Decoding ICBC's 2025 "Report Card": Steady Improvement in Operating Efficiency and Quality, Further Strengthening of Profitability Resilience

China Financial Network, March 28 - Yesterday, the Industrial and Commercial Bank of China (ICBC) released its 2025 annual report and held an industry performance press conference. ICBC President Liu Jun attended with senior management to provide detailed responses regarding performance, credit allocation, asset quality, capital replenishment, and dividend arrangements.

“In the face of a complex and changing external environment, ICBC has always adhered to serving the real economy while continuously improving its operational quality and efficiency, with indicators in revenue, profit, structure, and quality showing positive changes,” Liu Jun stated, emphasizing that the bank has not relaxed its pursuit of efficiency and quality due to its large scale.

The annual report shows that by the end of 2025, ICBC Group’s total assets reached 53.48 trillion yuan, an increase of 9.5% compared to the end of the previous year; customer deposits were 37.31 trillion yuan, up 7.1% year-on-year; total loans were 30.51 trillion yuan, an increase of 7.5%; operating income was 801.395 billion yuan, up 1.9% from the previous year; net profit was 370.766 billion yuan, an increase of 1.0%; and the average return on total assets (ROA) and weighted average return on equity (ROE) were 0.72% and 9.45%, respectively.

All Core Efficiency Indicators Achieved Positive Growth

“Operating efficiency has steadily improved, and profit resilience has further strengthened,” Liu Jun summarized the bank’s performance for 2025 at the press conference. He noted that in 2025, core efficiency indicators such as operating income, net fee and commission income, profit before provisions, and net profit all achieved positive growth, maintaining a leading position in the industry for total profits. “Achieving such net growth targets in a macroeconomic environment, particularly with narrowing interest spreads, is quite challenging.”

Liu Jun pointed out that structurally, net interest income continued to serve as the revenue foundation and remained highly aligned with the social financing structure, which is primarily based on indirect financing. The net interest margin for 2025 was 1.28%, a decrease of 14 basis points from the start of the year, but the decline narrowed quarter by quarter, showing signs of stabilization. Net fee and commission income was 111.2 billion yuan, a year-on-year increase of 1.6%, reversing the previous negative growth trend. Other non-interest income totaled 55.3 billion yuan, a year-on-year increase of 40.7%, providing strong support for revenue growth. The stability, balance, and sustainability of profit growth were further enhanced.

In terms of scale, by 2025, ICBC Group’s total assets reached 53.48 trillion yuan, becoming the first bank in the world to surpass 50 trillion yuan. Domestic RMB loans increased by 2.17 trillion yuan from the beginning of the year to 29.2 trillion yuan, an increase of 8%.

As the main channel for the transmission of national macroeconomic policy, the credit allocation situation of state-owned banks has always attracted market attention. Liu Jun stated that while leading in total volume, ICBC also focuses more on optimizing the structure and pace of lending, achieving a loan balance of 67%, an increase of 3.6 percentage points year-on-year; key sectors such as manufacturing, strategic emerging industries, green finance, and inclusive finance maintained rapid growth, effectively playing the role of state-owned banks as the main force serving the real economy.

Regarding modernization, Tian Fenglin, Secretary of the Board and Senior Business Director of ICBC, stated at the press conference that ICBC adheres to its primary responsibilities and professional characteristics, actively supporting national major strategies, key areas, and weak links, providing proactive services for “two responsibilities” and “two new” initiatives, and more effectively serving and promoting high-quality development. The balance of manufacturing loans was 5.24 trillion yuan, with a balance of medium- and long-term loans at 2.38 trillion yuan, equipment renewal loans exceeding 150 billion yuan, RMB public settlement amounting to 22.48 trillion yuan, trade financing balance at 1 trillion yuan, and merchant acquisition transaction volume at 28.5 trillion yuan.

In terms of refining and deepening financial “five major initiatives,” Tian Fenglin pointed out that as of the end of 2025, the balance of ICBC’s technology loans was 6 trillion yuan, with a growth rate of 19.9%; green loan balance was 6.7 trillion yuan, with a growth rate of 19.1%, maintaining the top position in the industry; inclusive loan balance was 3.6 trillion yuan, with a growth rate of 22.8%; various pension management scales reached 5.9 trillion yuan, with a growth rate of 18.5%; and loans for core industries of the digital economy exceeded 1 trillion yuan, with a growth rate of 20.4%.

High-Quality Risk Control to Face Market Changes

Revenue growth determines how fast a bank can “run,” while asset quality determines how far it can “go.” The annual report shows that by the end of 2025, ICBC’s non-performing loan (NPL) ratio was 1.31%, a decrease of 0.03 percentage points from the end of the previous year; the provision coverage ratio was 213.60%, down 1.31 percentage points year-on-year.

By the end of 2025, the balance of corporate non-performing loans at ICBC was 256.676 billion yuan, a decrease of 19.955 billion yuan from the end of the previous year, with an NPL ratio of 1.36%, down 0.22 percentage points. Personal non-performing loans totaled 142.337 billion yuan, an increase of 39.51 billion yuan, with an NPL ratio of 1.58%, up 0.43 percentage points.

Regarding the asset quality of inclusive and personal credit, ICBC Vice President Wang Jingwu stated at the press conference that the asset quality control pressure in the inclusive and personal loan sectors has increased, a common issue across the industry. ICBC continues to firmly maintain the bottom line and actively and prudently prevent and resolve risks. In terms of inclusive loans, ICBC has continuously strengthened the foundation of risk control in recent years, combining digital risk control with expert management, continuously optimizing risk control strategies and mechanisms; using intelligent and centralized methods to enhance the foresight of risk control and the precision of risk monitoring and early warning; timely identifying external risk characteristics, strengthening model iteration, and enhancing collateral management; and employing multiple measures to continuously improve the quality and efficiency of risk resolution for inclusive loans. These risk control measures lay a solid foundation for maintaining comparable asset quality in inclusive loans across the industry.

Regarding personal loans, Wang Jingwu stated that the asset quality of ICBC’s personal loans has always been relatively good. In recent years, affected by multiple factors such as economic transformation and growth, adjustments in the real estate market, and imbalances in supply and demand, the NPL rate has temporarily entered an upward channel, consistent with the trend across the industry. However, the solid economic foundation, strong resilience, and great potential in China have not changed the long-term supportive conditions and basic trends, and the risks of personal loans are controllable in the future.

Wang Jingwu pointed out that from the policy perspective, in 2025, multiple ministries, including the Ministry of Finance, the People’s Bank of China, and the Financial Regulatory Administration, introduced various consumer-promoting policies such as trade-in for consumer goods and fiscal subsidies for personal consumption loans. The “14th Five-Year Plan” outlined the goal to “vigorously boost consumption” and for the first time included “significantly increase the resident consumption rate” as a major target for economic and social development. With the accelerated implementation of a package of policies and the continuous release of policy dividends, the market foundation for personal credit will gradually improve, and the asset quality of personal loans will also return to a reasonable level.

Wang Jingwu stated that in response to market changes, ICBC has made corresponding adjustments in its internal structure and functions, establishing a personal loan business department to achieve centralized and specialized personal loan operations, further enhancing operational levels. At the same time, it strengthens digital empowerment, enriches product innovation and supply in personal consumption and business fields, balances development and safety, focuses on resolving various risk hidden dangers, and effectively manages the disposal of non-performing assets. With the collective efforts of the three lines of defense working together, the upward trend of deteriorating personal loans has shown signs of slowing.

“Since the 14th Five-Year Plan, the group’s NPL ratio has continuously maintained an improvement of no less than two basis points each year. By the end of 2025, the group’s NPL ratio was 1.31%, down 3 basis points from the beginning of the year, achieving a successful conclusion to the asset quality management work of the 14th Five-Year Plan,” Wang Jingwu stated at the press conference. ICBC will always respond to market changes with unwavering high-quality risk control, ensuring the stability of the group’s asset quality.

Providing Stable and Sustainable Investment Returns

The annual report shows that as of the end of 2025, ICBC’s capital adequacy ratio was 18.76%, the Tier 1 capital adequacy ratio was 14.94%, and the core Tier 1 capital adequacy ratio was 13.57%, all operating steadily within reasonable ranges; the TLAC risk-weighted ratio was 21.47%, and the TLAC leverage ratio was 10.79%, both meeting regulatory requirements.

Tian Fenglin stated that ICBC has always attached great importance to capital management, with capital indicators consistently at a relatively high level in the industry. In 2025, ICBC implemented the new capital regulation requirements, continuously enhancing the quality and efficiency of capital management based on a balanced approach of “value creation, market position, risk control, and capital constraints.” In 2025, the bank supplemented its core Tier 1 capital by 246.9 billion yuan through retained earnings; completed the issuance of 230 billion yuan in capital instruments and 10 billion yuan in TLAC bonds, with the cost of existing instruments decreasing by 42 basis points. A normal capital constraint mechanism was established. Through the formulation of a “1+N” capital management plan, optimization of the EVA management model, and evaluation of capital use in overseas institutions and comprehensive subsidiaries, the efficiency of capital utilization across the group has been continuously improved.

At the press conference, Tian Fenglin also introduced ICBC’s dividend situation for 2025. In 2025, the bank is expected to distribute a total cash dividend of 110.6 billion yuan, of which 50.4 billion yuan has already been distributed as an interim dividend, with an additional year-end dividend of 60.2 billion yuan to be arranged after fulfilling corporate governance procedures. Based on the average stock price for the year, the dividend yields for A-shares and H-shares are 4.22% and 5.99%, respectively.

“The operational development has taken a different curve, which gives us more confidence and strength to share the fruits of value creation with our shareholders, providing stable and sustainable investment returns,” Liu Jun stated. If we can steadily achieve a level of comprehensive returns that exceeds the average in each year, then ICBC will undoubtedly be a “stabilizer” in the capital market.

Liu Jun further stated that ICBC has the most capital among banks worldwide, with the largest capital base, and any changes in capital will serve as a barometer for the market. ICBC will further scientifically quantify capital planning, turning its capital planning into a dynamic rolling process that integrates capital utilization, capital raising, and both internal and external capital replenishment in response to market demands. At the same time, it will further strengthen all aspects of revenue generation, ensuring ICBC thickens its financial foundation, guarantees capital replenishment, and gives back to the market, walking strongly on “two legs.”

“Our entire capital dividend arrangements, capital plans, and dividend distributions will be dynamically adjusted according to the market for the long-term sustainable and healthy development of the capital market. If our adjustments lead to a healthier and more sustainable market development, ICBC will undoubtedly play a model role, contributing to the better development of our capital market,” Liu Jun stated.

(责任编辑：董萍萍)

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