Le chiffre d'affaires revient à la normale, mais le bénéfice net continue de diminuer, la direction de Minsheng Bank discute de la gestion des risques dans les domaines clés

Source : Blue Whale Finance

Blue Whale News, March 31st (Reporter Yan Qinwen) After years of decline, Minsheng Bank (600016.SH, 1988.HK) turned to positive growth in operating income by 2025.

Minsheng Bank’s annual report shows that in 2025, the bank achieved operating income of 142.865 billion yuan, a year-on-year increase of 4.82%. Previously, from 2021 to 2024, revenue was all negative growth.

Although revenue has turned positive, Minsheng Bank’s net profit attributable to shareholders still declined: in 2025, it was 30.563 billion yuan, a decrease of 1.733 billion yuan year-on-year, a decline of 5.37%. However, compared to the 9.85% decline last year, the decrease in 2025 has narrowed.

At the performance exchange meeting held on March 31st, Minsheng Bank President Wang Xiaoyong explained that due to increased disposal of non-performing assets and provisioning last year, profits actually declined despite revenue growth.

Non-interest income contributed significantly to Minsheng Bank’s revenue growth. During the reporting period, the bank achieved non-interest net income of 42.739 billion yuan, an increase of 5.139 billion yuan year-on-year, a growth of 13.67%; among them, other non-interest net income was 24.418 billion yuan, an increase of 5.063 billion yuan, a growth of 26.16%.

This was mainly due to bond trading and other transactions. Minsheng Bank stated in its annual report, “This is mainly because the group seized market opportunities, increased bond and other trading activities in a timely manner, and benefited from price fluctuations in the capital market, resulting in good growth in other non-interest income.”

In 2025, Minsheng Bank’s net interest income also increased: 100.126 billion yuan, an increase of 1.436 billion yuan year-on-year, a growth of 1.46%.

Minsheng Bank said that the year-on-year growth of net interest income benefited from scale expansion and stable net interest margin. As of the end of 2025, the bank’s net interest margin was 1.40%, an increase of 1 basis point year-on-year.

Compared with the general narrowing of interest spreads in the industry, Minsheng Bank’s interest spread level has increased against the trend. The bank stated that this is due to continuous optimization of business structure, strict implementation of deposit self-discipline requirements, refined pricing management, and promotion of net interest margin trend improvement.

Data shows that during the reporting period, Minsheng Bank’s deposit interest payment rate was 1.74%, down 40 basis points year-on-year. The industry’s average liability cost rate was 1.81%, down 46 basis points year-on-year, with deposit and industry liability interest payment rates maintaining a downward trend each quarter.

Li Bin, Vice President and Secretary of the Board of Minsheng Bank, further explained at the performance meeting that while supporting customer financing needs, the bank increased the issuance of general loans, which accounted for 55% of total assets, up 0.9 percentage points year-on-year, and scientifically managed low-yield assets to improve asset operation efficiency.

Regarding the outlook for future interest spreads, Li Bin believes that the bank still faces challenges such as loan re-pricing, structural changes, and fierce deposit competition, but economic and industrial transformation and policy coordination also bring opportunities to the banking industry.

“By 2026, Minsheng Bank will continue to focus on basic customers, basic products, and basic services, supporting net interest income growth on the basis of volume-price balance, while paying attention to intermediary business, increasing the contribution of non-interest income, and maintaining steady growth in operating income.” Li Bin said.

The “historical baggage” accumulated in the past has made the asset quality of Minsheng Bank a focus of market attention.

Regarding risk management, Gao Yingxin, Chairman of Minsheng Bank, pointed out that in recent years, risk management and internal control have been placed at the top of priorities. “All business opportunities first prioritize risk internal control and regulatory requirements. If there are any doubts in this regard, we would rather not do it, even if there are business income and opportunities.”

As of the end of 2025, Minsheng Bank’s non-performing loans totaled 66.154 billion yuan, an increase of 5.44 billion yuan from the end of last year; the non-performing loan ratio was 1.49%, up 0.02 percentage points from the end of last year; the provision coverage ratio was 142.04%, up 0.10 percentage points from the end of last year.

At the performance meeting, Huang Hongri, Vice President of Minsheng Bank, analyzed the risk and asset quality of key areas such as real estate, financing platforms, and large retail business.

In terms of real estate business, as of the end of 2025, the non-performing loan ratio of real estate loans at Minsheng Bank was 3.61%, down 1.4 percentage points from the end of last year. Huang Hongri judged that short-term pressure still exists, but long-term trend is stable.

Regarding financing platform business, as of the end of 2025, the balance of Minsheng Bank’s financing platform business was 76.042 billion yuan, down 23% from the end of last year. “The scale of financing platform business continues to decline steadily, and overall risk is controllable,” Huang Hongri said. The next step will be to continue strictly adhering to policy red lines, closely monitor risk changes in existing businesses, and resolve debt risks of financing platforms in a prudent and orderly manner.

For the large retail sector, Huang Hongri introduced that due to external economic environment, changes in the real estate market, and fluctuations in residents’ income, the trend of Minsheng Bank’s large retail business in 2025 was consistent with the market, still in the risk release stage.

“The main pressure on risk control in the large retail sector currently comes from credit cards. I think this is also a common issue across the industry,” Huang Hongri said. To this end, Minsheng Bank will proactively adjust its business strategy, strictly control new customer entry, strengthen existing customer management, and increase collection and disposal measures to quickly stabilize the quality of large retail assets.

As of the end of 2025, Minsheng Bank’s total assets were 78.3 trillion yuan, an increase of 0.23% from the end of last year.