700 billion net profit, does CITIC Bank deliver an unexpectedly strong annual report?

How did CITIC Bank achieve a net profit of over 70 billion against the trend?

Produced by | Zhongfang Network

Reviewed by | Li Xiaoyan

On the evening of March 20, CITIC Bank (601998.SH) was the first to disclose the first annual report for A-share listed banks for 2025. In the context of narrowing interest margins and general pressure on profitability in the banking industry, this report features three core highlights: total assets surpassing 10 trillion, net profit exceeding 70 billion for the first time, and a historically high dividend, marking the start of a high-quality development season for bank annual reports. As the fourth joint-stock commercial bank to join the “trillion club,” CITIC Bank demonstrates the responsibility of state-owned financial enterprises and operational resilience through economic cycles with its solid performance of steady operation, deepening its main business, and serving the real economy.

Total assets exceeding 10 trillion is a milestone leap in CITIC Bank’s development history. By the end of 2025, CITIC Bank’s total assets reached 10.13 trillion yuan, a year-on-year increase of 6.28%, officially entering the ranks of trillion-level banks, becoming the fourth joint-stock commercial bank to achieve this goal after China Merchants Bank, Industrial Bank, and Pudong Development Bank. From a trillion scale at the time of its A+H listing in 2007, to breaking 5 trillion in 2015, and now standing at 10 trillion in 2025, CITIC Bank has adhered to a prudent approach in its scale expansion, maintaining balanced growth and achieving a collaborative improvement in scale and quality even under the pressures of a slowing macroeconomic environment and industry growth.

The growth in scale is particularly noteworthy. At the end of the reporting period, CITIC Bank’s total loans and advances amounted to 5.86 trillion yuan, a year-on-year increase of 2.48%; total customer deposits reached 6.05 trillion yuan, a year-on-year increase of 4.69%. The growth rate of deposits significantly exceeded that of loans, with the stability of the liability side continuously enhancing, laying a solid foundation for asset business expansion and liquidity management. Behind this data is CITIC Bank’s sustained efforts to deepen its customer base and optimize its liability structure, avoiding the risks associated with blind expansion while providing ample financial support for subsequent business development, showcasing the operational wisdom of a mature commercial bank.

Faced with the challenge of generally narrowing industry net interest margins, CITIC Bank’s profitability rose against the trend, achieving a net profit attributable to the parent company of 70.618 billion yuan in 2025, a year-on-year increase of 2.98%, breaking the 70 billion mark for the first time, leading the profitability resilience among joint-stock banks. This achievement is attributed to the synergistic effects of cost control and optimization of non-interest income, effectively countering the pressures brought by narrowing interest margins.

The effectiveness of cost control is significant, becoming an important support for profit growth. In 2025, CITIC Bank’s business and management expenses were 67.159 billion yuan, a year-on-year decrease of 3.24%. Under the operational guidance of “reducing costs and increasing efficiency,” by optimizing expense expenditures through refined management and digital operations, more resources were directed towards core businesses and services for the real economy, freeing up ample space for profit growth. Meanwhile, non-interest income continued to optimize, accelerating the transformation of the income structure. The year achieved a non-interest net income of 68.006 billion yuan, a year-on-year increase of 1.55%, with its share of operating income increasing to 32.0%; among which, net income from fees and commissions was 32.772 billion yuan, up 5.58%, with a significant increase of 45.17% in wealth management fees, and growth of 24.77% and 14.46% in agency business and settlement and clearing fees, respectively. The steady growth of non-interest income marks CITIC Bank’s departure from relying solely on interest margins, gradually forming a diversified income pattern, with profitability stability continuously improving.

Objectively, under the influence of the overall industry trend of narrowing interest margins, CITIC Bank’s net interest income still faces certain pressures. However, thanks to the multiple supports of scale growth, cost control, and provisioning, net profit has achieved positive growth, maintaining a solid fundamental position, and Guoxin Securities also commented that its “overall performance is relatively stable.”

Asset quality is the lifeline of bank operations. Against the backdrop of macroeconomic pressures and the exposure of risks in certain industries, CITIC Bank’s asset quality continues to improve, with risk management capabilities reaching a new level. By the end of 2025, the bank’s non-performing loan ratio was 1.15%, a decrease of 0.01 percentage points from the end of the previous year, consistently maintaining a low level; the proportion of loans under scrutiny was 1.62%, down 0.02 percentage points year-on-year, with the overdue rate decreasing by 7 basis points from mid-year to 1.43%. Proactive risk indicators were comprehensively optimized, providing a solid guarantee for the stability of asset quality.

Notably, the asset quality of corporate business has improved significantly, with the non-performing loan ratio for corporate loans dropping from 1.27% to 1.09%, and asset quality in key areas like manufacturing and leasing showing positive trends. This change reflects CITIC Bank’s achievements in optimizing credit structures and precisely allocating financial resources, as well as its commitment to deepening the real economy and supporting industrial upgrades. By strictly managing risks, focusing on high-quality clients, and supporting key areas of the real economy, CITIC Bank has achieved a virtuous cycle of business development and risk control, reinforcing the risk defense line for high-quality development.

In terms of shareholder returns, CITIC Bank has delivered “the most generous” report ever, sharing operational results with real cash. In 2025, total cash dividends amounted to 21.201 billion yuan, with a cash payout of 3.81 yuan per 10 shares, and the cash dividend accounted for 31.75% of net profit attributable to the parent company. Both the amount and proportion of dividends have set historical records, making them highly competitive among joint-stock banks.

Calculations show that CITIC Bank’s A-shares currently correspond to a dividend yield of 4.78% for 2025, while the H-share dividend yield reaches as high as 5.88%, presenting strong allocation appeal in the current low-interest-rate market environment. CITIC Bank Chairman Fang Heying clearly stated that the bank will “share operational results with investors through concrete actions,” and the continuously increasing dividend ratio and stable dividend yield demonstrate the bank’s sincerity towards long-term investors, reflecting management’s confidence in future operational development.

In 2025, CITIC Bank will focus on the “five major articles” of finance as its core task, precisely allocating financial resources to key areas in the construction of a modern economic system. Loans in five key areas all achieved double-digit growth, outpacing the overall loan growth rate of 2.48%, and the quality and efficiency of service to the real economy were comprehensively improved.

In the field of financial technology, the balance of technology loans surpassed 1.07 trillion yuan, with an increase of 14.75%, building a full lifecycle service system to support CITIC Group in achieving nationwide coverage for national specialized and innovative manufacturing champion enterprises; in the field of green finance, the balance of green loans exceeded 750 billion yuan, with an increase of 24.83%, launching the “Xintan Tong” service platform, with green bond underwriting scale increasing by over 60% year-on-year; in the field of inclusive finance, the balance of loans to inclusive small and micro enterprises reached 644.306 billion yuan, with an increase of 7.42%, through products like “CITIC Easy Loan” to focus on service delivery and solve financing difficulties for small and micro enterprises; in the field of pension finance, loans to the pension industry grew by more than double, and the number of personal pension accounts opened increased by over 34%; in the field of digital finance, the balance of loans to the core industries of the digital economy reached 246.782 billion yuan, with an increase of 18.92%, implementing over 120 intelligent application scenarios, leveraging intelligent models to increase efficiency by over 17,000 person-years. Comprehensive and multi-level financial services not only fulfill the mission of state-owned financial enterprises but also open up broad spaces for their own development.

Standing at the new starting point of ten trillion, CITIC Bank’s development logic is shifting from “scale-driven” to “quality-driven.” Nankai University finance professor Tian Lihui pointed out that trillion-level joint-stock banks need to rely on nationwide networks and comprehensive licenses to build moats in high value-added areas such as wealth management, investment banking, and financial technology, creating comprehensive financial service providers. CITIC Bank Chairman Fang Heying also emphasized that the bank will leverage the core functions of state-owned financial enterprises, balancing environmental, social, and economic benefits, and becoming a multi-faceted value creator.

Institutions hold an optimistic view of CITIC Bank’s future development. Guoxin Securities expects the bank’s net profit attributable to the parent company to reach 72.7 billion yuan and 75 billion yuan in 2026-2027, with year-on-year growth rates of 3.0% and 3.1%, respectively, maintaining an “outperforming the market” rating. For investors, an A-share dividend yield of over 4.7%, a continuously increasing dividend ratio, combined with solid operational fundamentals and a clear strategic direction, demonstrate CITIC Bank’s long-term allocation value amidst cyclical fluctuations.

From crossing the threshold of ten trillion in scale to breaking through 70 billion in profits, from optimizing asset quality to enhancing shareholder returns, from deepening the real economy to strategic transformation, CITIC Bank’s 2025 annual report delivers an excellent response of steady progress and quality improvement. On the new journey of high-quality development in the banking industry, CITIC Bank is forging a balanced and sustainable development path with strategic determination, operational resilience, and innovative vitality, providing a quality model for industry transformation and injecting stronger financial momentum into the development of the real economy.