negative growth, Vice President and Chief Financial Officer Liu Yan analyzed the following reasons from both internal and external environments.

In recent years, against the policy background of successive LPR rate cuts and fee reductions to benefit customers, the banking industry has faced operating pressures such as narrowing net interest margins and declining fee and other income, leading to a general slowdown in revenue growth.

From the bank’s internal perspective, Liu Yan further said that in 2025, the bank’s negative revenue growth was mainly driven by the following factors: First, the net interest margin narrowed somewhat. Since 2024, LPR rates have been cut, along with adjustments to the interest rates on existing mortgages. In 2025, the bank’s loan-end yield was affected, while the pace of deposit rate declines lagged behind that of loan rates. As a result, the net interest margin narrowed year over year to some extent, constraining the growth of interest income.

Second, other income declined on a temporary basis. In 2024, bond market interest rates fell by a relatively large margin. The bank’s investment-related assets had a relatively high floating profit base for valuation, but in 2025, bond market interest rates overall moved upward. This caused the valuation of the bank’s investment-related assets to result in some floating losses, leading to a decline in other income.

Third, coordinating development and security. The bank increased efforts to resolve risks in relevant businesses and to advance business transformation. Credit card interest and fee income faced periodic pressure, which had a certain impact on the growth of the bank-wide interest and fee income. While revenue declined, the bank alleviated downward pressure on profit by strengthening cost control. Full-year operating expenses decreased by 8.9%, with the decline rate larger than that of the revenue drop.

Regarding this year’s business development, Liu Yan said in her outlook that 2026 is a year for the bank to strengthen its foundation. The bank will uphold differentiated development, build distinctive competitive advantages, increase revenue, control costs, and strengthen risk control, and further bolster support for relevant resources to help stabilize and improve its profitability level.

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责任编辑：曹睿潼