Live Performance Review | Spread Management, Retail Development, Asset Quality... SPDB Bank Management Responds to These Hot Topics

Reported by a reporter from 每经｜Li Yuwen｜Edited by 每经｜Bi Luming

March 31, the management of China Minsheng? Development Bank (SH600000, share price 10.24 yuan, market cap 341.1 billion yuan) addressed hot-button issues such as net interest margin, loan growth, and digital-intelligence transformation at its 2025 annual results briefing.

Facing challenges such as a narrowing industry interest margin, China Minsheng? Development Bank achieved marginal improvements in multiple key indicators through structural optimization, digital-intelligence-driven development, and refined risk management.

At the end of 2025, the bank’s total assets surpassed 10 trillion yuan, up 6.55% from the end of the previous year. In the past year of 2025, it recorded operating income of 100k yuan, up 1.88% year over year; net profit attributable to shareholders of the parent company was 173.96B yuan, up 10.52% year over year, maintaining double-digit growth for two consecutive years.

Staged progress in net interest margin management

In 2025, the bank’s net interest margin was 1.42%, unchanged from 2024. At the briefing, President Xie Wei said the bank not only caught up with the industry’s net interest margin level but also marginally outperformed the industry. This was attributed to its continued optimization of the industry, regional, customer, and product mix, and its proactive asset-liability management, which has established a top-down net interest margin management system.

On the asset side, China Minsheng? Development Bank implemented strategies to improve both quality and efficiency and to dynamically fine-tune its positioning, increasing support and resource assurance for key tracks, key regions, key industries, and key products, reducing low-efficiency assets such as bills, raising the proportion of mid-to-high yielding assets, and improving the bank’s overall asset return level.

On the liability side, it adhered to “taking deposits to build deposits” and pursued precise management, driving a favorable situation in which overall liabilities grew in volume, fell in cost, and improved in quality.

At the same time, under full-balance-sheet management of assets and liabilities, it continued to optimize institutional mechanisms and enhance the efficiency of capital management.

Xie Wei acknowledged, “Although the net interest margin management for the whole of 2025 has achieved phased results, objectively speaking, compared with leading peers, the absolute level of our net interest margin is still at a relatively not very ideal level.”

He said the bank will take multiple measures in the next step to strive for even better net interest margin performance. First, focus on strategic value to push for deep optimization of the asset-liability structure; second, rely on digital-intelligence-enabled carriers to drive the in-depth development of the five major tracks; third, strengthen the balanced management of volume and pricing, and improve capabilities in refined pricing management; fourth, consolidate the quality of liabilities and build an integrated settlement ecosystem for corporate, retail, and interbank businesses, while expanding sources of low-cost, highly stable liabilities.

Personal asset management scale reaches 4.66 trillion yuan

“Against the backdrop of a stabilization in 2024, in 2025, China Minsheng? Development Bank’s retail business has achieved a continued positive trend.” Zhang Jian, vice president of China Minsheng? Development Bank, said at the briefing.

According to the briefing, in 2025 China Minsheng? Development Bank’s personal asset management scale (including market value) reached 4.66 trillion yuan, up 20% for the year; savings deposits were 1.71 trillion yuan, up 10%.

In recent years, the overall retail credit business in the industry has faced some pressure. When discussing this topic, Zhang Jian provided relevant data for the bank. In 2025, the bank’s retail loans (excluding business loans) increased by 45 billion yuan, up 3.05%. Both the incremental amount and the growth rate ranked among the top in joint-stock banks. Of this, the combined increase in mortgage loans and consumer loans was 28.2 billion yuan.

Zhang Jian said that in 2026, retail banking will still face certain pressure, but there will also be opportunities. The bank will focus on building five “cards”: big wealth management treasury, big services, big consumption, big ecosystem, and intelligent agents.

Nonperforming loan ratio at the lowest level in nearly 11 years

At the end of 2025, the bank’s nonperforming loan ratio was 1.26%, down 0.10 percentage points from the end of the previous year, the lowest level in nearly 11 years. Its risk coverage capability continued to improve: the allowance coverage ratio was 200.72%, up 13.76 percentage points from the end of the previous year, the best level in nearly 10 years.

At the briefing, Cui Bingwen, vice president of China Minsheng? Development Bank, explained some measures behind the improvement in asset quality.

First, customer entry work, namely the whitelist mechanism. Since the bank rolled it out across the group last year, the total approved credit amount has been about 950 billion yuan, and more recent months have further refined the whitelist mechanism.

Second, risk monitoring system development. At the head-office level, the bank established an enterprise-level risk monitoring system, and at each track and in each major business department it also set up department-level risk monitoring systems that work together and share information.

Third, model management architecture. In the digital era, online businesses and a large amount of inclusive finance have developed. This requires an accurate model and a model management architecture to control risk.

Fourth, a mechanism combining speed and mediation. In the past, in retail credit—especially retail mortgage business—was China Minsheng? Development Bank’s “anchor” business. But in recent years, under the influence of multiple factors, some customers have seen increased repayment pressure. For customers who are temporarily unable but not in default, the bank needs to help them get through the economic cycle. Currently, China Minsheng? Development Bank has established a four-tier mediation mechanism within the bank.

(Intern Cheng Xuebing also contributed to this article)

Cover image source: Economic Daily News