Industrial Bank's revenue is supported by non-interest income; its executives detail their "maneuvering skills" under net interest margin pressure and will continue to strengthen technology and green finance.

Cailianpress, March 27 (Reporter Liang Kezhi). Today, Industrial Bank held its 2025 annual performance briefing in Shanghai. Management said that, in an industry environment characterized by “low interest rates, low net interest margins, high risk, and strong regulation,” the bank made steady progress, achieved a bottoming-out and rebound in full-year operating performance, and successfully navigated out of a “smile curve.”

Data show that Industrial Bank’s full-year operating revenue grew 0.24% year over year, and its net profit grew 0.34% year over year; the growth rate further expanded compared with the first three quarters, maintaining positive growth for two consecutive years.

Industrial Bank Chairman Lü Jiajin said at the briefing that last year the bank fully served the real economy, with assets developing in a sound and steady manner. Overall, operating results were better than expected, outperforming the broader market.

Net interest margin held at 1.71%, with non-interest income growing positively

In 2025, Industrial Bank’s net interest income on a year-over-year basis grew 0.44%, marking its third consecutive year of positive growth. This was mainly driven by a reasonable growth in its interest-earning asset scale and an effective reduction in funding costs. Total deposits were 5.93 trillion yuan, up 397.3 billion yuan from the beginning of the year. Retail deposits exceeded 1.8 trillion yuan. The share of low-cost settlement deposits increased, and funding costs declined effectively.

Specifically, the deposit interest expense rate and the interest expense rate on interbank deposits decreased by 33 BPs and 59 BPs, respectively, year over year, and the net interest margin ultimately held at 1.71%.

In addition, non-interest income became a key support for Industrial Bank’s revenue last year. Full-year net fee and commission income grew 7.45% year over year. Within wealth sales and custody business, fee income growth was 3.49% and 5.35%, respectively; other non-interest income’s share rose steadily to 18%, up by 7 percentage points over the past five years.

At the briefing, a relevant person in charge of Industrial Bank said that last year the bank mainly strengthened cross-group coordination among “a big investment banking, big asset management, and big wealth management” to achieve a bottoming-out and rebound in intermediate income such as fees.

Asset quality improved; key risk exposures continued to be reduced

In terms of risk prevention and control, Industrial Bank’s risk cost in 2025 fell from a high level. The year-over-year decline in impairment provisioning was 4.26%, and the peak of newly originated non-performing loans had already passed. For the full year, the bank handled write-offs, case closures, and recoveries totaling 16.2 billion yuan, exceeding 10 billion yuan for five consecutive years, continuing to feed into growth in profits.

Asset quality remained generally stable. As of end-2025, Industrial Bank’s non-performing loan ratio was 1.08%, unchanged from mid-year and the third quarter; the loan watchlist ratio was 1.69%, down 0.02 percentage points from the beginning of the year; and the overdue loan ratio was 1.49%, down 0.1 percentage points from the beginning of the year.

Regarding risk disposal in key areas drawing market attention, last year in the real estate sector, Industrial Bank’s corporate financing balance decreased by 53.3 billion yuan from the beginning of the year, and newly originated non-performing loans declined year over year. The balance of local government financing platform business fell by 46.643 billion yuan. Through refinancing and replacement with special bonds, the bank cumulatively reduced exposures by 35.8 billion yuan and reversed impairments of nearly 1.7 billion yuan. Credit card non-performing loan rate and overdue rate fell by 0.29 and 0.08 percentage points, respectively, from the beginning of the year, and the retail loan non-performing loan ratio was 0.88%.

Business structure further strengthened technology, green finance

In 2025, Industrial Bank’s asset-liability structure continued to be optimized. At year-end, the bank’s total loan balance was 5.95 trillion yuan, up 229.1 billion yuan from the beginning of the year. Green, technology, and manufacturing loans increased by 19.05%, 18.47%, and 15.10%, respectively. Asset allocation tilted toward key areas of the real economy.

A relevant person in charge of Industrial Bank said at the briefing that the establishment of AIC will help the development of technology finance. In actual operations, it can still’t neglect balancing risks and returns for technology companies. Next, the bank will strengthen internal cross-group coordination to serve technology companies, build and optimize a product system for “equity, bonds, and loans,” and integrate external resources such as governments, universities, and research institutions to provide customers with diversified services.

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Responsible editor: Wang Xinru